Much has been written about the LMT Forex Formula by Dean Saunders. It is a simple Forex trading system created by a well known and respected Forex trader and was endorsed by several currency trading experts.
My clients get this one thing hammered into them – know your leverage! Why? Because if they do, they make money, and if they make money I make money. I am not in this for love. I want them to trade for a long, long time. I have never once in my entire career as a forex trader and forex mentor ever seen a forex trader make money over a sustained period with high leverage and tight stops. As I have said, the maths doesn’t add up, and I don’t argue with maths. And at 10:1 you are pushing the limits of acceptable leverage.
Similar to transacting in stocks, in the currency markets you need to buy low and dump when it’s high. But in these markets, currencies are traded instead of stocks. Similar to shares, the of a currency increases and drops. It’s a simple concept really. If you pick up a currency when it is cheap and then deal it when it rises in value, you you become a richer person.
1) Increase your time perspective – If you are not a well seasoned forex trader, you shouldn’t even look at a price chart of less than 60 minutes. The randomness of the normal transactions which occur in Forex will distort your judgment of the true picture. Use longer time frames, such as 60 minute, 4 hour and daily charts when planning your trades.
Now, Dean Saunders is an expert trader and he uses this system. However, you should know that this program isn’t advanced. It was made for beginners and intermediate traders. If you’ve been trading Forex successfully for years and have a lot of expertise (and you’re making money), you probably need a more advanced program as you may already know the material in this program.
The signals of forex are presented in terms of what currency pair to buy or sell. Thus, if the selling range is larger than the buying range, it means that the trader is going to make gains. It is not easy to put up a system for the generation of forex trends in an automated manner, especially as it pertains to accurate and profitable ones. There are systems that are capable of predicting forex signals both in the short term and long run, not just forex signals but reliable and profitable ones. With this, you will be able to know when to buy and place trades with the hope of making profit when it closes.
There’s two schools of considered like in shares about the way to earn money in currency trading. On 1 side you’ve the technical, that are generally charts and also other statistical techniques that accustomed to consider and guess the marketplace. Within the other facet you might have the basics, which examine things such as countries domestic solution, rates of interest, economical output, etc. to attempt and forecast forex movements according to these standards.
The bottom line is that having a Forex mentor guiding a trader through the Forex trading system selection process is the best way to go. You can cut out a good amount of time wasting and simply focus on the stuff that matters right from the get go. The longer a new or non profitable trader postpones the search for a mentor, the harder it will be for them to identify their ideal Forex trading system in the long run.