Tag Archives: Trader

General Forex

3 Changes You Can Make To Become A More Profitable Forex Trader

Lots of people who trade forex will try out many different trading systems in order to find one that is consistently profitable. They will play around with many different indicators and become increasingly frustrated if they still have no joy. However there are three basic things that you can do that may well help you generate more profits from your trading.

The first thing you can do is to forget about the idea of becoming a day trader. So many people are drawn to this fast and furious style of trading, but as many experienced trader will tell you, this is one of the hardest ways to make money.

When you have spreads of up to 5 points and somewhat random price movements at times, it is not easy to call which way the markets are going to go. You also have economic data releases to deal with, which can move the markets in an instant and render all your technical analysis to be a waste of time.

You are better off lengthening your time frames and trading the 1 hour, 4 hour or daily charts instead of the 1 and 5 minute charts, for example. These time frames are a lot easier to trade because technical indicators are more reliable due to less noise, and you can still make a lot of money because the price moves can be very big.

Another thing you can do is to start managing your trades better. In other words you want to be cutting your losing trades early and letting your winning trades run for as long as possible. So for example if your stop loss is 40 points, then you would want to be targeting 100+ points in an ideal world.

The benefit of doing this is that you can still make decent profits without necessarily having a really high success rate. Some of the best traders around never let their losing trades accumulate. They simply take losses early, safe in the knowledge that they will still make money in the long run because their winning trades are a lot bigger.

The third and final thing you can do is to interact with other currency traders every day. You will probably already know that it is possible to spend hours and hours each day staring at your screen, waiting for the next set-up and not really doing much.

So you might as well make use of all this free time to chat with other traders on chat rooms and forums. That way you can pick up some useful trading tips and strategies and hopefully help develop your own winning systems, particularly if you take some time to identify some of the best traders on these forums, and therefore the ones worth listening to.

The point is that trying to carve out a successful career for yourself as a forex trader is not easy. You need to work at it constantly, and even if you do develop a winning system, you can still end up losing money if market conditions change. However if you follow some of the tips mentioned in this article, you will certainly increase your chances of success.

Forex Trading Articles

Tips For Becoming A Successful Forex Trader

If you want to become a forex trader or if you want to get into forex trading, it is very important to understand the business of forex. Although the concept of forex is very simple, you have to understand several key aspects of forex trading before entering this domain.

General Misconceptions about Forex Trading

There is a general misconception that you have to be very good with math and calculations to become a good forex broker or trader. In fact, most leading forex brokers or traders will disagree on this misconception. To be a good forex broker or trader, you will have to acquire forex management skills and properly understand the entire process. Another common misconception is that you need a lot of capital investment to enter the forex market. There are several leading forex investors who will surely tell you that they started very small and moved up gradually.

Basics of Forex Trading

As a new forex investor, if you want comprehensive information about forex and its trading techniques, you will have check out a few good forex websites on the Internet. Forex websites will also provide you in-depth information on forex trading. To get the best out of forex trading, you will need the best forex trader and understand the forex trading platforms from him or her. You can use the Internet to do online forex trading, or you can use the services of a broker to do the manual buying and selling of forex.

If you choose the online version of forex trading, you will first have to learn the basics of online trading. Each country has different rules and regulations for forex trading. It is very important that you understand the rules and regulations for forex trading. Online trading involves a forex trading system, which has some dos and don’ts. You will have to spend a few days to understand the entire forex trading system.

After this, you will have to start slowly and steadily. Never make haste in learning the basics of the forex trading system. You need to be alert and proactive while doing forex market trading. You will also need some good contacts in the forex market to guide you.

One thing that you need to understand is that there are ups and downs in forex market trading. You need to be mentally prepared for the bad days. When the good days are on, you will have to gather as much cash as you can. A good forex trader or investor will always be prepared for the bad days. Considering the current market situation, you need to have some kind of a back-up plan all the time.

Look out for the best practices in forex trading on the Internet and stick to them. There are some good forex companies that are doing very good in the forex market these days. You can visit the websites of these forex companies and get a glimpse of their business model.

Forex Trading Articles

Forex Strategy Trading Tips 5 Secret Trading Tricks I Learned From a World-Class Trader

Welcome back, I hope you have enjoyed all the previous articles and Forex strategy trading tips. In this occasion, I would like to talk to you about 5 powerful Forex strategy trading tips that I learned from a professional Currency trader I used to work with.

Never chase a trade: If you have been trading for a while you may have already missed out in some good trades. This is a situation that each and every trader must go through, however; to be able to be consistent and a profitable trader you have to make sure you do not chase trades.

When you choose to chase a trade you will be more prone to commit mistakes. First, you need to recalculate your risk and money management parameters. Second, you will be susceptible to the psychological pressure of the market. Remember, when you chase a trade the chances of you actually making a good level of profits is drastically minimized.

If you make a mistake and take a wrong trade close it immediately: I know a full time Fx trader who trades his family fund that use to commit this mistake. He would press the “sell” button instead of the “buy” button. He would call me and ask me what to do and this is what I told him every time he called. “If you take a trade by mistake, make sure you close it immediately, don’t let a small mistake turn into a large loss.”

Focus on the process not on profits: This trading trick change my point of view as a trader and as an investor completely. When you focus on the sum of money you are making or losing you become more subjected to the psychological impact of the market.

