Trade to be great and not just good.
Trade to be profitable
Don’t trade not to lose.
Embrace the challenges of the day.
Dismiss the distractions.
Know your expected outcome before executing the trade.
Don’t focus on the results.
Focus on the execution.
Take responsibility for the outcome.
Be realistic and committed.
Believe in yourself without doubt.
Focus on the pips and not the balance.
Become your own coach and cheering section.
When learning to trade Forex Online, mistakes can lead to loss of profits and can become very expensive. A good Trader will understand the currency markets they are trading. Whether you are new or experienced, you can still make mistakes. There are common errors that many Forex traders make when trading on the Forex. With a little research, you can learn how to avoid common Forex trader mistakes and how to learn to move on.
Using too much margin when trading Forex can lead to costly mistakes. Margin is the use of borrowed money to purchase securities. While it is true that using margins can help you make more money, it can also make your losses bigger. When new investors look at margins as “free” money, they have the potential to lose much more money in the Forex. Margin is not free money and using is too much can end up making more debt than profits. You would not buy stocks using a credit card, so you would not use margins to trade currency. When investors use margins when trading on the Forex, it requires the investor to have to watch their investments much more closely than when margins are not used. Margins should never be used if the investor does not have the experience or time to closely monitor their trades.
Another common, but costly mistake is when investors buy and trade on unfounded tips. This is one of the most common mistakes, even with more experienced traders. It is easy to be tempted to buy or trade currency or even stocks when you overhear someone talking about the next big “thing”. Sometimes this can be helpful, but more often than not, it will only lead to losses, not profits. Do not fall victim of investing and trading based on tips you hear or read about on television or on the Internet. If you hear about a trade that interests you, then best tip is to do some research and talk to your broker before trading or investing. You can also benefit from getting a second opinion about a Forex tip before buying, selling or trading any form of currency.
Not understanding how the foreign exchange market works is yet another costly mistake that new traders and investors make. Understanding the terminology and terms used in the Forex is very important to new traders. There are tutorials and free demos widely available on the Internet that allows traders and investors to learn how to use the Forex to their advantage.
In addition, it is wise to choose an experienced Forex mentor that can help you trade and invest in the Forex. These brokers should know everything about the Forex and can help traders and investor make wise choices. Find a broker that is tied with a good financial institution and that has experience in the Forex.
Also, another common mistake is when traders and investors buy or sell when the rate on currency is cheap. Sometimes this is a good move, but just because the rate is low, does not mean that it will profit the investor. Instead of choosing a currency to buy or trade, it is best to look at all of the factors that affect the exchange rate and look at the trends and history. Avoid buying or selling any currency just because the rate is low. Most of the time, there is a distinct reason why these rates are low. Research the trends of the currency and find out, which ones are the best profit makers when trading on the foreign exchange market.
Last of all, another common mistake that costs money for both new and experienced Forex traders is that they underestimate their trading abilities. Some traders feel that they do not understand the Forex well enough to trade to their fullest ability. Anyone with willingness and commitment to learn the Forex can profit with some Forex Education and research. It can take some time to learn the aspects of the foreign exchange market, but even new traders can learn how to trade with success.
I have a little tip to help with the dark side of trading.
All traders find themselves from time to time violating some of their own trading rules. There are legitimate times when it is OK for rules to be broken. For the beginner trader, this last rule should never be explored! If are relatively new to trading or you find yourself repeatedly make emotionally bad decisions while you are hanging on to a trade, this tip is for you!
Try this… (Especially if your technical exit has been reached (profit or loss) or you hear that inner voice going “get out, get out and you don’t!!).
When trading, place a large rubber band around your wrist. Anytime you violate one of your trading rules give it a good snap!! On exit rule violations give it 2 snaps!!
That will interrupt your bad thought process and break your habit of violating your plan. No, I am not sadistic, but trust me it will work!!
Happy (Ouch) Trading!!
Hi Forex Nation!!
I have just read The Power of Full Engagement by Jim Loehr and Tony Schwartz. This is good stuff! The book challenges the most commonly held principal that the key to high performance is not through superior time management, but through superior energy management.
The authors focus on both physical and mental energy as they lead you down their theory through a series of real-life examples of past clients. The authors got there start as performance coaches of professional athletes. These athletes spend most of there time practicing their trade, managing their energy and developing mental and physical routines to ensure superior performance at the most critical moments of competition.
The author carries those traits into the corporate world. Recommending that high performance in the business world requires the same approach as an athlete. Managing energy and performance/personal renewal routines translates to peak performance and benefits well beyond your trading station.
