1. Knowing The Market and Knowing Yourself Better
Forex trading can be very complicated for beginners. There are some who are too caught up in understanding the complexity of the market that before they knew it they already lost a significant amount of money. To grasp the markets, you need first to understand yourself better. The initial step in enhancing your self-awareness is to ensure that your risk tolerance and capital allocation to Forex and trading are not excessive or lacking. Thus, you need to carefully study and analyze your own financial goals before engaging in Forex trading.
2. Set Your Emotions Aside
As much as possible, don’t let your emotions affect your trade decisions. Trade calmly, never plan to take revenge after losing a trade. Avoid adding lots of positions when winning, being greedy may cost you more in return. Being too excited or too nervous may alter the results that you have envisioned. Moreover, over-trading is not the proper way to go. It will just shake your money management and will dramatically increase your trading risks.
3. Follow The Trend
You must consider the trend as your friend. Though going against the trend is not necessarily bad, it is not necessarily good, as well – especially for an inexperienced trader. Trading against the trend requires more attention, sharp skills and nerves in order to pull it off successfully.
For beginners, you need to remember that when a trend is up, stop selling and when the trend is low, stop buying.
4. Keep It Simple
Too much of something, is always bad. Too much information brings chaos to your system and lead you to bad decisions. Organize your thoughts and create a simple working method. Forex strategies don’t have to complicated to be successful.
You have to understand that the simpler your system is, the better it will work and the better results you will get.
5. Working Smart Is Better Than Working Hard
Learning Forex trading doesn’t really matter how many hours you spent on it but on how you utilize those hours efficiently. For beginners, the best thing to do is to start with swing trading and avoid going directly on day trading.
It is common among beginners to make mistakes. However, you may avoid all of these given the right knowledge. If you want to succeed, try to put your efforts in the right areas. Just remember these 5 simple things and be ahead over others.
The Forex market is always evolving. In just a decade, it changed from a “private” market where only some special participants were allowed to take part to be an open market that can be traded from anywhere in the world.?
But the changes didn’t stop here. We evolved from manual systems where traders would have to look at their charts during the entire day to the automatic Forex systems, where you just need to leave your computer on and a robot does all the work for you.
Both manual and automatic systems have advantages and disadvantages and you should choose the best one for your own needs.
Let’s start by the manual systems. By using a manual system, usually a trader must understand some concepts about technical and fundamental analysis, about the market itself, among others. This makes you have a longer learning curve but this is what helps you make better decisions.?
Usually, when people say bad things about manual trading they refer to the time spent in front of the computer, just waiting for the right trade. This is in part true; but nowadays, some manual systems already tell you the best hours to trade and they even tell you that if you don’t see one good opportunity in 1 specific hour, then you can turn off your computer for the day. This isn’t a reality for all systems but it’s becoming more common every day.?
The best advantage you have when you’re trading using a manual system is that you’re in control. You control your account, your money, the money you place in a particular trade.
And what about automatic Forex trading systems? If you have a full-time job and just can’t be one hour in front of your computer, that’s probably the best solution for you. But still, you need to be careful with the one that you choose. There are many robots out there that simply don’t have a stop loss placed, or have a bad risk/reward. This may lead you to lose a lot of money fairly quick.?
One of the things that I personally don’t like on certain automatic systems is the fact that they don’t even explain us how they work. The basic assumptions made by the robot to enter in a particular trade may be wrong and may lose money. But not all of them are like this. Some are already stating in what the robots are based (if its only the price, some indicator, etc.).?
Automatic trading systems best advantage is the fact that they don’t require a learning curve. You just install them and they’re ready to do all the work for you.
What to Consider When Choosing a Forex Broker
Choosing between a manual trading system and an automatic trading system may not be easy but it’s essential. No matter which one you choose, don’t forget that you always have free demo accounts to test them and to be sure they’re profitable and consistent before you commit your hard-earned money. Selecting a Forex broker is not easy but it’s something that must be done. It’s important that you take this screening process seriously and not hire the first Forex broker who comes along.
1 – The most important attribute that any broker should have before you hire him is a credential proving he’s regulated. You will see a lot of brokers who are not regulated. What this means to you is that he answers to no one. In the event that something goes wrong with an unregulated broker there is no agency to report him to and therefore no recourse for someone who has been exploited.
2 – Once you’ve found a broker who is regulated the next thing you need to look at in a broker is the way they treat their customers. What do their other clients say about them? Do they have a website and e-mail address? Do they have a phone number you can call in the event of emergency? Do they have a philosophy of customer service? Are they consistent in the way they treat you?
3 – The next thing you need to consider is the broker’s technical capacities. As a starting point, your broker should offer you a demo account free of charge. But you should also find out how many pairs of trading are available. What is the minimum amount of money you need to keep in your account? Are you required to keep a certain volume of trading? How up to date is their software and will it protect you against slippage in volatile markets as well as normal markets? How user-friendly is their software and will they train you how to use it?
4 – Finally, before you select your broker, you should research the ones that are in contention for your services. Look them up on the Internet and see what other people are saying about them or go here. You’ll be amazed at the amount of information available.
