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
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.
Last edited by illuminary; 03-19-2007 at 08:05 PM.
any more tips? for trading?
Heres a good one for all you newbs....
Take it like a man - 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!
Last edited by illuminary; 03-19-2007 at 08:07 PM.
The system I trade disagrees with tip#4. It specifically says to stay out of the market around news time.
News is a double edged sword
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.
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.
dont get too emtional on a loss and take revenge on the market.
why EUR/GBP broke an 12-day up trend?
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).
But I lost a lot of money! Good thing it's only $24
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.
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"You have to expect things of yourself before you can do them."