Forex Trading Tips & Tricks

Forex Trading Tips

& Tricks:

By Reading this note you will learn the Forex Trading Tips and Tricks. By following these Forex Trading techniques You ‘ll become a good trader.

• Trading success= Mind + Money + Method
• Bad trading= Emotional trading
• Best picture of the market= technical analysis + fundamental analysis

Business & Trading Plan:

• Trade only 1 market
• Risk only 2% on any one trade
• Trade only 3 times per day
• Two losers in a row, quit for the day
• Two losing days in a row, quit for the week
• Use a stop
• Don’t over trade
• Don’t listen to news
• Stay positive at all times
• Have an exact trading plan
• Don’t use too many indicators
• Study, study, study, study, study
• Absolutely don’t be in a hurry to trade
• Being out is your biggest trading advantage
• Gains should be maximized and losses should be minimized
• Accepting losses is a huge step for removing emotions from trading
• Don’t make the same mistake over and over again, learn from them and continuously improve your trading success rate.

Trader’s Type:

Three types of traders normally we see in the market.

1: Day Trader

2: Swing Trader

3: The position trader

1: Day Trader

• These are market participants that will usually avoid holding anything after the session close and will trade in a high-volume fashion. Traders who work on shorter time-frame charts, using one-, five-, or 15-minute periods.

2:  Swing Trader

• Taking advantage of a longer time frame, the swing trader will sometimes hold positions for a couple of hours – maybe even days or longer – in order to call a turn in the market. Unlike a day trader, the swing trader is looking to profit from an entry into the market, hoping the change in direction will help his or her position. In this respect, timing is more important in a swing trader’s strategy compared to a day trader. However, both traders share the same preference for technical over fundamental analysis.

3: The position Trader

• Usually the longest time frame of the three, the position trader differs mainly in his or her perspective of the market. Instead of monitoring short-term market movements like the day and swing style, these traders tend to look at a longer term plan. Position strategies span days, weeks, months or even years. As a result, traders will look at technical formations but will more than likely adhere strictly to longer term fundamental models and opportunities.

Trading Secrets:

• Phase 1:

• Phase 2:

• Phase 3:

Phase 1

• When you looking for trading
• Is it possible to make money?
• How much need to invest?
• Where I can find more information?
• Is there any best system?
• How to become a pro trader?

Does trading work?

 Phase 2

• What is best indicator?
• Where should I put my stop loss?
• How many hours should I trade?
• Does pattern work?
• What are the best money management rules?
• Should I use RSI (Relative strength index), Bollinger bands, and moving averages?

Does it work?

Phase 3

• What’s wrong with me?
• How come everyone making money but me?
• I feel alone
• I am sure something is going on in the market I don’t know
• I feel uncertain
• Why do I feels stressed when I trade?

Why can’t I make it work?

Phase 1: Does trading work?

Phase 2: Does it work?

Phase 3: Why can’t I make it work?

If you are still facing above three questions it means there is something wrong it’s due to Lack of knowledge/information/direction.

Phase 1: validation

Phase 2: System

Phase 3: Psychology (mind)

(Not enough)  

 It’s Not Your Fault

There is too much information out there, but traders are starved for the right information. 

What is the answer?

Phase 1: Does trading work?

Phase 2: Does it work?

Phase 3: Why can’t I make it work?

•              Rephrase this question to:
•              How can I make it work?

Phase 1: Does trading work?

• When you see the system, it will make sense.
• Trade only when the probabilities are highest.
• You see it with several live trades.
• Other trades show you that it works with several live trades.
• Many methods inside the same system.

Phase 2: Does it work?

• Tested system using the most reliable tools.
• Indicators tweaked to perform the best by a trader who understands the process.
• Clear cut entry exit rules.
• Simple trade management rules.

Phase 3: how can I make it work?

• Access to a support group.
• Someone to answer your questions.
• Methods to reduce your stress.
• Alter system until you are comfortable.
• Several approaches to the market.
• It’s not a competition.
• Take your time.