I read this book and am now recommending it to you, the Forex Trader. Although this book has no mention of the markets or trading (I think that that is for the good!), these principals can be easily applied to our trading world. We need to be at our peak performance at the moment of truth also.
When we are executing trades is where we need to be at our peak performance. Ensure you are always at your peak during your trading sessions!
Click here for this and other trading enhancement books.
Did anyone see the Da Vinci code this weekend?? I did! No, I have not read the book, but every time I got on an airplane the past 2 years there was always someone reading this book!
Did you notice the references to Fibonacci all over the movie? I did, and was counting the sequence right along with John Langdon (aka Tom Hanks)! That got me thinking a little more about one of my favorite trading tools and what it all means. So I went hunting for some facts and this is what I found.
Leonardo Fibonacci was the Italian mathematician who was born around the year 1170 AD. His real name was Leonardo Pisano, but was better known by his nickname Fibonacci (“son of Bonnacci”). Fibonacci’s father was a diplomat and his son traveled with him during his formidable years studying mathematics and accounting.
In 1202, Fibonacci wrote Libre Abaci, a book about the mathematics he had learned on the road with his father. That book led to his famous number sequencing when measuring the ratios for which rabbits reproduce.
His sequence 0,1,1,2,3,5,8,13,21,34,55,… is that each number is the sum of the two preceding numbers. The interesting thing is that each of the successive numbers is equal to 1.168 of the prior number.
Check this out!
When looking at this geometrically you find that when you measure a triangle by 1.00 as the hypotenuse the opposing side ratios are .786 and .618. Hey, I have seen those ratios before!
When we make .786 the hypotenuse than the opposing side ratios are .618 and .486. No way!!
If we make .618 the hypotenuse then the opposing side ratios are .486 and .382. Right on!!
The Fibonacci ratios that I always focus on in my trading are:
Extensions and Expansion:
127% (note that INDU turned almost on this extension last week!!)
Want some more or have you had enough? I thought you would want one more example of FIBOs in nature!
Look at your own hand:
2 hands each of which has ...
5 fingers, each of which has ...
3 parts separated by ...
All Fibonacci numbers! How about this, the bones in your finger are all in Fibonacci ratios to each other too! Is this just a coincidence or not??
OK, OK I think I just gave everyone a headache. You are all probably thinking that I need to get away from my trade station more often! Bottom line is that you don’t really need to know the details of Fibonacci’s life or all the examples in nature.
The bottom line is that we all know how important these ratios are to our trading and it will pay huge dividends to learn how to apply these principals to our trading!!
More information on trading with Fibonacci can be found at FX Trade Central or Fib Master!!
If you have not checked out my Lens or don’t know what a Lens even is click on the links below and you will be on your way!!
Technical analysis is based on three assumptions:
1 – Price movements are a result of all market forces combined. Things that can affect currency prices include political events, economic conditions, supply and demand, seasonal variations and weather conditions. The technical analyst, however, is not concerned with the reasons for market movement, but rather, the movements themselves.
2 – Currency prices follow trends. Many market patterns have been recognized as having predictable consequences.
3 – Price movements follow historical trends. FOREX data has been collected for over 100 years and patterns have emerged over time. These patterns are based on human psychology and the way people react to certain sets of circumstances.
Is Technical Analysis Necessary?
Most FOREX day traders rely heavily on technical analysis and may use fundamental analysis to support their trading strategy. A major advantage of technical over fundamental analysis is that it can be applied to many different markets and currencies at the same time. Fundamental analysis requires in-depth knowledge of the political and economic conditions of a certain country; therefore it is less likely that any one trader can do proper fundamental analyses on more than a few countries.
The beginner trader may be put off by the seeming complexity of technical analysis and wonder if it is necessary for FOREX trading. As with any investment, FOREX trading requires a strategy. Although any strategy is possible, technical analysis is a proven method for predicting movements in the FOREX. Does that mean it's a sure thing? Nothing is 100% certain, and currency prices are affected by a variety of forces. This is why many traders use a combination of technical and fundamental analysis to plot their trading strategies.
Availability of Resources
Every FOREX online broker should provide access to a wide variety of charts for technical analysis. Some charting software is available free of charge while in-depth professional charts may carry a monthly fee. Charts can be viewed by various time scales and provide detailed information about price movements as well analytical overlays. Charts can be zoomed in to the tick level or zoomed out to see the broad picture over a period of months or years. Charts are updated in real time.
