Forex mistakes and sins.

[jawadjutt]

It's a very good thing to always review every trade, lost or profit. What we seek is to identify the strengths and weaknesses underlying the decisions to trade them. Truly, not all your good trades had the perfect setup, neither did all your bad trades had faulty entry. Therefore the review must not be biased. You'll probably have better insights into trading your strategy better

[sehatx]

It's a very good thing to always review every trade, lost or profit. What we seek is to identify the strengths and weaknesses underlying the decisions to trade them. Truly, not all your good trades had the perfect setup, neither did all your bad trades had faulty entry. Therefore the review must not be biased. You'll probably have better insights into trading your strategy better

believe the major mistake traders use to make its has been making them run at a big loss because of our own mistakes that undermine this forex business, it is actually our forex world less

[hamdaniwan]

The Forex main just few mistakes hoti hain jo losses krwati hain isi un main sab say bari waja trade sekhy baghair krna us kay baad entry exits levels ka pata na hona .markets mein her waqt enter rehna bhe aik mistake hais !

[rjnasir786]

All videos are provided for educational purposes only and clients should not rely on the content or policies as they may differ with regards to the entity that you are trading with. Further, any opinions, analyses, prices, or other information contained on this website is provided for educational purposes, and does not constitute investment advice. FXCM will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

[maaado]

I enjoyed reading the topic forex mistakes and sins
Thank you for the information
Best Regards

[huda]

mistakes in forex I think it definitely would often we experience and even mistake it will always go through it again again and again and it is hard to not repeat the same mistakes and therefore many forex traders who say that if you want to successfully control themselves

[ashvi]

The main mistake in the forex trading business is getting started in the forex trading even without proper knowledge regarding the forex market and thus suffer huge loss. Also they are not aware of the proper money and risk management due to which they blow their account.

[Ramlan Fs]

thanks for the information I did not know was whether forex is a mistake or a sin because I had run them open just guessing and guessing but creates an analysis of labor in the wake of the marsh itself.

[maaado]

I enjoyed reading the topic forex mistakes and sins
In my point of view, I think that forex mistakes and sins is important things in our forex trading
Best Regards

[sikil]

Trading with no knowledge at all for starters it means traders are quite desperate, usually though beginners, though they do not know a lot of things and do not master a variety of techniques and strategies but at least they know the basics of trading before they plunge into the real account. To which I strongly agree no.2, most new traders is strongly influenced by emotions in decision-making.

[hafizjawad]

These topics/articls are really very good and impressive and every one can easily understand what you say.
you work on it regularly and you must follow the rules then you can earn alot

[vicente147]

One of the best signs that a particular trade is a good candidate to be held instead of folded is reaffirming price action. For example, if you are long the market and you get a bullish pin bar or consecutive bullish pin bars that form in the context of the uptrend you are trading you can be reassured by this price action because it �agrees� with the direction you are trading. This is essentially the opposite of the �opposing price action� rule that we discussed in the point above. This reaffirming price action can be a very good indicator that you should hold a winning trade instead of folding it. Learning to �read� a price chart in this discretionary manner is really what distinguishes the pros from the amateurs.

[sind]

These topics/articls are really very good and impressive and every one can easily understand what you say.
you work on it regularly and you must follow the rules then you can earn alot
Most of read all the article and appreciate the contents but when it comes to practically implementing it there is something lacking and the trades dont turn out the way we want it. As long as we keep the trading the simplest form possible better.

[blackjack]

Actually there has been a lots mistakes are remain for getting losses. In these what is the most dangerous mistake how can i describe this. But i think so much like that in the Forex trading if we take the wrong decision for trading then will be the most dangerous mistake in Forex trading.

[irshad]

Stop Sabotaging Your Forex Trading Forex Traders have a tendency to sabotage
their own efforts in the market, and most of them don't even they loose.

[huda]

as we have seen that "more of something that we want, the larger the risk that we will encounter" so "the more we are expecting a big profit, the greater the risk.

[aksay]

if we study hard course, we will succeed in this business, but sometimes traders always much profit, without willing to understand the risks that would occur, we must learn to be successful

[rehman1176]

forex main sb sy barhi mistake ya sin yay hy k agar aap over trading ya high volume py trade lgatay hain or aap apny money management system ko follow nai krt to aap ko bht zida nuksan uthana pr skta hy

[niteriders]

the biggest sin in Forex is that we trade against the trend and with not money management, that this is the biggest mistake one can do.

[tahamina]

it is very big article. i think it is very helpful for trader who are lose regularly. it reminds us the proper rules and regulation about forex market. forex market is the market of proper rules. proper rules can bring us success.

[haney]

9) ALWAYS PAY YOURSELF, because if you don�t, who will? When you make money in the markets you need to pay yourself, don�t re-invest all your profits in some vain attempt to grow your account to infinity.

i do really agree with you, and it means, we have to take some of them and enjoy it, but we have to take it with wisely, and may some of our profit, we can use it for backup too, so, we can still enjoy, make a backup and continue trading with be carefully

and also, we do not know for what will happen in the future, we do not let the profit still in balance or compound all of them, because may for next trading, we just make loss all of them, and so what the thing we get from it ?

[hikaru fx]

hopes to double the money in a short time it was almost impossible
although it could, maybe just lucky ... emotional grammar, discipline and understand
not everyone succeed in the forex business, but if we are able, what's worth a try

[ahda]

i do really agree with you, and it means, we have to take some of them and enjoy it, but we have to take it with wisely, and may some of our profit, we can use it for backup too, so, we can still enjoy, make a backup and continue trading with be carefully

and also, we do not know for what will happen in the future, we do not let the profit still in balance or compound all of them, because may for next trading, we just make loss all of them, and so what the thing we get from it ?

Nice strategy. i like it. i also use this strategy, even more when i need money. each shot using big Lot sizing and get profit, i always Withdraw the profit, leave the capital. Shooting again, getting profit directly fill Withdrawal form. always like this.
Now, i think, i want to try compounding. start trading with small fund, then compound the profit as capital, increasing lot sizing, in order to grow equity.

[v jay]

very true that sometimes one has to know sometimes even repeated again, and this rookie mistake is usually fatal if hit problems or difficulties and MC sometimes so lazy to learn, but this is actually a warning to us that we improve our trading systems rather than lazy.

[Liaba]

To avoid these kinds of forex mistakes, it is important to practice longer and ensure that your system works on a continued basis before real money gets involved.

[tereliyefx]

i do really agree with you, and it means, we have to take some of them and enjoy it, but we have to take it with wisely, and may some of our profit, we can use it for backup too, so, we can still enjoy, make a backup and continue trading with be carefully

and also, we do not know for what will happen in the future, we do not let the profit still in balance or compound all of them, because may for next trading, we just make loss all of them, and so what the thing we get from it ?

risk capital and margin of the Trading and following market analysis and management of System suitable rule of trading and analysis trading in essential management disciplines are trained in accordance with the market and use the Trading System

[dip]

Forex is very tough business there are many be gainers they are create many mistake and firstly they do is very greedy and they are not practice in demo well and they are very curious to make money fast.

[husnaindfx]

I trade in Forex for more than one year i always make the same mistakes though recently i have been able to overcome that particular mistake. My mistake is i do over trading and for this reason multiple times i blew my Forex trading account up. all trader should avoid over trading in Forex.

[andriarto]

mistakes in forex for this that I learned from myself and the strategy of my own emotional survival. as also the nature of man is greedy. hehehehhe ... but with the forum I came to know that the emotional is also decisive in trading.

[wasifshakil]

Thank you bosses for share your best idea with us. We can get more important thing from here. I like studying about forex. And this is about our misstake with forex trading. we need to avoid this for free from losses.

[Rafiq1]

In the Forex trading the mistakes are very harmful for the trader. In this way the trader when faced the lose become hopeless and try to leave this business. The trader should first learn and also practice on the trading.

[Avenger]

well as for me i think most errors most currency trading investors create is when they fall short to take little benefit which the industry can provide then and they require to make the greater variety of pips this really create them reduce there ginned benefit and also strike off there consideration so i think the best way is to take the little benefit we can get from

[nill]

exactly once and many who experience it, for traders who are beginners and inexperience usually they still have not been able to control the psychology, emotions, greed and lacking discipline in trading, so it is not surprising that they are in a hurry, ambition can profit a lot, over OP and if you lose emotion and want revenge, if I think this is part of the process called learning.

[andihaerani]

I remember when the first time I did my trading 2 years ago, my amount was 1000 USD with USDCAD, in 6 months my amount had grown to USD2000 . In 7th month, I got loss USD1920 and my amount had fallen to USD80. It made me crying and shocking my heart, I had been just helped by long term up trend at that time to grow my amount until one night I did a big mistake, I was too greedy.....and at that time I still didn't know Money Management, even I didn't use Stop Loss, just instant Open Position. I have learned so much from my fallen.

[shoaib515]

men apki yeh posts read kar li hen men in posts se bohot faida uthounga aur men in usefule postss per ap sub ka shukar guzar hun . men forex men new hun abhi tak trading ka exparience naheen hey .

[raza9]

what is forex mistake eska matlab ye hi ke ham jb trade karean to sab se pahle forex bareekion ko samje jb ke ham
bageeg samjee trade start kr dete hean or bohot bara noqsaan otate hean likin phir be nahi samajte ki sekna lazim hi.

[waqas1]

ap ki post bohat achi ha ap na bohat he good information ko share kayea ha forex ma mistake ko countrol karna zarori ha ma new mamber ho aur ma forex ma kafi mistake kar raha ho but ab ma is ko countrol karne ki kusesh karo gaya

[adingh]

Usually investors attempt to industry within the currency markets with no stoploss it really is among the even worse point the actual investors do this when they prevent this kind of errors chances are they can simply obtain great benefit from their own industry therefore attempt to study from earlier.

[waqas1]

thanks brother muje jayse new mamber ka laye ap ki post bohat good ha ma ap ki sari post ko study kayea ha muje bohat si new information mili ha

[endah]

many such errors,,

1. too pursue profit and lead to Loss
2. do not know the direction of the market is its speed
3. too soon take a decision
4. so profit a little too fast in execution
5. relying on luck

[dphukan007]

Forex Mistakes jo ki aap ko nohi korna hei wo hei- 1. Don't ply forex trading like video games. Ogor aap dhyan se forex trading nohi koroge to aap ka vi vedio game ki torha ho sokta hei, ki aap ne level 1 complete kia, level 2 complete kia, level3 complete kia or us ke bad level 4 pe problem ho goya to aap fr se level por aa goye. 2. Ye unregulated market hei, to kisi vi proker ka service lete somoi sotork rohiye. 3. Borrowed paisa leke mot aayiega. is market mei borrowed money nohi lana hei. 4. Agor aap hindustan mei hei to kisi vi prokar se bahar peisa vegne ka goloti mot kijiye. ye illegal hei. 5. Kisi vi brooker ke dwara die goye offer ko thikse somoj kor hi uska istomal kore.

[rauf3739]

Trade is the easiest type of business among other business types. But still, many people fail in this business. Their fault there are two. First, they want an easy, fast and safe.
Second, they give up before trying to the death.

[anaildon]

i think a large-scale mistake traders if trader or traders who have long wrestled with the world is inseparable from the emotional trading and trading administration are directed . while this is still a allotment we met a trader who just understand about the world primarily in forex trading .

[ashvi]

The number one mistake which the traders make is not use proper money and risk management while trading and simply entering into the trader without making any market analysis is another bad mistake made by the traders to lose money.

[salmaaktar]

most certainly there is not any process we're able to in no way remove through currency trading and yet we tend to have to actually exchange not to mention come to be from the impressive end of this economy not to mention dependent upon your appreciate in my opinion display profile is better place to get correction 's.

[neitheigush]

Any sort of starter buyer what individuals sets out fix trading aided by the spirit of going greedy definitely will inevitably feel sorry it again. Considering that perhaps even people involved believed to be experienced foreign currency trading professional traders acquiring greedy throughout their fix trading.

[nill]

can not wait and want a new entry that caused the fatal error
Impatience or hurry often make wrong entry and take position after a strong trend is clearly visible form, position incorrect entry has caused a great loss.

[tereliyefx]

Trade is the easiest type of business among other business types. But still, many people fail in this business. Their fault there are two. First, they want an easy, fast and safe.
Second, they give up before trying to the death.
Forex trading using the system of financial regulation was wearing a margin money management and discipline in accordance with the rules of trade, we must use the systems and indicators as a primary rule in trading and learning, all mistakes is very usefull

[pisses[69]]

Trade is the easiest type of business among other business types. But still, many people fail in this business. Their fault there are two. First, they want an easy, fast and safe.
Second, they give up before trying to the death.
All is not easy in forex money is a hard-to-reach, money make things easier so it could make the learning process easier too .. You also need money to purchase the books you need and alike and most importantly you need a good capital that would make money management flexible for you

[baponmondol213]

Surface there is no way we can not recede in the forex market but we contributory bang to study how to swoop and ever be at the confident sidelong of the industry and based on my read i conceive demonstrate invoice is the first abode to get punishment s

[saim16020]

मैं प्रविष्टि लगता है और बाहर निकलने के बिंदु सबसे महत्वपूर्ण लगता है कि व्यापारी सही प्रवेश और बाहर निकलने के बिंदु का चयन अन्यथा यह बहुत मुश्किल हो सफलता प्राप्त करना चाहिए

[ashvi]

The main mistake which we do while trading in the forex market is that we repeat the same mistakes again and again only to lose more and more money to the forex market which is not good for the traders while trading.

[youngfx]

Thinking that Forex trading is a get rich quick scheme. They say 90% or more of new traders fail. I don’t know if that’s the actual number, but it certainly is a high figure and a big part of the reason for that is unreasonable expectations coming in. Forex trading is promoted to many as an easy way to make lots of money. While that can eventually be the case, it tends to take a lot of hard work and a fair amount of time to reach that point. Those who think they’ll be able to jump right in and have the profits rolling into their account from Day 1 get slapped in the face with reality pretty quickly, and for many it is the end of their trading – whether they’ve lost a lot of money or not. Successful trading is a long-term thing (see Taking the Trading Long-Term View), and many folks just are not prepared for that.
Not effectively using demo trading. I will be the first to tell you to get into real money trading as quickly as possible, but taking the time to do proper demo trading is important. There are two purposes to demo trading. The first is to familiarize yourself with the platform you’re using and, if you’re a real newbie, with the basics of prices, P&L, and all that. The second is to work through the trading system development process to know that you have a workable methodology you can employ to good effect. Of course demo trading is not the same as live trading, as just about any experienced trader will tell you. If, however, you cannot profit in the demo environment, you don’t have a lot of hope for profitable live trading.
Failing to pay attention to detail. Making stupid, simple mistakes will cost you money. Yes, sometimes you mess up an order entry and it works to your advantage. Most of the time, though, when you make a mistake it hurts. I’m talking about totally avoidable mistakes here, like forgetting to put in a stop, or putting in the wrong price for an order, or buying rather than selling. It’s basic attention to detail. There’s really no excuse.
Not thinking through your approach to the market. A lot of folks jump right into the market with two feet without taking any time to think through what they’re doing. This is something which hit home with me when my book, The Essentials of Trading, came out. I wrote it for folks just getting into the markets, but found I was hearing also from many who’d been in the market for a while and found they needed to go back and revisit the foundational elements of their trading because they’d been all over the place in their development. They’d bypassed that aspect of things when they got started. By that I mean they didn’t think enough about things like trading timeframe, markets, and personal elements which feed into that what, why, and how they trade.
Getting fixated on your win %. New and developing traders spend WAY too much time thinking about the frequency at which they have profitable trades. I’ve written on the subject numerous times before (such as here and here), so I won’t go off on a long rant. It’s a simple question of whether it’s more important to you to be right or to make money. For some folks the being right (or at least not being wrong) thing is important to them. They probably shouldn’t be traders because trading is about making money. You can have 90% winning trades and lose money just as you could have 10% winning trades and see your account balance growing nicely.
Thinking more about rewards than risks. We trade to achieve positive results, to grow our account balance. As such, it’s quite easy to fall into the trap of thinking more about all the pips we can make rather than all the pips we could lose on a given trade. A good trader thinks about both at least equally, and if you listen to some of the elites in the business they indicate a clear focus more on the potential negatives. If you’re thinking to yourself “I prefer to be optimistic” then you’re being na�ve. Trading first and foremost is about making sure you don’t expose yourself to the chance of getting taken out of the game because of big losses. After all, you cannot make gains if you can no longer trade. Traders with an “optimistic” mindset have a tendency to take on too much risk.
Getting too excited. Whether you are having a good run of success or coming off a bad performance, if you’re chomping at the bit to get into that next trade you need to take a few deep breaths. This sort of excited state can lead to very bad decision-making. I’m talking things like taking trades which don’t meet your system’s criteria, trading too big, or trading more markets than is good for you. Some folks can get away with trading while agitated. Most, of us, though, don’t readily notice how our emotional state feeds into our trading choices. Brett Steenbarger has written some good stuff on the subject.

