Making Money By Breaking All The Forex Trading Rules

When I started my trading career I attended a 3 day forex trading course which gave me a mere introduction to this great and fascinating money making activity. I was given some good advice during this course but I have since found that there are more many more ways to skin a cat than sticking to hard a fast Forex trading rules. If all traders are sticking these common trading beliefs one has to ask the question - why do so many fail?

One of the Golden rules of Forex trading I was told is - Never, but never, trade without a stoploss. I took this rule very much to heart and started trading with stops. Like most beginners my stops were way too tight and small and I got stopped out time and time again. As I gained experience and started trading the bigger price waves I started trading bigger stops. I soon realised that the bigger your stop the higher your success rate. However I also soon found out that the gains made on nine successful transactions when using big stops can very quickly be wiped out by one or two big losses. So I went through a very frustrating time when my stops were too small for my good transactions (the stops were hit and then my targets soon after) and way too big for my bad transactions (allowing big stops when the direction was totally wrong). You soon start thinking that brokers are there just to hunt your stops. This is always an emotive subject for debate amongst forex traders.

One day I started thinking the unthinkable. Why not trade without a stoploss at all? Is it possible to make money trading with no stoploss orders? I set about developing a technique to do just that. It took a few years of experimenting, but I now have a profitable no stop forex trading technique. I can't tell you the relief of not caring which way the price moves (as long as it moves). Yes, it is possible to cash on any move in the market. For more information, which is freely available, on this great technique why not Google "no stop forex trading" or visit informative sites like expert-4x.com or forextradersupportservices.com

Other rules that were worthwhile breaking in the course of developing this technique were:- "Let your profits run and cut your losses" or "Always trade in the direction of the main trend". These will be subjects of future articles which give more information on the development of the No Stop forex trading system.

This is the first in a series of seven articles on the No stop forex trading technique which will be published in this article directory on a regular basis. Make sure that you do not miss any of them.

Forex Investing - The 10 am Rule and How It Works

Sometimes it`s wise not to be the early bird when investing in forex, instead wait and see what the day will bring before you take action. The 10 A.M. rule is a great example of this concept, and is an example that protects your capital. Let`s say you want to buy a forex stock, for whatever reason; a trend play, or a market rally that you think a currently hot sector will participate in. You know that a great time to buy would be on a gap down, but the market is in rally mode and instead of gapping down, the forex stock gaps up. But buying the gap up is a bad trade. Now what do you do?

You use the 10 A.M. rule, and wait until after 10 A.M. for the right forex stock investing time to buy the stock. If the forex stock makes a new high for the day after 10 A.M., then, and only then, should you trade the stock. Of course, you will use stops to protect yourself, like you would on any trade.

Anyone who`s followed the market knows that a forex stock will often gap up early in the morning, only to suddenly sell off and reverse into negative territory. By following the 10 A.M. rule, you avoid the risk of this sudden reversal. If the forex stock does make it to a new high after 10 A.M., there is still trader interest in the forex stock, and it stands a good chance of gaining momentum and heading even higher.

Here is an example of the 10 A.M. rule on a gap up: A forex stock closes the day at $145. After hours, the company announces a two for one forex stock split. The next morning the forex stocks gaps up to open at $161. It trades as high as $166 before 10 A.M. For two hours after 10 A.M. it trades lower and doesn`t reach $166. At 2 P.M., it hits $166.50. The forex stock is now safe to buy, using the 10 A.M. rule.

Using a version of the 10 A.M. rule, you could watch for a hot sector to appear in the morning and follow the forex stocks in the sector that are up for the day. If the forex stocks are still making new highs at midday, they stand a good chance of finishing the day near their ultimate highs for the day, and could be good trading opportunities. This also applies in a down market and to stocks in forex that gap down, opening at prices lower than where they closed the previous day. In this situation, you should not short a forex stock that has gapped down unless and until it makes a new low for the day after 10 A.M.

Using the 10 A.M. rule ensures that you will never end up chasing and buying a forex stock when your chances of making a profitable trade are low. Remember, trading is all about probabilities. The more forex stock investing trades you make with a high probability of success, the more successful you will be. The 10 A.M. rule is a valuable addition to your trading plan, giving you a straightforward way to avoid making costly mistakes and to increase your number of profitable stock investing trades in forex.