FOREX charts may be available on your broker's web site or may be included as part of their trading software.
Before beginning in FOREX trading it is a good idea to become accustomed to market behaviour by following charts for a period of time and studying their movements and learning about trends. Many brokers provide practice accounts that can be used by beginners to place 'paper' bids – no real money is exchanged. These practice accounts familiarize the beginning trader with FOREX charts and market movement while at the same time allowing him to become acquainted with the trading software a particular broker uses.
I got a call from a friend of mine the other day and he asked me if I was still trading Forex?
After catching up for a little bit he came to the real reason for his call. He had gone to a free seminar in town last weekend about a company touting their automated forex trading platform. He described the event and I vaguely remember getting something in the mail about it. It ended up in the shredder with the rest of my junk mail.
He described how cool it was to see the green lights to trade and red lights to exit and that it was much easier than looking at charts and studying the market.
He asked me for my opinion and I gave it to him and now I am about to give it to you!
I am not a big fan of those ‘black box’ trading systems. Quite honestly I have never traded with them, but have spoken to plenty of people who have. I am not here to discourage anyone from using them in their investment plans; I just want to explain why I prefer discretionary trading systems.
From what I found out the big disadvantage to those black box systems is that you can experience large draw downs in your account balances. If I am going to take a draw down (and we all will at some point) I want to understand why and implement corrective actions!
So much for compounding!
I am sure these systems work and fit into someone’s investment plan. Just not mine!
Maybe it is my upbringing, but I like to be in a little more control than that! I want to make the decisions and understand why things worked and why they don’t. That way next time I can make a better decision.
Donald Trump lost billions of dollars only to have it all back and more just a few years later. Why? Because his ‘block box’ investment system was between his ears.
Education is King!!
Let’s stop looking for the easy way and focus! You will get through the learning curve and never look back.
But my most compelling reason to stay with the discretionary trading systems is that the market is controlled by humans and human emotions still rule. To round out your trading tool bag study Fibonacci and Elliott Wave trading techniques, and utilize these strategies and others in your discretionary trading systems which are based on naturally occurring instances in nature. The same process that controls human emotion.
Visit FX Trade Central’s Forex Courses for beginners and advanced course reviews including recommendations and more information on Fibonacci and Elliott Wave.
Hi Forex Nation!!
On my last posting I mentioned that I was working on setting up a series of Lenses.
What is a Lens?
Well, I have recently come across the concept of a Lens provided by Squidoo. The idea behind it is great as it is like a one stop shop for something that you are passionate about (Forex!!) giving useful information and links. Some examples of a lens could include:
I am a huge Sopranos fan and there was even a Lens dedicated to the show!
Back to business…
The list really is endless, you talk about what you want to and it is opportunity to educate people! And you know I am all about education! Well I have created two Forex related Lenses. The links are provided below (just clock on the icons) and on the sidebar of this blog. I also have two icons on the side bar and they are linked to the two different FX Lenses.
You can help my ranking by visiting my Lenses and giving them a 5-star ranking!! You have to register, but it is FREE! (Thanks in advance!!)
Keep this in your back pocket, because soon you will be hearing about this concept all over the Internet!!
Time to get back to basics!
One of the things I like to do on a weekly basis is review my notes when I first started trading the forex market. It serves to reinforce the foundation of my technical analysis, as well as ground me in the very basics of currency trading, no different than bridge builder anchoring their support structures in bedrock!
There is nothing stronger in technical analysis than support and resistance!
FX Traders have at their disposal a number of different technical indicators, but at the end of the day chart support and resistance it the biggest tell-tale sign of what price action truly means.
In Trading 101 we were all taught the virtues of plotting support and resistance. No matter what strategy I am evaluating (swing, intraday) my first actions is to plot support and resistance in the applicable time frames. I use Fibonacci lines confirm my analysis.
Another anchor point I use is trendlines.
Here are some general guidelines you may want to follow. First, look at the general trend of the market. The trend is your friend. For instance if the trend is down this means you have more down days than up -- and usually more pronounced movement to the downside on those down days. Same observations can be made for an uptrend.
I know traders that won’t even trade if the general and daily trends are not in synch.
Once these support and resistance lines are broken then price tend to move rapidly to the next area of support/resistance and the previous break becomes the new floor/ceiling.
Bottom line is to continually build your technical acumen by staying firmly planted in the basic principals of technical analysis.
You can find more FX education and course infromation of FX Trade Central!!