Now, I’m sure others will have their own thoughts on the seven deadly sins of Forex trading. What about you? What’s your list?

---------- Post added at 01:35 PM ---------- Previous post was at 01:34 PM ----------

You may wonder what exactly is it that you need to know before you actually make trades, well, there are so many factors surrounding the forex market and while you may only concern yourself with a little portion of the market, you will still need an understanding of the larger part of the market. As a matter of fact, understanding the forex market should be a part of your forex trading strategy.

I call these following issues that I will discuss in this article forex deadly sins because they are some of the mistakes that a good number of forex traders make over and over again and these mistakes are what actually sabotage their efforts to become successful in the markets even when they have the a god forex trading strategy at their disposal.

1. Being A Greedy Fool - no offence, but I have to say this as it is. So far, greed is one of the original deadly forex sins, besides, apart from the world of forex trades, greed is a punishable offence and one which many other sins are borne out of. Even though it is human nature to become greedy when money or other material things are involved, all traders are advised to avoid being slaves to greed. It has become so bad that most traders are no different from gamblers at the casino; they are all just chasing the 'big win'.

It is quite unfortunate that it's an addictive game that gets in the blood and doesn't get out easily; perhaps until you 'snap out of it' somehow, maybe from losing a significant amount of money. It is ok if you are making a 1 to 2 or 1 to 3 risk reward on most of your trades, as a matter of fact, it is actually 'professional standard', and there's absolutely NOTHING wrong with it. If you keep chasing the elusive 'big winner' on every trade, you are going to continue to not take profits when they are staring you in the face, that is how you will end up in your cycle of losing, breaking even, and taking tiny gains.

2. Risking Just 2 Per cent of your account - now this is just ridiculous, in one of my articles, I made it know that in order to avoid emotional trading, you should not trade with a money that will cause you to have sleepless nights. However, this does not mean that you should trade with a fixed percentage of your account. In reality, it is a flawed approach, and it could be keeping you stuck in a cycle of poor trading performance. Most traders think risking 2% or some fixed per cent of their account is a good idea, because they believe it allows them to decrease their position size ****ually as they hit losing trades or increase their position size ****ually as they build their accounts. Whilst the idea of increasing their position size ****ually as they build their accounts might be decent logic, the idea of reducing their position size after every losing trade is just out of it.

Allow me to explain this better, imagine that upon trading with Two percent of your account that you lost 50 per cent - of course you should know that to be able to breakeven you may have to make 100 % of your account. Now utilizing the "fixed percentage rule", that's risking precisely the same amount, how do you expect to generate a big gain in the market? Since your task is to make 100% on your account with a position size that's 50% small compared to what you were trading. No offence, but when you can't see what I'm saying here, then perhaps for the reason that prehaps you are restricted with the "fixed percentage rule".

3. Combining trading methods - many traders often enquire about merging trading methods, therefore i have to say this now, the bottom line is that you don't 'blend' trading methods; you simply need something logical and real. Many traders who stick with trading for enough time eventually find out that they aren't helping them selves by plastering indicators in their charts or learning some new 'so hot' 'get money quick' trading system. A large number of tips are what you will really find on some sites which are jokes folks sure looks truly great, but actually they are just wasting time and masking over the reality of exactly what it will take to trade successfully, and that is why combining complicated and messy trading methods with price action is the a deadly trading sin. Being a serious trader who I has a good forex currency trading strategy, you cannot afford to turn your chart in to an art work, by adding in different strategies.

[saqib4242]

je han ap nay ak acha sawl kiya han ma ap ke baat say agree karat ho mere khyal ma forex tarde magar mujha us ma kuch be ni samj ni araha pata n kue ya kohe kiya kahl jhjgd iuhg

[youngfx]

HOW TO SUCCEED AS A FOREX TRADER

A growing number of individuals find Forex trading as an extremely rewarding pursuit. The selling point of this financial market is the incredible amount of leverage which is available to traders, and its round the clock operation five days a week which enable individuals to increase their family income can enter into Forex trading without leaving behind their regular jobs. In the next paragraphs are several measures that fledgling Forex traders can employ to increase their profits and lessen losses.

How to gain success as a Currency trader

Learn as much as you can about forex trading

As with other undertakings, you need to know thoroughly how trading of currencies is done before opening a trading account. There are courses for Forex online and offline and these typically include the mechanics of Forex trading, how to analyze market conditions, trading techniques, and also risk and money management.

Open a free demo account

Experience is the best teacher. A demo account will help you get a feel of currency trading without risking money. Also, these practice accounts will help you analyze, customize trading strategies, and therefore help transform you into a more self-assured trader.

Create a trading strategy

There are two basic types of analysis utilized in Foreign exchange, specifically, fundamental and technical analysis. The majority of Forex traders count on technical analysis, which involves looking at charts to predict future price actions, but traders who attain the success in this activity are those who also understand fundamental concepts, such as economic reports.

Use leverage wisely

Leverage is not merely accessible in Forex, using it to facilitate trades is somewhat de rigueur. Price changes for currencies are usually small, so traders take advantage of leverage to hold bigger contracts without shelling out as much. Then again, although leverage can increase your earnings, it can also magnify your losses, so you must be strategic on how much margin to use.

Do not trade using your emotions

Greed and anxiety can be extremely powerful emotions and these can prompt you to make hasty decisions when you trade. To eliminate the emotion away from trading, many traders use forex trading platforms which automatically places trades based on your trading method.

Understand money management

In currency trading, risks and losses can't be fully eradicated, but since risks are measurable, they can be adequately managed as well. You ought to only trade with money you can afford to lose, and learn about stop loss orders as a strategy to lower losses.

[fikram]

impatient and want to rush the entry that caused the fatal error
Impatience or hurry often make wrong entry and take position after a strong trend is clearly visible form, position incorrect entry has caused a great loss.

[youngfx]

you are right bro @fikram

---------- Post added at 02:14 PM ---------- Previous post was at 01:52 PM ----------

Forex Support and Resistance

Support and resistance is a concept that many Forex traders use to determine when to enter and exit a trade. This is a principle that goes hand-in-hand with technical analysis for Forex traders. Here are the basics of support and resistance and how you can use it.

How it Works

When you look at Forex charts, you can often see levels at which the price reached a certain point and then bounced back down again. This also happens in reverse when a certain low is achieved and then the price goes back the other way.

The level at which the price changes directions is known as a support or resistance level. For example, if the price goes down to 1.3425 and then always comes back up, you could say that 1.3425 was a support level for that particular currency pair.

Relevance

Traders often use these levels to determine when to get into and out of the market. For example, when a currency pair is trading at a certain level, the trader will look at these levels to determine if he should place a trade. If the price is moving up and it is a long way from the next level of resistance, he might decide to go ahead and get into the market.

At the same time, you can use the next resistance level as a place to set his take profit number. This way, he can avoid watching the price move up and then stop shortly before retracing. He can also set a stop loss below the nearest support level.

Momentum

To break through a level, a large amount of momentum must be present in the market. When a trader sees the price of a currency pair breaking one of these levels, it is often an indicator that the price of the currency pair will continue to move in that direction. If the trader is diligent, he can often catch a big swing in the market and bank some serious pips.

Fibonacci

The Fibonacci sequence is an order of numbers that has been used in many areas of life and math. In the Forex market, it is used to help calculate levels of support and resistance. For those who do not know, the Fibonacci sequence is 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144... You get these numbers by adding the first to together to get the third. Then adding the next two together to get the fourth, and so on.

In the Forex market, you can compare the ratio of one number to another to get support and resistance levels. For example, if you compare one number to the next higher number, the ratio is .618. If you use alternate numbers the ratio is .382. By calculating these ratios, you can get points to put on the chart.

In reality, you'll never have to calculate any of this in Forex trading. You can simply use your trading platform to do it for you. You simply select "Fibonacci" in the Forex indicators section of your trading platform and it will be plotted on the chart.

Putting it Together

This seems to be a valid concept that many traders used in the Forex market. While it is not 100% foolproof, it does have some merit. Play around with support and resistance levels on a demo account to see what I'm talking about and you will get an idea of how you could use it to be profitable.

[youngfx]

Top 10 Forex Trading Rules

Improperly applying technical analysis methods will lead to disastrous results, such as bad entry points and mounting losses on currency positions. Here we'll examine how not to apply Fibonacci retracements to the foreign exchange markets. Get to know these common mistakes and chances are you'll be able to avoid making them - and suffering the consequences - in your trading.

1. Don't mix Fibonacci reference points.
When fitting Fibonacci retracements to price action, it's always good to keep your reference points consistent. So, if you are referencing the lowest price of a trend through the close of a session or the body of the candle, the best high price should be available within the body of a candle at the top of a trend: candle body to candle body; wick to wick. (Learn more about candles in Candlestick Charting: What Is It?)

Misanalysis and mistakes are created once the reference points are mixed - going from a candle wick to the body of a candle. Let's take a look at an example in the euro/Canadian dollar currency pair. Figure 1 shows consistency. Fibonacci retracements are applied on a wick-to-wick basis, from a high of 1.3777 to the low of 1.3344. This creates a clear-cut resistance level at 1.3511, which is tested and then broken.

Figure 1: A Fibonacci retracement applied to price action in the euro/Canadian dollar currency pair.
Source: FX Intellicharts



Figure 2, on the other hand, shows inconsistency. Fibonacci retracements are applied from the high close of 1.3742 (35 pips below the wick high). This causes the resistance level to cut through several candles (between February 3 and February 7), which is not a great reference level.

Figure 2: A Fibonacci retracement applied incorrectly.
Source: FX Intellicharts



By keeping it consistent, support and resistance levels will become more apparent to the naked eye, speeding up analysis and leading to quicker trades. (To read more about reading this indicator, see Retracement Or Reversal: Know The Difference.)

2. Don't ignore long-term trends.
New traders often try to measure significant moves and pullbacks in the short term - without keeping the bigger picture in mind. This narrow perspective makes short-term trades more than a bit misguided. By keeping tabs on the long-term trend, the trader is able to apply Fibonacci retracements in the correct direction of momentum and set themselves up for great opportunities.

In Figure 3, below, we establish that the long-term trend in the British pound/New Zealand dollar currency pair is upward. We apply Fibonacci to see that our first level of support is at 2.1015, or the 38.2% Fibonacci level from 2.0648 to 2.1235. This is a perfect spot to go long in the currency pair.

Figure 3: A Fibonacci retracement applied to the British pound/New Zealand dollar currency pair establishes a long-term trend.
Source: FX Intellicharts



But, if we take a look at the short term, the picture looks much different.

Learn to trade Forex with FXCM’s Free Trading Guide
Figure 4: A Fibonacci retracement applied on a short-term time frame can give the trader a false impression.
Source: FX Intellicharts



After a run-up in the currency pair, we can see a potential short opportunity in the five-minute time frame (Figure 4). This is the trap.

By not keeping to the longer term view, the short seller applies Fibonacci from the 2.1215 spike high to the 2.1024 spike low (February 11), leading to a short position at 2.1097, or the 38% Fibonacci level.

This short trade does net the trader a handsome 50-pip profit, but it comes at the expense of the 400-pip advance that follows. The better plan would have been to enter a long position in the GBP/NZD pair at the short-term support of 2.1050.

Keeping in mind the bigger picture will not only help you pick your trade opportunities, but will also prevent the trade from fighting the trend. (For more on identifying long-term trends, see Forex Trading: Using The Big Picture.)

3. Don't rely on Fibonacci alone.
Fibonacci can provide reliable trade setups, but not without confirmation.

Applying additional technical tools like MACD or stochastic oscillators will support the trade opportunity and increase the likelihood of a good trade. Without these methods to act as confirmation, a trader will be left with little more than hope of a positive outcome. (For more information on oscillators, see our tutorial on Exploring Oscillators and Indicators.)

Taking a look at Figure 5, we see a retracement off of a medium-term move higher in the euro/Japanese yen currency pair. Beginning on January 10, 2011, the EUR/JPY exchange rate rose to a high of 113.94 over the course of almost two weeks. Applying our Fibonacci retracement sequence, we arrive at a 38.2% retracement level of 111.42 (from the 113.94 top). Following the retracement lower, we notice that the stochastic oscillator is also confirming the momentum lower.


Figure 5: The stochastic oscillator confirms a trend in the EUR/JPY pair.
Source: FX Intellicharts



Now the opportunity comes alive as the price action tests our Fibonacci retracement level at 111.40 on January 30. Seeing this as an opportunity to go long, we confirm the price point with stochastic - which shows an oversold signal. A trader taking this position would have profited by almost 1.4%, or 160 pips, as the price bounced off the 111.40 and traded as high as 113 over the next couple of days.

4. Don't use Fibonacci over short intervals.
Day trading the foreign exchange market is exciting but there is a lot of volatility.

For this reason, applying Fibonacci retracements over a short time frame is ineffective. The shorter the time frame, the less reliable the retracements levels. Volatility can, and will, skew support and resistance levels, making it very difficult for the trader to really pick and choose what levels can be traded. Not to mention the fact that in the short term, spikes and whipsaws are very common. These dynamics can make it especially difficult to place stops or take profit points as retracements can create narrow and tight confluences. Just check out the Canadian dollar/Japanese yen example below.

Figure 6: Fibonacci is applied to an intraday move in the CAD/JPY pair over a three-minute time frame.
Source: FX Intellicharts

In Figure 6, we attempt to apply Fibonacci to an intraday move in the CAD/JPY exchange rate chart (over a three-minute time frame). Here, volatility is high. This causes longer wicks in the price action, creating the potential for misanalysis of certain support levels. It also doesn't help that our Fibonacci levels are separated by a mere six pips on average - increasing the likelihood of being stopped out.

Remember, as with any other statistical study, the more data that is used, the stronger the analysis. Sticking to longer time frames when applying Fibonacci sequences can improve the reliability of each price level.

The Bottom Line
As with any specialty, it takes time and practice to become better at using Fibonacci retracements in forex trading. Don't allow yourself to become frustrated; the long-term rewards definitely outweigh the costs. Follow the simple rules of applying Fibonacci retracements and learn from these common mistakes to help you analyze profitable opportunities in the currency markets. (For related reading, also take a look at How To Become A Successful Forex Trader or discuss other Fibonacci strategies

[youngfx]

How to Trade Forex on News Releases?

One of the most interesting trading strategies that forex traders commonly employ is trading on economic news releases. Some traders use economic news releases to get in and out of currency positions.

