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General Forex

Forex Trading Tips – Prepare Yourself Well Or Lose Everything

There are iron rules in each business and ignoring these rules will make the players kicked out quickly from the game, this is also applied in forex trading. Apply these forex trading tips in your trading career to make steady profits, keep your account save, and play by the rules:

1. Never Make An Entry Without Doing Analysis First

There area always times when you will stumble upon something that looks very promising, perhaps from news or trends. These ‘hunch’ may bring you profits once or twice, but it just coincidence, you will never survive in forex trading if all that you got is ‘hunch’ instead of proper analysis and logical decisions.

This has happened to the majority of the traders when they started; they manage to make a profit by speculating, thinking that they already master the secrets of forex trading, and start giving forex trading tips to their acquaintances. This attitude is identical to a gambler in a casino: throw the dice and pray. You’ll be thrown out from the game in no time with this kind of attitude.

2. Learn Step by Step

Foreign exchange has many factors and elements; it is purely not possible to grasp it instantaneously. If you are a novice, do not deposit USD10,000 in your new account and have various tests with it. Trading currency is similar to gambling; when someone lose, there are always a winner at the other side. These winners will finish your USD10,000 in no time and by reading this forex trading tips you have learned to avoid it.

The best ways to go is take it slow. Start with a practice/dummy account while learning. It is possible to test a variety of methods, currency pairs, robots, and signals there without concerns. If you have discovered a system that is effective, you can proceed to a mini account for further test. Nevertheless, if you have confidence in your system, go ahead and open a live account.

By “system that works”, I refer to a system that can generate profits on regular basis at the end of the month without you have to spend your entire time maintaining your open positions. If you have confidence in it, learn to control your emotion and allow it to do the work.

3. Utilize Trusted Forex Trading Platform/Forex Broker

No matter how good your system is, trading in a poor quality platform will ruin your opportunity to gain profits. Usually, you will get free trading platform from your broker; these are what you need to look in your trading platform/forex broker:

– Support all currency pairs that you interested in. At the minimum it must support popular currency pair like EUR/USD, GBP/USD, and USD/JPY.

– Allow you to put take profit and stop loss order; this is very important risk management method.

– Provide charting feature, news feed, advices, and research material; to make it short: all that you need to make proper analysis. If possible, a daily forex trading tips can be beneficial as well.

– Customer support available. If possible, get the one that provide 24 hours support so you can contact them any time when you get problems.

– Currency trading is a global business, so it is great if your broker take deposit in multiple currencies.

– Simple procedures applied in their services, including withdrawal.

4. Figure out how to Use Stop Loss and Take Profit Order

Stop Loss and Take Profit is orders that you put to close your position at certain price. Instance: you buy GBP at 1.678; then you place Stop Loss order at 1.648 to limit your loss by 30 pips. You also put Take Profit order at 1.708 which means you will close it when you get 30 pips profit.

This is important so that you can prevent your emotion to take part on the “close decision” and screw it up. If the market is move against you, you won’t close the position since you are hoping the market to swing back to your side, thus turn potential loss into profits. In most cases, this will only bring you more losses. This is very important since it is the cause of many traders falls. If you don’t remember everything that I mentioned in this forex trading tips, remember this: emotion is only going to make your trader career short.

Other possibility: the market moves in your favor and you start to gain profits, but you still hold it because you want even larger profits. You can ever predict when the market will moves against you and when it really does, it will be already too late. In both scenarios, greed is the one in movement. But when logic dictates, you can control greed.

Main point here: you should not rush everything when you learn or trade forex. Take your time to learn the rules, test, practice, analyze, and read several forex trading tips for the day. However, I don’t recommend you to do it by yourself since it can be long and painful process.

Forex Trading Articles

How To Not Lose Your Shirt While Using Auto FX Trading Systems

Currently, investors who enter into online foreign currency trading is more than likely using some type of auto forex trading application. Automated forex system trading automatically exchanges data with the fx trading systems central computer server in real-time mode. This is the way in which online forex spot trading is guided automatically.Contrary manual foreign currency exchange trading, one of the most ample advantages of automated forex trading systems is the possibility to perform complex calculations and analysis of large volumes of historical data.

It does it quickly and easily, just in case speed and accuracy is needed. Additionaly, automated forex system trading saves vast amounts of time. Not to mention that automated forex system trading allows trading to be done night and day, without you having to sit belaboring at the computer.Here are several advantages of automated forex system trading. As mentioned before, there’s no need to sit in front of a computer. This is a big plus if you are one who has other tasks to attend to.

Another advantage is that the opening and closing of orders is conducted quickly, this is basically done as fast as it takes to transfer a signal from the foreign exchange trader’s computer to the server.Auto forex trading allow night and day trading. This can cause you to increase the number of closed deals and profits, which is the whole point of getting involved in foreign currency exchange trading. With the ability to optimize indicators automatically allows for better foreign currency exchange trading results. This can only be done for limited time periods however.

So, if you were to set up regular optimization permits the foreign exchange trader to rest so the system can re-check the data.Auto forex trading make it possible for you to set up order closure in a certain time. You do not have to worry about human mistakes, or whether or not your foreign exchange trader is in a good or bad mood. Automated forex system trading is strictly set up to follow a set strategy.

The capital management rules obeyed by the foreign currency trading software is a credential by which allows you to earn and save more in unstable market conditions. When using automated forex trading systems, it can be set up to adjust to increasing trade volumes in accordance with a set scheme. It’s very opportune to be able to reduce or increase the number of lots with respect to to the circumstances.

