ForexGen | a Simple Route to Forex Profits

If you want to get started in currency trading, currency swing trading is ideal. Here is a simple, easy to understand swing trading system to help you trade currencies for profit.

Swing trading is based on sound logic, unlike forex scalping or day trading which is the route a huge amount of traders go and lose.

Forex day trading and scalping doesn't work, because volatility in short term time frames is random, so you can never get the odds on your side.

Currency swing trading though involves using valid data of around 2 - 7 days which is valid and is based on the following logic.

Markets move to the following equation.

Fundamentals + Trader Perception of = Price

It's not the facts that are important; it's how traders perceive them that is.

Traders will always push prices to far away from the fundamentals, when greed and fear take hold.

Prices then become overbought and oversold in the short term and by executing trading signals against these overbought and oversold levels, the trader can make a profit, as prices return to more realistic levels which are in line with the fundamentals.

These price spikes are easy to see on a forex chart.

The trader can use the following method to take advantage of opportunities.

1. Look for a price spike
You are looking for price spikes, that make the market overbought or oversold in the short term and look for a level you think will hold.

2. Use Momentum Oscillators

These will show you when short term prices are overbought or oversold.

We have discussed them fully in our other articles. Some excellent ones to use are - the stochastic, RSI, ADX AND MACD.

These are visual indicators and you don't need to know the calculation, just look at the visual set up.

When currencies become over bought or oversold, you look for a price change in the opposite direction, supported by momentum changing in the direction you wish to trade.

3. Stop and Target

When you get the chance to execute your trading signal, put your stop behind the area of support or resistance you are trading into.

You then need to look to take your profit early if the price moves your way and do it, just before it reaches an important level in the other direction.

You should always take your profit early, before other traders do, as this keeps the odds in your favour.

The above is simple to do and can make big profits.

Currency swing trading is ideal for novices, as it's easy to understand, you get plenty of action and of course, it can be very profitable.

ForexGen Trading

The Foreign Exchange currency market is known as FX. It is the simultaneous buying of one currency and selling another, currencies are traded and exchanged in pairs. Traders are all unified on one goal, making profit. Profits are produced when the prices move in the trader direction.

In the past, Forex markets were accessed only by larger financial institutes, investment banks, large multinational companies, global money managers, international currency dealers, and liquidity providers. Lately, online trading is offering trading platforms for each individual who wants to trade currencies in order to gain profit.