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Make Money In Forex Without The $3,000 Software Package

By : Olumuyiwa Ojo
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For a trading instrument that flies under the radar, a lot of people wanting to get rich, trade forex.

The forex market has the biggest leverage of any traded instrument. It has the most liquidity and is traded worldwide 24 hours a day, 6 days a week. It is the market that never sleeps.

The access to the market is low compared to stock or futures trading. If you have a mere $300, you can start trading, free charts included.

Because of this easy access, many people gravitate to forex trading hoping to strike it rich in a short period of time. How do I know? I was one of them.

In spite of the free charts available to anyone, many software companies have successfully convinced new traders that you need something more complicated. A killer app.

They have convinced people that you need their $3000 software. Just get it, sit back and watch the money roll in! I have got news for you. You are being suckered! I was 3 or 4 times. If you are doing the math, that is $12,000 worth of junk I had bought over the years.

Then it hit me. Why don’t you develop your own system using what is freely available. Take a new look at the free charts that you get with your demo account at your brokerage. These free charting packages are filled with hundreds of indicators. Even if you are the analysis/paralysis kind of trader, you cannot use them all. You only need 3 or 4 of them to satisfy your analysis itch.

Let’s rattle off some names. Do I hear stochastics, RSI, Aroon, Money Flow, Bollinger Bands, MACD and so on and so forth. These traditional indicators have become the butt of jokes. If you are one of those who make the jokes, you might be laughing at yourself.

These indicators work!

They flat out do. I know because they are the reason that I finally became a winning trader without buying any more expensive software.

Think about it. The creators of these indicators were very smart people. Many of them were mathematicians who had thought of the equations very carefully. They knew the value of these studies to have spent most of their lives working on them.

Ever heard of Gann, Daniel Lambert, George Lane and John Bollinger to name a few? Google them and see what you find. These men are the oracle of trading. We owe the MACD, Gann lines, the CCI and Bollinger Bands to them.

Once again, they work! The mistake that we make as traders is one of imagination!

Listen to this. If you understand what I am about to tell you now, you will become a winning forex trader in a world where 95% of all traders lose money.

This is the most important sentence in this article.

INDICATORS ARE WORKS OF SCIENCE. THEIR APPLICATION IS AN ART.

It is as simple as that. To develop an indicator like a Bollinger Band, you need to be math smart. To use it I do not have to know the mathematical underpinnings. The chart does it for me.

I can plot any indicator in my charting package in 3 seconds flat!

To make money with them, you have to have imagination. If you have read up on Gann, he made a fortune using Gann lines. Conversely, millions of traders have lost fortunes using them. Their loss is not Gann’s fault but of the traders.

Here is the second most important sentence in this article.

THE INDICATOR PARAMETERS ARE SUGGESTED NOT MANDATORY.

What does this mean? Let’s take the Bollinger Band for example. The suggested and standard parameters in most charting packages are 20,2 as suggested by John Bollinger.

Does it mean you have to use it? No. Here is where imagination comes in, the art of trading. To become a winning trader, you have to be creative. In trading, nothing is gospel. Question all assumptions.

Let me give you something to work with today that can start making yoy money today. For Bollinger Bands, try a 5,2 setting displayed or shifted forward 5 periods.

I have meticulously researched this setting and it works for my trading better than the 20,2 setting.

When you use this setting, you can accurately gauge volatility. Used with a trending moving average, you can catch big moves right before they happen, when otherwise you could have been taken by surprise.

I have carefully researched settings that work for many studies like the RSI MACD, Force index, stochastics and so on.

Please visit forexoption.com" target=_blank>http://learnforexoption.com for more lessons.

Happy trading.



About the author:
Olumuyiwa is a full-time trader. He researches and trades the spot forex and forex options markets to gain trading advantage for himself and other traders. He coaches and shares his experience with both new and experienced traders


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