Because of the international nature of the forex market and because of the profound influence fundamental economic factors have on the currency market, many traders find they can use the news to make money.

Specifically, closely watched economic news items such as the United States' Non-Farm Payrolls and, Gross Domestic Product numbers tend to result in significant reactions in the forex market, especially if they differ substantially from the market's prior expectations.

Straddling Both Sides of the Market

Some traders position themselves on both sides of the market before a significant release using a hedged position.

They wait for the number to come out and then proceed to trade out of the position. For example, they might take a loss on one side during a post number correction, after having hopefully taken a larger profit on the winning side of the trade.

This straddle or hedge strategy consists of going both long and short in the same currency pair before the release of the economic number. Action is not taken until after the number is released.

Once the number comes out, the trader must decide how to "leg" out of the two legged position. Generally this involves taking both a profit and a loss.

If the number was favorable, often the trader will first take profits on the trade first. This enables the trader to allow the other unprofitable leg of the position to decrease the loss on the position as the market corrects after it made an initially often exaggerated reaction to the number.

If the number released was unfavorable, the same basic follow up strategy can be taken as the market falls by closing the winning short position first, and then trading out of the losing long side of the hedged position.

A variation on this technique involves placing a stop loss immediately on the losing position and waiting for the stop loss to be hit. Once the stop loss has been filled, the winning side of the position can be held for additional profits or liquidated immediately.

Major Economic Data Releases Most Often Traded Upon

As mentioned previously, the market reacts on almost a daily basis to the release of fresh economic data.

Although the U.S. Non-Farm Payrolls number is one of the most significant numbers that traders use for such short term strategies, other significant numbers commonly used by forex news traders might include:
Interest Rates - the interest rates set by central banks exert an enormous influence on the pricing of currencies.
Gross Domestic Product or GDP - regardless of the currency, this number makes up one of the most important numbers traders use to trade on.
Employment Numbers - the level of employment in a country can indicate the overall strength in their respective economy, and numbers like the U.S. Non Farm Payrolls and the Unemployment Rate can move the market substantially.
Inflation Numbers - Closely watched inflation numbers like CPI and PPI show the level of inflation in a country. They typically signal the monetary policy shifts that a country's central bank is likely to take.
Trade Balance - Along with the current account data, the trade balance for a country can significantly impact the valuation of its currency.


Central Bank Intervention

Another key news item that can prompt significant forex market volatility is central bank intervention that is usually announced over major news wires.

In this case, a country's central bank will sometimes need to adjust their currency and will enter the forex market to either support or bring down the value of its currency.

[hossainabu]

i am a new in forex and i can also follow many new trader are lose money easily because they are very greed in real account when they are trade and they are not practice in demo so they are lose money easily in forex.

[hamzashakeel]

there are many mistake than a new trader done and get loss in return so avoid mistake just like lack of knowledge over cofidence and proper trading plan and money managementavid then and get good profit.

[ishvara]

The greatest and most stupid mistakes that we can make in forex is try to trade it without leaning it. This is a killer, it will make a forex currency exchange trader to get many losses in their trading.

[waqas1]

mistake forex ma karne sa hum kabi be success nahi ho sakte ha humari shoti sa mistake be hum ko bara loos da sakti ha is laye jab be trade karye market ko smj karye aur jo mistake ho jaye us ko countrol karne ki kusesh karyea

[super27]

Bohot achi info provide ki hai is thread me , mujhe kafi kuch seekhne ko mila hai aur naye traders ko bhi is se kafi help mile gi, forex trading me hum bohot se mistakes karte hain, in mistakes ko search karain aur in se seekhain.......

[andremumet]

good article,,,, I am very happy to read it and get something useful for me. thanks .. good luck all ....

[ishvara]

One very huge mistakes that many forex traders are making in this busines is actually trying to gamble with forex trading business. This is a straight killer of our accounts, we must perform analysis at all times in the forex markets.

[rizwanali]

forex ma ap kam kart ho to pa is ka bas kanmke had tajk raho agr ap is sa pasa kam caht ho to ap is ma kam resk lo or psas kamo is sa ap ko fida to kam he ho ga par ap tansn or zayda noksn sa bach jao ga

[Sara Khan]

One very huge mistakes that many forex traders are making in this busines is actually trying to gamble with forex trading business. This is a straight killer of our accounts, we must perform analysis at all times in the forex markets.

Forex has no sin or guilt on us, it is a mistake ourselves for being too ambitious benefit that can not be obtained. therefore it is fitting for us to be able to get a way to overcome or minimize the mistakes that we have done

[ashvi]

There are number of mistakes which the trader makes when they are in the trading business and the most common is that they tend to use bigger lot size when they are trading and thus end up in losing more money to the forex market.

[rotonbhuiyan]

properly there's no approach we could not necessarily drop inside Forex yet we all only have to discover ways to business and also often be on the optimistic part with the industry and also according to my own comprehend i do believe trial consideration is the better destination for a help make a static correction zines.

[sakibmiakob]

I actually normally generate a slip-up with approach will not bide time until the amount action for a bring gain plus continually like to put it off devoid of measures to pay losing. nonetheless I actually became aware this for a amateur individual, not surprisingly, Concerning never obtained a great deal practical experience.

[wabas]

mistake ka sath koi be trader forex ma success nahi ho sakta ha mistake ko forex ma countrol karne zarori ha ma be abi kafi mistake kar raha ho jis waja sa muje loos ho jayta ha but ma apni mistake ko countrol karne ka kisesh ka raha ho

[Sara Khan]

I actually normally generate a slip-up with approach will not bide time until the amount action for a bring gain plus continually like to put it off devoid of measures to pay losing. nonetheless I actually became aware this for a amateur individual, not surprisingly, Concerning never obtained a great deal practical experience.

errors that often we do can actually have minimal if we can memanejemen psychological well. given the role of the psychological management, then it is appropriate for us to continue to learn and strive to manage psychologically in order to remain able to minimize errors and also losses

[Abdul.Majeed]

I believe that the best thing to consider if you are trading and getting failures that failures are not always mistakes.The only mistakes that you produce in forex is not subsequent your plan.I believe provided that you follow your strategy you're proper if that you do not you're wrong.

[waqar6091]

hello guys about your post i think that in point one I discussed that becoming a specialist in something is the best way to master it pan make money at it well the most effective and effective way to become a specialist in the field of forex thanks for the post take care and keep trading

[fxbdtop]

In my judgment complete not experience a trading logic is a major inaccuracy. If you complete not experience a trading logic importance you will likely be trading based manage is held fall apart.Experience a trading logic wealth you experience the guidelines and objectives and how to pull off a sunny goal in her trading.

[saim ali]

agar ap forex ma mistakes karta han to ya ap ka lia bohat nuqassan da ya ap apne boaht se rakkam is ma loss kar sakta han. is lia ap ko chahya ka jatna ho saka apne mistakes ko reduced kara.

[keroso1]

maybe you have a good point about that my friend coz the froex market can be affected by the sins that you have maked so for me i think that we all have to be sure about that point too

[perubahan_kita]

Traders very often use the method or system that can never work.

Here are some examples:

day trading

Are popular but you will NEVER win.

All short term volatility is random - so you can not get the odds in your favor and lose.

Appliance of Science

Many traders think the market is moving with scientific accuracy and cycle use Fibonacci numbers t or they do not work and never will be, but traders are still using them.

[bilal02]

mujhay yae kam kartay abhi 2 din hoay hain or mere khayal main forex main galti or gonah sirf or sirf isi sorat main ho sakta hay kay kisi ki likhi hoi bat ko copy karna or kanhen say bhi copy karna jis say galti kay chance hain dosron ki raye ko parh kar apnay zehan main jo aye wo lekho jis say koi ghalti nahi hoti or koi chance bhi nahi hain ap us swal ko har jaghan dhondo or parhanay kay bad jo zehan main aye wo lekho to koi galti nahi hoti

[amigos27]

Errors in acting must have landed on all traders, just how the merchant does not make it to her repeatedly. because if it is not too often we get the rule out most or even all of us out without remaining investments.

[crestex1122]

in forex trading a little mistake kill your trading account so avouid mistakes and start trading after learning it well when you are able to get profit then start trading in real account andget unlimited profit inshort time.

[youngfx]

Common Forex Mistakes To Avoid
When getting started in forex market trading, there are some forex mistakes to be avoided. Given below is the list of some of the common mistakes in forex market which can be avoided. Take a look at the below information as it will also help you make profit from forex market trading.
Day Trading

Day trading in forex market is probably one of the most common forex mistakes online made by many traders. It is really very difficult, if not impossible to interpret the leading indicators. This results in a situation where it is more likely that traders will lose their investments.

These types of common forex mistakes can be avoided. All you need to understand is that little fluctuations happen all the time and it is better to forecast about future by analyzing events and knowing which market event can indicate an occurrence of spike in near future.
Constant Trading Wins

it is another misconception which leads to forex mistakes and costs highly to a forex market trader. One should clearly understand the fact that the winning moments in forex market do not present itself on a weekly or daily basis. These are few and far in between. In the mean time, to avoid these forex mistakes a trader should simply look for when these best moments are about to happen and ensure that to place a bid when it happens. Although smaller profits can certainly be earned at other times, however they will be quite nominal.
Predicting the Forex Market

This is another one of the most common mistakes in forex market made by many investors. In order to predict the forex market, too many actual factors need to be taken into consideration. The safe approach is to simply keep an eye on when these positive market fluctuations are starting in the forex market and jump on for the ride to make profit. The important thing to do here is exit the trades before it starts losing momentum and you are in the position to trade the earned pips in for cash.
Forex Trading Is Easy

Another often done, one of the common forex mistakes. Many people think that trading forex is an easy business. However, the reality is that it requires proper learning to process to know each and everything about how to trade in forex market. Because trades think it is easy, they often jump in before they are actually ready and this results in loosing lot of money unnecessarily. To avoid these kinds of forex mistakes, it is important to practice longer and ensure that your system works on a continued basis before real money gets involved.
Decision based on Emotions

No doubt, trading in a forex market provides great opportunities to make some extra money. However, to be successful in forex trading, it requires discipline and proper learning to know how to trade forex. There is absolutely no role of emotion in it. Therefore it is important to watch over those emotions which are often so easily swayed. Avoid these common mistakes in forex market by controlling your emotions and learn proper forex trading with practice and hard work so that it turns out to be profitable for you.

---------- Post added at 04:53 PM ---------- Previous post was at 04:51 PM ----------

Can You Predict The Forex Market?
This topic presents the experts view on the question’ can you predict the forex market and the ways to predict the forex market, if any. Well, like any other form of trading, the forex market trading, the investors are always in search of finding ways to predict the forex market trends such as the dips, bubbles and so on. We can say that the massive technological developments and automated forex trading tools can help in predicting the forex market to an extant.

Can forex market be predicted? The major players of forex market would like to say yes it is. However, the reality is that there are very few chances where one can predict the future market. There are no such tools and mechanism which has a constant and consistent record of predicting, and acting to, the major currency markets. The expert forex market traders who invested in the markets during the economic turbulence of the last decade have had opportunities to demonstrate their knowledge and prediction skills, and very few have been able to on any impressive level. Sure, there have been ups and downs, but very few people have stuck to a clear constant upwards trajectory over a very long-term period.

You must be wondering what all this mean to a simple forex trader. Well, it means that market prediction is not something that should eat up a great deal of your time. The forex market trading forums are ripe with self proclaimed experts forex traders bursting at the seams to share their next big prediction. There is nothing wrong in spending time on it, but when it becomes your investment information, something is going severely wrong. The best thing is to give enough time to allow predictions due however never let them shape your long term investment forex trading strategy.

The question still remains the same can you predict the forex market? Well, we can say that an effective strategy which can be employed to predict future trends in the forex market is to look at potential predictions and completely short-term, isolated events. Other thing which is equally important is to find out why the markets change, how they change, and how and when they will recover. This is one-way to predict the forex market. A trader with practice and experience in forex market gets a great deal of knowledge about the future trends and he can predict these to an extent.

[youngfx]

5 Forex Day Trading Mistakes To Avoid

the high leverage game of retail forex day trading, there are certain practices that, if used regularly, are likely to lose a trader all he has. There are five common mistakes that day traders often make in an attempt to ramp up returns, but that end up resulting in lower returns. These five potentially devastating mistakes can be avoided with knowledge, discipline and an alternative approach. (For more strategies that you can use, check out Strategies For Part-Time Forex Traders.) TUTORIAL: Forex

Averaging Down
Traders often stumble across averaging down. It is not something they intended to do when they began trading, but most traders have ended up doing it. There are several problems with averaging down.

The main problem is that a losing position is being held - not only potentially sacrificing money, but also time. This time and money could be placed in something else that is proving itself to be a better position.

Also, for capital that is lost, a larger return is needed on remaining capital to get it back. If a trader loses 50% of her capital, it will take a 100% return to bring her back to the original capital level. Losing large chunks of money on single trades or on single days of trading can cripple capital growth for long periods of time.

While it may work a few times, averaging down will inevitably lead to a large loss or margin call, as a trend can sustain itself longer than a trader can stay liquid - especially if more capital is being added as the position moves further out of the money.

Day traders are especially sensitive to these issues. The short time frame for trades means opportunities must be capitalized on when they occur and bad trades must be exited quickly. (To learn more on averaging down, check out Buying Stocks When The Price Goes Down: Big Mistake?)

Pre-Positioning for News
Traders know the news events that will move the market, yet the direction is not known in advance. A trader may even be fairly confident what a news announcement may be - for instance that the Federal Reserve will or will not raise interest rates - but even so cannot predict how the market will react to this expected news. Often there are additional statements, figures or forward looking indications provided by news announcements that can make movements extremely illogical.

There is also the simple fact that as volatility surges and all sorts of orders hit the market, stops are triggered on both sides of the market. This often results in whip-saw like action before a trend emerges (if one emerges in the near term at all).

For all these reasons, taking a position before a news announcement can seriously jeopardize a trader's chances of success. There is no easy money here; those who believe there is may face larger than usual losses.

Trading Right after News
A news headline hits the markets and then the market starts to move aggressively. It seems like easy money to hop on board and grab some pips. If this is done in a non-regimented and untested way without a solid trading plan behind it, it can be just as devastating as placing a gamble before the news comes out.

News announcements often cause whipsaw-like action because of a lack of liquidity and hair-pin turns in the market assessment of the report. Even a trade that is in the money can turn quickly, bringing large losses as large swings occur back and forth. Stops during these times are dependent on liquidity that may not be there, which means losses could potentially be much more than calculated.

Day traders should wait for volatility to subside and for a definitive trend to develop after news announcements. By doing so there is likely to be fewer liquidity concerns, risk can be managed more effectively and a more stable price direction is likely. (For more on trading with news releases, read How To Trade Forex On News Releases.)

Risking More Than 1% of Capital
Excessive risk does not equal excessive returns. Almost all traders who risk large amounts of capital on single trades will eventually lose in the long run. A common rule is that a trader should risk (in terms of the difference between entry and stop price) no more than 1% of capital on any single trade. Professional traders will often risk far less than 1% of capital.

Day trading also deserves some extra attention in this area. A daily risk maximum should also be implemented. This daily risk maximum can be 1% (or less) of capital, or equivalent to the average daily profit over a 30 day period. For example, a trader with a $50,000 account (leverage not included) could lose a maximum of $500 per day. Alternatively, this number could be altered so it is more in line with the average daily gain - if a trader makes $100 on positive days, she keeps losing days close to $100 or less.

The purpose of this method is to make sure no single trade or single day of trading hurts the traders account significantly. By adopting a risk maximum that is equivalent to the average daily gain over a 30 day period, the trader knows that he will not lose more in a single trade/day than he can make back on another. (To understand the risks involved in the forex market, see Forex Leverage: A Double-Edged Sword.)