Your broker is a critical cog in your Forex machine. He’s the only one besides you who will have access to your account. Shouldn’t that be enough of a reason to make the right decision when it comes to picking a broker?
Forex Trading Education
FOREX education is what will make you a successful trader. If you have chosen this field you probably understand how much potential the market has. You can make use of the FX markets by taking advantage of the many opportunities that arise while trading. This however would only be possible if you have a solid FOREX education.
With a good education, you do not have to rely on anyone else for making your money grow. You are in charge of your money at all time. All you need to have is a computer and the knowledge to trade in the currency markets. You are totally independent and you are your own boss!
You can even start working from home. You don’t need an office or any employees, or even a schedule.
Once you are equipped with information and knowledge about the various strategies and styles of trading, you are bound to have a sound financial future.
The best part about trading in the FOREX markets is that you could be from any profession or age group. The only thing that matters is how well you have been educated about the market. FOREX education lets you manage both your money and time.
Make sure to choose a course that is simple to understand and provides constant support and assistance. Many courses available online are free of charge, so if you find the one that suites you, you have hit the jackpot!
Apart from attending the FOREX courses, you should try to attend as many seminars and discussion groups as well. This way, you can communicate and gain knowledge from experts and experienced traders.
Another great way of getting a FOREX education is by setting up a free online demo account. This will give you hands on experience about how market fluctuations can affect your money. You can practice how to place trades and use different signals. You would also learn the various terms and the jargon used while trading.
Get the right education and invest in yourself first before you begin to invest anywhere else.
Selecting A Forex Strategy
The Forex market, also known as foreign exchange or FX market, has two basic strategies – Technical analysis and Fundamental analysis. The strategy used in the forex market is similar to the strategies used in other financial markets. The most commonly used strategy amongst Forex traders is Technical analysis. However for becoming a successful currency trader, it is important for traders to know the working of technical as well as fundamental strategies.
Fundamental Analysis:
Fundamental Analysis is very complex in nature and used by traders who usually trade in long-term trends. Fundamental analysis is done by analyzing some specific factors of a country which include Purchasing Managers Index, Retail sales, Consumer Price Index, Durable goods and Non-farm payrolls to name a few. Traders using the fundamental strategy always keep their eyes open to detect the changes in the fundamental factors of a country. Commercial banks and investment banks who are considered as big players in Forex trading organize special meetings to discuss inflation, interest rates and other factors that can influence the rise and fall of a currency rate.
Traders also keep a keen eye on the statements made by governments that can make the currency market more volatile. Traders generally follow meetings like Humphrey Hawkins Hearings and Open Market Committee. Through news and examinations Forex traders can predict the currency rate for long-term trends.
Technical Analysis:
Technical Analysis refers to the price trends in the Forex market. The most common types of technical analysis to determine the currency pairs prices are: Fibonacci studies, support and resistance levels, Pivot points and Parabolic SAR. Most Forex market technical analysts combine technical analysis methods like Fibonacci and Elliott to come up with sure shot predictions.
Selecting the best strategy and perfecting it over time is the sign of a successful Forex trader. Generally, Forex trading experts advise traders to use the combination of technical and fundamental strategies for accurate prediction. All strategies works best for forex traders who go with the flow of the trends and not against them. Following successful trends increases the chance of profits.
The Key To Succeed In Forex Trading
To be a successful Forex trader, you must understand the key combination your Forex trading strategy must contain…
It is a fact that for you to be a successful Forex trader, you need to learn about this market first. Still 95% of people who enter in this market, end up losing heir entire accounts (or at least a very large part). This happens because people usually do not include two key concepts on which Forex Trading is built. Let us look at this key combination.
1. Simple Odds Based Forex Trading System
Most of the people have a blind faith that proper prediction is a key to earn money, and this myth is guilty of selling junk products, but it’s not true. Forecast and hopes to try and guess are simple predictions that aren’t more accurate than your horoscope.
Trade by having a look at the price change as you see, and forget Forex charts to predict.
Do not go to science or mathematics, as many argue (if not, we all know the price in advance and not have the market!). Like a good player, you lose a lot of hands, but if the game and bet follows high odds hands, you can do a lot of money.
The reason for this is that the world is constantly changing, just like the Forex market. Complex systems got out easily and there is no exact relation between the success and complexity at all.
Bringing together the forex trading plans based on the above is helpful – the hardest part is actually implementing the strategy.
2. Discipline in the Face of Emotion.
You must now execute your trading strategy with proper discipline as well as the money management after long periods of loss that can last for weeks.
Do you think you won’t have these kinds of weeks?
All traders do the same most of the times. This does not mean they do not win in the long term – they do, but in the short term, they overcome these days with their management plans and discipline.
You must stay on the course. We all hate to lose and have an ego, but the loss is a way to win, and you must understand it. By having losses, you’ll be able to identify what you’re doing wrong – whether if by nor following the rules of your system or if you’re just not being patient or disciplined.
