It’s said that 85% of Forex traders are losing their money in the first three months of their trading, I think in some market cases it exceeds this ratio and may hits 95%, most of people say this loss is a result of trading while having no strong knowledge about Forex market, I don’t agree this all the way.
For me I think the most important reason is trading style including strategy, money management and risk management, another important reason is crowding up your mind with a lot of technical and fundamental tools and trying to apply all of them at once.
Theoretically all analysis methods “wither it’s technical or fundamental” are correct ways because they are only measuring tools, they differs in the accuracy of their results and this varies from time to time, they just give you inputs and you are responsible of applying these inputs that’s why I don’t mind which indicator you are using, just try not to crowd your mind with a lot of them.
To move yourself into the successful 15% you don’t need to know a lot in analysis field, you don’t need to have a big capital too. I wouldn’t encourage you to be calm, concentrate, look at your charts and go the way they tell you and such advices. We’ll be instead discussing the actual steps that you can take in order to get yourself out of loss and list your name in the 15% successful traders list. The best resource for FOREX trading is MoneyTec MoneyTec,  – Active Traders Community Forum, Chat. MoneyTec is an online trading community that promotes mature, intelligent & respectful discussion in a positive & safe environment for everyone.
My strategy depends on simplicity as it just includes 2 indicators for the technical part of it. Let’s see how would it work:
a)Â Â Â Money Management:
1.   First of all count your capital well and I mean by this the money you can afford to lose “this is rule no. 1 in investment as this will remove stress from you”.
2.   Decide your monthly return average expectation from this money : This will make you able to count the average weekly and daily return “Weekly and Daily Target”.
3.   Decide what will you do with your profits in case you achieve your targets, how much will you get out from it and how much will you re-invest : This will be enough to have a steady and stable trading strategy.
4.   Most important point, limit your trade size, this shouldn’t exceed 5% of your balance if you want to survive in this market.
These are all what we need from money management right now, it’s a huge subject to be involved in.
b)Â Â Â Risk Management :
1.   Limit your loss : The whole money you can afford to loss from your investment budget.
2.   According to your daily and weekly target, you could limit your daily and weekly loss, so if it touch that limit you stop trading till the other period of time, risking of $1 per $3 expected profit is good while 1: 2 still accepted.
3.   Keep in mind that “If you lost a day, it means you lost that day’s profit of the total month’s profit” don’t try and squeeze yourself the day after to get a double profit, otherwise you will be spoiling your trading system.
c)Â Â Â Technical Trading System :
This trading system is a common old system traders were used to use it randomly, we will be using it in a more modern way, it contains of :
1.   2 Exponential Moving Average (EMA) of values 7 – 15 .
2.   Relative Strength Index (RSI) as a confirmation tool.
Well, now as we have everything setup, it isn’t so hard to understand that system, the usual way was used by traders is : “once EMA-7 cross EMA-15 you go with it, so if it cross to up, you buy, otherwise you are selling”, this is completely true but you need to confirm this signal by another tool like “RSI”, once you get Moving Averages signal you check your RSI line direction and value, if it’s positive you can start trading, if not you should ignore till you get a positive signal that everything is fine, your stop loss would be if the EMA-15 returns to cross EMA-7 and your stop loss would be 20% of your daily affordable loss that you decided before, so you have a chance to trade for 5 times per day if you lost all trades.
Keep in mind that you shouldn’t put all trade size limit “which you decide before while setting up your money management section” in just one trade, you may need to support your trade later or add more fund to it.
Last thing to be said is the classical advice “Don’t be greedy and don’t feel panic”, this is the best feature we have in Forex, take profit and stop loss points.
Category Archives: General Forex
Guide To Forex Trading
Forex trading can be a great way to earn great money on a part time basis. It is arguably one of the most fun ways to earn a second income provided one starts small and partners with experts. This article examines the basics of FX or Forex and how you can get started in currency trading.
Forex trading is short for foreign exchange trading which as the name suggests is nothing but exchanging or selling one currency against the other in the hope of a profit. It is a completely decentralized market place meaning that transactions happen all over the world independent of each other basis that day’s ‘exchange rate’. Some currencies are traded more on account of their demand – something that has earned them the nickname – ‘major’s. These include the three dollars – American, Canadian and Australian and the yen, the sterling and the swiss franc. Combined, these currencies contribute to as much as 80-85% of the FX trade and are therefore considered more ‘liquid’ that others.
Forex trading happens 24 hours a day and is done on the basis of an investor’s opinion on how currencies will move vis a vis each other. Knowing this requires either knowledge or support of an agency with knowledge. Large profits and losses can be made in a single night depending on which currency you have bet on. While it is best to begin small to minimize risk, it is also important to take on the support of an expert agency that can help you choose between the many instruments available that allow you to take a position. There are several company sites that also offer beginner courses as well as access to a lot of reading material that can help you understand the fundamentals of the marketplace. Be sure to choose someone that understands your objectives as an investor.
The Elements of a Great Auto Forex Trading System
The concept of an auto Forex trading system is superb, but the problem is that most of these do not function. Most of the traders end up becoming disappointed, as these systems do not provide the sought after benefits. Consequently, it is really essential for you to be mindful of the essential aspects that make a great system. When it will come to choosing a great mechanical Forex system, there are numerous items that you may possibly have to take into your careful consideration. Let me give you a brief insight into the identical.
* Make sure that the auto Forex trading system that you are utilizing has clearly explained all the rules and logics. A distinct explanation of all the guidelines and reasoning will instill your trust in the system even during the time when it has to encounter an array of consecutive losses.
