How To Read Forex Economic Calendar – 8 Most Important Steps to Successful Forex Trading

March 1, 2012 by  
Filed under Forex Trading

How To Read Forex Economic Calendar

After months of practice and learning, every struggling novice trader begins to wonder whether the decision to enter forex trading was actually a big mistake. Why do other traders make money and I don’t? Do these successful individuals possess any special qualities? Can I improve myself in order to finally start making money?

How To Read Forex Economic Calendar

In order to become profitable in forex, you need to not only learn and practice, but work hard in improving yourself. Below are the major characteristics needed in order to become successful. If you already possess the essential traits – good for you! Just keep practicing and soon you will see the cash flow. If you don’t have the necessary traits yet – don’t give up. Start working on yourself. It is possible to craft yourself into a trader.
So, here goes:
1. Don’t Copy

Copying others is absolutely useless in forex. Every trader is unique and his/her strategies fit their personality and goals. You cannot rely on anyone else but yourself.
2. Be Disciplined

Stick to the plan, even when your self-esteem is over the top. Use your experience and knowledge of the market to make the right decisions, instead of irrational i-can-make-a-million-right-now conclusions, without skipping any important steps in your trading plan.

3. Accept Losses with Grace

Losses are not necessary a bad thing – write down the unfortunate experience in your trading journal, analyze why this happened and voila! You have received one of the valuable lessons by learning from your own mistakes. Practice makes perfect – so don’t freak out over the losses. Instead, learn from it and move on. The main difference between a successful trader and a novice beginner is in accepting the loss. The sooner you learn to lose, the faster you earn money!

4. Be Patient and Reasonable

Know exactly why and when to enter a trade. And here is a great tip – say all those reasons out loud. It is a great way to give a last glance before you make a final click.
Don’t expect the profitable opportunities to pop up all day long. Sometimes, it is wise to give it a break and start again the next day with a clear head. Don’t worry about missing out either, because forex market is always on the move. Not catching the big wave doesn’t mean you will be left out without any profits for ages! How To Read Forex Economic Calendar

5. Control Your Money

Forex is not just about making more and more money, but also keeping what you have already made! You need to have very strict money management rules in order to keep your losses at minimum:
· Never trade what you cannot lose
· Determine your target gains and losses before opening a position
· Use stop/loss orders to minimize the risks

6. Keep It Simple

You don’t need to use all available forex indicators and create a one of a kind Michelangelo-like-masterpiece trading strategy. Keep trading ideas to the minimum – know when to get in and out of the trades and stay away from sentences such as “Let’s stay a bit longer and see what happens”!
· Try trading daily during the same hours in order to get full grasp of currency behavior, liquidity and volatility changes.
· Don’t trade on Sundays, holidays and opening/closing of the specific market.
· Stay informed – read the news, follow the economic calendar, keep your eyes on unemployment rates, decisions on interest rates, gross domestic products, industrial production price, index consumptions, retail sales etc.
· Follow the trend – don’t try to find something that there isn’t, just follow the rend and identify the point of inversion.

7. Develop Strategies

Use free demo accounts to develop your own strategy and a good trading plan. List out several possibilities (plan a, plan b, plan c) – and always have a clear instructions from getting out of troubles. The key to success in forex is to know how to behave in different situations, instead of trying hard to predict what market will bring us today.

8. Control Yourself!

Here is the tough part – the psychological issues related to trading. It is important to stay as cold-blooded as possible by controlling your emotions.
Most importantly, don’t blame the market – blame only yourself! Are your losses still greater than profits? Stop trading right now and start analyzing your strategy. There is a flow somewhere and it is up to you to fix it. How To Read Forex Economic Calendar

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What is the best method to avoid emotion based decisions when trading in the forex market?

April 18, 2011 by  
Filed under Questions

I have stop-loss orders in place but still find myself Wanting to move on emotion Rather Than logic at times.

Forex Trading Systems

April 11, 2011 by  
Filed under Forex Trading

There are thousands of systems of currency commerce in the market, but very few work of the way that say. There are two types of systems. One is called " box negro" , that essentially leaves zero discretion for the retailer. These are directed mainly to the retailers who are or they do not want to become responsible for his decisions. The other type of system is totally discretionary and the retailers make their movement on the base than she sees. This can work well for the experience retailers who are been seeing the lists of successes during years and to see the same landlords time and time again happening, but was not going to work for the nascent ones. The majority of people will say to see the calendar to him of the news forex and noncommercial in press official notices since the majority of these systems of negotiation not to guard by the abrupt movements and can or they cannot work the form in which it is wanted to them in those periods. Many retailers backtesting use of software to verify their systems to return several years, but even so, the data could not be exact or they are not able to adapt to the times in which the market moves quickly and they take to you to be blocked from the commerce, or of its stockbroker it has increased the differentials due to press official notices. A system of currency transaction must well be evaluated. As a nascent one is expensive to finance the systems of the high prices and to lose its capital. Another factor is the discipline. You must have a system that constantly works year after year. You can find a commerce system that works rather well, but soon discover that they are not following the rules. Instead of to hope to that the correct signal, can be jumped suddenly. profitable systems of commerce are simple to understand. More of complex systems they become difficult for you. In addition, if the strategy behind the system is simple, most probable it is than also it is going to be easy to execute. profitable systems that to indicate the exact time of the entrances of the commerce. The system must show the precision result. To call correctly to a direction of the market, but badly moment of the entrance is not a profitable way for the commerce. The good systems will free provide a fast entrance for the execution. exits of Commerce also must be programmed accurately. The majority of the profitable systems has defined the levels in the market to take gains, as well as the established starting points to sell a commerce go by the mistaken way. The systems that do not fulfill this norm as well, potentially to gain the commerce in losses. The relation risk/reward in a commerce system does not have to be in favor of the system. profitable systems not necessarily to gain more operations than lose. It is the sinisterness benefit that is important. The obtained benefits to gain the commerce must be sufficient to cover the inevitable losses for some. good administration of the money is essential for a system of currency commerce good. This will take to maintain the commerce system and to limit the losses in its account. Otherwise the benefits will be of short duration. If all these things are correct, then you are watching a program of currency commerce good that she really can in line add value to his strategy of currency transaction.

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