All discussed matters sounds quite easy but it is not you must strict hard to all these points to achieve a sure shot success.
What Are Forex Tutorials And Why Do You Need Them?
The Forex market is the biggest financial market in the world. The advancement in the technology has opened the door of Forex trading even for the ordinary people. In the earlier times Forex trading was the prerogative of only the privileged people, financial institutions, governments of different countries etc. Forex offers lucrative opportunities to everybody to make huge profits even with the small amounts of money.
Most people still believe that Forex trading is about gut feeling of the trader and about speculation. However, this is not so. Forex trading involves having great skills and years of hard work to be able to trade well and minimize losses. Technical and fundamental analysis must be carried in order to trade successfully. The trader must also be able to comprehend the basic terms associated with trading. Trading decisions are based on the market information. The trader should properly decipher this market information. Ignorance would only increase his risks and diminish the traders’ profits. Before a trader embarks upon Forex trading it is important that he takes up an education program or a tutorial.
Forex trading tutorials play an important role. They make him aware of the trading fundamentals. There might be several levels of training programs. The duration of the program also differs. One needs to select the program with great care. It should cater to the need of the trader. The program to be chosen depends upon whether the trader is a novice or a seasoned trader. A novice would need a basic program that explains the terminology to the beginner. A basic tutorial would deal with concepts basically. Other practical information like how to analyze the charts, when to enter and how to exit trades, how to place the trades, etc. is taught to the trader.
The seasoned trader currently facing losses might have to take up a different kind of a tutorial. His experience and existing skills would not be enhanced with a basic program. An advanced tutorial program would be more suitable for him.
Thus, the ideal course components of a tutorial must equip the trader with the following:
- Basic terms of forex trade and their meaning
- Knowledge of market forces governing the movement of currencies
- Thorough understanding of technical and fundamental analysis
- Capable of carrying out technical analysis
- Interpretation of forex price charts
- Detailed information on volume indicators
- Interpreting charts
- Momentum indicators and moving average indicators, etc
- The impact of each financial announcement.
It is important to understand that each of the sections described above are so vast that a course can be designed to cover a single topic. Different companies have different learning programs. The depth in which they cover a particular section can vary from one tutorial to another. Most tutorials only cover the outlines of most topics. A trader has to decide whether he only wishes to have an overview about a particular section or is looking for in depth information.
No trading course will ever teach how to control emotions or maintain discipline which is of utmost importance in trading. The courses strictly deal with the more practical aspects. One must stick to the trading process and system.
Once the trader has enrolled for a course and completed it successfully, it is time to start actively practicing it. Years of trading will teach him to develop his own trading systems. There is no course that teaches him to make profits every time he trades. However tutorials only equip him with information and teach him to process it so as to make profits form forex.
The traders get carried away. After a wining streak, they start putting their money in to bigger trades and end up losing, only to regret later.
Today the only infrastructure required for forex trading is a high-speed internet connection and a computer. There are automated software in the market that can even trade for you. They are preset according to the needs of the trader. Forex robots can trade automatically even when the trader is not physically present. The cost of these robots varies between $100 – $200.
Despite all the technology we can use, a great deal of time and efforts are needed to master the trading in the forex market. One needs to devote tForex Trading – Essential Aspects of the Market
Forex trading is a simpler way to earn money; so, why only 5 people out of 100 get success in this field and remaining 95 can’t? It has been observed that most people used to begin trading without even understanding the Forex market completely. According to them, Forex trading is an easier way to make instant money. Though they are not completely wrong about it, they need to have proper education. Another major point which they lack is that they do not possess any specific mindset required for forex trading.
A basic requirement in Forex trading is nothing but a good education, which we can divide into two main areas:
1) Proven and profitable Forex trading system: In forex trading there is no such clause that only a genius can make money – you don’t need a degree; you just need to make some effort. To know if a Forex system is profitable and consistent, you can simply get some relevant forex reviews like Forex Top Ten to get more information about the product you want to buy. It has been observed that mostly forex experts tell you to trade using technical analysis and take required guidelines from news available. Generally, you need to use support or resistance as per the forex strategy used. As a result of this either you go for continuation or go for breakout.
2) Risk awareness: Though you can make money trading Forex, you may also suffer high losses due to basic lacking. It is essential that you understand all the risks that may be involved in the trade. In case you are using some technical indicators then it is essential to follow them strictly. Other than that what you need is good money management. You shouldn’t put all your money is a single trade. This way, you’ll prevent severe losses that might lead you to lose your entire account in just a couple of trades.
If you treat Forex as a business (which is something you really should do), then it is essential to follow some business plan to make it successful. First main point you need to keep in mind is that you should have a realistic target so that you can work as per that target. Doesn’t matter if it takes time to learn forex trading what it requires is proper technique and a good experience. One should always choose experience instead of any tutorials. Market experience will help you in making good profits and taking less risks. You should always remain calm and go with all the norms of the Forex market.
ime, be honest and make sincere efforts. Money does not come easy form Forex trading. Patience, discipline, knowledge and consistency are all essential for winning in forex.