Unrealistic Expectations
Unrealistic expectations come from many sources, but often result in all of the above problems. Our own trading expectations are often imposed on the market, leaving us expecting it to act according our desires and trade direction. The market doesn't care what you want. Traders must accept that the market can be illogical. It can be choppy, volatile and trending all in short, medium and long-term cycles. Isolating each move and profiting from it is not possible, and believing so will result in frustration and errors in judgment.

The best way to avoid unrealistic expectations is formulate a trading plan and then trade it. If it yields steady results, then don't change it - with forex leverage, even a small gain can become large. Accept this as what the market gives you. As capital grows over time, the position size can be increased to bring in higher dollar returns. Also, new strategies can be implemented and tested with minimal capital at first. Then, if positive results are seen, more capital can be put into the strategy.

Intra-day, a trader must also accept what the market provides at different parts of the day. Near the open, the markets are more volatile. Specific strategies can be used during the market open that may not work later in the day. As the day progresses, it may become quieter and a different strategy can be used. Towards the close, there may be a pickup in action and yet another strategy can be used. Accept what is given at each point in the day and don't expect more from a system than what it is providing.

Bottom Line
Traders get trapped in five common forex day trading mistakes. These must be avoided at all costs by developing an alternative approach. For averaging down, traders must not add to positions but rather exit losers quickly with a pre-planned exit strategy. Traders should sit back and watch news announcements until the volatility has subsided. Risk must be kept in check, with no single trade or day losing more than what can be easily made back on another. Expectations must be managed, and what the market gives must be accepted. By understanding the pitfalls and how to avoid to them, traders are more likely to find success in trading.

[youngfx]

10 Ways To Avoid Losing Money In Forex

The global forex market boasts over $4 trillion in average daily trading volume, making it the largest financial market in the world. Forex's popularity entices traders of all levels, from greenhorns just learning about the financial markets to well-seasoned professionals. Because it is so easy to trade forex - with round-the-clock sessions, access to significant leverage and relatively low costs - it is also very easy to lose money trading forex. This article will take a look at 10 ways that traders can avoid losing money in the competitive forex market. (There are no specifically forex focused programs, but there are still some advanced education alternatives for forex traders. Check out 5 Forex Designations.)

TUTORIAL: Trader's Guide To Forex

1. Do Your Homework – Learn Before You Burn
Just because forex is easy to get into doesn't mean that due diligence can be avoided. Learning about forex is integral to a trader's success in the forex markets. While the majority of learning comes from live trading and experience, a trader should learn everything possible about the forex markets, including the geopolitical and economic factors that affect a trader's preferred currencies. Homework is an ongoing effort as traders need to be prepared to adapt to changing market conditions, regulations and world events. Part of this research process involves developing a trading plan. (For more, check out 10 Steps To Building A Winning Trading Plan.)

2. Take the Time to Find a Reputable Broker
The forex industry has much less oversight than other markets, so it is possible to end up doing business with a less-than-reputable forex broker. Due to concerns about the safety of deposits and the overall integrity of a broker, forex traders should only open an account with a firm that is a member of the National Futures Association (NFA) and that is registered with the U.S. Commodity Futures Trading Commission (CFTC) as a futures commission merchant. Each country outside of the United States has its own regulatory body with which legitimate forex brokers should be registered.

Traders should also research each broker's account offerings, including leverage amounts, commissions and spreads, initial deposits, and account funding and withdrawal policies. A helpful customer service representative should have all this information and be able to answer any questions regarding the firm's services and policies. (Discover the best ways to find a broker who will help you succeed in the forex market. Refer to 5 Tips For Selecting A Forex Broker.)

3. Use a Practice Account
Nearly all trading platforms come with a practice account, sometimes called a simulated account or demo account. These accounts allow traders to place hypothetical trades without a funded account. Perhaps the most important benefit of a practice account is that it allows a trader to become adept at order entry techniques.

Few things are as damaging to a trading account (and a trader's confidence) as pushing the wrong button when opening or exiting a position. It is not uncommon, for example, for a new trader to accidentally add to a losing position instead of closing the trade. Multiple errors in order entry can lead to large, unprotected losing trades. Aside from the devastating financial implications, this situation is incredibly stressful. Practice makes perfect: experiment with order entries before placing real money on the line.

4. Keep Charts Clean
Once a forex trader has opened an account, it may be tempting to take advantage of all the technical analysis tools offered by the trading platform. While many of these indicators are well-suited to the forex markets, it is important to remember to keep analysis techniques to a minimum in order for them to be effective. Using the same types of indicators – such as two volatility indicators or two oscillators, for example – can become redundant and can even give opposing signals. This should be avoided.

Any analysis technique that is not regularly used to enhance trading performance should be removed from the chart. In addition to the tools that are applied to the chart, the overall look of the workspace should be considered. The chosen colors, fonts and types of price bars (line, candle bar, range bar, etc) should create an easy-to-read and interpret chart, allowing the trader to more effectively respond to changing market conditions.

5. Protect Your Trading Account
While there is much focus on making money in forex trading, it is important to learn how to avoid losing money. Proper money management techniques are an integral part of successful trading. Many veteran traders would agree that one can enter a position at any price and still make money – it's how one gets out of the trade that matters.

Part of this is knowing when to accept your losses and move on. Always using a protective stop loss is an effective way to make sure that losses remain reasonable. Traders can also consider using a maximum daily loss amount beyond which all positions would be closed and no new trades initiated until the next trading session. While traders should have plans to limit losses, it is equally essential to protect profits. Money management techniques, such as utilizing trailing stops, can help preserve winnings while still giving a trade room to grow.

6. Start Small When Going Live
Once a trader has done his or her homework, spent time with a practice account and has a trading plan in place, it may be time to go live – that is, start trading with real money at stake. No amount of practice trading can exactly simulate real trading, and as such it is vital to start small when going live.

Factors like emotions and slippage cannot be fully understood and accounted for until trading live. Additionally, a trading plan that performed like champ in backtesting results or practice trading could, in reality, fail miserably when applied to a live market. By starting small, a trader can evaluate his or her trading plan and emotions, and gain more practice in executing precise order entries – without risking the entire trading account in the process.

7. Use Reasonable Leverage
Forex trading is unique in the amount of leverage that is afforded to its participants. One of the reasons forex is so attractive is that traders have the opportunity to make potentially large profits with a very small investment – sometimes as little as $50. Properly used, leverage does provide potential for growth; however, leverage can just as easily amplify losses. A trader can control the amount of leverage used by basing position size on the account balance. For example, if a trader has $10,000 in a forex account, a $100,000 position (one standard lot) would utilize 10:1 leverage. While the trader could open a much larger position if he or she were to maximize leverage, a smaller position will limit risk. (For additional reading, see Adding Leverage To Your Forex Trading.)

8. Keep Good Records
A trading journal is an effective way to learn from both losses and successes in forex trading. Keeping a record of trading activity containing dates, instruments, profits, losses, and, perhaps most importantly, the trader's own performance and emotions can be incredibly beneficial to growing as a successful trader. When periodically reviewed, a trading journal provides important feedback that makes learning possible. Einstein once said that "insanity is doing the same thing over and over and expecting different results." Without a trading journal and good record keeping, traders are likely to continue making the same mistakes, minimizing their chances of become profitable and successful traders.

9. Understand Tax Implications and Treatment
It is important to understand the tax implications and treatment of forex trading activity in order to be prepared at tax time. Consulting with a qualified accountant or tax specialist can help avoid any surprises at tax time, and can help individuals take advantage of various tax laws, such as the marked-to-market accounting. Since tax laws change regularly, it is prudent to develop a relationship with a trusted and reliable professional that can guide and manage all tax-related matters.

10. Treat Trading As a Business
It is essential to treat forex trading as a business, and to remember that individual wins and losses don't matter in the short run; it is how the trading business performs over time that is important. As such, traders should try to avoid becoming overly emotional with either wins or losses, and treat each as just another day at the office. As with any business, forex trading incurs expenses, losses, taxes, risk and uncertainty. Also, just as small businesses rarely become successful overnight, neither do most forex traders. Planning, setting realistic goals, staying organized and learning from both successes and failures will help ensure a long, successful career as a forex trader.

The Bottom Line
The worldwide forex market is attractive to many traders because of its low account requirements, round-the-clock trading and access to high amounts of leverage. When approached as a business, forex trading can be profitable and rewarding. In summary, traders can avoid losing money in forex by:

Being well-prepared
Having the patience and discipline to study and research
Applying sound money management techniques
Approaching trading activity as a business

[youngfx]

How To Start Trading: Introduction

Filed Under � Day Trading
Trading is an active style of participating in the financial markets that seeks to outperform traditional buy-and-hold investing. Rather than seeking profits from long-term uptrends in the markets, traders look for short-term price moves to profit in both rising and falling markets.

Approaching trading as a business is vital to success because trading is a business. A successful trading business requires a strategic plan that covers your actual business and your actual trading. Your business plan will include things like short and long-term goals, the amount of capital you have available for the business and how you will set up your office. You trading plan includes the details of trading: what you will trade and how you will trade it. Your plan should be so objective and concise that you could hand it over to another trader and they would be able to execute it exactly.

It’s important to understand that your trading plan is not simply a set of rules that you think will work or a list of set-ups that you are somehow fond of, of someone else’s plan. A good trading plan is one that you have researched, tested on historical data, tested in a live market and evaluate at regular intervals.

Successful trading involves more than reading a few articles or books; you should plan on devoting a substantial amount of time and effort before ever placing a trade in a live market. All this research and time may sound daunting, but it is realistic and integral to becoming a profitable, independent trader.

Here, we provide an introduction to help you get started trading.


will post the rest on how to start trading tomorrow watch out for more from me

---------- Post added at 04:59 PM ---------- Previous post was at 04:58 PM ----------

MISTAKES THAT FOREX TRADERS MAKE
1. Using Too Much Leverage
One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.
2. Over Trading
Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.
3. Picking Tops and Bottoms
Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.
4. Buying Systems on the Internet
In a desperate search for that 100 percent accurate forex trading systems, traders search tirelessly on the internet trying to find that perfect system. The problem is that it simply doesn't exist. Most of the time, it's just a good way to part with your money and think that it's for a good reason

---------- Post added at 05:00 PM ---------- Previous post was at 04:59 PM ----------

Common Forex Mistakes You Should Avoid



Another 8 forex mistakes you need to avoid:

Mistake #1 – Pursuing impossible returns

Most beginners are captivated with trading for a living on tiny accounts because of leverage in Forex, in which they can trade up to 100 or even 200 times the amount of their money.
However, in reality no one can consistently double up his/her account in a short span of time. Doubling your account in a month is too risky. Sooner or later you will end up losing all your money at once.
The best thing to do is to learn how to trade and protect your money. Pursuing impossible returns leads to failure.

Mistake #2 – Trading Without A Strategy
Trading without a strategy in Forex is like a ticking bomb waiting to explode. It is a surefire way to lose a lot of money. Forex traders must establish rational trading strategies before plunging in, these can be developed through learning and experience. You really need to be rational in your decision-making. It comes from technical studies of charts and through plotting out entry and exit points.
Once you gain an understanding of the market and the forces that play behind it, it will become much better to develop excellent trading strategies to profit from.

Mistake #3 – Using Too Much Margin When Trading
Margin is the use of borrowed money to purchase securities. Many traders make a mistake by seeing margins as free money. Using margins may help traders gain bigger profits. However, it is not advisable especially to beginners because it can lead to heavy losses. Margins should only be used in investments if the trader has the ability and the time to carefully watch over his trades.

Mistake #4 – Pursuing A Magical System
Most people prefer to spend their precious time and money looking for a magical system that would produce money all the time instead of learning the ins-and-outs of Forex trading. Magical systems do not really exist. Many professionals earn money 60-70% of the time since their average win is much bigger than their average loss. This is the reason they end up in making good amounts of money at the end of the year.
Sadly, most beginners fall on the false hopes of some systems that claim to let them earn money every time and double it within a month. It is always best to study the Forex market and develop your own system on it rather than relying on the empty promises of magical systems.

Mistake #5 – Assuming Instant Profits When Trading Currency At Low Exchange Rates
Buying and selling currency when the exchange rate is low does not automatically result in profits. Making trades based solely on the exchange rate should be avoided. There is a reason why the exchange rate is low. Thus, you should do ample research and examine carefully all the factors that are affecting the dropping rate.

Mistake #6– Thinking That You Are Above Everyone Else
There are people who believe that they can be successful in Forex trading because they are better than those who have failed. They think that they can make good money in lesser effort. In fact, many among beginners that lose money in Forex, are well-educated and smart people.
Believing in your skills is good to start with. However, ignoring the difficulty of Forex and assuming that you are better than everyone else is in the same sense as digging your own grave.

Mistake #7– Being Impatient
Beginners often make a mistake thinking that the more they trade the more they will earn. It is not basically the case. You will earn better by doing the right decision of waiting for the high odds trades. There are successful traders who make 200% or more but trades only at around 10 times a year.
If you can’t hold on being inactive for long periods, then you can kiss goodbye on your dreams of becoming successful in Forex trading. If you want to make money in Forex trading, you need to have patience.

Mistake #8 – Blaming Others By Your Own Mistakes
Most people blame their money losses to their broker, their system and everybody they can think of. There is really no one to blame for but yourself. Good Forex traders are those who can acknowledge their own mistakes and are able to learn from them.

[youngfx]

A Brief Guide to Avoid Common Forex Mistakes

Trading Strategy
This is a guest post by Justin Toladro

When getting involved in foreign exchange (forex) trading, it is important to watch out for common mistakes that even experienced investors find themselves making. Given that forex trading is one of the most unpredictable, volatile activities currently out there for investors, it can be troublesome finding a sure-fire strategy without incurring painful losses. In order to minimize your losses while still maintaining an acceptable level of earnings, consider the following guide to help you achieve success in forex trading.

For one, relying too heavily upon the news can be detrimental to anyone involved in the markets, whether it be forex trading, commodities, day trading, etc. Of course, the whole purpose of decisions made by each country’s central banks is to sooth and stabilize their own respective markets, and the expectations of the public can be a powerful tool in determining the direction of their national economies. However, when you’re in forex trading, you must remember to take a step back and wait for trading to calm down. While this is considered a more conservative investment measure, it can prevent you from suffering heavy losses in the event of a market turnaround.

For instance, look to the Euro. The European Union has been doing what it can to bail out its troubled members- Greece (on its second bailout), Ireland, Portugal- but whenever one problem seems to be solved, another one appears. Despite austerity measures and the EU central bank’s stabilizing actions, more issues, such as France’s credit rating or Spain’s financial solvency- keep throwing the Euro forex trading markets into chaos. This currency alone serves as a solemn reminder of the extreme volatility of forex trading.

Another common problem seen with forex traders is the old “all your eggs in one basket.” Diversity is key to succeeding in investing, no matter where you put your money, so investing more than the average conservative amount, say more than 1% of your capital, into any one currency can spell disaster for your portfolio. If you’re looking for high risk investments with guaranteed returns, then forex trading is not for you. Knowing this before getting heavily involved in these investment practices will prevent you from setting unrealistic goals and getting desperate in the face of disappointment (which can cause traders to continually risk more to regain their losses).

With the unpredictable nature of forex trading, flexibility is a must and remember: if there was one set way to bring in huge returns, then everyone would be doing it and they would all be wealthy. Because this clearly isn’t the case, becoming a “go with the flow” forex trader will help you adjust to the extreme fluctuations in the market and find success through knowledge accumulation instead of trends and unreliable predictions.

This article was written by Justin Toladro from Life Insurance Finder. He blogs about the different types of life insurance policies in Australia, helping individuals and families find affordable life insurance.

