Tag Archives: Success

Forex Trading Articles

Forex Trading- the Emotions for Success

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Emotional effects of Forex Trading

Today in there are so many sites that will offer advice on succeeding in the Forex market and some will make some very bold statements, how to make a billion dollars trading Forex etc.  Will point out to you that the biggest enemy you face is not the market itself, but rather your own emotions. Emotions are quiet often the difference between success and failure. One important statistic is that 95% of traders will go broke, and this has a lot to do with the emotional psychology of those traders.  This is true in just about any activity that involves financial risk. It is really not all that different from playing a simple game of poker. If you start out being afraid of losing then it is more likely you are going to lose. People that have the best poker face tend to win poker.

 It is pretty much accepted that most human beings have an innate desire to prosper. This desire is what makes failure so damn frightening. In most cases it doesn’t matter how you make your final decision always proceed with confidence tempered with caution.

Whether you use technical analysis or fundamental analysis or flip a coin. It really doesn’t matter as much as developing your own investment strategy. Just proceed with it until you are sure it is working or failing.

Never let your fears take over, and bounce around with no pattern. Overreacting to every setback will never work it will ultimately cause confusion and confusion will lead to a lose of money. However you should never get overconfident and let a small temporary success lead you into foolishness, one winning trade doesn’t make you a trading guru. Remain constant and stick with your plan- plan the trade and trade the plan.

When you are dealing with the Forex market it has some strange emotional landmines that you need to be aware of, and need to avoid, remember tread with caution. You are dealing with the currency of foreign countries and how they are going to be valued against the currency of other countries, one of which is your own country.

Emotion also plays an important part when find a Forex Broker, don’t go necessarily with a broker because you personally like them, find the Best Forex Broker because they are great. If you are unsure who to trade through the CFD FX REPORT

has recently researched all the brokers and have done this without emotion if you would like to see who the experts suggest then visit there website. This maybe the best trade that you make is finding the Best Forex Broker

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 It is important to keep things in perspective. If you find yourself cheering for Australian dollar and booing the US Dollar like they are your favorite football team and its biggest rival, then you should not be investing in this market, but saving for tickets to the next  Football match.

Investment of any kind takes self control, and emotional stability, and Forex is no exception.

Trading in most cases is a mindset and you make sure that you always have a clear mind before placing any trades. If you have any doubt, whether it is something in your mind that doesn’t add up or a gut feeling then don’t place the trade as there is always more trading opportunites.

Forex Trading Articles

Achieving Maximum Success In Forex Trading

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Many people who enter the forex field are unaware of how crucial a proper forex trading training is. Relying o intuition is only enough to get you by minimally. If you do not know how to analyze the market properly and manipulate it, you will not be able to succeed in forex trading. Just like any other endeavor in life, you need to learn the trade before you begin practicing it. Trying to trade in the forex system without learning the system first, would be like trying to play any game without knowing the rules and objective beforehand. It just doesn’t make sense.

There are a few elements in forex learning that help the forex trader succeed in the market. The first element is discussing the forex market in depth. There are three elementary concepts a forex trader must know when devising a proper forex trading system for his personal trading needs. He needs to learn money management, risk and execution. These three elements are essential to trading properly. If applied correctly, a trader may use his system to minimize his risk in the market and maximize his profit. He must first devise a system though, based on the three fundamentals.

In order to do so, he needs to learn about the fundamentals from an experienced forex trader or reliable forex source. The system is an equation and if mastered can bring in lots of money to the trader. Managing money refers to knowing what a trader may invest and what he may not. The biggest financial risk is investing more than your account can cover. A trader should not be conducting deals with amounts that can put his account into a negative balance. Professional traders advise to begin with small investments and stop loss order strategies to ensure that the trader does not get wiped out after his or her first trade.

The forex learning classes all talk about this concept and explain how to manage your money properly.

