In this article about how to invest in forex (day trading forex and long-term trading) we will be talking about two main aspects: mathematical and psychological. To start with the forex trading accounts respectively mathematical one, we will consider the strategy based on the moving averages cross point.

Any forex trading broker knows that the broker forex trading strategy based on the moving averages cross point is not “tested”. I.e., in some time the system will be making no money, no matter what parameters you choose. We will not be dwelling on this question too long hoping that the readers are quite familiar with it. You may take any period in the history and choose to moving averages in order to take the system of trading based on crossing point of the to sliding averages. It’s provitable, sometimes – very profitable. It’s a common trap for many “dream sellers”, by the way.

The problem is that there is almost infinite quantity of parameters combinations of sliding averages. Only some of them might work according to the selected historic data. You may always find several parameters sets that show great results, but you will never know what are these results before the trend line is over. It makes this information absolutely useless for practice.

How is it interconnected with something we are going to talk about in this article? Now we go to some another topic that may seem illogical for many people. We can not prove something that we would like to tell you about, yet, we just state our opinion based on our experience and mathematics. Sure, we agree that there is a technology of closing the position at once, that may bring much more profits than any other technology in the world. Though, we are sure that you never know what is this technology right before you receive the final facts, just like while choosing the moving averages.