In today’s live session I had the chance to answer several questions from members. From technical or Fundamentals to how long do I hold trades?
Technical or Fundamental
I explained in the webinar when it comes to forex I look at the technicals first. What is the DXY doing? Is money flowing into or out of the $. I then look at the EMAS, MA, trendlines, fibs, MACD divergence. I try to get the big picture first using the Weekly and daily timeframes. I then spot the big areas and look for the multiple reasons to take the trade. In the end, I look at what fundamentals are out and what could ruin the trade if Im going to take it. I also keep an eye on the news to see what is happening in those economies.
As I have mentioned before GDP, interest rates and inflation are the key things for any currency pair. This data decides the price of the currency.
We now have James who is updating the fundamental blog for us. He is also posting weekly fundamentals, so you don’t have to scratch your idea. Andi also posts fundamentals from time to time. I have provided the links below which you can read in your own time.
(Only members have access to this area)
GOLD, stocks, and crypto
I then moved on to GOLD and explained why I don’t use leverage to trade it. I do buy the physical metal through a bullion vault and store it in another country. Others might prefer having the physical gold. I also showed I use stocks to leverage on GOLD and make a profit.
Regarding stocks, I will be buying blue chips that pay out good dividends so that they can pay for me while I retire. these can be stocks like Coca-Cola, apple, etc who Waren had invested in many years ago and is making millions yearly in dividends. You need to let money work for you, not the other way around.
I have also invested in Oil stocks and shown you how you can profit. I don’t trade oil with leverage as that is a dangerous game. It is very political and is affected by many factors, can be very unpredictable at times. Don’t try to lose your shirt.
Crypto is still trying to break higher but I think it will have its own time when it will surge. Blockchain technology is important and has real-world use.
*Im not a financial adviser and only sharing what I’m doing to keep up with inflation.
How long should I hold my trade?
I explained in the webinar, it depends. If you have taken a position and it has made your 1:2 target then scale out. Learn to scale out of your trades. You don’t want to be watching a trade going 100 pips and then a news event reversing the whole move with you ending up with 10 pips, or nothing, or even worse a loss. Secondly, if it has done its daily range it could be a good idea to scale out. This is because the chances are the trade might not have more fuel to go further unless it’s a long-term trade. If it is in a major area chances are people taking their profits, so its a good idea for you to do the same. Learn to take profits along the way, in this way, you will increase the chances of growing your account. If you don’t have the time to do it then use the VTC software we have mentioned to do the work for you. The link is available in our trusted products and is a good investment in your FX journey.
I have added the link below (members only)
You can watch the full webinar below: