My Forex Funnel Review

Many traders like to buy dips to support or sell into resistance but this simply ensures they lose.

This FOREX trading tips is all about using leading indicators to confirm a move, rather than simply assuming support and resistance will hold.

Let’s look at it in more detail.

Buying Into Support and Sell Into Resistance.

You hear this tip all the time, but it doesn’t make money.

It is based on the old saying “buy low sell high” which is another phrase that won’t make you money.

If you buy into support or sell into resistance then the logic is that you will have low risk and high reward if the levels hold.

The important word here is “if”

If you trade FOREX then you don’t want to rely on “if” and hope – you want indicators that will increase the odds of these levels holding and your chances of making a profit.

If a price is speeding toward support or resistance then it will break as often as it holds, you therefore need to watch for changes in price momentum and that’s where leading indicators can help.

Getting the odds in your favor

If you want to buy support and sell resistance and get the odds in your favor do use the following FOREX tip.

You can use lagging indicators as well as trend lines in FX trading to denote areas of support and resistance and the ones we like are:

Bollinger bands and moving averages.

These indicaotrs like trend lines should NOT be used to enter trades.

When buying dips to support or into selling resistance, you want confirmation that the levels are going to hold - before prices reach these levels you want confirmation of the turn in advance.

When price momentum turns above support or below resistance you can enter with increased odds of success.

The best timing indicator by far is the stochastic.

Look it up and learn all about it as it’s a great under used tool.

Another great indicator is the Relative strength Index RSI.

Combine the two and watch for confirmation on both and you have a powerful combination you can use to increase your odds of success.

They will give advance warning of a change in price momentum at support and resistance and when they turn in your favor you can enter the trade.

You don’t predict with the above.

You act on confirmation and this will increase the odds dramatically in your favor and increase your overall profitability.

This FOREX tip is obvious, but it’s surprising how many traders simply hope a level holds rather than looking for confirmation

Don’t make the same mistake always act on confirmation when trading FOREX.

Is Forex Trading for everyone?

There are many ways of investing money in order to make profits. Forex, or the exchanging of foreign currencies, is one of those markets and it is also the largest one, because of its sheer volume and never-ending trading. Before investing money with a broker, you should ask yourself is Forex trading for everyone? The answer is no, it is not for everyone and that for a number of reasons.

For one Forex is considered day trading. That means you will have to constantly be up to date with trends, happenings, price fluctuations and also be ready to buy and sell at any given time. This is very time consuming, so if you only want to check up on your investments once on the weekends, then the foreign currency exchange is not the right way to go. On the other hand, if you have time and feel like keeping up with your trades like it was a full time job, then Forex trading is perfect for you.

In order to make profits in Forex trading you will also have to know about software, technical analysis and have a feel for trends. This is not easy to learn for someone new to the trading market, so it might be best to practice with some low or medium risk trades before attempting the Forex market. Experience goes a long way when trading currencies. This also means that discipline is essential, so if you are not taking trading very seriously and only want a secure and easy investment that doesn’t require a lot of time and attention, then Forex is not the thing for you.

Forex trading may bring you in great profits, but you also may lose all of your money. Since trading is done daily, you shouldn’t expect to become rich overnight and especially not if you are new to this type of trading. If you want a way of investing that will bring you in more guaranteed extra income, then try a stock or commodity that is stable. The Forex market is not stable and for the most part, many lose money and don’t make any. It is more of a gamble so be forewarned.

After thinking of all these aspects, you can determine if whether or not is Forex trading for everyone.