Of physics. Lovers of the nerd and can be occasional weirdo?
Well, I have news for you! If you are a trader, the physical could make a lot of money and you do not have for the study of black holes and string theory to reach your goal.
Just think of the Time and Gravity.
Easy these be his friend. The study of these two and you are home free. What makes the time and the severity has to do with the trade that mean? Have you ever heard of “the trend is your friend until the end”? The use of the physical, you have that, then apply Newton’s Law of Motion – which says that an object remains in motion until it is stopped by a greater force of opposition.
Then, if the trend is to keep buying until you can’t buy. And if the trend is down, you have to keep selling until you can no longer sell. To be successful in forex trading, you have to know the trend and trade accordingly. When you trade with the trend, at the same Time, it then becomes your ally. You can enter at a bad price and the time will probably bail you out and make you profitable if you understood how it works.
In the first place, many of traders jump in the market, regardless of the conditions. Enter a dead market with no volatility and to enter a volatile market against the trend; big mistake!!!
A bigger mistake is that they often set tight stops, that sure comes out!
This is the lesson to draw from this article. Be slow to take profits when you trade with the trend and be quick to take profits when the trade against the trend.
The reason for this? Time.
The passage of time is favorable to the trend trader, and a murderer in two of the counter-trend trader.
Take the following steps:
1. Plot a Simple moving average of 49 in the chart
2. When the price crosses to the upside, the trend is upwards and downwards, down
3. Buy when the trend is bullish. Not sold
4. Sell when the trend is down. Do not buy
5. Attempt counter-trend trades only after the price has made an overweight to flee out of the 49 MA.
In the GBP/USD I wait for about 100-120 pips before attempting a counter-trend trade.
The 49 MA is a special MA with a peculiar behavior that you can learn to exploit.
To learn more about my techniques, please visit [http://learnforexoption.com] and go to the Sample Lesson tab.