Trade Timing

Trade Timing - It's Everything

Trade timing is a skill we all have to strive to improve as currency traders. A fundamental fact of successful investing is money is made by being correct with market timing.

If you believe that prices are going to rise, you will be correct. If you believe that they will go down, you will also be right. The trick is to know when!

Eventually You Wll be Proven Right

Up or down, eventually the market will cover both scenarios, given enough time. Our goal is to determine which way the market is likely to be moving now.

If you are planning to invest a certain amount into a position, the safest way is to put only a small portion into the trade at first. If your instinct is correct, put some more into the position if the price continues to move in your direction.

Don't just back up the truck and unload everything into a position right from the start. Easing into your trades is a much safer strategy.

Higher Highs - Lower Lows

One strategy for entry into a position is to enter once price makes a higher high or a lower low than a recent resistance or support level. This is a momentum style trade.

Trend followers will wait for their moving averages to signal the trend is likely moving in their favor.

Either way, the key to success in Forex trading is to keep your leverage low enough that you can weather a move against your position, if your timing is a little off.

Wishing you trading success,
David Stevenson.

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