I was talking to another trader about what a currency pair was setting up to do. We both came to the same conclusion. We were waiting for the 4 hour chart to create its next candle to see what the market was saying. What we were looking for was the changes in direction on the 4 hour chart so we could time our entry on a smaller time frame; a 30 or 60 minute time frame. Before the new candle was formed we felt like it would be 4-8 hours before there would be a good signal. Then we looked at 2 other pairs to see what they were doing and their set up was about the same. They all would be ready in 4-8 hours. At the time of writing this the 4 hour just changed so we are still in the wait mode. Ok now for the interesting part. This other trader has been trading for several years but only about 2 years with currencies. When I first met him he took a $500 account and in a month he was up to $4000. Within the next week or so he had lost it all and was putting more money in his account. He did not use stops or indicators, he just looked at the candles and guessed which way the market was going to go. He hit a time when there was a big trend and went for it. He did not know how to tell when the market was ready to do something else. I watch him do many different trading styles for about a year. Then he started to use some indicators. He also went from 1-5 and sometimes 15 min time frames to 1-4 hour time frames. Then he started to ask me questions about what I thought the market was going to do. I told him I did not know but I was waiting for the market to give me signals. I had given him my indicators. Then I started to see these indicators appear on his charts. Now he is trading with some direction. He is trading for a couple of other people now and last month he made 6.5% in one account and 14% in another after he had taken his commission. His goal is to get these accounts up to 30-40% per month before he starts to look for more clients. I wanted share this with you because you now have a Forex trading system that works. It is not the only system that works but is one of the easiest to learn and trade with. You do need a system to build a strong trading foundation before you start to go for the big bucks. Just be patient and learn. You can be a good trader if you learn some good solid basics and build from there.
