My Forex Wiz » Mindset

Beginner Forex Trading: 2 More Tips for the Beginner Forex Trader

admin — Wed, 09 Dec 2009 04:04:55 +0000

Harold Hsu asked:

Profitable Forex trading is not easy. In this article, I will share with you 2more tips that have helped change my mindset about trading for the better.

Tip #1: Don’t Try To Pick Tops And Bottoms

Never try to predict market tops and bottoms. There are many traders that are obsessed with trying to pinpoint the exact time when prices will reverse, hoping to ride the market when it does. These traders are called contrarian traders because they’re betting against the current market trend. Contrarian traders may succeed every now and then but more often then not, they suffer multiple losses.

If you insist on contrarian trading, you should at least wait for a confirmation signal before you enter into the trade. Look for an actual price reverse before buying or selling. Don’t just guess.

Tip #2: Don’t Sweat The Bad Stuff

All traders go through days or even weeks of losses. There are good days, and there are bad days. There are good months, and there are bad months. It’s normal. Don’t worry too much about losing… it’s all part and parcel of the game. The trick is not to let any of your losses snowball into something unmanageable! Always use reasonable stop-losses to protect yourself. The point is to live again to fight another day.

So don’t let a bad week or month put you down. Don’t measure your results based on a few bad trades. Many traders give up after having a bad week or two… don’t give up! Understand that losing is part of this business. Just manage your money well, be persistent, and the money will soon start rolling in.

Forex Trading – Tips and Tricks

admin — Sun, 04 Oct 2009 09:11:11 +0000

Ladi Dairo asked:
Tips and Tricks To Help Improve Your Trading

Simplicity – Always keep your trading systems simple. Too many information at one time on your trading screen could confuse and delay your decision to trade

Broker – A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.

Sample the Environment – It is important to remember that many registered and online trading agents have fictitious platforms which mirror the real-time, live platform clients register and trade on. It is not only advisable, but it is also actively encouraged to initially open a ‘dummy’ account where fictitious forex trades can be undertaken that closely reflect what real trades may be like when they are eventually undertaken. Such platforms are designed to give those that are new to forex a feel and an idea what real trades on live markets will be like when the decision is made to begin trading.

Buy low, Sell high – Forex trading does not involve the physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs. The potential for profit comes from the fluctuations in the currency exchange market. Regular daily fluctuations in the value of one currency against another give a clear advantage over conventional stock market equities and instruments. See Trading Illustration Only

Manage Losing Positions – Trades will sometimes inevitably on occasion go against you. It is important to accept them as an inherent part of trading. Cut your losses and move on having learnt from any mistakes made. Always remember however that you will not be able to trade without losing some positions. It is important to manage these well.

Patience – Do not over-trade your account. Good money management practice is important and will help with profitability. This will go a long way in helping you develop a strategy which fits with your personal trading capital. Operate a trailing stop loss policy say 15 to 20 pips behind the trade. Minimise your good trades as long as you are confident.

Flexible Mindset – Don’t set yourself false targets and expectations. Experts will tell you trading is not an exact science and setting oneself unattainable targets will only lead to frustration and feeling of failure when these targets are not met. Always maintain an open mind. The market is a constantly changing environment tunes your mindset to understand this.

And lastly but definitely not least, it is most important for all market participants to remember that unique experiences and past performances do not guarantee future results. Trading results can vary in any combination of circumstances. If you do not have extra capital that you can afford to lose, you should not trade in the foreign exchange market.

Invest wisely and take advantage of the resources and technology available to you in the market

Forex Trading – if It’s as Easy as Many Claim Why Do 95% of Traders Lose?

admin — Tue, 12 May 2009 02:04:02 +0000

Kelly Price asked:

If you read a lot of the vendors online you would think forex trading is a walk in the park and of course its not, that’s why 95% of traders lose. The good news however is you can win – if you follow the advice in this article…

Most forex traders fall for vendors telling them they can make money easily, by following their advice or a mechanical forex robot.

These so called forex experts though are anything but and all they have to back up their claims are back tested paper simulations. That’s trading knowing the closing prices and it’s so easy a child could do it. Don’t take this nonsense seriously.

A back tested simulation, means absolutely nothing, in terms of how you will do and in most instances, traders who buy these trading systems get wiped out.

Now in life, you know that to make money you need to make an effort. You need to the basics and learn your art.

Forex trading is EXACTLY the same, you need to know what you are doing and have confidence in your knowledge.

The Good News is

For the effort you need to make, the rewards are huge!

Even better news is – it’s proven that everything about successful forex trading can be specifically learned by anyone with a willingness to learn. Now, let’s look at a story which will inspire you.

A famous trader called Richard Dennis, set out to prove the point anyone could succeed at trading, with the right mindset and education. He taught a group of people who had never traded before to trade in just 2 weeks – the result?

These traders made $100 million, in just 4 years and went down in trading history as legends.

Learning a successful trading system is easy – applying it is the hard part.

Despite what you may read online about you won’t suffer losses for weeks on end – you will. Don’t worry though, even the best traders do! The trick is to keep your losses small and stay on course until you hit profits.

You have to lose to win in forex and this is hard for most people, they simply cannot take their losses and trade with discipline.

A simple system applied with discipline, is the key. Keep in mind, if you don’t have the discipline to apply your system, you don’t have one!

Forex trading is a combination of method and the mindset to apply it.

If you get the right forex education and work smart you can get a simple robust forex trading strategy together in a couple of weeks – then its down to mindset and your ability to stay on course.

While being disciplined is not easy, if you have confidence in what you are doing, you can achieve it.

So forget all the people who tell you forex trading is easy – its not and you would hardly expect it to be with the rewards on offer.

Approach forex trading as a business, learn to take your losses and be disciplined and if your system is soundly based, you will soon be piling up huge profits and enjoying currency trading success.