There are lots of great Forex trading strategies and Forex trading systems but to say there's only one that works for everyone, would not be a true statement.
Forex trading systems can be as individual as the person using the system. One Forex trader may find a trading system that works great for them and another currency exchange trader will say it's not worth the paper it's written on. If you know anything about trading the foreign exchange market, you should know there are certain times of the day to trade certain Forex currency pairs to increase your odds of making winning trades. Trading off hours, using the best Forex trading system could be a losing strategy. Try to stay out of the market during the slow times.
Every experienced Forex trader knows the best times to trade in the Forex market. The most active times are between the hours of 2:00AM and 11:00AM EST. At 2:00AM EST the European markets are starting to open and at 3:00AM EST the London session starts to kick in. At 7:00AM to 8:00AM EST the New Your sessions start to come alive. At 8:30am EST there are many news releases (mostly USD) that can cause volatility in the market. This is when the market moves and can move big. These are the times that most Forex trader love and this is where the money is made, and lost. The London session starts to close around 11:00AM EST and the Forex market tends to slow down until the Asian market start up again around 7:00AM EST. Then everything starts all over again for the next trading day. That's why having a Forex trading system is so important to every Forex trader.
To make the most out of any
Forex trading system, you need to have one Forex trading strategy for trading at news times and another one to trade during the rest of the day. A good strategy for trading the news in the Forex market is to do your homework up front. Know what key news releases are coming out and find out what the consensus numbers are for each report. There are lots of different Forex news sites, so I suggest looking at no less than 3-4 news sites to make sure the expected numbers are the same or very close to each other. Occasionally Forex news sites get the numbers wrong, so doing your homework up front, you will quickly know if the forecast numbers are on the mark or not. At news release time, what you're looking for are numbers with a shock value associated with them. Numbers that do not meet consensus, but exceed or fall far shot of expectations. These are the news events you want to trade to make money. You need to know beforehand what these shock value numbers are, and take action when they're released.
When it's a very slow news day, that's when you need a Technical Forex trading system. Forex technical trading is when you use charts and price action. Tools such as Forex chart patterns, trendlines (trendline analysis), Fibonacci (Fibonacci studies/Fibonacci numbers) and a host of other Forex trading tools can be used. The best advice I can give here is to keep it simple. Do not go crazy with all the tools you can use. I suggest picking two or three at the most and work with them at all times. Give each one at least a months time to decide if it's working for you before you decide to move on to another. Some folks may find they don't like using Fibonacci retracements for example, while other traders like myself, couldn't imagine not using them. Forex traders are all different so you need to find the tools and Forex trading system that's right for you.
There are lots of great online Forex training websites available today and most are free. Read all you can about Forex trading before you start trading. Forex trading is a great business and like any new business, it takes time to learn and do it right. Just take your time and remember to find the best Forex trading systems that works best for you and stay with it.
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