Forex Trading - Point and Figure Trading

Forex Trading – Point and Figure Trading

Is there such a thing as the Holy Grail in forex trading? It depends. Almost any trader you meet will say absolutely not, and then go and continue to look for it. It’s really quite oxymoronic.

However, I say the Holy Grail does indeed exist. It’s not a secret way to trade. It’s not a way to profit 100% of the time. It is a forgotten way to make some of the largest trades you’ve ever made before.

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Of course, I’m speaking of point and figure trading. This method of charging was developed back in the 1800s by Charles Dow. This is the same guy that got the Dow Jones Industrial Average named after him. This is also the same guy that that started the Wall Street Journal.

Way back then, the charts were drawn by hand. If you want to maximize your profitability and your understanding of the market, I’d recommend you do they same in the beginning.

When you trade with point and figure trading, there is no short term trading. The trades you take will last weeks and even months. That’s a foreign concept to most forex traders, and that should excite you. If it’s foreign to most, that means the crowd isn’t doing it, and the crowd is always the unprofitable group feeding their money to the few who are in the know.

Now, when you are in a trade for months, you get the ability to profit to the tune of thousands of pips. It’s not unheard of to take 1000 pips in a successful trade. What’s more exciting is that the loser trades happen quickly and for less. You’ll only lose several hundred pips, and then you’re out of it. You’re free to go looking for profitable trades again.

Time doesn’t factor in when trading this way. It’s just price, and that’s powerful because time is the biggest liar in forex. There is nothing about a candle or bar chart. The price doesn’t happen in those artificial bars. The price happens when it happens. Sometimes it moves quickly in an instant and other times it doesn’t move for what seems like forever.

This can cause havoc on your trading, because of false signals and the like. That’s because you made the chart lie to you by trying to force it into a time frame.

Only point and figure trading free it to show you what it’s really doing and thus giving you the chance to profit at far greater levels.

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