As what we knew, 95% of the trader failed and only 5% have success in dealing with this Forex business. Fortunately, those success people have become a millionaire and some even billionaire. But for some people, we still have a courage to involve in this business even if we knew the barrier and chances of failure is more than to success. Are we able to success in this Forex Business??The answer is definitely YES,and to bear in mind, we must have set a view and everything on us like those 5% success's people had. If we are able to start thinking and  have all those succeed quality, of course we are welcomed in this most stress and profitable business in this world.

Surely, among this 5% success people, are divided into few different types because on every currency's movement indicate different meaning depends on their interest. We can divide it into three different categories such as :

1) Leader of Country

It needs to manage the currency well and not let it raise too high. This is to avoid from loosing the buyer to buy any products from it's country if the price become too expensive. If the currency become too high and cost all expensive products, of course they will go for another country and this is why Federal Bank need to play an important role here to manage it well. For the residence of the country they will also become the victim if there are no buyers and also affected most company to close the operation.

If the currency goes too low, the buyer will definitely make a deal to this country but this will risk the presidents and country's earnings. As the price become very cheap, the businessmen will not be able to make profit and this will cause inflation.
(If these happen in one's country,what will happen in four years times?For sure people will elect a new leader.)

2) Investor

They are only looking for the best offered from any country to invest as long it is profitable and they get what has offered to them.

3) Organization / Smart Trader

They only make money through the currency's movement. They will look for the opportunity at the low risk area which they will sell when people eager to buy & they will buy when people are eager to sell.(I'm sure we've an experience of buying when the price is low and it suddenly goes up. That is actually done by the smart trader and cause us loss the trade). They appeared only in a short while in the market because they have their own target to achieve.They are not bother even if the market moves zillion of pips after the close position once the target achieved. Are we like this? What we always do is to gain as much as we can and do not set the target. Because of this, it cause us loss because of the greed and without the target.Smart trader also able to hold the position longer like the investor. In the word, they have a wiser thinking than the other people.

These are the types of those success people I've mentioned earlier. Now, we should ask ourselves, in which types of people are we? Who is the wisest people among these three types of people? My answer is the organization/smart trader, because they have all the other two people way of thinking and interest. Like a president's, businessmen and investor's thinking etc.

Personally I am putting myself as a smart trader, because I have my own strategy to look at the chart, I  will  look only at the price and time which only have in the chart. What we need to have is the suitable time as a human since the price movement is only handled by people. We must know how to look at the suitable time to suit it with the trader. From the price and time in the chart, we will be able to identify the behavior of the traders, are they confidence, hesitate or not in the market. We can then take the behavior to define into 2 pattern of movement whether for sideways and trending. Nobody can justified the end of trending but everybody is able to identify when it starts to trending from the sideways movement. Do you agree? From our observation here then we can come out with our own strategy to get into the position and make a decision.

Now, what about strategy?

By using price and the time got from the observation above.We need to have these two things to predict, which is the probability of the price movement and probability of the limit. Like example, if we use Fibonacci, it shows us the probability limit of price movement and it is not guaranteed when the is price will reach to 50% or 61.8%, the price suddenly changed. I give one example here, the price goes up from 1.4070 to 1.4270 at 8 a.m to 12 p.m, it is then reach 61.8% Fibonacci level, we sell at this level and suddenly, at 12.05 the price break over 61.8% and so on increase becomes 1.500. Is the level of Fibonacci shows the changes of movement(reversal or retrecement), No,it is not because of the level shows the changes of the prices but because of the time.   

Another example, we take the same situation above, the price starts to go up from Tokyo open reaches 61.8% within 1 hour before London, the price is only at this range. 1 hour after the London open, then the price reduce slowly. This shows that that level actually is the limit of the price movements with 2 hours sideways. this shows that the buyer and the seller is fighting with each other and after a few minute then the price will reduce slowly. Hence, we will know seller is here more than the buyer and we sell. Are we clear now on where to put our stop loss position and take our profit and also can justify our risk taken here by using the two analysis.

These are two simple situation I've explained. Now, we can look at our chart and look for the probability of the price movement and think of the suitable time to suit with the trader. Like what I've been using, from few times I used to identify the market, in term of the long and mid term,everyday. Like example, from the 8 hours of working time for human beings I'm using 4 hours for the comparison. Normally after this 4 hours of working hours, they will break for 1 hour.

Now, look carefully at the chart and we can see that what I've mentioned earlier are the only things happened in market.

1) Time and prices
2) Sideways and trending
3) 2 important things for analysis(as mentioned above)

With using these three important things, we will be able to own the most valuable and efficient strategy to trade.

May pips be with you. Good luck.    





           
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