Saturday, February 9, 2008

No Time? No Problem!

I'm a lot busier than I was. I no longer have time to watch the forex markets full time in pursuit of profits.

So, as you can imagine, I've developed a new trading strategy.

A good way to figure out when to attempt to enter the AUDJPY is when the 1hr chart shows the price hitting or dropping below the lower Bollinger band. It won't always bounce up from that point, but very often it does.

Armed with this knowledge, it's easy to leave a 1hr chart up on the screen and from time to time glance at it to see if action is needed. Did the price hit the Bollinger? Bam, fire off a small purchase. Did the price bounce and re-hit the Bollinger? Bam, fire off another purchase.

If you are trading, you can set a take-profit with each purchase, or at least each purchase that you actually are able to execute (since if you are busy you will surely miss some of them). If you are trying to carry, you've picked fairly good places to enter and hope for a market rise.

The only problem is that it may be quite a while between opportunities. You may find yourself missing a lot of movement. However, that's the price you pay for not having time to watch the market with any serious time commitment.

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