* A great auto Forex trading system must also exhibit some evidence that could inform you about the existence of a genuine time track record. It signifies that it is essential for you to check out regardless of whether the system has actually helped individuals make dollars in the sensible globe of trading or not. Some automated systems appear very good, but they are really just hypothetically excellent.
* Usually recall that the best auto Forex trading system for you is the 1 that provides you a simple, easy-to-use procedure. It has been discovered that in the genuine globe of trading, a straightforward system often are likely to be far more robust.
* An optimized auto system of trading is generally not a great option – neither for the beginners nor for the skilled traders. In buy to judge regardless of whether a system is optimized or not, you need to be in a position to comprehend some clues. For instance, if you locate that a system calls for you to follow a distinct established of guidelines for the trading of particular monetary markets or it needs you to use completely different parameters in particular trading conditions, you should put individuals systems into optimized kinds. Usually keep in mind that a appear auto Forex trading system will have exact same fixed or principles and parameters for the total spectrum of monetary instruments.
* You must also shell out unique awareness to the drawdown statistics. These statistics in a great automated system should be compatible with the equity you are proceeding to trade.
Total, we can see that just since a trading system is providing you automated way, it does not mean that you must proceed with the exact same. There are some good systems as nicely as the negative kinds. Consequently, you should have the abilities to distinguish the a single that works from individuals that are doomed to fail. It is of prime relevance for you to do your homework first and have a realistic strategy whilst you are deciding on the right auto Forex trading system.
Factors of an Excellent Auto Forex Trading System
The idea of an auto Forex trading system is superb, but the trouble is that most of these do not operate. Most of the traders end up becoming disappointed, as these systems do not provide the preferred final results. As a result, it is very essential for you to be mindful of the essential factors that make a great system. When it arrives to picking a very good mechanical Forex system, there are many issues that you may have to acquire into your mindful thing to consider. Let me give you a short insight into the very same.
* Make confident that the auto Forex trading system that you are employing has clearly explained all the regulations and logics. A obvious explanation of all the principles and reasoning will instill your believe in in the system even throughout the time when it has to encounter an array of consecutive losses.
* A very good auto Forex trading system should also exhibit some evidence that could notify you about the existence of a true time track record. It indicates that it is important for you to verify out whether or not the system has really aided individuals make dollars in the realistic earth of trading or not. Some automated systems appear excellent, but they are really just hypothetically excellent.
* Always recall that the greatest auto Forex trading system for you is the 1 that presents you a simple, effortless-to-use procedure. It has been discovered that in the genuine earth of trading, a simple system often have a tendency to be a lot more robust.
* An optimized auto system of trading is normally not a excellent selection – neither for the beginners nor for the knowledgeable traders. In order to judge regardless of whether a system is optimized or not, you ought to be in a position to recognize some clues. For example, if you discover that a system demands you to adhere to a particular established of regulations for the trading of specific economic markets or it calls for you to use fully various parameters in particular trading circumstances, you should place those people systems into optimized types. Usually remember that a seem auto Forex trading system will have very same set or guidelines and parameters for the whole spectrum of monetary instruments.
* You should also spend particular interest to the drawdown figures. These statistics in a excellent automated system should be compatible with the equity you are intending to trade.
General, we can see that just since a trading system is offering you automated way, it does not necessarily mean that you must proceed with the exact same. There are some great systems as properly as the poor kinds. Consequently, you ought to have the abilities to distinguish the a single that operates from those that are doomed to fail. It is of prime significance for you to do your research initial and have a reasonable strategy while you are picking the proper auto Forex trading system.
Successful Forex Trading Strategy – Only 15 Minutes Per Day.
Get A Free $50k Forex Trading Account. If you are looking for a Forex trading strategy which can make you big profits in around 15 minutes per day then, the strategy we will look at here is for you. Even better news is this trading method is very simple to understand and can be learned quickly, so lets take a look at it. If you want to make money in currency trading, you should focus on the big trends which last for many weeks or even months and if you do, you will spend less effort on your Forex trading strategy and make bigger profits. If you want to get in on all the big trends when the odds are on your side, there is a simple Forex trading strategy which will catch them all and its a breakout trading strategy.
If a currency is bullish it will start by breaking through overhead chart resistance and continue doing so, as the trend evolves and develops. You can look at a chart and see this is true in ANY currency pair, so if you buy breaks of valid resistance levels, not only will you have the odds on your side, you will make a lot of money. Obviously, not every breakout follows through in the direction of the break, so you need to decide the best breakouts to trade. The criteria for getting in on breakouts I use is – look for six or more tests before the break and check at least two of the tests, are spaced apart by at least six weeks. The more times a level has been tested and the further apart the tests are in terms of time, the higher the odds of the breakout being a good one. Another point to keep in mind is if you have a breakout to the upside and the news and other traders are bearish, the better the breakout is likely to be.
If you think about it this is logical – the majority of traders lose money, so being in the minority is good. Breakout trading can be learned by anyone and all you need to do is to look at chart resistance and use a few confirming indicators, to check price momentum is on your side and your all set for big gains with this Forex trading strategy. Many traders think the way to make money is to buy “low and sell high” but to buy a low, you need to predict where it might be and that’s doomed to failure. Breakout trading allows you to buy the move when its been confirmed with no guessing and is the method the professional traders use. So if you want to make money in Forex “buy high and sell higher” and you will make a great income in just 30 minutes a day or less.