7 Easy Tips That Will Help Out Your Forex Trading

Here are 7 easy tips that will help you make more money with forex trading.

Tip #1 Knowledge is Power.

When starting out trading forex on the net, it is an
absolute must that you understand and become good at the
basics first. Once you have a good concept on the basics
then you can move forward.

For example, one of the major forex influencer’s are global
news events. An ECB statement is released on Euro interest
rates and this will cause a flurry of activity. Most
newcomers will get scared and wait until everything calms
down. If you hesitate you are likely to miss out on some
great trades. You must act when the market is in volatility
not when it is in a stand still.

Tip #2 Independence

When you are new to Forex you will be trading yourself or
have someone else do it for you. Obviously you will make
more trading yourself, but you must know these things.

If you have someone else doing it, don’t interfere what he
is doing… he has a strategy that may take some time, let
it ride.

And if you are doing it yourself… don’t get too much
information… if you try and get too must information from
too many sources this will result in only multiple losses.

Take a position, ride with it and then look back and analyze
what has happened. Be independent and stand strong.

#3 Don’t Get Over-Confident

Take tiny margins. It is one of the biggest advantages in
trading forex. It allows you to trade amounts far larger
than the total of what you have deposited. But don’t get
over confident with this… some rookies get greedy and this
destroys many traders. Only increase depending on your
experience and success.

Tip #4 Trade When It’s News Time

Most really big trade occur around news time. Trading volume
is high and the moves are noteworthy. This means there is no
better time to trade than when the news is released. This is
when the big guns adjust their positions and prices change
resulting in a serious currency flow.

Tip #5 Exiting Trades

If you place a trade and it’s not working out for you, get
the hell out of there. Don’t multiply your mistake by
staying in for hopes sake for a reversal. That is very
unlikely to happen. And on the other side if you are winning
a trade don’t pull back because of the stress levels. You
must learn to tolerate the stress, it is natural to trading,
you must get used to it.

Tip #6 Don’t be smart

The most successful traders keep their trading basic. They
don’t analyze all day or research historical trends and
track web logs and their results are excellent. They spend
their time in the stress zone not in the library.

Tip #7 Build Your Confidence With Experience

If you lose money early in your trading career it’s very
difficult to regain it; the trick is not to go off
half-loaded; learn the business before you trade. Knowledge
is power when coming to trading.

any more tips? for trading?

Heres a good one for all you newbs…

[U]Take it like a man[/U] - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don’t get commit to any one trade; it’s just a trade. One good trade will not make you a trading success; it’s ongoing regular performance over months and years that makes a good trader.

To Your Success!

Illuminary

The system I trade disagrees with tip#4. It specifically says to stay out of the market around news time.

Rule #4 is right and wrong, it’s depends on you. the reason the experts say stay out is, too much risk, it moves so fast, sometimes you can’t get out of a bad trade if there is no stoploss set. But likewise a half hour before and after things start moving in the way they may go for the day, giving you a head start if your brave, try on a demo account and see for yourself.
I usually watch the news and see the pips rise and fall like yo-yos, try it, you’ll see!
Best of trading, safe trader. you’ll last longer, but won’t make all the dough.:slight_smile:

illuminary, I agree!

I have a good friend who trades the news. He is very good and makes a lot of money. This all applies to him.

And for the others, I agree as well.

I traded the news for a short (very short) time. I sucked at it. Half or more still applies to me.

:slight_smile:

dont get too emtional on a loss and take revenge on the market.

Can anyone explain why EUR/GBP went down from 0.6858 to 0.6792? This is just not possible…the past 12 days, it is going up and just after I invested, it goes down. And also the same with USD/JPY…it went up skyhigh from 116.71 to 117.90 just after I invest when it was around 117? Can the market be manipulated?

Eh man, I’m quite familiar with the EUR/GBP, but the thing about trading is you have to protect yourself(it can be very unpredictable.) I heard that the GBP is about to have an inflationary boom, but this is all speculation. This could of contributed, the fact that it was at a resistance level, the fact that the trend went like 300-400 pips, while the EUR/GBP seems as though it is bearish (long term, not short). All this could have contributed, but I don’t care since I think in probabilities. But look at that one break, huge eh? It went from like .6820-6780 (not much for most but huge for EUR/GBP). It seems as though the EUR just put up a white flag against the GBP. It could just be strong selling. Anyways, there is so much that goes on that you can’t tie a single event to something like this. BTW in the last while the EUR/GBP was going up, even though the GBP’s data was stronger (I think anyway).

I think this is just a scam! Someone is monitoring my activities. I am not paranoid, I just think that each time I invest, the market goes to the opposite direction although all indicators says it go to the direction I choose…it did not happened to only one but all of it! ****! This is a market that can be manipulted.

Wow! I can feel your anger through the screen.

First, one of the things that makes forex so appealing is its size. Because of its size it is not easily manipulated. What you are feeling is nothing but pure frustration and understandably so. But don’t get yourself into thinking that the market is responsible for your losses. You have to take full responsibility.

Indicators respond to what the market does. It indicates a rising market only because the market is rising. They are mathematical derivations of what the market has done in the past, which is why they have lagging properties.