- In addition to trading (always #1) I about working on a Lens. What is a Lens? Stay tuned for my next posting an I will explain.
I was discussing with some friends about setting yourself up to begin trading currencies. I found this good article (a little general), but provides a good outline for what do if your are ready to dive in and start learning!
Forex Trading Tools - Trading Computers, Forex Charting Software, Trade Stations, Trading Platforms, Forex Advisories,, Forex News:
"This is a collection of Forex 'Tools of the Trade' -- products and services that we have found to be the best of all we have tried over many years, and additonally selected because the companies behind them have demonstrated reliable service, integrity and value. They are beginner-friendly, yet offering a growing trader lots of support. Look for the Forex-Trader discounts.
To trade Forex successfully you will need the basics:
1. A reliable, reasonably fast computer, preferably with high speed access to the internet (DSL or Cable Modem for example). An Internet dial-up account or the telephone becomes your back-up should your primary access fail.
2. Good foreign currencies 'charting software' with a reliable, accurate data feed so that you can track currency movements in real time and perform the technical analysis necessary to trade effectively.
3. An on-line Forex trading account with a brokerage firm which provides a reliable Trading Platform, fair 'spreads', quick execution of trades, good on-line reporting, and excellent customer service.
4. A subscription to at least one Forex Trading 'Advisory Service' which provides market overviews at least daily. This gives you the context and overall directions of the market and will greatly assist in your own analysis and decision making.
Most importantly, you will need effective training and/or mentoring to master the techniques and discipline which 90 percent of beginning traders lack. This can be home study via cd's or on-line lessons, classes you travel to, or trainer/mentors who come to you. "
My blog is dedicated to helping those on the journey that currency trading has become for me!
Click here to see my recommended currency training courses.
Also I have established a training curriculum to guide the "new" currency traders through their first year of trading the forex market.
Have you ever been in a trade when things got hot and out of control?
Well, that is the time to stop trading and time to regroup!
Professional traders have a built in advantage in the form of a professional risk manager. These risk managers oversee the traders and monitor their trading activities.
Once professional trader drops below a certain level they must cease trading activities and re-access the market and their trading criteria.
Professional traders are not the only ones with a risk manager to oversea their activities.
In baseball, when a pitcher is having a rough outing the pitching coach will call time out and visit the pitcher. The pitching coach will discuss strategy and mechanics in an attempt to get the pitcher to re-group and re-focus.
If things continue to go bad for the pitcher, the next visit is by the manager to remove the pitcher from the game. Better to stop the pitcher from continuing in order not to jeopardize the game further.
We must also think about having a risk manager!
Individual traders do not have a professional risk manager at their disposal. The individual trader must rely on training, discipline and a solid trading plan.
Like a court room recess or a pitcher being taken out of the game, we must program into our trading plans rules for taking a time out and re-grouping after a series of poorly executed trades or market misreads.
Loses are a part of trading. However, we should have a maximum daily and account size draw that would trigger a predefined re-evaluation of our trading activities.
If we do not have a strategy to regroup built into our trading plan, then you risk letting emotions rule of trading decisions. That can only result in a downward spiral and a quick end of your trading capital and possibly to your FX career.
Remember, the market is always right! But also remember that the market is not trying to punish you. The market is only providing you feedback! The market can be a great teacher, but only if you are prepared to take advantage of the lesson.
“The expectations of life depend upon diligence; the mechanic that would perfect his work must first sharpen his tools.”
Sign up for FXTC’s FREE Forex Newsletter to stay current with your forex education.
To be a complete forex trader visit FXTC’s Forex Education Roadmap. Continuous education will be your springboard to currency trading success!
Let’s take a look at some of the events which would make it the CAD the nouveau safe haven currency of the Western Hemisphere.
1. Euro as Reserve Currency
Central Banks have been on a recent run of reorganizing their foreign reserves. Most Central Banks are diversifying into more euro holdings and less USD. This has solidifying the Euro as a strong alternative in foreign reserve currency holdings.
A declining dollar benefits the CAD greatly!
2. Geo-Political Factors in the Americas
Cuba has long challenged the United States’ influence throughout the Americas. Recently, Venezuela has joined in the left-wing struggle and has been slowly renegotiated energy contract with the big multi-nationals.
With oil prices rising, Hugo Chavez has been exporting Venezuela’s new found oil influence throughout Latin America.
Recently, Venezuela was joined by Bolivia when, in a surprising move, nationalized their gas fields. This has many traders nervous since it is in the United States backyard.
