The Simple Trading Method which is taught in Forex Nitty Gritty is greatly based on identifying support and resistance levels. As a Forex trader, you should know that price normally goes to where it has been before. This tendency creates areas of support and areas of resistance that will be tested or broken. So, it is no surprise that Todd spends a lot of time on this in the Daily Forex Videos he does for the Forex Nitty Gritty Insiders site.
HINT: When Todd is talking about how to better understand the Simple Trading Method, he uses real examples on real charts. Sometimes during the videos you can actually see trade setups that you can trade yourselves. So, I encourage you to learn Forex Nitty Gritty by watching the video series bu Bill Poulos… bit don’t miss one of the daily videos by Todd.
Here are two trades I made last week as a result of watching the Daily Forex Video…
Keep in mind, giving you exact trade setups is not the point of the Forex Nitty Gritty Insiders Website. Bill and Todd want to teach you to be independent Forex traders by using the Simple Trading Method they teach. But every once in a while, you’ll see something on the videos you might want to act on.
There was another important point of the Forex video today…
The news!
You should know by now that certain news events move the Forex markets. And for me, there are really 3 approaches you can take to deal with the news. But first, you need to know when news is coming out that might move the currency you are trading. I go to Forex Factory and check the news calendar before I start trading. If important news is coming out during the day… I note the time.
Like I said before, there are three ways to deal with the news:
1. Don’t Trade At Time Important News Comes Out On The Currency You Are Trading
A lot of traders simply don’t trade during news events. While sometimes there are really big moves you can profit on… you could also lose big. There are also problems getting your orders filled and closing your order due to the high trading volume.
2. Learn To Trade The News
A lot of traders use different strategies to trade during news events. While this can be highly profitable, there are risks involved. Make sure you know what you are doing before trying to trade the news.
3. Ignore The News But Put In Your Stop Losses
There are some traders that don’t like to put in their Stop Losses and use mental stops. I do not agree with this. But if you are someone that doesn’t normally use a Stop Loss, you SHOULD use one during news events that move the currency you are trading. If you don’t, you could be in for quite a shock when the market goes against you 150 pips!
Anyway, great daily Forex video today with some more pointers on who to trade the Simple Trading Method taught in Forex Nitty Gritty.
