Skip to main content

Forex Trading ways for success

Trading Forex requires good understanding of the basics and some common ways for the trading. Many people enter trades and fail because they ignore the following points although forex trading is open to all people. The important point to notice is that forex trading like any other business requires good understanding of the basics.
Below is presented four tips that must be followed when trading forex:
1. Don’t use forex robots unless Well understanding them: many people that are new to forex trading can buy the forex robots that say that the person can make many bucks per month with it for long lifetime. This can be attractive to new forex traders and buy it with knowledge oh how it woks. Forex robot sellers say that it will make hundreds of points per month. The point here is that the person buying them must know how they work and know also the basics of the forex trading.
2. Use simple Forex Trading System : when beginning to trade, one can depend on many indicators on the charts in addition to the analyzing the news. Actually, analyzing the news is not necessary to be included I the forex trading strategy. Keeping the forex trading strategy simple will help make money with little risk. Two or three techniqual indicators are good. Complicating the analysis with more techniqual indicators will make the matter difficult. The established strategy must be applied for few weeks or months to test if it works well.
3. Trade with discipline :many people after building the strategy can diverge from it when trading. This is because the trader can trade with just a look at the chart and don’t remember the strategy he built when entering a trade. This can be very dangerous and lose extra money for the trader. The strategy that is built and tested to be well must be followed exactly when trading forex. For example, if the strategy includes technical indicators that consists of the pivot point, the stochastic, and the RSI. The trader must see the all above indicator values met to enter a trade. If two are met and one doesn’t reach the value required to enter the trade, the trader must wait it to reach its value.
4. Don’t Fall for the Myths: There are numerous myths but the major one traders fall for is markets move to science or some higher force and the way to make money is to predict in advance – prediction is just guessing because markets cannot be predicted instead, you should focus on trading the reality of price action. If you want a simple strategy that works, trade breakouts, we have covered this timeless ways to make money in other articles so look them up.
5. Mange well Your Money: many people behave with a random manner when going to buy and sell currencies in their account. The money management control how mush to buy or sell relative to the overall value in the account. It controls also how mush profits to take and how mush losses to afford. Money management is very important like the forex trading strategy.

Popular posts from this blog

Forex Trading Psychology -vs- Forex Trading Method

Did you ever see the movie The Italian Job, and if so do you remember when John Bridger asked: “You see those pillars over there, that’s where they used to string up thieves who felt fine.” Make the transition from paper trading to real money trading and you will feel FINE too – Freaked-out Insecure Neurotic and Emotional. And what a great analogy ‘string up’ is, because after all those months of paper trading winners are replaced with real money losses, that is exactly what you will feel like doing to yourself. The Trading Psychology Viewpoint No discussion about trading, or the consideration to begin trading, can be done without a harsh realization - the vast majority of all traders lose. It is said that the reason that most traders lose is because they are not psychologically prepared to trade, that is they are not prepared to accept financial risk for something of which they have no control over the outcome. Forex Trading is much more of a psychological problem then a methodologica...

Extreme TMA System

The market, like a pendulum, is a never ending sequence of extremes. It forever tries to reach the mean but never succeeds, constantly overshooting it´s mark, reversing and trying it again but always failing to reach balance. This system attempts to capture those extremes. It is a compendium of my understanding of the market, brought to it´s simplest expression. The principles are not complicated. The first indicator, the TMA shows us the average of the path that the price action in the market is following. As such, it is a backward looking indicator and attempts to determine the future from the recent history. It corrects itself by repainting itself. It has two outer bands that show us the outer boundaries of price movement that we are searching for. Our second indicator, the TMA Slope indicator will show us the relative change in the slope of TMA as compared to previous candles. It determines in which direction a trade must be placed and also shows divergences to price. For examp...

What's more important: Trading Method or Trading Psychology?

Ancient argument: What's determines success in trading: A successful methodology  Psychology and discipline?  Answer: BOTH! But this is not a "chicken or egg" dilemma. Clearly in this case method comes before mind. I don't care how much self-discipline you have. If you don't have a viable trading methodology, then you will lose money. So method is more important. Well, maybe "more important" isn't the right phrase to use. But it definitely comes first. The reason I say it may not be more important is because there are many valid trading methodologies available. Yet ironically, traders keep jumping from one method to another ... one indicator after another  one book after another  one mentor after another  one seminar after another  This is the infamous "search for the Holy Grail." Sorry ... doesn't exist. Like most things in life, people keep looking for the answer outside of themselves, w...