3. CAD is the new Petro-Currency
In the time when the UK began pumping oil from the North Sea, GBP was the petro-currency of the time. Now a good oil play is to buy CAD and sell JPY. The CAD has shown strong correlation with the price of oil. CAD/JPY has shown an over 85% correlation to the price of oil since 2004.
Why the CAD/JPY? Simple! Canada is a net export of oil and Japan is a net importer of oil.
4. Net Exporter
Canada currently runs a trade surplus with its largest trade partner, the United States. This will give it more backing than any currency in the Americas as an alternate to the USD. Canada is rich in the commodities most in demand, oil, natural gas, diamonds and gold.
China and India are emerging economies with size. As their economy grows their demand for oil will grow also. So far OPEC has not demonstrated the capability to expand capacity in line with the increase in demand.
This should keep the CAD in demand as pressure for these resources are predicted to increase into the future.
The fact that the CAD has strengthened so much so fast should not be a surprise to anyone. This country has the resources and government control to play to its strengths, much like Switzerland.
Caution should be exercised. As with Britain when North Sea oil was plentiful, the CAD could strengthened to a degree that could trigger an economic downturn. North Sea oil peaked in 1999 and Britain is now a net importer of oil.
Conclusion, if you are looking for an oil play in the currency market or a safe haven to the USD in challenging geo-political times, let me introduce you to the Canadian Dollar.
For more currency education visit FX Trade Central!
- Untuk melakukan buy / beli cukup mengklik kolom offer di pair yg kita inginkan
- Sedangkan untuk sell / jual cukup mengklik kolom bid di pair yg kita inginkan
- Saya rekomendasikan untuk pemula menggunakan pair EUR/USD, karena pair ini selain spread / selisih harganya kecil (-3 pips) pergerakan harganya juga tidak terlalu liar.
- Di Marketiva kita bisa order trading kita dengan system quantity bahkan untuk $1= 100 quantity pun kita bisa, beda dengan broker lainnya yang rata-rata menggunakan system quotation dengan satuan lot. (1
- Di market sering kita dengar istilah Leverage. Di Marketiva menggunakan leverage 1:100, yang artinya misal, dengan menggunakan uang $1 kita bisa beli $100 dengan profit / point nya adalah $0.01 atau contoh diatas dengan uang $0.5 kita bisa beli $50 dengan profit / pointnya adalah $0.005, digambar atas kita profit 170 pips berarti kita profit $0.85 dengan perhitungan
- $0.5 x Leverage 1% (1:100) x 170 = $0.85
- Perlu diingat di broker lain seandainya posisi kita tidak terclose selama sehari semalam kita akan dikenakan charge / overnight fee, sedangkan di Marketiva ini free of charge atau bebas biaya overnight (inap)
- Untuk tools nya Marketiva menyediakan fasilitas Alert, Latest News dan ruang diskusi untuk para trader guna pembelajaran dan pembicaraan tentang perkembangan market
- Untuk bertanya tentang Marketiva tersedia pula ruang support dalam pelbagai bahasa, termasuk bahasa
· Platform Marketiva sangat mudah di gunakan bahkan untuk para newbie
· Untuk fasilitas charting / melihat grafik tersedia pula di tab Chart. Kita juga bisa meng-arrange grafik kita sesuai selera masing2x, karena terdapat indicator yg bisa kita gunakan
· Contoh : set chart kita dengan Candle Stick agar mudah dibaca dengan zoom 125%, tambahkan 3 indicator Moving Average (MA) dengan settingan sbb :
· MA , Type Exponential, Period = 3, warna merah (mengikuti harga market)
· MA, Type Exponential, Period = 20, warna biru (untuk konfirmasi entry)
· MA, Type Exponential, Period = 50, warna hijau (untuk identifikasi trendharian)
· Tambahkan Indicator MACD setting default dan RSI setting default
· Save dengan nama Ride The Wave
· Cara setting semuanya dengan klik kanan pada grafik
· Jika semua garis MA, MACD bersilangan itu sinyal entry, cross kebawah sinyal sell, cross ke atas sinyal buy.
Kami menyediakan layanan spot forex trading untuk pasangan mata uang berikut: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD, EUR/JPY, EUR/GBP, EUR/CHF, GBP/JPY, AUD/JPY, CHF/JPY, GBP/CHF, EUR/CAD, EUR/AUD, AUD/CAD. Kedepannya mungkin akan ada instrument lain yang akan ditambahkan.
Non-Farm Payroll news has come and gone and I am heading for the golf course for some well earned time away from the markets!