---------- Post added at 05:04 PM ---------- Previous post was at 05:01 PM ----------

How to Avoid the Top 10 Most Common Forex Mistakes

The most common mistakes made in forex options are the result of the trader not keeping to his budget, not following his strategy and instead of making well researched decisions begins to get emotionally involved in his decisions.

For example a trader who has some success suddenly believes that he can predict forex prices in advance. This is taking fundamental analysis to the extreme. Stick to the economic calendar and study the data that will be announced. Watch interest rates, unemployment numbers and other important economic data and make informed decisions, not predictions.

Relying on science alone won’t make you money. There are hundreds of vendors selling systems based on Gann or Fibonacci claiming that their systems are accurate and foolproof. Don’t believe them. Use Gann and Fibonacci as a part of your technical analysis but not as a scientific method to predict the market.

Many traders believe that using every indicator that exists they have a better chance of making money. By doing this they are over complicating the elements that lead to a signal. Keeping it simple works better and produces more accurate signals. Use 2 or 3 indicators no more.

How many effective forex traders use lagging indicators such as moving averages as leading indicators and wonder why they are losing money. Make sure you know the uses of both lagging and leading indicators.

Losing traders make the mistake of thinking that day trading movements indicate trends. This is not true. Short term price movements are random and trading short term movements as a long term strategy will lose you money.

Don’t be lulled into thinking that the more you put in the more you will take out. Trading is about timing and working smart, not working hard. Learn the forex trade, get a good mentor and trade smart.

Don’t trade a news story after it has been announced. Once announced it is an old story and would have been already discounted in the price.

Many traders fail to read the small print which says ‘simulated in hindsight’ when they buy trading systems on the internet. Don’t touch these systems as the small print means that the track record was manufactured after the events.

Another mistake traders make is to over leverage. Using high leverage such as 400:1 means that you have to take less risk per trade. Lower your leverage to 100:1 and take more risk per trade.

Using stop loss and trailing stops is prudent. However having a stop loss too close to your traded price is risky and you will be taken out by market noise. The same goes for trailing stops. Don’t run them too quickly otherwise you will not make a profit.

[kanai.lal1]

I would like to make a trader than type one day. I think the best way to negotiate a deal than the shooter, shooter. We believe that it is the best price for the options, all the, what do you think, that he could talk about the setting. If he has dominated my stock price strategies and concepts would have no doubt what you are looking for on the market. "Forex: trading is not easy, as everyone thinks, first learning and learning, discipline, and the difficulties faced by traders in a hurry." :yahoo:@>-

[cicgojra]

Here are Ten forex related mistakes.
1-trading with indicators and fancy tools 2/ not fully understanding and implementing risk /reward.
3/ not understanding position sizing 4/gambling instead of trading 5/ not having forex trading plan 6/ not have a patience 7/ allowing emotions to could judgement /giving into emotions 8/ not trading higher time frames 9/ over-trding 10/ not taking profit
and now here some sin's invovle
1- reliance on the experts 2/ setting the wrong goal and trading target 3- forgetting to practice, patience
4/ dont paying proper attention to drawdown 5- falling is love with a trade 6/ dont checking your emotions

[faridshawky]

There are no errors on the Forex but there say the work helps to earn money and forex is work to earn money

[faisalishaq174]

According to me don't have a trading system may be a major mistake and if you are doing not have a trading system that means you'll possible be trading based mostly approach is alleged collapse . have a trading system suggests that you have got the rules and objectives and the way to attain a

[faizah]

one of the typical currency dealing errors are many people think that currency dealing trading is an simple business. However, the truth is that it needs appropriate studying to procedure to know each and everything about how to business in foreign exchange industry. Because deals think it is simple, they often leap in before they are actually prepared and this outcomes in losing lot of cash needlessly.

[dimaz99]

concur, do not look many from the prosperous trading forex newbies as if they module make themselves as apt to get a huge loss if the pursuit of wealthiness from trading, and the motion of riches in forex trading as advantageously be the large slip new traders

[youngfx]

The No 1 Forex Trading Mistake

Your biggest enemy in foreign exchange trading is emotion and the main reason for drawing up a set of trading rules is to take emotion out of the trading equation and to ensure that you are opening and closing trades based purely on what the numbers are telling you.

Another major problem for many traders is greed. Now none of us like to think of ourselves as being greedy, but this is one of the seven deadly sins which is always lurking close at hand and which has a way of creeping up on us when we're not looking. On many occasions successful traders find themselves with a winning run of trades, earning perhaps $500 or $1,000 a day, and think to themselves that, if they can earn this sort of money day in and day out, surely it must be possible to earn $750 or $1,500 a day. Well, there's only one way to find out and that's to push themselves a little by relaxing their trading rules to open up a few more trades - just this once.

Now they may well be lucky and their earnings might just go up over the next few days, but will it last? Invariably the answer is no and time after time traders in exactly this position find that their short term gains are wiped out and that they rapidly move from being one of the few successful traders to being one of the 80% to 90% of traders who regularly lose money.

It is very easy to allow greed to tempt you away from your own trading rules just this once and sometimes this strategy will prove to be successful. However, you're now beginning to trade on emotion and, like most things in lifeFree Reprint Articles, once you've done it once it's much easier to do it the second or third time.

Your trading rules are your best friend when it comes to Forex trading and you break them at your peril.

---------- Post added at 09:49 AM ---------- Previous post was at 09:48 AM ----------

Day Trading Mistakes - Avoid These 7 Fatal Deadly Sins!



Forex trading is not really an easy and novice-friendly investment opportunity. You are bound to stumble along the way, and commit some day trading mistakes in the beginning. This is normal. It's how things go. You learn from your mistakes.

At some point, you will have enough knowledge and experience to succeed in forex day trading, but beware... some mistakes can be very costly and you can lose all your hard earned money.

What you need to do to avoid this situation?

The best thing you can do to avoid this is investing in your forex education. Why not learning from others mistakes?

Experienced traders spent years developing systems and proven methods, and all this knowledge is waiting for you on the Internet.

Just read and watch some forex videos (on YouTube for example) before you start.

Another thing you should do is never trade in a real account... Unless you are profitable with your demo account several months in a raw.

In fact, you could even stay one year trading with your demo account before starting for real. Don't be afraid to practice with fake money. If you lose, it's not a big deal...

Many beginners in forex will do on of these 7 fatal day trading mistakes:

1. Impulsive decisions

2. Ignoring forex news

3. Not understanding the charts

4. Not using stop loss

5. They don't invest in proper material

6. No mentor (or mastermind group) in the beginning

7. Not understanding compounding

Remember, to minimize the effects of the consequences of these mistakes you might inadvertently commit, observe compounding as your game plan.

When reinvest your profits (that's what smart traders do), you'll considerably reduce your risk because even if you lose money, your initial investment will be safe.

I really hope you won't fall in any of these day trading mistakes.

---------- Post added at 09:58 AM ---------- Previous post was at 09:49 AM ----------

Trading the Foreign Exchange Markets (Forex or FX) can certainly produce a very fashionable life style leading to self employment and financial independences. What I am going to focus on in this article are three essentials Forex trading tips every professional trader either learns the easy way or the hard way. To be honest with you, most of them have learned the hard way. Learning to trade the currency is not like learning to hit a 100 MPH fastball that only one in a million can accomplish. In fact, it is quite easy to learn to trade Forex profitably; it is the other aspects of the profession that sink most investors, which I am going to help you avoid.

IT IS NOT A GAME

I am sure you are wondering what I could possibly mean by that. If you have been doing this long enough you know that there are certain times they are just about depositing funds in your bank account. An example of this would be recently the strong correlation the US dollar has had to the Gold and Oil markets. There was a period of time all you had to do was determine which way the dollar was trending and you knew Gold and Oil where going in opposite directions.

Even trained monkeys where making huge profits when this was happening, but guess what those opportunities are not there all the time. This is the first tip, DO NOT CHANCE THE ACTION! Let it come to you, it doesn't come to you all the time. What happens is people start making so much money they just can't wait to jump back in and do it all over again. So, at any little sign there is a buying opportunity they jump in just to get that adrenaline flowing again. Which is where the loses start occurring. You really must be patient and stick to what ever trading method you are utilizing and wait for the GREAT trades to come along and not the AVERAGE trades which you are getting into just to make things interesting.

MONEY MANAGEMENT

I have news for you, if you have a $1,000 in you account you are not going to make $1,000 a day off that money. You might do it one time, but then you will lose the next ten times chasing that one winning great trade you made. Each professional trader has a specific percentage of their funds they will risk on any one trade which is just a small portion of their overall balance. The biggest mistake the novice investor makes is they attempt to increase their available funds to trade with to quickly. It is difficult to stress patients and percentages enough, but then again even the professionals usually learn this on their own.

RISK MANAGEMENT

The corner stone to every professional trader's portfolio is managing risk on a daily basis. Some do it by day trading, thus entering and exiting the market daily eliminating any over night downfalls in their trade. Others manage risk through the use of Stop Losses. This also is another major mistake the novice trader makes by setting their stop loses to low verse the take profits.

Managing your stop loses verse your take profits is a real art form that not only takes knowledge, but is also developed through experience. If you set your SL to tight, even the slightest turn in the market and you're out, never giving yourself a chance to make the huge profit we are all hunting. Doing this you would have managed your risk superbly and your profits miserable. Not a real good combination for long term prosperity. You really need to pick out a percentage somewhere between 20% and 35% of your expected profits to use as your stop lose. Following this method you only need to be correct somewhere between 1/3 to 1/5 to break even. Since somebody throwing darts at a board is automatically correct 50% of the time when selecting a currency your chances of becoming a profitable trader are greatly enhanced. The next and only final step is to insure the accuracy of your profits estimates. When your actual profits are finally correlating with your initial estimate your well on you way to a new career.

By following the above Forex trading tips you will finally realize what is all about. It is not about the game, it is not about the excitement, it is not about the adrenaline, it is about only one thing, the MONEY. Making the money as opposed to losing the money is the only thing that matters. The first step is to cut back on the number of questionable trades you make to NONE. Only trade when you are sure. Next, don't invest too much into any one trade. And finally, don't let any one trade of series of trades wipe you out. If you follow these three simple principles that are easy to understand but difficult to execute you will be rolling in the dough just like the big time traders.

[lalmiah00]

properly there's no approach we could not necessarily drop inside Forex yet we all only have to discover ways to business and also often be on the optimistic part with the industry and also according to my own comprehend i do believe trial consideration is the better destination for a help make a static correction zines....thanks

[youngfx]

1-trading with indicators and fancy tools 2/ not fully understanding and implementing risk /reward.
3/ not understanding position sizing 4/gambling instead of trading 5/ not having forex trading plan 6/ not have a patience 7/ allowing emotions to could judgement /giving into emotions 8/ not trading higher time frames 9/ over-trding 10/ not taking profit
and now here some sin's invovle
1- reliance on the experts 2/ setting the wrong goal and trading target 3- forgetting to practice, patience
4/ dont paying proper attention to drawdown 5- falling is love with a trade 6/ dont checking your emotions

---------- Post added at 03:51 PM ---------- Previous post was at 03:50 PM ----------

1-trading with indicators and fancy tools 2/ not fully understanding and implementing risk /reward.
3/ not understanding position sizing 4/gambling instead of trading 5/ not having forex trading plan 6/ not have a patience 7/ allowing emotions to could judgement /giving into emotions 8/ not trading higher time frames 9/ over-trding 10/ not taking profit
and now here some sin's invovle
1- reliance on the experts 2/ setting the wrong goal and trading target 3- forgetting to practice, patience
4/ dont paying proper attention to drawdown 5- falling is love with a trade 6/ dont checking your emotions

---------- Post added at 03:59 PM ---------- Previous post was at 03:51 PM ----------

20 Simple Ways To Improve Your Forex Trading

In today’s lesson, I am going to outline 20 things that I personally do in my own trading and that you can start doing to improve yours. Please read today’s article closely because I spent a long time writing it for you and it’s full of solid tips and insight that can make a big difference in your trading. As always, please leave a comment after reading today’s lesson and let me know what you thought about it or if you learned anything new. Now, let’s get to it:
1) Have real goals and understand what you’re committing to

Having reasonable short-term goals that you can realistically achieve within a short period of time is how you achieve longer-term goals. Unfortunately, most traders become fixated on the long-term goal of “becoming a professional trader” as soon as they start trading with real money. The main problem with this is that just having a big long-term goal with no realistic plan to achieve it, is essentially worthless.

As a trader, a “reasonable short-term goal” might be that you stick to your trading plan for one month. Then, if you achieve that short-term goal you can give yourself a reward at month’s end, whatever you decide that might be. Just be sure you define short-term trading goals that you can realistically achieve, if you want to achieve your big long-term goal of becoming a very successful Forex trader. If you are seriously going to commit to become a full-time trader, you’re going to have devise a plan to get you to that point, just wanting to be a full-time trader is not a plan or strategy to make it happen.
2) Simplify your trading approach & your thoughts

One of the easiest ways to improve your trading that will also work to improve your overall mindset both when you’re trading and when you’re not is to simplify your trading approach. My key philosophy of trading is to ‘keep it simple stupid’. After years of trial and error in my early trading days, I finally realized that I was just making the entire process of analyzing and trading the markets FAR more complicated than it needed to be. When you use a simple trading method like price action, it eliminates most of the confusion, doubt, and frustration that traders experience as a result of being unsure of how to trade their system or strategy. Trading is not technically difficult, it’s emotionally and psychologically difficult; therefore it just doesn’t make sense to use a confusing or complicated trading strategy or system which will make both the technical and psychological aspects of trading more difficult than they need to be or are.
3) Develop your skills and plan before you trade

I am always amazed at how many emails I get from traders who basically tell me they are new to Forex trading and they want to open a live account. For some reason, people seem to think they need very little experience or preparation to make money in the markets. In reality, this couldn’t be further from the truth. Trading a real account is not something you just dive into with no plan or experience behind you.

I personally recommend that all traders have mastered an effective trading method like price action trading, developed a solid trading plan from that trading method, have a trading journal, and trade their plan on a demo account whilst recording their trades in their trading journal for at least 2 or 3 months before even thinking about trading a live account. The markets will chew up and spit out your hard-earned money faster than you can imagine (and you know that already if you’ve been trading for a while), so the more prepared and experienced you are before you start trading live, the better off you’ll be in the long-run.
4) Don’t fall off the wagon

It seems to be in our nature to get really excited and motivated about things only to see those positive feelings fizzle at the first signs of adversity or obstacle. How often have you or someone you know made a New Year’s resolution to get into shape and start eating better, only to find yourself back in the same old negative habits by the middle of February?

You’re not alone here; it’s human nature to be this way. However, we are equipped with very powerful brains that give us the power to overcome our human nature and evolution to the point where we can rise up above our peers and create positive habits rather than the negative ones that dominant many people’s lives. I can promise you that trading does not reward lazy people or people who cannot manifest the motivation to stay disciplined and follow a plan for a long period of time. It’s not difficult to get motivated about trading and create a good forex trading plan, what is difficult is digging deep within yourself and sticking to that plan and following your edge with ice cold discipline week in and week out.

Most traders fall of the wagon; they end up trading when there’s no trade, forgetting about their trading plan and gambling their money away in the markets. Don’t be one of the sheep; be the leader, be different, do the things you know you should do even when you don’t want to, persist and be disciplined even in the face of constant temptation, these are the things you must do to be a profitable trader.

[youngfx]

5) Stop trading if you’re frustrated or confused

If you’re frustrated with your trading results or confused about your trading strategy, it’s best to simply take some time off from trading. This simple exercise can work wonders on your mindset and will restore passion and motivation into your trading routine. Clearing the markets from your mind for a while is sometimes the best thing you can do to improve your trading. Especially, if you just suffered through a series of emotion-fueled losing trades, you need to take some time off from real money trading to regroup and collect yourself.

