I agree with all statements except one that is normally said by different traders. "no risk more than 2% per trade". Whenever u go to any forex site, broker or forum. You will see a common statement that never risk more than you can loose. So when u open an account with a broker, you must not deposit more than u want to loose. Once you have deposited, now trade with your own strategy if you have. If you want to follow someone, follow him or whatever.

But this 2% thing is not logical because you are already warned once you open an account. You are already risking by depositing the money.

Hmm,

1. How do you know it's going to turn into a loser until it is?

2. yes

3. No. I hear often 5%, others might say 'comfort level'. It also depends on your account size.

4. Not always. Patterns and price levels can cause markets to react.

5. Not always. Prices go up and down regardless of strength and pairing strong with weak can kill your account too. It's all in the timing. And, not if you want to trade a range.

6. Early for what? If you are early it means you are predicting. You could also enter too late.

7. Yes

8. Try not to be emotional.

9. Yes, but you can limit your profit target to historical data or typical trading/chart patterns.

10. Yes. Never blame luck as luck is a fantastical notion. It does not exist.

Originally posted by leebut

Hmm,

1. How do you know it's going to turn into a loser until it is?(if your trade goes in positive then lock ur profit to break even after 30 to 40 pips or not w8 more that it will go up up and up ... like dont think to make millions in just one trade)

2. yes

3. No. I hear often 5%, others might say 'comfort level'. It also depends on your account size.(its depend on ur trading style not account size)

4. Not always. Patterns and price levels can cause markets to react.

5. Not always. Prices go up and down regardless of strength and pairing strong with weak can kill your account too. It's all in the timing. And, not if you want to trade a range.

6. Early for what? If you are early it means you are predicting. You could also enter too late.

7. Yes

8. Try not to be emotional.

9. Yes, but you can limit your profit target to historical data or typical trading/chart patterns.

10. Yes. Never blame luck as luck is a fantastical notion. It does not exist.( )

Stronger/weaker debate is already discussed. The problem is that how do you identify which currency is stronger against the other at a specific time. By news?  or by techincal analysis? or by price action? then again if you r using any of these strategies why u need to see stronger or weaker? Just do analysis and enter trade.

Maybe I do not understand the stronger/weaker rule and it is actually something else. So if someone else can explain abt it?

I've been taught to bring up H4 charts for the pairs your interested in with a 200 SMA.

Go through each pair: EUR/AUD; EUR/CAD; EUR/GBP; EUR/USD, etc.

Using EUR/AUD and EUR/CAD as a hypothetical example; EUR/AUD price is below the 200 SMA then EUR is weak (W) and AUD is strong (S).

If EUR/CAD price is above the 200 SMA, EUR = S  CAD = W 

Do this for other pairs (GBP/AUD, NZD/USD) until all pairs have been referenced against each other.

You should now have currencies with S and W, add them up. The more Ss the stronger the currency, the more Ws the weaker the currency.

Here's one I did in August: http://img819.imageshack.us/img819/7963/90109584.png

all of his 10 rules seem correct......but about point 5, (Always Pair Strong With Weak)...how to determine this? is it mean, we have to trade 2 pair in same time?

I mention this point to for that pairs like cross currencies pairs.. i already share a jpg file in general discusion aboout cross currency pair where you can decide which pair you wana go to trade like eurusd has many unwanted or undecided sparked during us and uk market that confuse newtraders but other pairs like eurgbp and usdjpy move slow but not make spark to confuse traders that trend is changed or brokern

Originally posted by sadscorpion

I mention this point to for that pairs like cross currencies pairs.. i already share a jpg file in general discusion aboout cross currency pair where you can decide which pair you wana go to trade like eurusd has many unwanted or undecided sparked during us and uk market that confuse newtraders but other pairs like eurgbp and usdjpy move slow but not make spark to confuse traders that trend is changed or brokern

I dont understand it. Does it mean that EU is a combination of currencies of same strength and  EG currencies are of different strength?

Initially I was also unable to understand the full concept of this strength and weakness of a currency. After some research on google and by reading some articles on different forums, now I can understand it to some extent. Maybe there is still much more in this concept. I will explain what I got.

Lets take an example of USD pairs and GBP pairs. There are many USD pairs (eu usd, usd jpy, usd cad etc) and similarly many GBP pairs. Lets assume that usd pairs show that USD is strengthning. e.g.(eu/usd going down, usd/jpy going up, usd/cad going up and same with other pairs). Similarly GBP is weakning. In this condition the GBP/USD pair will go downward coz denominator is strenghening.

So to meausre strength and weakness of a pair, you will have to see different pairs. You will analyze their trends and then you can conclude if it is going upward or downward.

Originally posted by Sasha

Initially I was also unable to understand the full concept of this strength and weakness of a currency. After some research on google and by reading some articles on different forums, now I can understand it to some extent. Maybe there is still much more in this concept. I will explain what I got.

Lets take an example of USD pairs and GBP pairs. There are many USD pairs (eu usd, usd jpy, usd cad etc) and similarly many GBP pairs. Lets assume that usd pairs show that USD is strengthning. e.g.(eu/usd going down, usd/jpy going up, usd/cad going up and same with other pairs). Similarly GBP is weakning. In this condition the GBP/USD pair will go downward coz denominator is strenghening.

So to meausre strength and weakness of a pair, you will have to see different pairs. You will analyze their trends and then you can conclude if it is going upward or downward.

I got it. Its logically right that by analyzing relevant pairs, we can check the strength of a currency. I think there will be an indicator for such thing.