Getting nowhere in trading? Try to change your trading session

If you are not getting consistent results in trading even by having a very good forex trading strategy, try to change the time you take trades. 

Yes the time at which you take trades play a very important role in winning or losing.

Volume and profit:

 The flow chart below shows you relation between volume and profit in any forex trading strategy.

When more people are trading a particular currency pair there will be an increase in its volume. Increased volume will always result in strong movements in price of that pair and strong movements surely means more pips. If you can identify to which direction the price is havingstrong movement you can ensure more profit.

For each and every currency pair the volume is different at different times of a financial day.

Are you Trading Breakout?

The most commonly used forex trading strategy is breakout trading. A large number of traders use this method as their entry mechanism. With proper money management and risk control breakout trading can be profitable.

What is a breakout?

 A breakout is a movement/Break of price from a major level. The level can be a major support or resistance (line or zone) or a trend line etc.

How to identify a Breakout?

• Breakout can be a reversal or continuation of trend:

We can see a breakout from a major support line which usually indicates a reversal of the current trend. But in some cases if the current trend is really strong, the breakout will be in the direction of the trend.

Breakout from Range

 See the above chart. Price has been ranging from January 2012 till may 2012. On May 2012 the support line was penetrated and the candle closed below support level. This is  called breakout ( see the yellow encircled portion).