Simple Forex System to Make Extra Money From Home

Simple Forex System to Make Extra Money From Home

The forex market is becoming more and more popular every day. More people are trading forex online to make extra money from home. Unfortunately, there are those that are jumping into the market without getting proper forex training and they are creating the illusion that this is a market that is every dangerous to put your money into when that is the farthest thing from the truth.

As with anything, there are plenty of forex systems in place and models that are already set up to be successful, but you have to be trained in them in order to use them in the right way. It would be like handing someone a piece of fancy radar equipment that is used every day and every airport and expect them to be able to land planes without ever having done it before. You know the equipment works, but you are guaranteed that every plane will crash as the operator has no idea what they are doing.

One of the more simplistic forex trading strategies that you can use is called the simple moving average. As with any forex strategy, you have to make sure that the risk is worth the reward. You are going to see plenty of trades that look great on the surface and then you suddenly realize that the risk factor is way too high and you have to back away from it.

This strategy is easy to understand as you establish a certain point and then go long or short depending upon how the currency is going regarding that point. If for instance you establish your 12 period SMA and you see a stock going above the line and establishing a trend, you go long and when the process is reversed and you see the stock beginning to dip below that line, you go short. You will always have a position and you will always be in the market.

Another very popular forex strategy is the supports and resistance levels. This is about as easy as it gets to understand as the resistance level is the ceiling price of the currency that will bounce in back down and obviously the support position is the low point of the stock that will send it back up to its high.

To breakdown this simple forex system, you nearly need to look at a currency and establish the trend that has been seen over a certain period of time. When you see that the currency hits a certain point, say 0.9015, but it never goes over that, you can place your sell order at or around that point as you know it should never go over that point. You would do the same thing going the other way to the support position.