The second element studied is market levels and their analysis. Since the market is very unpredictable at times and values can change suddenly and instantly, the professionals teach traders about price behavior and discipline in trading. They discuss the fact that buying a currency at a low value and then selling it when its value increases is not the only concept essential in trading. There is a lot more involved. The third element discussed in forex trading classes or courses is detachment.

It is very important for traders to know how to set their emotions aside when trading in the forex market. To always follow your mind and head and not let your emotions mislead you. Basically the psychology of forex trading and the correct way to approach it. Not to behave impulsively in trading because it can lead to catastrophic disasters. To always think before you jump. The fourth and last concept is method.

Forex Trading Articles

Forex Trading – Why Technology Advances Have Not Increased The Odds Of Success In Forex!

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In forex trading the application of technology and complicated mathematical formulas has not increased the chances of success and here we will explain why and also how you can win with a simple forex trading strategy…

The answer is simple – because forex markets don’t move with mathematical accuracy and if they did, we would all know the answer in advance and there would be no market!

Why You Cannot Predict Forex Prices

It’s a fact that you cannot predict markets in advance and all the people who say you can are wrong. You will see numerous forex robots that tell you can trade on auto pilot and win all the time – but they base there assumptions on a back tested track record – that means knowing the closing prices.

All they do is bend there system to fit the price sequence and make a profit. In real trading though, the same price sequence never repeats again and the system loses and you cannot bend the system rules going forward.

Learn the Odds Trade them and Win Big

Forex trading is an odds game – sure you can’t trade with mathematical accuracy but you can make money just like a successful poker player does. He doesn’t win all the time and has losing periods but he knows, if he plays the odds and uses sensible money management he will win.

Be Complex and Clever and You Will Lose

Complex theories are developed and used all the time but it’s a myth that a complex theory will beat a simple one – it won’t. Simple systems work best and always have because they are more robust with fewer elements to break.

Think about all the advances in computers software and theories, we have had in the last 30 years yet, despite all these advances, 95% of traders lost money in yester year and they still do today. Advances in technology and forecasting simply didn’t change the odds.

This shows that you don’t need to be complicated to win.

Keep it Simple and Win

Forex trading doesn’t require that your clever or make a lot of effort – it requires you to use a simple robust system which you understand and will have the discipline to trade through losing periods, with good money management, until you hit a home run. Its discipline to apply a robust system that’s the key and the system can be very simple

Forex trading is an odds game and will never change, so keeping it simple is the best way to trade. Don’t complicate something that’s simple, accept it and build your forex strategy around the odds and you will achieve currency trading success.

Forex Trading Articles

Forex Trading Fact – a Startling Fact Which if Understand it Can Give You Success!

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Here we are going to look at a forex trading fact which can lead you to forex trading success, if understand its significance. Here it is…

30 Years ago 95% of traders lost money and the same ratio lose today and the reason this fact is so startling is if you think of all the advances in computers, forecasting methods, the power of software, the wealth and quality of news – it hasn’t helped traders win and this leads to some conclusions:

– Technology is not the answer to market success

– Being clever is not the answer to market success

– Having a complicated forex trading strategy wont help you win

– Forex news will not help you win.

Success in forex trading is not dependant on being clever, being complicated, working hard, or having a forex trading robot, it depends ( as it always as done) on a combination of a simple forex trading system and having the mindset to apply it with discipline.

There are plenty of vendors telling you that you can make money with no effort and follow a junk robot or their predictive advice – but it’s not true, most of the systems sold are junk anyway – but even if you have a good one, its clear – success depends on you! Its you that is the key variable.

The Only Way to be a Winner

Sure you need a sound forex trading system and it needs to be simple so it’s robust. A complicated one will simply have many elements to break – but you have to apply it and this is not as easy as it sounds, as you have to trade through losing periods.

Technology can Never Overcome the Need to do This!

There is a huge market in telling you that technology and advances in forecasting, mean you won’t suffer much drawdown (if at all) but it’s not true.

