7 Tips for Trading Foreign Currency

June 10, 2013 by  
Filed under Forex Trading

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

 

Forex Strategy Trading Tips Why Small Victories Will Assist You to Win All Your Trading Battles

October 8, 2011 by  
Filed under Forex review, Forex Trading

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

Jay Oil mill is an advanced Forex to trader that helps to other investors around the world to learn about the Forex market and its rewards and risks. To learn dwells forex strategy TRADING tips visit the Link: http://www. myfxinvestment. com

Forex Technical Analysis Ebook – Successful Forex Technical Analysis Concepts For Newbies

July 27, 2010 by  
Filed under Forex Trading

Forex Technical Analysis Ebook
Many of the large Forex Brokers that novices use release technical analysis and recommended entry and exit points for most currency pairs on a daily basis. Many beginners resort to relying on this option soon after they commence trading once they realise the limits of their own Forex knowledge and capabilities.
You can use technical analysis to help you analyze Forex positions in order to detect new trading opportunities. However, if you do so, one of the first and most fundamental features you must determine is the size of time frame that you will use.
You also need to realise that the statistical methods used in technical analysis perform much better and are far more reliable using time frames longer than one hour.
Many newbies attempt to detect technical formations such as double tops, head and shoulder, triangle break outs etc using 1, 5, 10 or 15 minute time frame. However, this is not a good practice as the statistical techniques are unreliable with these short time frames.
So which are the best time intervals to use? There are a large number of times frames that can be chosen when analyzing the Forex Market using Statistical Techniques. The most popular timeframes used are the hour and the day ones. Forex Technical Analysis Ebook
If you have already developed a trading strategy based on a selected time frame then stick with it. Otherwise, here are some guidelines that you may find of use.
Fundamentally, statistics produce more reliable results the longer the time frame used. This is especially so when the trading is following a regular patterns such as during stable times. However, longer time frames can be more vulnerable to sudden sharp reversals which can be a serious problem.
Very short time frames below 10 minutes do not lend themselves to most types of statistical analysis but some traders do use them for other types of trading strategies and analysis such as Scalping.
The main concept used by scalping is to minimize risk by entering and exiting trades as quickly as possible. You will then need to repeat this process a large number of times targeting for a small gain at low risk each time.
One of the main ideas of this strategy is to attack the markets during their off hours when they have settled into a tight predictable range pattern.
A good time period for scalping this way is between 9. 00pm and 1. 00am GMT and only the following currency pairs are traded: EUR/GBP, EUR/CHF, GBP/CHF and USD/CAD. You will find that Forex can be very quiet with low volatility because the USA, Canada, Europe, UK and Switzerland do not release important fundamental data during this time period. Forex Technical Analysis Ebook

Always dream of being Rich? Never able to make a Consistent Profit through trading?Get your Forex Technical Analysis Ebook and be Successful forever!Try this Surefire Forex Challenge and be Financial Free in 6 Months!

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