If you don’t know what a “lot” is when it comes to forex, it’s basically used to measure the amount of a deal. The value of the deal consists of a certain number of lots.Like most things, nothing’s perfect so there are some disadvantages of using automated forex trading systems. One of the most major is the absence of intuition and rigidity. The flexibility of online foreign currency trading applications is an important factor to pay attention to when choosing to use auto forex trading.

Forex Trading Articles

Forex Trading Mistakes – 4 Fatal Errors Novice Traders Make Which Make Them Lose

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Novice traders tend to make one or more of the enclosed mistakes and they lose their money quickly. These mistakes need to be avoided at all costs, so let’s take a look at them…

Forex trading can give you massive profits if you do it correctly but making profits is not easy; that’s why 95% of traders lose money. Anyone can learn Forex trading and win though, if they don’t fall for mistakes and get a good Forex education.

1. Following a Forex Expert

If you really think that you can get rich by following a cheap bit of Software and make no effort, you are going to lose. There are many get rich quick Forex Expert Advisors and robots which claim they will lead you to currency trading success but if Forex trading was as easy as paying a hundred dollars or so and getting an income for life, everyone would be rich!

Forget the easy money message and understand that if you want to make money in Forex trading, you need to learn skills and put in some effort.

2. Over leveraging

I see brokers who offer leverage of 200:1 or more and traders think that to make money, they need to leverage up their investment by the full amount given to them. These traders don’t understand the impact of volatility and soon get wiped out. Any trader should use leverage cautiously and as a general rule use 20:1 leverage or less.

3. Trying to Predict Price Movement in Advance

No one can predict where markets are going to go and prediction is really just guessing. If you do try to predict prices, your predictions will end up as accurate as your horoscope.

Forex prices move to probabilities not certainties and instead of predicting, you should simply trade the reality of price change. A great proven way of doing this is to use a breakout methodology which should be an essential part of any Forex trader’s education.

4. Not Trading with Discipline

Most traders have heard the word but don’t understand how important it is and it’s vital when you’re facing a period of losses. Don’t believe you won’t encounter a period of losses which lasts for weeks, the best traders encounter them and you will too.

When you are losing, its important to keep your losses small and keep following your system with discipline. This is not easy, when the market makes you look stupid, your ego is hurt and your emotions are getting involved. Discipline is based on confidence and an understanding that you must preserve equity in these losing periods at all costs by, until the markets move in your favour and you start making profits again.

The above are mistakes you can easily avoid and if you avoid them and get a good Forex education, you can enjoy long term currency trading success.

Forex Trading Articles

Forex Trading – 5 Critical Mistakes Novice Traders Make and Lose Avoid Them at All Costs!

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If you want to win at Forex trading you need to avoid the common mistakes enclosed as most novice traders make them and get wiped out – avoid them or lose money.

1. Trusting a Forex Robot with a Simulated Track Record

It has always amazed me traders fall for this one – they are presented with a track record that Warren Buffet would be proud of AND all for $100! The buyer never has to work again, plug the robot in and make money with no effort, for life. The problem of course is these Forex systems sometimes amusingly called expert advisors, have never made any real money.

All they have support there claims is a back test simulation, which is done knowing the closing prices. Well anyone can do that – but you don’t get to know the price in advance when you trade. If you want to trust a paper back test you can – but don’t be surprised if you get wiped out.

2. Day Trading

Trading in short time frames is popular – but doesn’t work.

All volatility within a day is random – you can’t get the odds on your side and can’t win. All the systems sold that claim to make money, are like the Forex robots above – producing back tests and simulations on paper. Try day trading for real and it’s a different story, regular profits actually turn into regular losses.

3. Believing You can Trade with Little or no drawdown

90% Accuracy, make a monthly income, make 20 pips a day etc great copy – but not based on reality. If you trade Forex you are going to face losses – sometimes for weeks or months. Your challenge is to trade through these periods with discipline, until you hit a home run and hit profits. Most traders can’t do it and throw in the towel early.

Learn this – if you want to win in Forex trading, you need to learn to lose, take your loses and keep them small and stay on course.

4. To Win You Need to Predict

Not a good idea, as predication is hoping or guessing and you don’t get rewarded for that, in any area of life. Most traders dive into soon and should have waited for confirmation of trend continuation or change and then traded but they dont jump to early and get stopped out.

If you want to win, forget prediction and trade the reality of price change.

Do not believe anyone who tells you there is some mathematical law of market movement – if there was they wouldn’t tell you (they would be to busy making money) and also if there was, we would all know the price in advance and there would be no market. Markets move because prices are uncertain not certain!

5. You Need to work Hard and Be Clever

This is totally wrong and hard work and being clever, count for nothing in forex trading only being right with your trading signal and the money you make is how you are judged and the cleverest and hardest working people, don’t always win at all.

You need to work smart not hard, get the right Forex education and then you need to keep it simple! The best Forex trading systems are simple – not complicated and a simple system has a huge advantage, as it’s more robust, with fewer elements to break, than a complex one.

A simple system traded with discipline is the way to win and always has been.

How to Win

So there you have 5 common Forex trading errors – make any of them and you will join the vast majority of losers. If however you get the right Forex education, avoid the above mistakes and understand that a simple system, which trades the odds and applied with discipline is the key – you are on your way to Forex trading success