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Forex Trading Tips – 5 Ways to Avoid Burn Out While Making a Living in Forex Trading

admin — Wed, 09 Dec 2009 05:14:16 +0000

Daniel S. asked:
Making a living in the forex trading market can be very profitable but at times stressful. The trick is to keep the perfect balance that will allow you stay sharp, make money and not go insane. There are a lot of pratfalls that you may fall victim to so here are a few forex trading tips to keep you on your game.

1. Check the economic calendar each and every day

One of the most frustrating things that can happen to you as a trader is to spend half your day spotting a trend only to see it go south all of a sudden. Maybe Ben Bernake made a negative comment or there were economic data releases that you didn’t see. Simply checking a site like Forex Factory at the beginning of your day will ensure that you don’t miss things like this.

2. Join some forums

Forums are a great way of keeping your sanity. If you are doing full time trading forex or working from home, you’re going to find yourself in a lot of lonely situations and rarely around people that can comprehend what you are talking about. By joining an economic forum, you can make use of your slow periods and bouncing forex trading tips off of other traders. You can also exchange views on different forex strategies and checking out some new forex reviews.

3. Get outside and enjoy life

When you are talking to a lot of traders, a common theme is that they spend every waking hour researching their market. You’re going to want to try and get away from this and enjoy some of the money you are making. This is not to say you’re not going to have to do your homework, but surround yourself with real people and get out of the house to have some normal interactions on a daily basis.

4. Make exercise a part of your daily routine

Exercise has an amazing effect on everyone. You find yourself sharper mentally, obviously in better physical shape and with a lot more energy. When you’re sitting in front of a computer staring at a monitor all day, you have to make sure that you are doing something to keep your body in shape and your mind sharp. Here is a good forex tip – get up early and go for a jog or take a nice bike ride after the market closes everyday and you will find yourself better equipped for battle.

5. Don’t be afraid to treat yourself

While the forex market runs a fast and furious pace, is never going to hurt you to make it a point to get up and get away from it for a few minutes every hour or so. Maybe making your goal that every time you have a successful trade you treat yourself to a 15 minute break. Even if you are doing forex scalping, you’re going to have to step away for a few minutes just to recharge your batteries and regain your focus.

Make Money Forex Trading: Even Beginners

admin — Wed, 02 Dec 2009 15:43:55 +0000

Edward Lomax asked:To make money Forex trading, most people thinkyou need to learn a lot and have the advantage of years of experience. Then you use this knowledge and experience to track the currency market and make trades depending on the trends. This is after all how to be a profitable trader. But that was the old way.I agree taking the time to learn Forex trading and understand market trends is something you should do, things have changed. As with most things, the process of doing everything by hand, to creating tools to help make the job easier to complete automation has hit the Forex market. This is excellent news if you want to make money Forex trading, but don’t have the knowledge and eperience to do all the trading yourself.

Make Money Forex Trading With Automated Software

Don’t feel that using an automated Forex robot is cheating. These programs are not just for beginners looking to break into the Forex market and make a profit. Even the most experienced trader uses some kind of software to help make winning trades on a consistent basis, or at least they should. It just makes sense. Software programs, depending on their programming, can be extremely accurate.

Forex Robots Are Better Than Humans

Let’s face it, computers can do things we can’t, or can accomplish difficult tasks in a blink of an eye. The same is true of Forex software. Software programs are very effective for keeping track of the Forex market in real time and automatically making trades for you based on the preprogrammed indicators. So, say goodbye to sitting in front of the computer at all hours of the day and night analyzing currency charts to figure out when to trade.

But the best thing about using software programs to make money currency trading is the elimination of human emotion. Let’s be honest, when real money is on the line, it is easy for emotions like fear and greed to enter into your trading decisions. Impatience and lack of confidence can also creep into your trading decisions. This is not recommended if you want to make consistent profits and a high percentage of winning trades.

To Make Money Forex Trading You Need To Pick The Right Software

The truth is, as great as using a trading robot sounds, nothing is perfect. Nobody can make 100% winning trades all the time. The same can be said for using Forex software to do your currency trading. The trick is, use a software program that is programmed correctly and makes more winning trades than losing trades. This is the fastest, easiest and best way to make money with currency trading.

Here’s the good news. There are some Forex robots that have been proven to do very well, even doubling ones money in as little as 30 days. They can make between 90=95% winning trades. So when you add it up, you end up making more money than you lose. And isn’t that really the point of currency trading.

So, you really don’t need any experience at all to make money Forex trading. I do recommend learning the Forex market and being able to identify market conditions, but I would try doing everything yourself without the help of a proven software trading program. This is great news for the beginner investor who wants to invest in the Forex Market and take advantage of the tremendous opportunity to make money and create real wealth.

Forex Trading – Knowledge is Power not in Forex Trading it Isn’t!

admin — Thu, 21 May 2009 01:35:22 +0000

Sacha Tarkovsky asked:

I read all the time about how important it is to learn lots of information to trade forex and how you continually need to learn, but this is NOT true.

Succesful Forex trading is actually very simple and the knowledge is easy to acquire, yet 90% of traders lose – so why is this ?

Because knowledge alone is not enough, furthermore you need to learn the right knowledge and most forex traders don’t.

There are plenty of very smart people who lose and plenty of small potato investors who make a lot. The fact you have a lot of knowledge or are clever does not ensure success and in most cases ensures you lose.

Let’s look at this in more detail.

The right knowledge

Is not hard to acquire and starts from learning yourself and not trying to get a short cut to success by buying it – if you think you can buy success you are going to lose.

Trading means getting knowledge that works and you can have confidence in.

Your aim is to make money, not be clever and you can build a simple system from free resources on the net.

Simple systems beat complicated systems as they are easier to understand, easier to apply and make more money as they are more robust.

Fact is most of the top traders in the world use simple systems.

We have been traders for over 22 years and our system is simple:

Trend lines, support and resistance to spot trends and 3 confirming indicators and that’s it and it works.

The right knowledge is easy to acquire but the trick is you MUST understand it, to have confidence and this gives you the trait that most traders lack.

Discipline

If you try and follow someone else you won’t have confidence and you won’t be able to follow a system with discipline.

Unless your knowledge is acquired by you and you have confidence, you won’t be able to follow your trading system through losing periods. You will simply throw in the towel

Discipline sounds easy to acquire but it isn’t – it’s extremely hard to hold your emotions in check.

How do I get the RIGHT Knowledge

Forget all the e-books, courses and other forex education sold on the net.

Go to Amazon and get some books by top traders, who have walked the walk rather than simply talk the talk.

Most sold info on the net is not worth the money and you can get far better knowledge cheaper at your local bookstore.

Good books to start with are Jack Schwager – Market Wizards and New Market Wizards – the interviews here are all with legendary traders and is a great inspiring read.

Then get some books on trader psychology.

I am a big fan of Jake Bernstein who really shows how important and elusive getting the right trading psychology is and really hits it home.

Another favourite of mine is Trader Vic by Victor Sperandeo, a fantastic book covering all you need to know from money management to system building.

Done that?

Then go on the net and build a simple system based around technical analysis, a breakout methodology find a few indicators you like to confirm trend momentum and you’re all set to go.

Sounds simple?

Building the system is the easy part – getting the right mindset is the hard part – good luck.

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.