Forex Online Trading
Why do hundreds of thousands online traders and investors trading in the forex market every day , and how they make money doing ?
This two-part report plainly basic tips on how to avoid typical pitfalls and start your forex trading to earn more money.
Trade , rather than currency - Like any relationship , you have to know both sides . In Forex trading success or failure depends on both currencies and how they affect each other , not just a right .
Knowledge is Power - When starting an online forex trading , it is necessary to understand the basics of this market , if you want to make the most of your investment .
The main impact of foreign exchange by a global news and events. For example , said a statement released by the European Central Bank European interest rates will usually cause a series of events . Most newcomers react violently , such news , and close their positions and subsequently miss some of the best trading opportunities , until the markets calm down. The potential in the forex market fluctuations , rather than in its serenity.
Dwarfed trading - Many new traders will place very tight orders in order to take very small profits. This is not sustainable approach because although you may be profitable in the short term ( if you are lucky ) , you may lose a longer period before you have to restore the bid and offer prices between difference , you can make any profit it is even more difficult when you make a little better than when you make a bigger deal .
Overly cautious trading - trading who tries to take small incremental profits all the time , like transaction who places tight stop losses in retail forex broker is doomed to fail. As we said above, you have to give you a fair chance to prove their ability to produce . If you do not put a reasonable stop , so do your trade , you will always end up weakening yourself and your deposits, every industry lost a small piece .
Independence - If you are new to forex, you will decide their own money trading , or trading brokers . So far , everything is good. However, doubling the risk of losing , if you two things :
Interfere with your broker to do on behalf of ( because of his strategy may take a very long gestation period ) ;
Consulted many sources - multiple input will only result in multiple losses. Stance , ride it , and then analyze the results - themselves and for themselves.
Tiny margins - Margin trading is Forex trading is one of the biggest advantages because it allows you far greater than the total transaction amount of your deposit . However, it can also be dangerous to novice traders as it can attract many forex traders greed factor damage. The best guideline is to increase your experience and success suit your leverage.
No strategy - the purpose is not to make money trading strategy . Strategy is your map how you intend to make money. Your approach to strategic information , you want to take , you have to trade currencies , and how you will manage risk. Without a strategy , you may become a new transaction , losing 90% of their money .
OTC peak hours - professional forex trading , options trading , hedge funds have in the non- peak hours (CET 2200 and 1000 CET) among small retailers because they can hedge their positions and move them around when there is a huge advantage of the far smaller volume of trade is experiencing ( which means that their risk is smaller ) . Transactions in non- peak hours the best advice is simple - do not.
The only way is up / down - When the market is on its way , the market is on its way . When the market is falling , the market is falling. That's it. There are a lot of systems, analysis of past trends , but no one can accurately predict the future. But if you admit that , all things at all times , the market is simply moving , you will be surprised at how difficult it is to blame anyone .
Trade News - News occurred at around really big market volatility . High volume action is significant , which means that there is no better time than the press release , the transaction . This is when the big players adjust their positions and price changes lead to serious currency flow.
Out of the deal - if you trade , it will not work for you, get out. Do not increase your mistakes , stay in the hope reversal. If you're in a successful trade , do not talk about their position because you're bored or want to relieve stress , stress is a natural part of trading used to it.
Do not be too short-term trading - if your goal is less than 20 points of profit , not for trade . Spread your trades to make for your chance to abnormally high.
Do not clever - the most successful businessman, I know to keep transactions simple . They do not all day or research historical trends and track web log analysis , and their results are excellent .
Tops and Bottoms - There are no real " bargains " trading foreign currencies. The direction of trade price is how it is, your results will almost guarantee increased.
Ignore technical know whether the market overextended or long or short a key indicator of price action . Peak appeared on the market , it moves unidirectional .
Emotional Trading - No, you're all important strategic industries , in essence, only thoughts and emotions and thoughts of a very poor deal basis . When most of us are upset and emotional , we do not tend to make the most informed decision. Do not let your emotions sway you .
Confidence - Confidence comes from successful trading . If you lose money early in your trading career , it is very difficult to recover it , the key is not to learn the business transaction first half cocked ; . Remember, knowledge is power.
The second and final part of this report clearly , but details of the more basic tips on how to avoid the pitfalls and start your forex trading to earn more money.
