Cash Cow Strategy Using Mobile

This is just a step-by-step guide on how to apply my cash cow strategy with your mobile. This is designed for new traders.  

You can check here to see how it is traded on a desktop. 

Sometimes we have intraday movement in the Forex market like the image you looking at below. It’s a prolonged move in one direction caused by either economic events or a large order flow by traders. It can be referred to as an intraday trend. This can be anything from a 100 points move(called pips in Forex) in one direction.  Anyway, our own part is to get in on the move and make some money from it.

Let me just explain a pip to you.

Take a look at the image below, look at the highest figure to the right of the chart 1.23900, {we consider mainly the four digits after the decimal 1.2390}. Now look at the next figure below, that’s 1.23855 {we consider the four digits after the decimal 1.2385}. So it means between 1.2390 and 1.2385, we have a difference of 5pips. That five pips can be 5cents or $5 or $50 depending on the lot size a trader is trading with.

Our aim is to catch as many pips as we can. (Note – you can also lose pips if you find yourself on the wrong side of the move).

This strategy is designed to get us into the move from the circled area. In other words, the move had commenced, and then we get into it and follow it up. So in this case, it’s a trend catching strategy

We are going to need indicators, so here is how we load the indicators. Just click on the image sign below.

It will bring you this page, and then you click on the symbol in the image.

It brings you a list of several indicators to choose from. Click the moving average.

Change the period of the moving average to 50 and ensure the method is “simple” just like the image below and click done.

You would see the moving average on the chart, repeat the same process again, this time,  the period is 20 and the method is ‘exponential’ just like the image below.

You can change the colors of both moving average indicators so you would be able to identify them.  The two moving averages will appear like the image below. The red is the 50 moving average while the green is the 20 moving average.  In the same way, you can put the RSI indicator and the stochastic indicator.  

 

 Here is how to apply the strategy.

Step 1  - Put your chart to 5mins. I explain how to do that on this page .  Whenever the green moving average crosses the red, start getting ready. Check the image below.

Step 2 –Clearly the two moving average had crossed each other…Now keep an eye on the stochastic.

Moment stochastic crosses and the two moving averages are WIDE APART (connoting a strong trend) like the image below, you place a buy. Check how to place a buy order in forex trading on this page.

The green line on the chart is the place you entered your trade. The red line below is where you put your stop, in other words, if the price goes below that place, it takes you out of the trade with a small loss. The red line above is the place you put your take profit, in other words, if the price reaches that place, the platform exit you automatically for a profit.

You can exit your trades manually or you can use stop-loss orders and take profit orders and the platform will exit you automatically.

Put your stop loss below the lowest candle around where you entered, your take profit can be 10 to 15pips from your entry point. Sometimes, the price can even go 40pips in your direction, and sometimes, it reverses and takes you out on a loss. With proper practice, you will be getting more profits than losses.

Here is where you input your stop loss and take profit price level.

Step 3 – Watch the market unfold.

Step 4 – Watch it unfold as it’s almost taking out our take profit level giving us a profit.

The above is a sample of how a profitable trade goes.

 

Sometimes, you can attempt a multi-timeframe analysis.

1 - You put your chart to 1hr timeframe and you monitor it from there.

2 - The moment you notice moving average crossing each other on 1hr, you change your timeframe to 5mins.

3 - If the two moving average are still WIDE APART (connoting a strong trend) in 5mins, you watch for the crossing in stochastic.

4 - When it crosses on 5mins, you place your trade.

It is that simple. You can manually exit your trade for profit or you can use a take profit to automatically exit you.

It is simple but very effective. You can give it a try.  

 

THE ADVANCED METHOD TO TRADING WHICH I HANDLE IN MY APPRENTICE TRAINING COURSE

1 How to do a comprehensive price action analysis that puts you in a position to get into the best part of the market move for massive profits.

2 How to spot key levels in the market where buyers and sellers converge to take action so you can advantage of the opportunity presented at this level.

3 How to know the key economical events that move the market, how to analyze these events ahead of time, and position yourself to take advantage of them.

4 How to do proper risk management and trade management also called performance tracking. Check out a sample of it here

5 How to systematically build your account into five and six figures earnings.

6 Finally, How to grow from being a Forex trader into a Forex entrepreneur. This allows you to earn from the Forex market without trading.

Enrol for  The Forex Apprentice Course here and take your trading to the next level.