FOREX CASH COW
A strategy complete beginners can use to make money from the Forex
market.
By Eche David
I have been trading the Forex market for over 10year. I have
trained over 200 people, I have traded in different online market instruments
ranging from currencies, stocks, indices, etc. I have made lots of money and have had a good life trading.
There is one interesting thing that I have discovered in my
years of trading. What is called a simple strategy is has efficient in
acquiring profits as an advanced strategy and the only quality required to make a good profit from the Forex market is ‘discipline’.
If you can hold to discipline, you can
start making money from today. It’s as scarily simple as that.
If you are completely new to Forex trading, I would present you
to here a trading strategy that is simple and powerful. It’s a strategy you can
use to start trading the Forex market right away even as a newbie.
WHAT IS REQUIRED FROM
YOU
➤ Complete attention
to understand what you are about to read
➤ Flexibility to
allow yourself to make mistakes.
➤ The resilience
attitude to try it over and over again.
➤ Do away with the
believe that money-making is only for experienced people.
The strategy will be explained in two(2) sections.
Section 1 - Written
Section 2 - Video.
The video explanation
is right at the bottom of this page.
I advise you to first read the entire explanation before
watching the video. Don’t skip the
reading part for the video. Going through both (the written first then the
video) would help deepen your understanding of the strategy.
FIVE POINTS THAT EXPLAINS THE FOREX MARKET TO YOU.
1 Online Forex market is the exchange
value between two countries’ currencies.
2 Forex prices fluctuate up or down
depending on several factors surrounding each country’s economic health.
3 Your job as a forex trader is to speculate correctly where the
currency trend is heading (up or down). This is how you make money. How to do
that correctly in the simplest way is what you would be learning here.
⧫ US Dollar
⧫ Pound
⧫ Japanese yen
⧫ Swiss Franc
⧫ Canadian Dollar
⧫ Australian Dollar
⧫ New Zealand Dollar.
5 You can only access the forex market through a forex platform on your laptop or
phone.
This is what a forex platform looks like on a Laptop
This is what the forex platform looks like on a Phone
You can click on this link right here to downloadyour own Forex platform.
( while you are on the page, click on open live account and follow the
instructions to open and real account where you can fund with your money and
start trading with or click on open demo to open a practice account that you
can use to practice)
Let me start by running you through a scenario that
describes what a trade looks like using Stephanie and Arnold as a sample.
This is the chart they are both looking at on their mobile
phone.
Each of them makes a decision on what to do based on their
strategy
Stephanie decides to buy; if the price goes up she will be in
profit. Arnold decides to sell; if the price goes down he will be in profit.
Who will the move favor?
Stephanie won the trade. Her trading strategy is working
well.
The beauty of Stephanie’s trading strategy is this; if she
places 10 trades with it, 8 will be profitable.
If you use that same strategy and stick to discipline, you will be
profitable trading the market even as a newbie.
Ready?
NOW TO THE STRATEGY
Note - This is the desktop version of this strategy. If you prefer the mobile version, you can check it out here.
Recall the chart I showed above to explain the trade between
Stephanie and Arnold, there were certain things Stephanie put on her chart that
allow her to place profitable trades. We call them INDICATORS. These indicators
were not shown in the chart but take a look below and there you have them on
the chart.
Just relax and follow me, I will explain everything to you.
It’s not complicated, rather it’s very easy.
Your job as a profitable trader is to be on the right side
of where the price is heading. This is how you end up in profit. The
indicators on the chart above are there to help you make good trade decisions
just like Stephanie.
So let’s start plotting them step by step on the charts.
Here is what the bare chart looks like with no indicators on
it.
The only challenge is that we might not be able to predict
accurately the direction the price will be heading if the chart is bare.
So we are going to start by placing an indicator called “a
Moving Average”.
In order to place the moving average indicator on the chart,
we go to the toolbar which can be found on the top of the chart (a desktop
forex chart). We go to INSERT – INDICATORS – MOVING AVERAGE.
The image below shows you what a moving average looks like
Purpose of the moving average - When moving average is above
price just like shown in this image, it means the price will be heading downwards.
On the other hand, when the moving average is below the price, it means the price
will be heading upwards. However, we won’t
be relying on the moving average alone. We would be working with a combination
of indicators.
Next indicator we would be placing on the chart is called
the RSI INDICATOR.
In order to place the RSI indicator on the chart, we go to
INSERT – INDICATORS – CUSTOM - RSI.
Below is what the RSI Indicator looks like on a chart.
Purpose of the RSI indicator (RELATIVE STRENGTH INDEX) - The RSI has levels 70 and 30. It means when
RSI touches 70, the price is heading up and when it touches 30 the price is
moving down.