Even if you are just feeling a little frazzled one day in the midst of a successful run in the markets, it’s still better to just stop for the day and come back the next day after a good night’s rest. It’s very easy to get caught up over-analyzing and falling victim to the temptations of the market, without even noticing. If you find you’ve been at your computer for an hour or two just analyzing the markets and trying to find a trade, you’re probably better off removing yourself from the markets for a while. Finding your trading edge in the market should be a relatively quick and easy task after you have mastered trading your edge. It should be readily apparent if your edge is present in the markets after just 15 or 20 minutes of browsing. So, when in doubt, walk away from the markets until the next day or however long you need to calm down.
6) Trade less than you are now, much less

I talk a lot about over-trading, and for good reason, but I won’t get into it too much in today’s lesson, except to say that most traders trade way too much. I get a lot of emails from traders asking me things like “How many trades can I expect per week”, etc; when in reality it really doesn’t matter. Traders should be far more focused on quality of trades rather than quantity of trades, as you can make a good return each month with only 1 or 2 big winners.

It’s OK if you don’t trade for a week, you need to understand that. Many traders feel like they need to be in a trade all the time or they are “missing out” on an opportunity. Well, the truth is that just because the market is sitting there and easy to access, it doesn’t mean it’s an opportunity to make money. In fact, you should think about the market as a way to both lose and make money, this will help you to avoid jumping in the markets when your edge isn’t present. There’s only an opportunity when your trading edge is present, if you trade when your edge is not present you are simply gambling. It’s a proven fact that high frequency trading is less profitable over the long-run than lower frequency trading. Traders who take a swing-trading approach where they are holding positions for 3 or 4 days or a week on average, tend to keep themselves in business as traders, whereas day traders keep the brokers in business with all the spreads and commissions they generate for them. Unfortunately, day traders and short-term scalpers often up putting themselves out of the trading business simply because they are gambling, not trading.
7) Stop thinking so much and so hard, it’s bad for you

Whereas thinking and brainstorming are generally good things in almost every other profession in the world, in trading they can actually be counter-productive. The reason being is that often it’s best to just not do anything in the markets. Whether that means not entering a trade you know isn’t quite meeting your trading plan guidelines, or not interfering with a live trade, traders do a lot of damage to their trading accounts by thinking too much about what they should do next.

Don’t get me wrong here, I’m not telling you that you don’t have to think at all to be a good trader. What I’m saying is that most traders think more than they need to, there’s a big difference. Obviously, you need to think to become a successful trader. But, once you determine exactly what your trading edge is and you know how best to trade it, there isn’t a whole lot more to think about. After you know how to trade your edge, it really just comes down to scanning the markets quickly each day to see if your edge is there and then either trading your edge or walking away. This type of approach is best implemented as an end of day trading strategy; however you can also use it on the intra-day charts.

Also, don’t over-think your trades once they are live. The “default” trade management strategy that I use is to “set and forget” my trades, then I will check in on them periodically and if there’s any obvious price action showing me that the market bias is changing against my position, I might manually close out my trade. But, I never manually close a trade simply out of emotion or because I thought about it for too long and convinced myself of something that the markets weren’t actually reflecting, this is what many traders do.
8) Accept that you don’t need indicators

I like to think of my website as one of the few true trading websites that focuses on price action and on real trading strategies, rather than the thousands of trading sites out there talking about indicators. If you’ve been following me for a while now you know that I focus primarily on trading off pure price action, with a couple of moving averages sprinkled in sometimes. However, if you want to know exactly why I think trading with indicators is a bad idea, checkout this article on forex indicators. Indicators are for those “lost sheep” traders still searching for some Holy-Grail trading system that simply doesn’t exist. The sooner you wake up to this reality the sooner you can get on the track to learning real Forex trading strategies.

[youngfx]

9) Use your brain wisely

You’re not a caveman, it’s 2012, there is no excuse in today’s world not to read, not to be educated and not to make a real effort, LAZY won’t work. Too many traders want to buy a trading system or attend a trading seminar and magically start printing Benjamins from their computers. Unfortunately, this is not how it works. Trading takes time and effort to learn, and you have to use the large mushy area between your ears to become good at it. Many traders never invest in an effective trading education or take the time to learn and really develop their trading skills; instead they just jump in the markets with little to no formal trading and start throwing around their hard-earned money. There’s so much information at your fingertips these days, there’s no reason not to put in the time to learn how to trade effectively.
10) Ditch the fundamentals and news

I know that a lot of you guys spend hours reading economic news, reading forums over on forex factory, or whatever else. The truth is, you are wasting your time. You really are; you need to just accept the simple fact that all fundamentals and forex news variables are reflected via the pure price action on your charts. I’m not going to say too much about this topic in today’s lesson because I have discussed it in other lessons quite a bit, and there’s really no better way to sum it up except to say that every single piece of economic news and all things that affect a market are visible and reflected in that market’s price action. So, if you learn to read the price action you also learn to read the fundamentals.
11) Trust your gut, not another’s

When it comes to trading, trusting your gut is something you’re going to have to learn to do. Unfortunately, there’s no mechanical trading system out there that will stay effective over changing market conditions. Despite what you read on some trading websites, you need to use your brain, your eyes, and your gut instinct when trading the markets. Your intuition and gut trading feel are things that can be harnessed and improved upon if you develop them by learning a strategy like price action.

Turn off the TV, stop reading the business section in newspapers, and don’t listen to the opinions of others, instead learn to listen to yourself. A good gut trading feel will only come from experience and confidence, so you first need to really master a trading strategy like price action and then practice trading with it on demo. Once you do this for a while you will begin to develop your gut trading instinct and to get a feel for a price action strategy worth trading versus one that’s not, etc. Ultimately, you are the one pulling the trigger on your trades, so you need to trust yourself and not confusing yourself by listening to other people and taking in too many outside opinions. All you really need is a sound knowledge of price action trading, your brain, and the charts.
12) Keep your day job, and work hard at it

Don’t set out to be a professional trader from day 1, instead, your first goal should be to gain experience and knowledge and become a good trader, then once you’re making consistent money in the markets you could quit your job if you want to. Most traders go about this with the wrong mindset, they think they are going to quit their job after a month of trading and they might even start slacking off at work as a result. This is the wrong attitude to have and the wrong thing to do; you really need to already be financially sound and relatively happy with your life before you start trading with real money. Many traders look to the markets as a way to solve all their problems, when in reality the markets are not there for this. They are for mentally sound people to potentially profit from, so if you are trading the markets just because you hate your job or you “want to be a millionaire”, you probably have the wrong forex trading mindset already.
13) Be organized and clean (hygienically too)

I am a very organized and clean person, and I firmly believe this has contributed to my success at such a young age. Without trying to sound arrogant or cocky, many people simply don’t have the motivation to maintain an organized and clean lifestyle, and I think it’s very hard to be a consistently profitable trader if you live this way. Everything from having the files and content organized on your computer to having a clean and organized place to trade is important to your overall trading mindset. One of the reasons why many people fail at trading is because they aren’t organized and disciplined, trading seems easy on the surface, but if you aren’t exited about developing positive habits and about being patient and disciplined, you’re probably not going to make it as a trader.
14) Don’t be stupid

A lot of traders simply act like fools in the markets. They shuffle around their charts like lost souls desperately in need of a trading signal, panicking if they don’t find one and ultimately entering the market anyways. Biting off more risk than you can chew and generally behaving like gambler in the markets is not the way to make money, in fact it’s simply stupid, to put it frankly. You need to think like a businessman or woman and act accordingly, that means managing risk and having a plan.
15) Learn to love patience

For many people, patience brings up images of boredom and things they would rather not do. However, in trading, you need patience more so than in most other professions. You need to have patience to sit on your hands when your trading edge is not present, and you need to have patience to see your trading edge play out over a large series of trades, rather than getting emotional after hitting a few losers. Indeed, if there is one “key” ingredient to success as a trader, it would definitely be patience.

Trading seems to naturally tempt peoples’ ability to be patient, and the more you can maintain your patience by waiting for valid instances of your trading edge, the better you will do. As humans, we have not been wired by evolution to be patient in most situations; when we are hungry we need to eat now, etc. So, as traders, we need to override these “caveman” urges which cause us to over-trade and risk too much, by planning ahead and not becoming emotional as we trade.

[youngfx]

16) Don’t expect to win every trade

I’m going to let you guys in on a little secret that all pro traders know; you don’t have to be right to make money trading. In fact, you can actually be wrong on THE MAJORITY OF YOUR TRADES and STILL make money. Yes, that’s right. If you want to see how, click the article I just linked to.

The point is this, you can’t freak out every time you lose a trade, EVEN IF you think it was a “perfect” trade setup. I get a lot of emails from traders sending me charts of setups they took that they said are “perfect” and that they just “don’t understand why the trade lost because it was so perfect”. Well, the cold hard truth is that it really doesn’t matter why the trade didn’t work! Also, why do you care so much? Have you risked too much on that one losing trade? Do you expect to win every trade? If you do expect to win every trade you are in for a lot of struggle and strife as a trader. The sooner you accept losing as part of being a trader and devise a realistic plan to deal with it, the sooner you can get on to making money in the markets.
17) Enjoy Losing – Each loss brings you closer to a large win

Similar to the point above, you have to actually learn to enjoy losing. I know that sounds strange, you’re probably thinking “How can anyone enjoy losing?” Well, if you are really passionate about being a trader, and you’ve already accepted that losing is part of being a trader, then at the very worst you should not make a big deal out of a losing trade. You have to learn to embrace your losers and think of them as just one trade closer to a winner. I always tell my students to “stop trying to avoid losses”, as losing is a big part of winning a trader, and the more you try to avoid losing trades, the more of them you are probably going to have. Think of losing trades as a coworker you really don’t like but that you have to work with everyday. If you take a bad attitude with this coworker and try to avoid them, it’s probably going to hurt your chances of a promotion and thus make you less money in the long run.
18) Be consistent

You just had 4 losing trades, what do you do, remain calm and collected, following your trading plan as usual? Or, do you freak out and jump back into the market to try and make back the money you just lost? If you lose your confidence and stop trading your proven trading strategy, you are probably going to miss out on the next trade that would have been a big winner. Trading is the ultimate test of being able to brush off and ignore obstacles that are in your way now for a longer-term reward. If you crumble at the first sign of adversity or hardship, you are probably going to become very emotional after a losing trade or two and start making stupid trading decisions.
19) Read, study, and improve…Always

Great investors, traders and business people, read, study and educate themselves on an ongoing basis. You need to invest in yourself because it’s the most important investment you will ever make, and it will lead to direct growth in your knowledge and skill as a trader or personal fund manager.

I am always amazed at how many traders think they don’t need to educate themselves about the markets or on a proven trading strategy. Many of them tend to think they can just dive in head-first to real money trading, with no formal trading or education, and that somehow they are on the right track. Well, that’s not the case, trading takes time, effort, and education, like anything else. The trick is to make sure you learn an effective trading strategy like price action and that you learn how to trade from a genuine and honest source.
20) Daily Trading Affirmations

A secret formula of many successful people has been to verbally reinforce the most important goals in their life. For a trader, having a wall poster or post it notes with important goals and phrases will help. We did a great lesson on this some time ago and it’s worth a read for any of you looking to take your trading to the next level…this stuff really does work and anybody can practice it…you can check out my trading affirmations lesson here.

It’s important to read through these affirmations everyday before you trade, I would even incorporate this into your trading plan. Doing so, will get your daily trading routine started off on a positive note.

Finally, I just want to say that I hope all of you have learned something from today’s lesson, and that if you really read through all 20 of the points above, and fully absorb them, you will gain some solid insight and knowledge that will help you improve your trading.

[youngfx]

Master One Forex Trading Strategy at a Time


Master One Forex Trading Strategy at a Time

Do you want to become a MASTER of your Forex trading strategy? If so, you will need to have laser-beam like focus, you cannot waver and change strategies every week like many amateur traders do. Bruce Lee was arguably the best martial artist of all time, and guess what? He was not born the best martial artist of all time. He earned that title through dedication and focus…he learned to become a MASTER of his craft…if you want to succeed in Forex you will need to do adopt the Bruce Lee mentality…

Forget everything you have learned up to this point in your trading career, because if you truly want to master a new Forex trading strategy you really need to wipe the slate clean of all the confusing indicator and software based trading systems you have likely used thus far. One of the biggest problems that plague traders who are trying to adopt a new approach to the Forex market is that they seem to bring a lot of preconceived notions and failed trading concepts with them. If you really want to excel at Forex trading and adopt a fresh new trading strategy, you need to focus on one strategy or way of thinking and stop allowing previously failed trading methods to influence your current perspective on the market.

• Train your Brain

Learning to master one trading setup at a time will help you properly train your brain to become more disciplined and objective, two characteristics that you absolutely must possess if you wish to excel at forex trading. The process of truly mastering and “owning” one forex trading setup at a time might take months or even years to accomplish, but your chances of making money are increased dramatically by doing so. After you completely master one trading setup you will know almost instantly whether or not your setup is present, there will still be some discretion involved, but owning and mastering a setup means that you have fine-tuned your sense of discretion when it comes to deciding which trades to take and which ones to pass on. Many traders search long and hard for some “holy-grail” trading system that allows them to avoid having to develop their discretionary trading skills, unfortunately for them, professional trading inherently involves a fine-tuned sense of being able to discern between A, B, and C ****e trade setups.

The discipline and objectivity that you will require as a result of learning to master one forex trading strategy at a time should spill over into other areas of your trading such as managing your risk and remaining calm and collected. When your thoughts are scattered on multiple trading strategies and (or) you have little confidence in the strategy you are currently using, you are obviously not going to make very wise trading decisions. Learning to master and “own” one forex trading strategy at a time will solve both of these problems because your focus will not be scattered amongst multiple strategies and you will naturally gain confidence in each setup as you master them one by one. Essentially, our goal in mastering one setup at a time is to reduce variables in our trading, many traders do the exact opposite when starting out by actually increasing variables through analyzing greater and greater amounts of technical and fundamental market data. Yet, the reason most traders lose money is not because they aren’t analyzing enough data, it’s because they over-trade, over-leverage, and analyze TOO MUCH data.

• Learn to Think like your Mentor

Obviously, if you are looking for a new trading strategy or mentor, what you were doing before was not working for you. Thus, it is paramount to your success as a trader that you adopt the same trading philosophies that your new mentor or trading strategy teaches, wash your mind of what you have learned thus far and completely immerse yourself in this new approach to the markets. In regards to what we teach here at learn to trade the market, this means learning to master one price action setup at a time, as this is how I initially found success in the forex market and so it is also what I recommend all my students do. As I have stated previously, after you master one price action setup you can move on to master another, until eventually your forex trading arsenal is fully loaded.

• Specialization is the Universal Key to Making Money

What do most people that make a lot of money in this world have in common? What do Tiger Woods and Bill Gates have common? Or how about George Soros and Venus Williams? At first you might say “nothing” besides the fact that they all make a lot of money. But what is the fundamental reason, behind all else, that these people and others like them make so much money while the rest of the world struggles to get themselves out of bed in the morning? One word; specialization.

People that make a lot of money focus in on one thing that they are passionate about, and they do it over and over and over until they achieve the result they are looking for. Simply put, you cannot really make a lot of money at anything in life if you master nothing. All of the people in the above example have literally “mastered” one thing, sure they had ups and downs along the way, but they did not let that bother them, instead they transmuted this negative energy into motivation and pressed on because they believed in what they were doing. Had they got involved and distracted with numerous other side-projects or interests they simply would not have achieved what they did. In forex trading we need to focus on one price action setup at a time and become a “specialist” in it, get to the point where you find yourself being someone that other traders look to for advice on the setup that you “own”. Become an authority on each price action setup before you move on to the next, there is no sense in doing anything half-ass in this world, and trading price action setups is no different.