Even the best currency traders will suffer losses for weeks on end and you must trade through these periods, to emerge a winner.

Anyone who says it’s easy to trade through a strong of losses, hasn’t traded – its hard! You need to keep taking losses and watch as the market make you look a fool – but if you can do it you can win.

Why 95% will Always Lose

Forex trading can be learned by anyone and that’s a fact – but 95% of traders lose and the reason they do is, they believe the easy route to profits sold online or, they have a good system but cant apply it with discipline. They don’t understand to win, you have to lose for periods and maintain your discipline.

Always keep in mind that it’s not the markets that beat the trader, the trader beats himself and that’s a forex trading fact too.

The Route to Success is Simple

If you get the right forex education and have the mindset to succeed, gain confidence in what you’re doing and can trade with discipline, you can do what 95% of traders can’t – and as a result, can enjoy spectacular currency trading success.

Forex Trading Articles

Training for Success in Forex Trading for the Newbie and Professional

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Copyright (c) 2008 Orlando Thompson

Many factors play a direct part in the success or failure of the Forex Trader. As you Read this article take note and or come back to it as a reference point and it will serve you well.

Understanding the nuances of the Forex Market requires experience and training, but is critical to successful Forex Trading. In fact, ongoing learning is as important to the veteran trader as it is to the newbie. The foreign currency market is massive, and the key to success is knowledge (knowledge is power). Through training, observation, and practice, you can learn how to identify and understand exactly which direction the Forex market is going and what controls that direction.

To invest in the right currencies at the right time in a large, nonstop, and global trading arena, there is much to learn. Forex markets move very fast and can take new directions at any second. Forex training helps you assess when to enter a currency based on the direction it is taking, and how to forecast its direction for the near future.

The many available resources and tools to train yourself

There are many free tools and resources available in the market, particularly online. Among there you will find:

CHARTS

Do not hesitate to browse forex glossaries, which are offered free on many platforms. A given word may have different meanings as it relates to forex and to the terminology used by the forex market participants.

Make sure to make an effort to determine the general magnitude of any change on the chart (meaning: What is the $ value of any given change when trading at that point).

GUIDED TOURS

Most Forex Trading Systems provide guided tours, demos, or tutorials, either online or as downloads (be sure to take advantage of these valuable free tools).

NEWS / BREAKING NEWS

Keep abreast of world news. Read all the headlines, particularly those related to Forex. Check the impact of such news, if any, on the charts.

FOREX OUTLOOKS

Read daily/weekly outlooks posted on forex related sites or general financial sites. Many include alerts to upcoming reports and events such as market indicators and interest rate decisions.

FOREX BOOKS
Read, or even just browse forex books. Many Forex related books are offered free or as part of a service package to the trader (these books are intended to assist the trader in becoming successful in there forex trading). For many historical background and technical analysis, books are better rather than in educational settings.

ECONOMIC INDICATORS

Pay attention to the release of economic indicators (for example – the monthly unemployment rate in the USA), and try to identify their impact on the market in general, and on specific currency pairs in particular.

INTERNET FORUMS / BLOGS

Visit and participate in forex forums. This will give you the opportunity to learn from others experiences. (This can be a very valuable and reliable place to gather information as people love to tell their own stories and typically will be very forthcoming with good information).

These are a few other things to consider

To success as a Forex Trader, you must take into consideration a wide variety of factors such as:

– Spreads (“PIPS”)
– Commissions and Fees
– Ease of access to the trading platform
– Minimum mount needed to begin trading
– Additional amount needed (if any)
– Control over activity and positions
– The platform software requirements
– Ease of deposits and withdrawals
– Personal service and support provided
– The platform’s business partners
– The platform’s management
– The products offered onboard the platform

There are many other factors to be considered before trading forex, but if you use this article as a starting point and follow its suggestions, you will have a very good chance to be a successful forex trader.