The five steps required to navigate the forex market with consistent earnings

The goal of achieving consistent forex earnings is a long and often confusing process. With a new flow of information that has no end, sometimes what you need is to return to the fundamental principles.

This is why we have decided to place five steps that will help you establish a strong foundation for success.

1. Choose your currency pairs
2. Prepare your graphics
3. Explore in search of favorable setups
4. Place the operation
5. Track your results

Forex Weekly Seasonality Strategy

The seasonality of the Forex Market is a neglected aspect of the operation with legitimized uses on the part of the operators of speculation, and this article tries to highlight some dynamics and to create a strategy apart from the key trends of the Market. Let's discuss a new generation of trading techniques and understanding about a key facet of the Forex Market.

What is seasonality in the Forex Market?

The seasonality of the Forex Market is the tendency of currencies to move around in repeatable and relatively predictable patterns over time. When discussing seasonality, most guides will refer to certain monthly trends that occur during the calendar year. A relevant example is the Japanese Yen's tendency to revalue at the end of that nation's fiscal year. Even so, these patterns are quite difficult to operate since they are somewhat unpredictable and have a reduced legitimized use by the operator in the short term.

Instead we will examine a trend that is much more useful in the short term: The behavior of currencies to set maximum and minimum levels in a weekly context. The relative predictive ease is obviously what interests us as Forex traders; if something repeats itself, in theory it is easy to speculate from such repetition.

Forex Trends and Weekly Trends

Years of reporting on the Forex Market show that currencies will quite likely set their maximum and minimum levels at the beginning and end of the trading week. Intuitively, this makes sense: If a currency is in a fairly consistent uptrend, chances are that its Monday low will hold until Friday and the opposite should also be correct. In addition, the representative currencies of Europe and North America also have the tendency to show great movements in the price towards the end of the week.

Of course this is quite interesting in all its dimension, but the first question we ask ourselves is: How do we use this in our operation?

Parameters of the seasonal strategy in the Forex Market

If we wanted to speculate that Monday's highs or lows could be maintained, we would probably be estimating that the currency will continue in one direction during the subsequent week of operation. There are some ways to do this, but sometimes the simplest solution is best for operating strategies.

Entry Parameter: On Tuesday, establish a purchase order entry order on the Monday maximum level, a sales stop entry order on the Monday minimum level. We will keep these income orders with buying and selling stops throughout the week except that we have already taken long or short positions with the exchange rate respectively.

Stop loss: The order of entry with the opposite stop will take us out of a certain position and establish an operation in the opposite direction. This will be what happens unless an order to the other direction was already activated during the previous week of operation.

Profit Sharing: None

Output Parameter: Close if possible before Friday at any rate.

Results of the seasonal strategy in the Forex Market

If we use this weekly strategy in the frequently volatile and noticeably fast exchange rate to generate trends like the British Pound against the Japanese Yen, the results are somewhat impressive.

Despite notable periods of poor performance, in a hypothetical context the strategy performed fairly well with the GBP / JPY going back to the beginning of 2001. Although past performance is never a guarantee of future results, such parameters Simple and intuitive operations are equally promising in other exchange rates.

Uses for each day of operation

Now that we know of the tendency for currencies to develop their maximum and minimum levels at the beginning and end of the week, we can use this as a class filter for our own trading strategies. If a trend-based trading system is used, an trader may wish to evidence whether a currency has broken its maximum or minimum level at the beginning of the week and adopt an operation in that direction. If an operator uses a more range-based trading system, he can also look for the ability of the currency to set a particular address after a break at the maximum or minimum level at the beginning of the week.

Although nothing is perfect, research shows that an operator is likely to have a better chance of success if it operates with general seasonal trends.

Small and simple rules to follow in Forex

There are some simple and practical rules to keep in mind when investing in Forex. The largest and most liquid market in the world has its own rules that we must understand in order to operate successfully.

A small investor must take into account some of these simple aspects to be able to increase the success of your investment in a few weeks, yes, you must have good information and be constant in the study and analysis of the market.

Small rules to follow in Forex

Currencies are what mark the success or failure of our investment in the Forex market. Currency pairs will only move us to good results when we can trade a pair of currencies in which equilibrium reigns, that is, a strong currency versus a weak currency. In order to choose them, it will be necessary to consult the market trends so as to proceed with more success in our choice.

Although Forex works with currency pairs, each currency is traded separately. Coin pairs consist of a base and a secondary coin. When making technical analyzes of the currency pair you have chosen, it is important to do them individually to detect the possible risk points of each currency, and where their strengths and weaknesses are found, in order to be able to act quickly and consistent in our operations.

Learn and study Forex indicators. Many investors have failed to reach their targets because they did not know the basic construction of a pair of currencies. It is not difficult to access Forex trading, the tricky thing is to stay in a profit and loss equilibrium, where the balance inclines more to the first than to the second.

Winslow Forex Strategies and How They Work

The Winslow strategy was carried out in 1949, and is often very common and famous in Forex, so much so that its creator "Alfred Winslow", a sociologist who worked for Fortune magazine, became a billionaire only by giving courses and seminars throughout the world.

History of the Winslow strategy

The investment community welcomed a new and unique way of investing known as long / short. Although the Winslow strategy was created to invest in hedge funds, we can also use it to operate on all currency pairs in major time frames, both medium and long term, with daily or weekly charts.

The Winslow strategy is relatively simple and can be configured on any platform. The Winslow strategy also allows us to take long steps to keep ourselves immune to bearish trends, we do not have to depend on the secular cycle of the stock market, but we will be able to obtain profitability in any environment that offers us the market.

The key that Winslow initiated in 1952, after launching a hegde fund with initial capital of $ 100,000, is to diversify investment by protecting capital, in this way we protect ourselves against the most undervalued currencies, putting us at length, and favoring us before the overvalued ones , putting us in this case to shorts.

The Winslow strategy consists of three distinct phases and determined by a moving average of 800 periods, this average will be the reference to enter into one of the following phases: YUMA phase, TUCSON phase and FLAGSTAFF phase, which will operate with the objective of reaching the moving average of 200 periods.

Pros and Cons of Investing in Forex

There are pros and cons in the Forex. Despite being the biggest market in the world and moving so much money in it on a daily basis, there are aspects that you must take into account when starting.

• The Forex market is the largest and the most liquid in the world, but it is also a very volatile market, so if you are sufficiently prepared, you are likely to receive significant losses in few trades.
• To participate in the Forex market you need to access through a broker, who is the intermediary between your money and the market. Be sure to choose a good broker that is regulated and with which you understand well, that is, have a good customer service and an easy to use platform.
• In the Forex you can earn a lot of money in a short time, but also lose it at the same speed. They are the consequences of the great volatility of the market.
• Do not invest in Forex if you have some risk aversion, surely it will not be your type of investment.
• Unlike stock investing where you can choose hundreds of stocks to invest in, you will only trade with a few currency pairs.
• You can sell and buy 24 hours a day through the electronic platforms, which gives you a lot of flexibility when it comes to trading, but you can also get obsessed if you're not prepared enough.