Both experienced and newbie forex traders are always looking for trading tips. If you’re looking for tips like the ones on a horse race, I can’t help you! I can’t predict which horse will win the first race, and I can’t predict exactly which of your forex trade will be winners. You’ll find lots more great information about forex trading at ForexInfoPlace.com
What I can do, however, is provide you with some basic forex trading tips to help keep you on track to make money trading foreign currencies.
1. Trade, don’t gamble. Trading is based on research and knowledge, whether yours or a trusted advisor’s. If you risk trading foreign currencies on hunches or without proper knowledge and research, you are not trading, but just gambling. Save your gambling for the horses or the gaming tables, not your forex trading.
2. Use a demo account to practice trading before using real money. To do this, use your broker’s “demo account” facilities. With a demo account you can trade as if it were real, making and losing money just as in the real forex world. No money actually enters into the picture, which means you can make all the mistakes you need to in order to learn. My advice to newbies: trade on a demo account for at least three months before you go live with real money. Not only that, but analyze your demo wins and losses carefully, learn from your mistakes so that you won’t repeat them with real cash.
3. Trade in the time frame that suits your style. Short time frames like 15 minutes makes for a lot of excitement and many traders love that. I do strongly advise new traders to look for longer trading timeframes though, as that gives you more time to think before you react.
4. As a beginner, go with the trend. With experience, you might want to experiment by bucking the trend, and you might be successful. But don’t take any chances this way until you are really experienced — and maybe not even then. Learn more about trends here.
5. Study the charts of periods longer than your chosen trading time frame. This gives you a bigger picture and gives you a better chance to see and accurately identify trends. For example, if you are trading in an hourly time frame, you want to look at daily and weekly price movements for a more realistic picture. The forex market is subject to occasional blips that can trip you up if you’re not ready for them. Watching how things are unfolding in longer time frames will help you see these glitches coming and take appropriate action.
6. Manage your money conservatively. That generally means risking only about 2 – 3% of your total trading account on one trade. Understand that you WILL lose on many trades, that’s just the nature of forex trading. Each time you lose, you need to make twice that much on the next trade just to stay even! Keep your risk low so that a few losses in a row won’t wipe out your account.
7. Ignore your emotions when it comes to forex trading. Many new forex traders, and even more experienced ones, have been wiped out because they let their emotions influence their trades. Make your trades based on analysis, both technical and fundamental, not on panic or elation. Never trade on a hunch (see tip #1).
The world of forex is exciting, but it’s also a dangerous space. I recommend ongoing education in all aspects for as long as you are trading forex. One great place to start is with this free 7-part mini-course
Automated forex trading system based on the Ichimoku indicator. Expert advisor robot trader built for metatrader MT4. Ichimoku meaning in Japanese as ” one look” was created by Japanese newspaper writer Goichi Hosada.
Unlike statisticians or mathematicians in the industry this was a work of person who used his expertise and few assistants and created technical indicator that is so robust and strong in today’s trading. There is strong pipwinner system built around this type of trading and it compliments other trading systems in place. Take a look a the video here.
The Ichimoku indicator is used to measure short term time frame momentum along with areas of support and resistance as they occur in naturally. The standard Ichimoku is comprised of five lines:
— This is a line made up by using high and lows for the 7 to 9 periods. This can be interpreted as short term moving averages.
— This line is same as the above Tenkan-Sen but it consists of longer time frames. Many traders use cross overs of kijun and Tenkan as entry and exits points .
The cloud is made up of space between the Senkou Span A and Senkou Span B. Senkou Span A is calculated by subtracting : (Tenkan – Kijun)/2 and the Senkou Span B is calculated by (Highest High- Lowest Low)/2 over typically 52 periods.
The crossovers are used for entry and exits points.
— Lastly the Chikou span is created by plotting recent price movement twenty six periods behind the latest closing price.
As most traders I started by trying to puzzle out Forex trading without any help. I was always hunting for new methods to learn more, bring in more revenue, and be a better trader. Many people also tried to feed me lies, gimmicks, and sales pitches but I didn’t buy into them. Becoming profitable at Forex strategy trading was not simple and it took lots of work and effort. During my journey to become a profitable trader I learned one of the biggest Forex secrets.
Successful traders are not hunting for jackpot trades (normally trades with quite high risk parameters) that will make them large sums of income once in a while. Pro traders are rather in search of trades that can produce them smaller profits repeatedly.
In this article you will learn how you can make Currency trading work for you by trading high probability/ low risk trades. Pick your battles wisely: Choosing the right battles is extremely important to ensure that you accomplish your goals. In Forex trading you must pick time frames and currency pairs that suit your trading needs. For example, if you are looking into trading only for a few minutes a day you may need to learn how to trade lower timeframes. If you are planning to trade everyday you may need to consider day trading and so on.
Be sure to possess the right Foreign currency trading “weapons”: I am careful whenever I choose or build a new trading system. Lacking the appropriate trading tools can be quite detrimental and sometimes it can cause you to lose most or all of your trading funds. The best way to measure the success of your trading strategies is by testing for 3-4 months and then analyzing the final results. Every trading month is different but 3 months definitely seems to be the magic number to perform back testing on a FX strategy. To make an omelet you need to break some eggs: No trader wishes to lose but the truth is that every trader loses money.
Additionally, a successful Forex career is formed by several small failures. Successful Forex traders accept the fact that loses are part of the trading game. What really makes all the difference is your ability to manage your risk and find trading opportunities with high reward to risk ratios. Perseverance will always overcome misfortune: The best way to be a consistent and very profitable trader is by having many small victories time upon time.
When facing a losing streak your perseverance and discipline will be tested. Furthermore, a Currency trader that is consistent, never gives up, and takes smart trading decisions will achieve his goals sooner or later; it’s just a matter of time.
Most beginner traders believe that the way to succeed is to find the “holy grail” trading system or technique that can make you millions. This approach will not take you to where you want to go with your trading career. Focus on using simple trading strategies, solid money management, and keep reading my Forex strategy trading tips 😉 and you will be on your way to become a very successful trader. All the best, Jay Molina Pro Forex Trader & Educator