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Forex Trading Articles

Avoiding Three Common Mistakes in Forex Trading

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Forex trading may seem simple enough once you get the hang of it. Buy a currency at a low price and then wait a while and sell it at a higher price. This apparent simplicity is deceiving.


While forex trading may seem simple it actually is a demanding professional activity. To trade at a profit over long time periods demands a lot of knowledge, skill, and discipline.


No matter how simple forex trading may be as to the basic mechanics most forex traders make frequent mistakes that cost them money. The reason is that human emotions often get in the way of common sense and judgement. A successful forex trader often has to have the ability to make independent decisions and fade, go against, what the average trader is doing.


At critical times the profitable forex trader has to have the ability to not run with the crowd. He has to be able to step in and sell when it seems like the rest of the world is buying. And to buy when the market has sold off on a wave of selling. Not many people are able to do this as it is against human nature.


So before you get into the business of forex trading, be sure that you have enough information about the forex markets and that you have an understanding of economic and emotional forces that move the market. Above all have a good understanding of your own trading strengths and weaknesses and be able to constantly strive for improvement.


Here are some of the most common mistakes that novice forex traders often commit.


1. Over reacting to the news:


There will be too much news every day. From the television, the newspapers, the radio and the Internet. You will be flooded with news that is related to forex trading in some way. But remember that there is news and there is important news. You have got to know how to separate the facts from embellished background noise and important data from ordinary data releases. When important news does break you if you are inclined to trade it you must be able to react swiftly. Keep in mind that most important news is unexpected news. It is surprises that are major market movers.


This is very crucial in this field because currencies can be highly volatile. A simple news report that catches the market by surprise can trigger a large move. Following daily news stories and reports about currencies is something that forex traders should be careful about. What they should do though is to learn how to read forex charts and learn what are important support and resistance levels.


2. Getting involved in day trading:


Day trading involves the buying and selling of currencies within the same 24 hour day. This takes advantage of the numerous fluctuations of the currencies that happen within a day trading period. Do not do this unless you are a very disciplined skillful trader. For most traders day trading may provide small short term gains but in the long run it will cost you to miss major moves where the real money is made.


3. Entrusting someone with your money:


One of the very common mistakes that people do when forex trading is to entrust one person with your money and follow their advice. This may be good in some cases as having the right mentor in the business to teach you about the ins and outs can be helpful. However, putting your faith in one person and just following their advice like a robot with no thought or effort to learn the business for yourself is not the way to develop your own skills.


Forex trading offers the opportunity to make large amounts of money in a short period of time. But like most professional activities realizing that potential is not as easy as it may at first look. Avoiding common trader mistakes will help you to stay in the game while you develop your trading skills.

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

Market Analysis

Skip the Mistakes and Win Big With Market Samurai

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If you aren’t having much luck in your marketing on Market Samurai, there are steps that you can follow to increase your success. It is very easy to make mistakes that could cause your marketing campaign to fail, and you never realize that you made them. You must be very careful not to make the mistakes that will be listed out in this article if you want to have true success at Marketing on Market Samurai.

One of the most common problems people have when they use Market Samurai to begin marketing a product is having an exaggerated opinion of themselves. The other thing that people have to learn is that not every person who sees their marketing campaign even cares about what the business is about. Your prospects don’t really think about “you” but they inherently think about “themselves”. And no matter what you create, even if it’s the world’s best hair care product which cures male pattern baldness, they won’t care until you offer them something. All people want to know is what they’re going to get out of the deal. So, when you are producing your Tweets, remember to keep in mind the thought process of your clients and what they are thinking about…themselves! You should have no problems once you figure out how to answer that question and figure out how to get that across to your customer.

Another major problem that Market Samurai marketers run into is not giving enough information about their product. If a person cannot figure out what you are selling or what you are doing, then they will ignore you! You have to include a bio that will capture their attention and include a photo of yourself. The first interaction you have with your prospect shouldn’t go in vain just because they couldn’t make you out. Obviously, you should exhibit a sense of humor and whimsy. Many people that advertise on Market Samurai take themselves far too seriously, and lose prospects as a result. The whole point of being on Market Samurai is to be urbane and witty. They might be seeking a break from a hectic day, so you want to help them with that. Write your tweets with some spice and add a little humor if it is appropriate. As they become more familiar with who you are, they will begin to care more about the product that you represent. You want to give a picture of life to your advertising on Market Samurai.

You are not a big corporation, so don’t make the common mistake of using your company logo on your Market Samurai page. When you use Market Samurai, you need to project your humanity. You want to encourage them to identify with you, and the best way to do that is to be you, not just your brand. Your product or service will be better served if your followers feel that they have a personal stake in how successful you become. What it all comes down to is giving your potential customers the feeling that you aren’t just there to sell them something, and that if they do choose to buy from you, they would be working with another person, not a computer. But be careful not to overdo your identity and appear snobbish. No, don’t do that mistake on Market Samurai; it’ll cost you your reputation. Market Samurai, just like any other site is about social networking, and it is a great platform to launch a new ad campaign and stay in touch with your clientele. Interact with other Market Samuraiers here, connect with them and talk without having a promotional tone. Listen to your prospects, and try to help them with the problems they may have. As crazy as it may sound, the best way to market on Market Samurai is to make it look like the other way round.