23 Feb 2008 03:21:11 | Forex2u.com
The essence of the FX2u Forex strategy is that it does not have
any Forex trading system but could forecast the market trend
accurately.
Every set of Forex trading system available has its
disadvantages. The market trend could not be forecasted. If the
market could be forecasted, by depending on the RSI, PAR, MOM
analysis techniques and some other theories, Forex traders could
easily make a fortune.
Many Forex traders could not obtain the anticipated outcome by
using these analysis tools, and suffer huge losses. The main
reason is relying on some imperfect tools to forecast the
unpredictable market trend is just a waste of effort. Therefore
the FX2u Forex strategy spirit is to abolish the entire
subjective analysis tool.
To survive in the market is to follow the market trend,
following the market trend is the essence of the FX2u Forex
strategy. By using the opposite theory to enter the market, will
only lead to lost. The reason is that if the market rises, it
may continue to rise. If the market drops, it may continue to
drop. No one is able to forecast when the market trend will
stop.
By following the market trend, the market risk could be reduce
to the lowest, the FX2u Forex strategy will advance the
following the ten principles:
fully understand the how market function and the market trend,
else don’t trade
After entering the market, the Forex trader MUST immediately put
a market stop.
If the stop order has been hit it MUST be executed immediately,
NEVER make changes by lowering the stop order price.
If the forecast is wrong, Forex traders should leave the market
immediately, then analyze again.
If the forecast is wrong, Forex traders should stop loss and
should not increase trading.
Forex traders should admit mistakes, do not continuously make
mistakes.
All analysis tools are imperfect, mistakes could always occur.
If the market rises Forex traders should buy, if the market
drops Forex traders should sell, always follow the market trend.
Forex traders should not forecast the market price because such
forecast will not be as easy as forecasting the market trend.
If the forecast is wrong, once the loss reach 10%, Forex traders
must stop loss immediately, do not let it surpasses 10%,
otherwise it would be difficult to recoup the capital again.
aLvinHan is the editor of www.forex2u.com
http://www.forex2u.com/fx2u-forex-strategy.html
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