Spot the Trade

While coming to trading currencies, take up a 30M Chart and watch the price action. Should the price action is somewhere at the bottom of the chart window screen and at the right side edge of the screen, then you can safely enter a Long Trade.

Having said that, your stop loss should always be 40 pip and more and never less.  The take profit area should be anywhere between 60 to 80 pips.

The trade system is a scalping one and therefore when you have a open trade done by using a 30M time frame, then within the next one hour, you should close the trade if the price action is against you, even if the stop loss is far away!

Mind you, every time you open up the terminal, you are ready to initiate a trade, but the price action is not there where it was told in the diagram above, you become restless and your mind says buy, and open up a wrong trade.  Then, when to trade? And How?  When there are no signals, close your terminal and take some time to do other works or relax.  It is the discipline that you need to maintain and have to say No Buy Trade as long as the price action is not available in the right spot.  When you are not sure on this, I wish you go here which tells,  "How to Start Trading Online - Forex Trading for Newbies."

Similarly for the Short Trades, the price action should be at the top right side of the screen, this system works great in all currencies especially in 30M time frames. This is an approach that you should practice to make money in Forex Trading. When after a couple of hours, the price action is against you, close the trade, even if the stop loss is far away to hit, just that simple.

You may require this Video Download to understand that all the indicators and other analysis are absolute waste of time and loss of trading opportunities.