The middle 50 line is manually added there. We personally brought in a little twist by adding the 50 lines. We thought rather than waiting till RSI gets to 70 or 30, there are profit opportunities that might present itself early enough in the market when price passes 50 either up or down. This will give the opportunity to take some profits from the price movement before it gets to the extremes of 70 or 30. You can see it right there in the image above.
The middle 50 line is manually added there. We personally brought in a little twist by adding the 50 lines. We thought rather than waiting till RSI gets to 70 or 30, there are profit opportunities that might present itself early enough in the market when price passes 50 either up or down. This will give the opportunity to take some profits from the price movement before it gets to the extremes of 70 or 30. You can see it right there in the image above.
We have two indicators on the chart already; we would bring
in one more to complete the indicators.
The last indicator is called the STOCHASTIC indicator.
In order to place the RSI indicator on the chart, we go to
INSERT – INDICATORS – CUSTOM – STOCHASTIC
Below is what the STOCHASTIC Indicator looks like on a
chart.
The stochastic indicator has two levels 80 and 20. The
stochastic itself also has to lines (red and blue) that either cross
themselves at level 80 or level 20 or just in-between.
However, the best way to uses the stochastic
indicator is when there is a crossing at either 80 or 20. When it crosses at 80
like this image indicates, it means price might start heading downwards
anything from now on the other hand, whenever it crosses at 20, it means the price
might start heading upward anything soon.
All the three indicators have their separate unique ways
they perform. However, to create a profitable strategy, we would combine the
three to form a bomb for ourselves. The
combination is what makes the difference and what separates the winners from the
losers.
If you want to join the winning
team, then follow the combination I am about to explain here.
If you are going to look for a selling opportunity on the
chart, you need to wait for three setups to be met.
1 - The moving average will be above the price.
2 - The RSI indicator will be below the 50 lines.
3 - The Stochastic indicator will touch 80 levels and cross
itself.
All three need to happen simultaneously (at the same time)
before you are guaranteed a profitable trade opportunity.
When you wait for the three to align before placing your
trade, you automatically place yourself on the path of profitable traders. When the
three aligns just like explained in the scenario above, you are 80% guaranteed
of the move below which would be in your favor.
How about if we are looking for an opportunity to perfection
join the uptrend move and make money from it? In this case, these three things
must happen simultaneously.
1 - Moving average must be below the price.
2 - RSI must be above the 50 lines.
3 – Stochastic must touch the 20 level and cross.
All three must happen simultaneously.
The image below
explains that.
If you do that, then you are 80% guaranteed to be a part of
the upward move below which is money for you because you are on the right side.
Click here to open a forex account and get your own chart.
( while you are on the page, click on open live account and follow the
instructions to open and real account where you can fund with your money and
start trading with or click on open demo to open a practice account that you
can use to practice)
WARNING - The rule of thumb here says you wait for all the
three indicators to do what is been described in this training before taking
your trade.
DON’T TAKE A TRADE IF
1 - Moving average is below price (pass)
2 – RSI is above 50 lines (pass)
3 – Stochastic crossed anywhere aside from the 20 levels instead
of on the 20 levels (wrong)
DON’T TAKE A TRADE IF
1 – Moving average is below price (passed)
2 – RSI is below 50 lines instead of above (wrong)
3 – Stochastic crossed at the 20 levels (passed)
DON’T TAKE A TRADE IF
1 – The moving average is above price instead of below price (wrong)
2 – RSI is below 50 lines (passed)
3 – Stochastic crossed at the 20 levels (pass)
You can use any of these timeframes on your chart to start
and get yourself into action 1minute, 5minute, 15minutes.
This will give you
quick opportunities and small profits. As you get more used to it, you can
increase your timeframe to either 1hour or 4hour. This will give fewer
opportunities but larger profits.
Every trader’s goal is to be on the right side of the trend
and make money from the trend. It is said, “the trend is your friend”. This strategy is simple yet very efficient and
can bring you good profit weekly and monthly. The only thing you need to do
like I earlier said is to embrace a good dose of discipline. You should only buy or sell when all the requirements
for entry are fulfilled as explained in this strategy.
The only challenge lots of new and old traders have is the
lack of discipline to wait till all the requirements for a proper trade entry has
been met. They place a trade when two of the requirement is met leaving out one
because of impatience. This leads to a bad trade in most part of it.
Be disciplined, be patient, and be smart. The money will end
up in your trading account. You can start right away. Click here and download a trading platform.
Note - All your trades won’t end up in profit but the majority will
do which is good enough to make you money.
Now you can head up to the video and watch the visual
explanations. This will help deepen your knowledge of the trading strategy
explained above.
Video 1
Video 2
Now that you have gone through the text and the video, it’s
time to get on the forex platform and start trading.
(while you are on the page,
click on open live account and follow the instructions to open and real account
where you can fund with your money and start trading with or click on open demo
to open a practice account that you can use to practice)
Here is how to download and install a forex platform on your mobile device
Here is how to download and install a forex platform on your mobile device
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