I will be spending some time digesting the market events of the past several days this weekend. Before I go I just want to share with you some thoughts.
This is an Associated Press excerpt from my local paper this week …
“The nation’s largest companies continue to move away from providing traditional pensions, with just over a third now offering the benefit to newly hired workers, a sharp drop over the past few years, according to a survey released Wednesday.
Of the nation’s 100 largest companies, just 37 offered a traditional pension plan to new hires in 2005, down from 42 the previous year and 50 in 2002, according to benefits consulting form Watson Wyatt Worldwide.
In 1985, 89 of the largest 100 companies offered pensions.
At the same time, more companies are providing new hires with only a 401(k) or similar defined contribution plan, with 36 employers now going that route, up from 25 in the previous year and 17 in 2002.”
Being an active participant in the markets is going to be critical for us all. Whether you want to be an active trader like myself or just gain the upper hand in your 401(k) and IRA accounts.
Yes, I am a late generation Baby Boomer. I see the attitudes my parents have towards retirement and it is very clear that I am playing under a different set of rules.
Now is the time to take personal responsibility and get educated on the different investments vehicle available. I have chosen the forex market. I have a passion for currencies.
I also trade the stock market. I had a 4th grade teacher who taught our class about the stock market and would bring the New York Times to class every day. In the 4th grade!!!
I dabble in real estate and of course the Internet, primarily to share my passion for the currency market. I encourage everyone to find their passion, monetize it and enjoy life and the changes that life will inevitably bring.
OK, I have rant and raved enough about taking action to ensure your future! If you have been following my blog you know I do this about once per month.
If you really want to know what I think then sign up for FXTC’s FREE Forex Newsletter. I am giving away 2 special report focused on the changing global economy and how to trade the forex market as your part of your retirement plan.
Some new happenings…
FX Trade Central (aka FXTC) has just been updated!
If you are just starting out in FX trading FXTC has pieced together a currency education curriculum to help guide new traders through a solid first year of training and trading.
FXTC has also evaluated more currency trading courses. Visit the education course list to review the best of breed in forex education.
FX Trade Central has entered into an exciting partnership with Elliott Wave International. Visit FXTC regularly to get the latest updates and specials to learn how to ride the wave!
Happy Cinco de Mayo!
Are you getting pumped up for Thursday and Friday's economic data? Should be excellent trading days to close the week.
I have written another article about Elliott Wave analysis in forex market evaluation. Check it out and as always you are free to use the information and/or distribute the article as long as you retain my name as the author and link.
I have spend a great deal of time revamping the website and reviewing more forex education courses. Feel free to visit FX Trade Central.
As technical traders we have spent time studying the markets and have grown fond of the lessons price action has taught us. We use events of the past to anticipate high probability actions of the future. But the hard and cold reality is that the market is the only one that truly knows what the market is going to do!
In the market there are buyers and sellers. Buyers will move a currency pair higher, while sellers will move a currency pair lower. Since there are human participants in the market we use tools of nature in our technical analysis such as Fibonacci ratios and Elliott Wave analysis. But in the end the profitability of a trader comes down to our basic beliefs.
When the market is moving up there are more forex traders with a belief of the market moving higher then there are traders believing the markets are moving lower.
It is that simple!
To keep trading profitably we must exhibit solid trading beliefs in ourselves and in our forex trading systems. Here are 3 traits we must incorporate into our currency training belief systems to have consistent success.
1. We must pre-define the risk before entering any trade. We must be able to quantify the “what if I am wrong” question. It is always the trader that is wrong and never the market itself.
2. Listen to the market. It will answer your question. Don’t ignore what the market is telling you. Solid traders will cut there loses with hesitation or reservation when the market goes against them.
3. Good forex traders have a systematic and organized system for taking profits. When entering a trade a successful forex trader will access the risk in a trade, enter a trade on a systematic risk-reward ratio and exit (without hesitation or reservation) when a profit target is achieved.
Expect the unexpected! Knowing the risk and reward and taking the trades that the market gives you is the best, most consistent way to succeed in the forex market. Trading the forex market is a marathon and not a sprint. You will hit some homeruns, but only if you apply a consistent and systematic approach to your trading.
We all must believe in something. Believe that the market is always correct and when you are wrong the market is not branding you as a failure, merely proving you with feedback to make you an even better trader!
For more information on the force market visit FX Trade Central , sign up for FXTC's Forex Education Newsletter and be sure and preview FXTC’s approved list of forex education courses and continuous learning tools.