The reason for this is that as humans we see money in another way. We see $1000 as a mortgage payment or a vacation to the beach and for that reason we are more likely to let our emotions control our trading. In contrast, your trading strategy and computers see $1000 as a number, a value from an equation that is used to achieve a pre determined result.

Focusing on the profits will required you to see your trading capital as a computer would, and that is as a mean to a purpose. Focus on your execution, money management, and trading strategy and your profits will increase substantially over time.

Learn from your mistakes and become a better trader: Personally I think that mistakes are an essential part of any trader’s career. Committing mistakes permits us to make adjustments and make changes to our trading in the process. Every single successful trader has developed the power to learn from his/her mistakes and enhance their trading from them.

Never become greedy and try to get back to the market: This has occurred to me when I was a beginner. A couple of times I doubled my account in only a couple of months and when I started to lose some of my earnings I would not accept my losses. As a result, I was hoping to get back to the market by taking more trades. This only brought more losses and made me lose a part of my profits. When you try to get back to the market you are letting your emotions (and greed) control your trading. Emotional trading is the best way to blow up your account.

I hope I was able to enrich your trading career and enable you to become a better trader.

Regards,

Jay Molina

Pro Forex Trader & Educator

Forex Trading Articles

Forex Trading With Meta Trader 4

Meta trader 4 is the platform that provides brokerage trading facility to the interested customers likely to invest in forex trading. This provides Forex online trading services with best software availability to make buying and selling moves at the desired currency pair and it is one of the first in its kind.

It is perfect software that provides valuable trading services of automatic trading software that enables the traders to make their trades on the desired currency pair and do not even need to analyze the outputs of respective trade moves because of its excellent services and system to handle the trades quickly.

It comprises of five essential elements: Meta trader 4 Server, Meta Trader 4 Manager, Meta trader 4 Administrator, Meta trader 4 Data centre and the Meta trader 4 Client Node.

Each of the trading elements has corresponding purpose to facilitate better trading services to the traders. The purpose of Meta trader 4 Server is to store the data and processing of all the transaction are carried out at this terminal.

Another element is the Meta trader 4 Manager, which has the accountability to manage and control the trade deals. The Meta trader 4 Administrator is the element, which assist the traders to facilitate the trading instruments necessary for carrying out the financial deals.

The element of Meta trader 4 Data Centre enhances the security measures of the Forex trading platform for perfect back up of the trade deals.

No need to worry about the technical analysis, although it is not necessary to strain you brain in analysis still Meta trader 4 Client element deals with such queries of the traders and provides customers an ability for instant analysis of the technical and fundamental issues of the trading platform.

One more best feature of trading with Meta trader is that those who are willing to make their deals of buying and selling via mobile instantly without any location-wise restrictions it fulfills your wish by providing Meta trader 4 mobile services offering mobile trading services making it more easy for the traders to transact their deals any time through any corner of life.

It has brilliant set of advantages featuring efficacy of the trading platform. The trade proceedings are not very difficult to learn, easy accessibility, easy learning of software features to finalize deals with excellent security facilities. It has the ability to transact multi-currency trade deals even the language barriers are not a big issue for Meta trader 4 trading system.

Don’t wait try today if yet not traded with it and explore the unbeatable features of this trading platform.

General Forex

How to Become a Successful Commodity Trader

The major league of trading

Being a commodity trader is like playing in the major leagues. You better have the proper training and experience, or you simply do not have a prayer of being successful in the long run. This market tends to move fast, and there is incredible leverage. As an example, if you acquire one futures contract of corn, you actually control 5000 bushels. This means every one cent move is worth $50.00. I see the stock market as the minor league, but it still has a high degree of difficulty. I trade both the futures market, and the stock market. In this article, I will share with you some good, solid information on how to make money as a commodity trader.

The big 3

You need to have a successful trading plan. It is important to have the plan fit your personality, as much as possible. The trading plan is your blueprint for success in the market. It will encompass all aspects of trading.

Money management is a crucial element. You simply must cut your losses short, if you want to be a winner in the long run. Keep all losses small, and let your profits run. If you follow this golden rule of trading, your future as a commodity trader is bright.

Proper trading psychology is what separates the fairly good trader from the best traders in the world. You must keep emotions such as fear, greed, and hope, out of your trading equation. Emotions will cloud your thinking, and not allow you to trade in a logical, objective manner. The various trading markets are human nature and crowd psychology on display daily. Many of the successful trading principles are contrary to normal human nature. That is a main reason why most traders and investors ultimately fail.

The price chart is a valuable tool

The price chart is an important tool for the market technician. The successful commodity trader must implement the proper interpretation of chart patterns. This is a key to winning big. As an example, you can trade the breakout of the daily, weekly, or monthly chart. Always trade with the trend on the breakout. Once you are proven correct by the price action of the market, you may then add to your position.

Volume will tell you plenty

Volume is a great measure of supply and demand. It can give you clues to help you recognize whether a commodity or stock, is under accumulation or distribution. If a commodity shows a big price jump to new highs, on much heavier than normal volume, this tells me the big buyers are causing the jump in price. Price and volume action like this bodes well for the continuation of higher prices.

During a major price advance, volume tends to increase on rallies, and decrease on reactions. During a major price decline, volume tends to increase when the price goes down, and decrease when the price goes up. Many times as bottoms and tops are approached, volume will expand sharply. As a commodity trader, being able to properly interpret price and volume action gives you a major advantage.