Anna Hanz’s Forex Blog

Forex trading – the maker of instant millionaires. Many men and women have been attracted to the possibilities that forex trading has to offer – you and I are no exception. While the rags-to-riches stories spark the imagination of wealth builders, like you and me, there is the other side of the coin; the side that is facing down where many have burned as they see their investment crash. The sad truth of it all is you can consistently reap benefits from forex – provided you are consistently applying basic principles and using the right trading indicator.

Let’s explore this a bit.

Enemies of success are fear and greed. Have either one and you are already halfway to failure. No system has been created to override these intrinsic human emotions. Usually they get the best of the system. When you enter the market, always know your destination and have a plan. Once you’re in, stick to it. Hold it close and never lose it no matter how sweet the songs of the sirens are. When you need to exit, exit immediately. Do not wait. Your hesitation can and will make you see red. With this in place, the next indispensible tool you need is a Forex trading indicator.

One Forex trading indicator that has helped me achieve my current success is the Relative Strength Indicator (RSI). Using this tool, you get to measure when a currency is overbought or oversold.

“Why is this important?”

The higher they go, the harder they fall. Simple common sense. When the readings are beyond 10 or 90, you – the forex trader – should simply look to get in the opposite trade. I’ll spare the technical nonsense for you, but it’s actually easy. In this event, you should do these two things:-

1. Use the 200 day moving average for confirmation;
2. Have a good piece of forex trading software at your disposal. To use the same one I’m using, click the link at the bottom of this page.

Good Hunting!

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Tags: forex software, forex trading tips