Forex Mentors

Don’t get me wrong Dan Armitage and the other forex mentors in the www.fx500club.com don’t promote trading like this , it is considered scalping and as such unless you have a very good feel for the way the financial markets are behaving it is a high risk trading strategy. The upside for me is that the stop losses are generally very tight and you can be in and out of trades very quickly.

Trading like this suits me in the summer because I can generally find a good trade setup within minutes of opening my charts. I love to use the 2b reversal setup and 123 reversal setup combined with everything I am learning in the fx500club, I find using the fx500club 123 and moving average crossover strategies along withe the cci indicators that they have taught me to use is working incredibly well and very profitable. Look at this cable trade I took on Friday.

All the moving averages were bunched up, we also had a descending trendline acting as resistance above the price  and an ascending trendline acting  support below the price, I just wanted the white 1 minute 5 ma to cross up through all the other moving averages and I would go long with my stop below the old low at 1.6480, I wnet long at 1.6486 giving me a 10 pip stoploss including the spread.

As you can see from the chart I was able to take profits and add back into this trade when the price retraced to the thin pale blue 1 minute 50 moving average. This trade was worth about 50 full pips, very good money management and a relatively stress free trade.

All for about an hours work. A pip could be worth 10p ,£10,000, or £100,000 so 50 pips profit could be £5 or £500, 000, or millions. I trade what my account can afford and what I feel comfortable with. But if you never risk more than 1% of your capital trading like this should never ever be stressful.