Take it like a man - If you decide to ride a loss , you just show the stupidity and cowardice . It takes courage to accept your loss and wait for tomorrow to try again. Adhere to a bad position ruins many traders - permanently . Try to remember that the market often illogical behavior , so do not submit any transaction , it is just a trade. Will not make you a good trade transaction is successful, it is the ongoing regular performance over many years to make a good deal.
Focus - Fantasising of possible profits and then " spend " before , you have realized that they are no good. Focus on your current location (s) and place , you do trade reasonable stop. Then sit back and enjoy the journey - from now on , you have no real control , the market will do what it wants to do .
Do not believe the demo - simulated trading often causes new traders to learn bad habits. These bad habits in the long run, this is very dangerous , because you are playing with virtual money . Once you know your broker's how the system works, start trading , you only need a small amount of risk you can afford to win or lose .
Stick strategy - when you make money a deliberate strategic trade , do not look at it half the time lost ; stick to your strategy trading profits match your long-term investment goals .
Today's trade - Most successful day trader is highly concentrated in the short term what happened, rather than likely to occur in the next month. If you trade 40 to 60 points stop focus what happened today, the market may be moving too fast , to consider the long-term future . However, the long-term trend is not unimportant , they do not always help you, but if you are trading intraday .
The clues are in the details - the bottom line of your account balance does not tell the whole story . Consider individual trade details , analyze your losses , tell -game losing streak . In general, did not suffer significant loss of money every businessman, has the best chance to maintain a positive performance in the long term .
Simulation results - Be very careful , fearing the infamous " black box" system . These so-called trading signal systems do not often explain exactly how to generate trading signals are generated. Typically , these systems only show extraordinary performance record - historical results. Successful in predicting future trade scenarios is entirely more complicated. These systems provide high-speed algorithm capability significantly retrospective trading systems , not that it will help you to effectively deal in the future .
Know a cross at a time - each currency pair is unique, has a unique way of moving in the market . Personal strength , causing the pair to move up and down to each cross , so study them and learn from your experience and apply a cross in your learning time.
Risk Reward - If you put a 20 point stop loss 50 pips profit , you probably 1-3 odds against you . In fact, the spread on your trades , it is more likely to be 1-4. Play the market to give you odds .
Do not trade transactions wrong reasons - if you're bored, uncertain or whim reaction . Are you bored because in the first place , it may be because there is no trade in the first place . If you are unsure, it may be because you can not see the business , so do not do one .
Zen transaction , even if you have taken a position in the market , you should try and think , because of you, if you do not have one . This detachment is essential if you want to keep your mind clear, to avoid suffering from emotional impulses , and thus increase the likelihood of loss . To do this, you need to cultivate a calm and relaxed outlook . After a short period of time does not exceed a few hours of trade and accepted once the transaction has been made , put your hands up .
Determination - Once you have decided to trade, stick to it and let it run its course . This means that if your stop is triggered , let it trigger . If you move your stop midway through a trade 's life, you may suffer worse moves against you much. Your decisions must show yourself when you admit you got it wrong, so get out .
Short-term moving average line - this is one of the most dangerous non-professional traders trade scene. When the short-term moving average line intersects the long-term moving average , its average price average price in the short term , in the long run are equal. It is neither bullish nor bearish indication , so do not fall into the trap , I believe it is one .
Random - another dangerous situation . When it first signal exhausted condition , this is a big spike often occurs in the " tired " cross currency. My advice is to buy overbought first sign of the cross , and then sell the first sign of oversold . This approach means that you'll be the trend and have successfully identified a positive move , there is still some way to go . Therefore, if the percentage of K and percentage ð are cross 80 , then buy ! ( This is the same sell side , where you sell 20 ) .
A cross is all counts - EURUSD seems to be trading higher , so you buy the pound against the dollar , because it does not seem to move. This is very dangerous. Focused on a cross- time - if EURUSD looks good to you , and then you buy the euro against the dollar .
Error broker - forex brokers Many companies only make money for you . Read around the net forums , blog and chat , get an impartial opinion , and then choose your broker.
Too optimistic - Trading statistics show that 90% of most traders will fail at some point . Too optimistic about your trading qualifications, may be fatal long-term success . You can always learn more about trading in the market , even if you currently have in your trading success. Remain modest , and new ideas and bad habits , you may fall to keep your eyes open .
Interpret forex news, own - learn to read forex news and events of the source file - do not depend on the news media or anyone else 's interpretation .
