Forex trading-Non-directional trading
Non-directional trading is fascinating. You know, the idea of being able to make money no matter witch way the market goes. That sounds wonderful! You will make money no matter what.
Options trading has a version of this. It's called delta-neutral trading. Funny thing. It never seems to work just right.
It is the same in forex. There is a catch. (Dang, just know that it should be one!) Problem with non-directional trading in forex is not clearly defined edges on the market. You could end up in fences loop forever (you're always in negative pips fences cycle).
It is a theory. However, many people do it and do it successfully. Let me give you a bare bones method. You decide for yourself.
You will enter the market (say to buy). If the market moves 15 pips your way, you will exit. It is your profit.
On the other hand, say you bought, but the market fell 15 pips. Now you do not, you put in the hedge row. If the market continuously falling, will close the hedge order and operating profit of negative order Buy to break even it out.
Now the problem occurs when the price does not allow us to properly shut down the fence row. You may need to rehedge. Now we're paying the spread 3 times, plus we are negative 30 pips.
It's like no-way trade works. Certainly (theoretically) not care which way the market goes, but that does not mean no risk.
Want to learn more about how to trade? I just completed my brand new guide, "forex trading - that finally worked for me."
other posts
- stochastic bars mtf
- super adx fx
- m1 scalping indicator
- forex cyclus indicator
- fibocalc v31 mq4
Non-directional trading is fascinating. You know, the idea of being able to make money no matter witch way the market goes. That sounds wonderful! You will make money no matter what.
Options trading has a version of this. It's called delta-neutral trading. Funny thing. It never seems to work just right.
It is the same in forex. There is a catch. (Dang, just know that it should be one!) Problem with non-directional trading in forex is not clearly defined edges on the market. You could end up in fences loop forever (you're always in negative pips fences cycle).
It is a theory. However, many people do it and do it successfully. Let me give you a bare bones method. You decide for yourself.
You will enter the market (say to buy). If the market moves 15 pips your way, you will exit. It is your profit.
On the other hand, say you bought, but the market fell 15 pips. Now you do not, you put in the hedge row. If the market continuously falling, will close the hedge order and operating profit of negative order Buy to break even it out.
Now the problem occurs when the price does not allow us to properly shut down the fence row. You may need to rehedge. Now we're paying the spread 3 times, plus we are negative 30 pips.
It's like no-way trade works. Certainly (theoretically) not care which way the market goes, but that does not mean no risk.
Want to learn more about how to trade? I just completed my brand new guide, "forex trading - that finally worked for me."
other posts
- stochastic bars mtf
- super adx fx
- m1 scalping indicator
- forex cyclus indicator
- fibocalc v31 mq4