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How to Master the Setup

Mastering one price action setup at a time is accomplished through literally making it the only setup you think about or look for when interacting with the market. You essentially live, breath, and sleep this one setup until you feel confident you know every angle and condition it can or should be traded in. Keep a trading journal to record under which market conditions the setup excelled in and which conditions it performed weaker in. Find all the information out on the setup you choose and learn everything you can about it. Once you do this you can begin implementing this knowledge on a demo account, only after you master this one setup on a demo account should you attempt to master it on a live trading account. If you find you are becoming consistently profitable with this one setup on a live trading account and you truly feel like you “own” it, then and only then should you think about adding a new setup to your trading toolbox.

• One Setup does not mean One Variable

In closing, a very important distinction to make here is that one price action setup does not only mean entering a trade when you see a well defined pin bar or other price action setup. By learning to master one “setup”, we mean you learn to master trading that particular setup in a particular market context. For example, you might learn to master the pin bar strategy in a trending market and only enter or exit at confluent levels within the trend, this is an example of how a “setup” can mean the actual price action setup itself and the market conditions that it is traded in. So, in order to fully master one price action setup you must learn to master this setup in one particular market condition, perhaps you want to master the fakey strategy in range-bound markets, or the inside bar in down-trending markets; the totality of the actual price pattern itself combined with the particular market condition you trade it in is what you must master in order to consider yourself a “master” of one Forex trading strategy.

[youngfx]

How Often Do Professional Forex Traders Actually Trade?

This article is going to challenge some of your beliefs about trading, especially the beliefs you hold about how often you should trade and the consequences that your trading frequency can have on your forex trading account. Hopefully after reading it you will gain some powerful insight that will help you stop over-trading or prevent you from turning into an over-trader like the guy in this picture on the right.

One of the biggest obstacles standing in the way of amateur traders becoming professionals is their lack of recognition and(or) acceptance of the fact that trading less frequently almost always produces more consistent and more profitable long-term market performance than over-trading and interacting with the market too often (ie: Day trader market junkies).

Professional traders view each interaction with the market through a realistic lens that does not filter out the risk involved with every potential setup, whereas amateur traders tend to think less about the risk involved and more about how much money they can make if XYZ happens. This is an important point to take into consideration before you enter your next trade.

• The extremely slippery slope of over-trading

If you have had any experience trading real money in the markets you very likely have experienced first-hand just how slippery the “slope” becomes once you start over-trading. Most traders do not even recognize they are guilty of over-trading until they have lost so much money that they are forced to take a break from the market, it is then that they typically realize what they have done; entered numerous trades with no sound logic or rational behind them.

Professional traders are always aware of the dangers of trading too frequently, they know that it is a very short stretch from entering one too many trades to full-scale addiction to the forex market and to chart watching. In essence, amateur traders that get caught up in a fit of over-trading in the forex market are simply gambling; continually entering the market randomly while hoping for a windfall profit. The professional trader is not a gambler; he or she is a risk manager who simply seeks to flawlessly execute their edge in the market only when it is present.

This typically means that most professional traders are not day trading or scalping, instead they are focused on multi-day positions and look to take a good slice of the action that takes place in the market each week or month. This typically means taking multi-day positions in trending markets, because it is easier to take larger chunks of price action out of a trending market by holding multi-day positions than it is to constantly jump in and out trying to scalp the market each day.

Trading less frequently like this also makes you more immune to the slippery slope of over-trading. Even if you are following an effective day-trading or scalping edge, when you trade with the high frequency demanded by day-trading and scalping strategies, you drastically increase the odds that you will give in to the ever-present temptation to jump into the market when your edge is not truly present.

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• You can’t get hurt from the sidelines

The value of simply NOT BEING IN THE MARKET cannot be overstated. Many amateur traders don’t even consider that being flat the market can actually be a very lucrative position, not to mention it is the SAFEST position you can take in the market.

To understand why not being in the market is actually a lucrative position you have to look at it from a different perspective. Let’s say point A is being flat the market, and point B is where you trading account stands relative to point A after a losing trade, you obviously had more money at point A than at point B, thus point A (being flat the market) is actually a lucrative (profitable) position compared to point B since you have more money in your trading account at point A than you would have had if you had lost that money in the market and went to point B.

The fact that most amateur traders simply do not even consider the fact that being flat the market is valuable is directly related to the fact that they simply do not believe the market is as risky as it actually is, or they simply ignore this reality. Professional traders are fully aware of the risk involved in the market, therefore they inherently understand the value in being flat the market, and thus they trade less frequently than amateurs.

• How does trade frequency relate to long-term trading performance and a trader’s mindset?

Once you identify exactly what your trading edge is, and the market conditions that are best to trade it in, you can begin to trade with patience and precision because you now know EXACTLY what you are looking for in the market. In essence, you have to master one forex trading strategy at a time, so that you can almost instantly look at any price chart and tell if your edge is present or not. Once you obtain this level of trading mastery and skill, over-trading or entering a position when your edge is not present will seem silly to you and just down- right stupid (because it is!). To put it more succinctly, you are more aware of whether or not you are over-trading when you are completely aware of what your forex trading strategy is.

Due to the fact that professional traders have mastered their forex trading strategy, they trade less frequently than amateur traders because the pros are looking for a very specific event to occur in the market, rather than throwing darts in the dark like so many amateurs do. So, it almost goes without saying that once you totally mastered your trading edge, entering trades when your pre-defined edge is not present will have a negative effective on your long-term profitability. So, trading with precision and patience inherently means trading less often, but it also means greater profits in the long-run, which is the whole point of trading.

Traders who follow their trading strategy to the T actually enjoy the patience and the down time in between trades, it becomes routine and comfortable over time. They do not feel a “need” to trade when there is no setup that fits their criteria. Operating from this confident yet carefree state of mind while interacting with the market is the way you reinforce positive forex trading habits, like patience and discipline, because when you wait patiently for your edge to appear and then execute it with effective risk management, you will see positive results after doing this for a series of trades, these results will reinforce the positive trading habits that produced them.

Amateur traders tend to reinforce negative trading habits like over-trading and over-leveraging by getting lucky a few times while committing one or both of these trading errors, it really only takes one big lucky winner while over-trading or over-leveraging to condition your brain to constantly over-trade and(or) risk too much.

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So, how often DOES a professional trader trade?

There is obviously no set answer for the number of trades that professional traders make each month, as every trader is different. However, if you are currently losing money in the markets you can safely assume that professional traders are trading less frequently than you are. If you are currently stuck in a rut of over-trading, one thing you can do if you are not already, is switch to strictly trading off the daily charts. Higher time frames lead to less trades but more precision and accuracy of the trades that you do take, you can also employ “set and forget forex trading” on the daily charts that requires only minor tweaking and minimal involvement beyond identifying your edge and setting the trade up.

In conclusion, if you take nothing else away from this article, just remember that professional traders are on average trading less frequently than you are simply because they fully accept and understand the risk involved with any one trade, so this tells you that you need to reduce the frequency that you trade or that you interact with the market. Let’s say that price action trading is going to be your trading strategy, once you master this trading strategy and you know exactly what you are looking for, there is no reason to sit at your computer all day staring at your charts. Set up a routine each day that you follow; you check for your edge, and if it isn’t there you come back the next day, or the next 4 hours or whatever your routine is. But, you don’t ever need to sit there and burn your eyes out watching the charts if you know what you are looking for. If you don’t know what you are looking for and you want to learn a very simple yet effective trading strategy that can give you a solid edge in the market, you should check out my price action trading course and online member’s trading community.

[youngfx]

Avoiding the Fear of Losing Trades in Forex

If you’re hoping to be a quality trader, then you’re going to lose money at some point, and just in case you’re still within the path of attempting to avoid all losing trades and looking for a “Holy-grail” trading system with a high winning rate, you have to remove all that thought without delay. As hard as it might sound, losing is a component of winning as a trader; the two go hand in hand. If you don’t discover how to lose properly you may never create consistent income as a trader.

All professional traders lose their money, and that they understand it’s simply a part of the “game”. Sadly, for several traders, each trade they enter is in the middle of an incredible concern of losing money and typically intense emotional attachment.

Major factors why traders become scared as to losing their money may associate with the following:

1. They don’t perceive that mathematically, over a series of trades, a trader will lose a majority of their trades and still be profitable.

2. They’re just too terrified of losing money normally.

3. They are trading positions that are too massive (risking over what ought to be), inflicting concern upon themselves, sleepless nights and large emotional swings.

Fear of losing capital may be a sensible feeling to possess in several areas of life, if we tend to not have it there would be even additional problem in the world and within the forex markets. Humans are always protective of their wealth and property, and justifiably so because they labored for it.

In trading however, this normal behavior to be defensive and emotional with cash has to be reworked and defined into a unique mental state.

Instead of being terrified of losing your money once trading, embrace the management you’ve got on every trade; a trader has complete management over each trade via stop losses and lot sizing. These risk management tools are your approach of being up to speed with your funds, and rather than being “fearful” regarding losing cash, you ought to feel confident and assured. As a result, you’ll predetermine what amount you’re comfortable with probably losing BEFORE you enter a trade by utilizing these money management tools.

However, simply employing these tools to manage your risk per trade isn’t quite enough to all take away the concern of losing.

If you’re trading your hard-earned money in the markets however, and you don’t grasp what your trading edge is and you don’t have 100% confidence in your ability to understand and trade the markets, you most likely shouldn’t be trading. One amongst the largest reasons traders become afraid to lose their trading capital is as a result of they aren’t assured in their own ability to trade. It appears silly though, however it’s terribly true. Several traders merely don’t have an effective trading strategy, they don’t have a trading set up. They merely aren’t ready to risk real cash within the markets yet, thus they feel concern after they trade.

If you don’t grasp what your per-trade risk tolerance is, then you would like to work that out initially. It’s simply the dollar amount that you’re 100% confident with probably losing on any trade; because you can lose on any trade, remember that. You have to require into consideration your overall financial state of affairs in order to verify what amount of money you ought to realistically and honestly risk in the market on any one trade. Be honest with yourself here. You need to think about yourself as a risk manager and as somebody who is managing capital, instead of simply a smart guy looking to play lucky; your trading attitude can directly influence your trading results.

Even profitable traders generally lose more than they win, for instance, imagine a trading account of 15 trades which over a given period has made a ROI of 80% with a 43% win rate. To be clear, which means you’re losing 57% of all trades and simply winning 43% of them. It may be senseless to associate “losing” the bulk of your trades with making huge profits; however maximizing the profitable trades to the fullest would allow the few winning trades to recover the managed (small) losses from the numerous losing trades.

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How to Trade Forex at the Right Time

Most traders create the error of trading on all market conditions. The reality is that typically it’s wiser to merely not trade. Typically the markets are too inconsistent to trade with any accuracy or effectiveness. It’s these times traders tend to relinquish back all their recent profits (and sometimes more).

I am aiming to allow you to guys in on somewhat ‘secret’ today; the quickest route to creating cash in the forex markets is by capital preservation. You see, most traders don’t preserve their trading capital long enough to create any substantial gains within the market. Instead, they trade it all away in a very flood of emotional trades that reduce their accounts all the way down to nearly nothing. Then, they own very little to trade with once the market conditions change and the trading becomes easier and a lot more profitable.

As a professional trader, a part of your job is to determine market conditions; you want to not solely learn the way to identify high-probability price action setups, but to determine the market context that they evolve in. Meaning, a part of trader is learning to work out the underlying bias of a market, not simply trading any market setup you see. Your goal is to attend for the ‘perfect storm’ of a high-probability trading pattern forming at a merging purpose within the market, and to create certain that the setup ‘makes sense’ in line with the conditions of the market once the setup forms.

Seriously, AVOID trading every week; don’t consider the markets for a week. There are fifty two weeks in a very year; you don’t have to trade each one of them. It’s fairly safe to mention a minimum of two or three of these weeks (probably more) can contain terribly stormy price action that may shred your trading account up if you attempt to trade it. One of your jobs as an advanced trader is to spot once the market is stepping into a consolidation section that’s too stormy to trade. I’ll admit, this can be easier aforesaid than done, however once you pay more time analyzing a market’s price action, it’ll become easier for you.

One issue you’ll do is to easily take your time off once a winning trade. We tend to feel like trading a lot more after a winning trade or a series of winners. Most of the time, these trades are based on emotion and an over-estimation of our own ability to predict the market. In short, once you hit some winners, trading looks plenty easier than it is and we become blind to the very fact that we’ve the potential to lose capital on any trade we take. This causes several traders to relinquish back all their gains.

Taking time off trading on the markets isn’t a foolish idea, particularly after closing a winning trade or once the market is chopping sideways and lacking direction. Several traders give back all the money made when the markets were trending as they go into periods of chop. This behavior cannot be fully avoided no matter how good you are as a trader. However, there are some clear price action based clues that we can use to assist us determine a stormy market so we will then keep out of it.

Many traders trade during times of chop as they feel that urge to be within the forex markets all the time. They assume they’ll miss out on opportunities if they don’t trade all the time. Don’t worry regarding missing out on trade opportunities, the market isn’t going anyplace and it’s wiser to be slow and organized than quick and impulsive once it involves trading your valued capital in the forex markets.

[youngfx]

Understanding forex trading and Improving your Trading Skills

Forex also referred to as exchange market or currency market. It’s a business of buying and selling of currencies against one another, which are known as currency pairs. As an example, USD/CHF pair refers to the rate of exchange between the U.S dollar and the Swiss Franc. Inside the currency market you’d be ready to buy or sell currency pairs, thus if you’re thinking that the U.S dollar can rise against the Swiss Franc you’d elect to buy the USD and sell the USD if you’re thinking that the Swiss Franc would rise. Same would apply for all currency pairs like EUR/USD, USD/CAD, EUR/JPY etc. The currency within the front is that the lead currency thus if the USD/CAD is pricing at 1.1082 suggests that one USD is of value 1.1089 Canadian greenbacks. If the value for USD/CAD was showing as 0.8983 would mean one USD is of value $0.8920 in Canadian equivalent.

Daily forex trading is thought as being difficult even to individuals with years of trading expertise. However, understanding the fundamentals and knowing precisely why currency pairs move up and down against one another can alleviate this worry and create it abundant easier to become profitable trading the forex market. However, knowing currencies movements within the short term and future don’t mean you may be ready to properly predict the result anytime, though market knowledge is a wonderful approach of deciding what this scenario is at any given time. It’s nearly as good the simplest way as you may notice of predicting future market behavior. Nevertheless, it’s not a secured predictor and consequently even the foremost old Traders typically lose on trades thus it’s vital to come back up with a trading plan that you follow carefully. Creating investments primarily based on emotion or such is typically not a decent plan and deviating from your investment budget isn’t a decent plan

The less expertise you’ve got in something you are doing causes you to a lot of mistakes initially. Once trading the Forex market, mistakes will find yourself costing you real cash. It’s so important to your success that you simply have a good trading strategy. For example: solely create a trade supported with information obtained through market knowledge and grasp precisely what quantity you wish to gain or lose on every trade thus you recognize when to sell your investment regardless if it’s a winning or losing trade. Forex trading could be a proportion game where you may NOT forever be making profitable trades however as long as you stick with your strategy and significantly your budget, you’ll be able to achieve success within the forex market.

