ometimes it`s wise not to on any trade.
be the early bird when
investing in forex, instead Anyone who`s followed the market
wait and see what the day will knows that a forex stock will
bring before you take action. The often gap up early in the
10 A.M. rule is a great example morning, only to suddenly sell
of this concept, and is an off and reverse into negative
example that protects your territory. By following the 10
capital. Let`s say you want to A.M. rule, you avoid the risk of
buy a forex stock, for whatever this sudden reversal. If the
reason; a trend play, or a market forex stock does make it to a new
rally that you think a currently high after 10 A.M., there is
hot sector will participate in. still trader interest in the
You know that a great time to buy forex stock, and it stands a good
would be on a gap down, but the chance of gaining momentum and
market is in rally mode and heading even higher.
instead of gapping down, the
forex stock gaps up. But buying Here is an example of the 10 A.M.
the gap up is a bad trade. Now rule on a gap up: A forex stock
what do you do? closes the day at $145. After
hours, the company announces a
You use the 10 A.M. rule, and two for one forex stock split.
wait until after 10 A.M. for the The next morning the forex stocks
right forex stock investing time gaps up to open at $161. It
to buy the stock. If the forex trades as high as $166 before 10
stock makes a new high for the A.M. For two hours after 10 A.M.
day after 10 A.M., then, and only it trades lower and doesn`t reach
then, should you trade the stock. $166. At 2 P.M., it hits $166.50.
Of course, you will use stops to The forex stock is now safe to
protect yourself, like you would buy, using the 10 A.M. rule.
Using a version of the 10 A.M. Using the 10 A.M. rule ensures
rule, you could watch for a hot that you will never end up
sector to appear in the morning chasing and buying a forex stock
and follow the forex stocks in when your chances of making a
the sector that are up for the profitable trade are low.
day. If the forex stocks are Remember, trading is all about
still making new highs at midday, probabilities. The more forex
they stand a good chance of stock investing trades you make
finishing the day near their with a high probability of
ultimate highs for the day, and success, the more successful you
could be good trading will be. The 10 A.M. rule is a
opportunities. This also applies valuable addition to your trading
in a down market and to stocks in plan, giving you a
forex that gap down, opening at straightforward way to avoid
prices lower than where they making costly mistakes and to
closed the previous day. In this increase your number of
situation, you should not short a profitable stock investing trades
forex stock that has gapped down in forex.
unless and until it makes a new
low for the day after 10 A.M.
About the Author:
Discover BIG profits from the market by downloading your FREE copy of David's new Ultimate Forex Trading Systems course. http://www.ultimate-trading-systems.com/forex.html
Source: www.isnare.com