What i would suggest you do, just to set your mind at ease, is look at a few different data feeds. See how price acts from several different sources. If you notice that price is behaving very differently from one feed over the next, then maybe (although unlikely) you have a problem with the data feed.

What you have to understand though is that the market does not care when you enter or exit positions. The market will do what it wants to do, not because of manipulation, but because of normal market behavior. The price behavior you see applies to everyone. The fact that you chose to enter the market when you did only to have it go against you is a function of your decision making process, and not a function of some conspiracy theory. Look inward to figure out what’s happening. Accept that the responsibilty is yours and yours alone and you will get over this hump.

Look at this…just 30 ago, EUR/USD is flactuating 1.3294/1.3285 and I am losing…but slow gaining towards my (I’m losing 10 pips) and just a minute ago, it went to my direction but very slowly…so whent reached 0 pips lost, I closed it then the market jumped 10 pips towards my direction…can you explain that?

Probably the 250 is enough to influence the market to jump suddenly to 10 pips high…so it means the market is so small that a 250 sell-off could easily influence a 1 trillion market.

You have to understand that this happens to everyone, not just you. Please believe that. There is nothing more aggravating that closing out a position at a loss or break-even only to see it jump in your favor shortly after. I guarantee you that every single trader on this planet can tell you such a story. It happens and is part of the game.

These sudden jumps/drops in price happen regularly, especially during volatile periods (during news releases for example). It can also happen pretty quickly with volatile pairs like the GBP/USD or the GBP/JPY.

You have to learn to view each trade in the proper context, as part of a series of trades within a well-tested system. If you have a tested system you should already have an idea how many times things like this happen and the impact of these occurrences in the long-run. If you have no idea, then i can assure you that each time it happens you will get upset.

Do you have a tested system???

I think the problem is the stops you have. 10 pips is ridiculous with the EUR/USD, the EUR/GBP is fine with ten pips, but where you put that tight of stops is crucial. That means that wherever you enter is the most important. And, because the market is unpredictable, getting in won’t always happen accordingly. I used to have tight stops, they worked ok, but they cost me more losses, a string of 10-15 of them. By the way what do you mean by the 250 is enough to influence the market. listen, hit the heavy bag, go for a run, do whatever will calm your nerves. It sucks, I know but the fact that your pissed and trading is like alcohol and gambling - trouble. Look, I’m not telling you to change your style, but watching the fluctuations were too much much for me when I started, and yes I felt the same way. That’s why I went longer term. It got to the point where I was praying on my knees for it to go where I wanted it to. Scalping has to be the the most emotional thing I’ve ever seen. Just keep plugging away, eventually the skies will clear. Besides your thinking in terms of the now, a few losses is nothing, you can make it back when you get a winner. Hope this cool the heat a bit.

this is ridiculus!

I am just so surprise that a 250 sell-off could easily influence the market…if it is not manipulted on someone else favor. Ok, this could explain also why after a 1000 long investment in EUR/GBP has broken the 12-day up trend which causes it to plunge 70 pips in just one day! Whew! 1 trillion/day market! scam!

I agree with you Shadow.

xblaster, the key to calming your nerves and your erroneous perception (that forex is a scam) are 2 things:

  1. Step away from the market for a while. A couple of days might do you some good. Get the anger out of your system

  2. When you get back, work out a set of rules for entering and exiting and backtest/forward test it. Only then will you know what you can expect going forward. Let me put it to you this way: Would you be as upset if you knew that the system you are folliowing regularly experiences 5-6 losses in a row before hitting a huge winner to offset everything and more? But if you have not tested your system you can’t possibly make those kinds of convictions

Forex is most definitly not a scam. There may some dishonest brokers out there, but overall, it most certainly is not a scam.

Remember that the market does not have to conform to any expectation. I’m not sure what you mean by “250” but the market can do anything, anytime, however it wants. Do not attach an expectation to any single event because the market does not have to obey. Sometimes a normally meaningless event/report can create moves that we don’t expect.The sooner you establish that mind-set the sooner you will accept whatever happens.

Stop being so angry because right now you are your own worst enemy

just remember that 1 trillion dollars isn’t only in the EUR/GBP, it mainly in the USD pairs. The EUR/GBP isn’t very volatile, so I could see it being easily manipulated, but whoever told you that it was only 250 sell off, is talking out of their a$$. They don’t have the actual numbers for how many sell, or how many buy, plus fundamentals are involved as well. Plus, who cares something like this that happens should give you the feeling also that soemthing like this could happen in your favour. The market moves whether your in it or not. What’s the sense in getting mad, besides this should tell you how hard the market really is, if it was easy everyone would be rich right? Right now is a good opportunity to control your emotions, complaining only makes the thing worse. Remember you are trading against professionals. Try and lace up some skates, play in the NHL and score on your first shift without getting hit. Is it possible, yes. Will you do it, probably not. So don’t worry about a few losses, in the end the reason you lost is your own fault, you were the one who put the money up, you were the one who accepted the risk. The idea that forex is easy is a scam, and just because someone posts “7 easy steps/tips whatever to help” wont help. Why? Because experience is only thing that will get you better, try studying for a math test by reading the chapters and not doing the problems - you will do bad. BTW look at the daily and you’ll see that the trend was much more than 12 days. Again the EUR/GBP is in a bear market long term. (we’re talkng weekly, monthly, whatever.)