Learn How to Trade the Forex - The 3 Steps to a Profitable Trade

Trading is a concept that is very simple: just buy and sell. But to properly trade the forex, or any market, one of the first aspects a trader realizes is that each step of a trade is a small but concise process in itself that requires attention.

The proper implementation of each of these steps is what determines if the trade is actually profitable, and the training program at The Forex Trading Institute precisely teaches you how to follow these steps.

Step One: Determining Market Direction

Markets can trend, go up or down, or they can be sideways. In the forex, the market is in sideways conditions 90% of the time, so the first step for a forex trader should be to assume that an individual currency pair is in a sideways range. After making this assumption, a range bound strategy would be ideal to apply to that currency pair.

The advantage is that range bound strategies work on both sideways and trending markets. Trending strategies only work when there is a trend in the market, which is only 10% of the time. Thinslice Trading teaches you four strategies designed to make profit in sideways markets, keeping in mind that they work in trending markets as well.

Step Two: Entry strategy

A precise entry strategy ensures that the trader is able to identify a clear entry point based on a set of rules. This entry strategy should be a black and white process; either the setup is a good trade, or it is not.

Clearly identifying the correct setup and following the appropriate rules to identify this setup is what will yield a higher probability of the trade actually working out. The Forex Trading Institute's training program is a simple but effective approach. It clearly identifies if the setup is a good entry point or not, making it easy for the student to clearly understand how to identify good trading opportunities.

Step Three: Exit strategy

This is how the trader gets paid. This step is just as important as the entry strategy. A fixed profit objective of 10 to 30 pips is a reasonable profit objective when the average price move of a currency pair is 30-50 pips, that is the goal of the forex trading strategies used in Thinslice Trading. This is what is known as a scalping method.

By using a scalping methodology, or trying to get a piece of a price move instead of the complete move, Thinslice Trading is able to increase the chances of the trade succeeding. Remember 90% of the time a currency pair is in a range-bound condition. The only way to consistently make a profit in this condition is by trading a scalping technique.

Most beginning traders try to take a trade to the top or bottom of a move, which usually leads to a losing trade. The solid forex trader wants to scalp a high probability section of the move.

Following these three steps in the way The Forex Trading Institute instructs its traders, by properly identifying the trading condition of a particular currency pair and having a clear entry and exit strategy, is the mark of a solid forex trader.

Many traders tend to overlook the details of each step, or sometimes overcomplicate each step, which leads to losing trades.

To learn more about the Thinslice Trading scalping methodology visit our website @ www.TheForexTradingInstitute.com

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