The world that we live in today is driven by money and the overwhelming desire to make it. Whether you are someone who dabbles occasionally in the Forex trade or a veteran in this field, it is best to find Forex trading strategies that will work for you in the foreign exchange market. It is common for traders to have no Forex trading strategy or system in place; and because of this they are more likely to lose out. If you are a trader you may have just gone in to this practise with only your instincts or a hunch- and it is a certainty that you will not have made much of a profit (if any) with this method. This is why it is a sensible and rewarding idea to find a Forex strategy that will help you to be successful.
A good trading strategy should be one that is simple to understand and even easier to use. Many traders think that the more complicated the system, the better the results will be. This quite simply put is not the case. Similarly, people spend inordinate amounts of money on buying software or robots to help them with their Forex trading. These methods have been proved to be a waste of time for the trader. Again, you will find that many of the oldest and straightforward strategies are the ones that will help you to make a profit.
The system known as "The Four Week Rule" is proof that an incomplex strategy is very effective when trading. This strategy employs the sound principle that a person should trade in the Forex market when the trend is at a high and not at a low. If you do not adhere to this then you are likely to lose out. Many people believe that buying low and then selling high is one of the best ways of making their fortune. This ultimately means that they will miss out on some of the best trends that the market has to offer.
For those of you who are not familiar with this system, it was a concept that was developed by Richard Donchian. He famously took a group of novices and taught them to trade using this system. This proved to be a valid experiment as the people involved in the test managed to make a considerable profit from the market. This system is classed as part of the trend-following systems and if favored by many veterans of the Forex market.
With this Forex trading strategy it is essential that you buy and hold when the currency is at a four week high. Once it has hit a four week low, take out a long position and opt to go short. It is important to always keep the position in the market; buy and sell four week highs or lows as they happen.
It is known in the trading world, certainly by savvy and veteran traders, that systems that are essentially trend- followers will basically guarantee that you remain on the right side of the trend. By its very nature, The Four Week Rule strategy will not catch the market's tops and bottoms, but as you will already know, this is a hard thing to do in any case.
One of the best advantages of using this type of system is that it requires very little effort on your part. As an accomplished trader you can expect to typically work for around thirty minutes per day when using The Four Week Rule system. This particular strategy has been proven to work and has been used by astute traders for many, many years. So if you are intent on becoming a serious trader in order to make a serious amount of profit, then The Four Week Rule system is certainly one that you should consider using.
Remember, it is vital to have some sort of system or strategy in place if you intend to be successful in the Forex market. So many traders have made no profit at all or actually made a loss because they did not take the time to put a simple and effective system in place.
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