How to Avoid the Biggest Untold Forex Mistake.


*** An axiom or postulate is a statement that is taken to be true, to serve as a premise or starting point for further reasoning and arguments. ***

I am sure you have heard by now that currencies are commonly being traded in pairs (for a reason which we can use in our favor – as an edge) – if so – then consider this trading axiom “Buy the Strong and Sell the Weak”  –   Yet  new traders consistently do the opposite by error or lack of education or simply unknowingly and without a proper exit plan; That is he or she will Buy the Weak currency  and at the same time be Selling the Strong one resulting in rapidly increasing losses of both emotional and risk capital.

Chart above was created with Tradingview.com

.

Having said that, using the chart below for reference – follow 3 lined-up pairs for a while and see for yourself – for example; look at my signals page where I report the 4 EA’s currently trading on the  EUR/USD with GBP/USD and the EUR/GBP pairs –  lined up like the chart below and then combined to create my entire stream of signals – the Power  and High Probability built into trading the correlations and or a momentary lack thereof, as well as, the profiting from the divergences between the correlations is unavoidable and a mathematical fact if applied properly – it is after all an auctions market where brokers can’t hold the price back forever – something has to move – after all is it not simply one price divided by another? – YES it is.

Hence don’t be fooled – it does remain quoted as Points in Percentage.


.

There are many tools available for your trading platform such as EA’s (Expert Advisor)  to sort this out automatically, some even piggyback entirely over

your current MT4 platform like this FREE console add on – http://fxnewsalert.com/screenshots.html and are Easy to use and very informative overall.

Keeping a spare forex account account open to run this console is easy as pie with an Orbex demo or even a funded live account