One way of gaining valuable trading skill and knowledge while not trading any real cash that may quickly result in expensive mistakes and risking your finances, is to start out by employing a demo account which will primarily provide you with fake money that you simply can use to execute forex trades in a real trading condition. These simulators precisely replicate the real-life forex market and would not only enable you to learn the way to trade with success within the forex market while not risking any real cash however also enable you to be get the way to use the trading software on your PC thus you’ll be able to quickly and simply create real trades with real cash once you’re assured in your ability and prepared to trade with real capital

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Forex Signal Providers, Good or Bad

The factor to check out for with a forex signal provider is that they are not fully dependent upon their expert advisors or Robots and have some form of human intervention or human primarily based checks on ground. Robots are illustrious to fail eventually and though there are various promotions out there designed to make us believe otherwise, ultimately market conditions get the higher of them eventually and that they incur big losses.

With human monitoring or a minimum of twenty four hour regular investigation to confirm up and returning times of volatility, it’ll ensure a safer signal performance. A symbol provider will provide 2 totally different ways; they’ll either send data for the trader to put the trades themselves through SMS or Email or they’ll work on an additional automatic basis by sending electronic signals straight into traders MT4 accounts. Each has benefits and drawbacks that we are going to investigate currently.

Getting signals via email or SMS service is nice if you’re able to access your trading platform at an instant and obtain a good market price. The provider may additionally send prices of entry and exit levels at the start of the day in order that you’ll set and leave trades. The apparent disadvantage here is the reality that you may not have access to your broker at the time of a trade or in the other hand of set and leave trades the market price might change at an instant and you are unable to react to the market conditions. A good advantage of a signal alerts service is that the proven fact that you can choose and opt for the trades that you suppose are less risky.

Getting signals straight into your MT4 account has the unique advantage that the total system will be fully automatic and provides you a very hands free investment expertise. However, the disadvantage is that the proven fact that may not have any intervention with the signals that are sent (note: this may even be a plus for emotional traders) therefore if a trade seems like it’s a nasty plan it’s going to well get placed anyway.

There is lot to be considered for signal providers if you get one that maintains a profitable history. You must ensure you get a trading history from a provider before you sign on to their service and make certain that it will be checked by a third party verifier like Myfxbook or MT4i, these firms provide you with a clear view of the traders history and trading strategy that they use.

[youngfx]

Why You Don’t Need To Be Smart To Be a Trader

Many people think that you need to have a Master’s degree in Finance or be some Albert Einstein math-wiz to be a successful Forex trader. Well, I am living proof that you don’t need some fancy college degree or a doctorate in mathematics to be a skilled trader in the Forex markets. I started trading when I was in high school and shortly after getting out I started to become successful as a trader. I never finished college, and I don’t claim to be the “sharpest tool in the shed”. However, what I understand, and what other consistently successful Forex traders understand, is that trading success is not only about knowing you need to control yourself and your actions in the market, but actually doing it.

I know that sounds simple, but being a successful Forex trader really does boil down to these two main points:

1) Understanding that you must consciously control your interactions with the market so that you always do what is logically and objectively the best thing for your trading account at any given time.

2) Actually doing number one; it’s not enough to just understand….you have to actually DO. Remember, as Yoda said in Star Wars, “No! Try not. Do, or do not. There is no try.”

A good analogy for this concept is the fact that some doctors smoke cigarettes, I personally had a a doctor who I knew was a smoker when I was kid. Now, it’s pretty safe to say that all doctors UNDERSTAND they should not smoke or do anything to damage their body. So…it isn’t that they aren’t smart enough…it’s that they just don’t have the proper habits and (or) they aren’t disciplined enough to carry them out.

The same thing can be said for many Forex traders; it isn’t that they aren’t smart enough to understand how to trade properly….it’s that they just don’t DO WHAT THEY KNOW NEEDS TO BE DONE.

• Long-term success vs. short-term satisfaction

Successful Forex traders understand that their trading success is measured over a large series of trades, not just a few. This is not a difficult concept to understand; you don’t need a genius IQ or a degree in finance to understand this. So, once again, we are seeing exactly why you don’t need to be super smart to be a successful Forex trader. What you DO need is some common sense and the ability to act on what you know is true.

So, a key element to becoming a consistently profitable Forex trader is aiming for long-term success, rather than short-term satisfaction. Giving into short-term satisfaction is the main reason why most Forex traders lose money. It isn’t enough to just know that you shouldn’t give into short-term satisfaction in regards to your trading; you have to actually not do it. Amateur traders end up over-trading and risking too much because they cannot overcome the temporary satisfaction that these actions bring to them. You have to be able to ignore these temptations with the knowledge that exercising patience and discipline is the only way to become successful over a longer period of time. What good is winning a few trades really quickly if you give all your winnings back the next week or the next day? Traders who give in to short-term satisfaction are constantly experiencing very volatile changes in the equity curve of their trading accounts, this usually ultimately ends in disaster with a blown out account.

So, while it is important to understand the importance of patience in Forex trading, you ALSO need to execute this understanding by ignoring all the short-term temptations that will come at you every time you open your trading platform. In fact, you could say that the way you manage your interactions with the Forex market is far more important than your intelligence or your ability to understand complicated mathematical trading algorithms or any other similar unnecessary trading “tool”.

• What types of people typically make good traders?

While there is no concrete rule as to who can be a successful Forex trader and who can’t, certainly people who are naturally more disciplined and realistic have an easier time achieving success in the markets than people who lack discipline in most areas of their lives and (or) who tend to ignore reality.

Discipline and overall fortitude are indeed FAR more important than intelligence when it comes to successful Forex trading. Many highly successful people in other fields fail miserably when it comes to trading the markets. Doctors, lawyers, college professors, you name it, there is no shortage of people from these highly-skilled fields and others that have lost thousands of dollars in the markets. It’s not because they weren’t smart enough to understand the concepts…this clearly is not the case; the reason highly intelligent and highly skilled people have no real advantage over anyone else is because becoming a professional Forex trader depends mostly on your ability to execute…not to comprehend.

It is execution of discipline that makes a successful trader, this means reinforcing positive trading habits instead of negative ones and making a conscious effort to make sure all your actions in the market are logical and not-emotion based. For these reasons we often see ex-military personal succeeding in the markets; because they know what it’s like to make discipline a part of their everyday lives. This is not to say that successful and intelligent people in other fields cannot be successful traders, in fact this is obviously not the case it all, I am just trying to emphasize the fact that intelligence and previous accomplishments do not really matter at all when it comes to trading. What matters the most is your ability to stay dedicated to and master your Forex trading strategy, your ability to stay disciplined in the face of constant temptation, and your ability to stay realistic.

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• Keep It Simple Stupid

Yet another result of amateur traders erroneously believing that trading needs to be complicated or that they need to be super smart to succeed at it, is the fact that so many of them employ Forex indicators and (or) Forex trading robots to try and analyze and trade the market.

I won’t lie to you guys, early on in my trading career I tried all the typical indicators, I was stuck in the analysis-paralysis rut and I thought there was some “magic” combination of indicators that if I could just figure out, would give me a virtual key to riches. After enough trial and error I realized that was just not true. I began to notice the beauty in the simplicity of the price action occurring underneath all the messy indicators I had on my charts back in those early days. Once I peeled off all these indicators and swore them off forever, I began trading on simple price action strategies, these are the same ones I use today and that I teach to aspiring traders, granted I have definitely tweaked and refined them, but the simplicity remains, because it works.

You see, there is no “magic” indicator and there is no knowledge that I have that you guys cannot or do not already have. The difference between traders who are successful like me, and traders who are not, can only be explained through the difference in our behavior in the market. I trade a lot less than you might think, and so do the other successful traders who I know. It’s all about trading Forex like a sniper instead of a machine gunner.

[jancaree3]

These kinds of typical currency dealing errors can be prevented. All you need to comprehend is that little variations occur all enough time and it is better to prediction about upcoming by examining activities and understanding which industry occasion can indicate an incident of raise in near upcoming

[bablu7832]

I think the most common mistake in Forex is to trade with impatience and indiscipline.We mostly loose because of greed and fear.Lack of knowledge and experience is also major reason.If we want to earn consistent profit in Forex then we must trade using good strategy.

[smmunni]

Forex mistakes and sins include,
1.trading without limits,
2. getting greedy
3. unexpected decision without thinking the consequences.
4. too much money invest for nothing. Must understand first and then go for more invest.

[youngfx]

3 Mistakes to Avoid when Plotting Fibonacci Tools on Forex Charts

Successful Forex trading using technical analysis hinges a lot on correct application of technical indicators, and the Fibonacci tools are not an exception. It is pretty easy to apply a tool like the Fibonacci tool retrospectively when the price action is all done and nicely fits, but the real challenge is how to apply the Fibonacci tools when trying to determine where a retracement action is going to end for a renewed trend move to resume. In this piece, we will try to identify common mistakes that traders make when using the Fibonacci tools and how to avoid them.

1. Plotting Fibonacci retracements on a short time frame.

This is perhaps the greatest mistake made by traders when using Fibonacci tools such as the Fibo retracement tool. Why is this so? In Forex, the market activity in a short time frame such as the 15- minutes or 1-hour time frame is too short to effectively determine the trend of a currency. What the trader may see as a strong downtrend on a 1-hour chart or a 4-hour chart may actually be a retracement on a daily chart. Trying to plot a Fibonacci retracement tool on the shorter time frame will only end in disaster. The trend pattern of currencies on a longer time frame such as the daily chart is usually a better determinant of the trend. The best thing to do here is to use the longer time frame to determine the trend, apply the tool and then switch to the shorter time frame to make your entry determination.

2.Over-reliance on the Fibonacci tools

In Forex, it is a bad practice to use only one indicator to carry out your technical analysis. Confirmation of the entry is best done using two or three indicators that supplement each other, and the Fibonacci tools are not an exception.
To give an example, let us assume a currency pair is undergoing a downward retracement following a particularly strong uptrend. Where do you possibly think the retracement will halt, especially given the fact that there are five possible retracement levels (23.8%, 38.2%, 50%, 61.8%, 100%)? This is where you have to turn to other indicators such as the Stochastics, MACD or RSI for help. For example, if I get a Stochastics cross at an oversold level (i.e. Stochs crossing upwards at

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Always confirm entries with more than one indicator.

3. Misapplication of the Fibonacci Tool

Many times, traders simply misapply it. What does misapplication mean? Fibo tools are best plotted from the swing high to the swing low. If the trader does not use the highest or lowest points on the chart for tracing the tool, an inaccuracy has set in and this is a clear example of misapplication. Another example is tracing the tool from a candle shadow to a candle body or vice versa. A trader must be consistent. For the best results, always trace from the tip of the upper shadow (the wick) of the candle making the high, to the tip of the lower shadow of the candle making the swing low.

These are the common mistakes made by traders when using the Fibonacci tools. Avoid these mistakes to get the best results possible from your Fibonacci tools.

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Mistakes to avoid in Fibonacci Retracement
Fibonacci retracement is a term employed in technical analysis. it’s the potential retracement of a financial asset’s original move in price. It refers to the areas of support which means the value stops going lower or the resistance which means the value stops going higher. Forex traders can eventually use Fibonacci retracements. Some can use it often and a few can use it for a few time. it’s not necessary how usually you utilize the strategy what matters is how to properly use it.
If you utilize technical analysis technique improperly it’ll undoubtedly result to bad entry points and losses on currency positions. in this article we are going to make a case for the things that you simply should avoid in Fibonacci retracement.

1. you must not mix Fibonacci reference points
It is recommended to stay the reference points coherent. If you’re obtaining the bottom price of a trend through the close of a session or the body of the candle, the high price will be found inside the body of a candle on prime of a trend. If you combine the reference points can result to misanalysis and errors. Fibonacci retracements ar applied on a wick to wick basis.

2. Avoid looking forward to fibonacci alone.

An information won't be really true if you are doing not ensure it. it's also applies with Fibonacci. you would like additional support or technical tools to substantiate that there's a trade chance. If you probably did not use different tools or if you probably did not make sure your findings the merchandiser can have a solely somewhat hope of a positive result. you'll use MACD and random oscillators as tools to substantiate the findings you bought from fibonacci.

3. long-run trends shouldn't be neglected.

In trading, you mostly ought to look into the larger image that may be a rule that a beginner ought to learn since they unremarkably live the many moves and pullbacks solely within the short term. during this regard, the merchandiser ought to look into the long-run trend since you'll be able to apply fibonacci replacements in a very correct direction of momentum through the long run trend.

For example, if you utilize fibonacci retracement in a very graph it'll show that the currency try goes upward, if it happens then that's the time you'll be able to go long therein currency try. mistreatment fibonacci in a very longer timeframe is best than mistreatment it in a very shorter timeframe. Also, it's less reliable if you utilize it in a very shorter timeframe. you furthermore mght ought to confine mind that in statistics you would like to urge additional knowledge so as to urge a stronger analysis. mistreatment longer timeframe can assist you get a additional reliable data’s.

---------- Post added at 02:08 PM ---------- Previous post was at 02:06 PM ----------

Mistakes to avoid in Fibonacci Retracement
Fibonacci retracement is a term employed in technical analysis. it�s the potential retracement of a financial asset�s original move in price. It refers to the areas of support which means the value stops going lower or the resistance which means the value stops going higher. Forex traders can eventually use Fibonacci retracements. Some can use it often and a few can use it for a few time. it�s not necessary how usually you utilize the strategy what matters is how to properly use it.
If you utilize technical analysis technique improperly it�ll undoubtedly result to bad entry points and losses on currency positions. in this article we are going to make a case for the things that you simply should avoid in Fibonacci retracement.

1. you must not mix Fibonacci reference points
It is recommended to stay the reference points coherent. If you�re obtaining the bottom price of a trend through the close of a session or the body of the candle, the high price will be found inside the body of a candle on prime of a trend. If you combine the reference points can result to misanalysis and errors. Fibonacci retracements ar applied on a wick to wick basis.

2. Avoid looking forward to fibonacci alone.

An information won't be really true if you are doing not ensure it. it's also applies with Fibonacci. you would like additional support or technical tools to substantiate that there's a trade chance. If you probably did not use different tools or if you probably did not make sure your findings the merchandiser can have a solely somewhat hope of a positive result. you'll use MACD and random oscillators as tools to substantiate the findings you bought from fibonacci.

3. long-run trends shouldn't be neglected.

In trading, you mostly ought to look into the larger image that may be a rule that a beginner ought to learn since they unremarkably live the many moves and pullbacks solely within the short term. during this regard, the merchandiser ought to look into the long-run trend since you'll be able to apply fibonacci replacements in a very correct direction of momentum through the long run trend.

For example, if you utilize fibonacci retracement in a very graph it'll show that the currency try goes upward, if it happens then that's the time you'll be able to go long therein currency try. mistreatment fibonacci in a very longer timeframe is best than mistreatment it in a very shorter timeframe. Also, it's less reliable if you utilize it in a very shorter timeframe. you furthermore mght ought to confine mind that in statistics you would like to urge additional knowledge so as to urge a stronger analysis. mistreatment longer timeframe can assist you get a additional reliable data�s.

[youngfx]

Top 4 Fibonacci Retracement Mistakes To Avoid

TUTORIAL: Top 10 Forex Trading Rules

Improperly applying technical analysis methods will lead to disastrous results, such as bad entry points and mounting losses on currency positions. Here we'll examine how not to apply Fibonacci retracements to the foreign exchange markets. Get to know these common mistakes and chances are you'll be able to avoid making them - and suffering the consequences - in your trading.

1. Don't mix Fibonacci reference points.
When fitting Fibonacci retracements to price action, it's always good to keep your reference points consistent. So, if you are referencing the lowest price of a trend through the close of a session or the body of the candle, the best high price should be available within the body of a candle at the top of a trend: candle body to candle body; wick to wick. (Learn more about candles in Candlestick Charting: What Is It?)

Misanalysis and mistakes are created once the reference points are mixed - going from a candle wick to the body of a candle. Let's take a look at an example in the euro/Canadian dollar currency pair. Figure 1 shows consistency. Fibonacci retracements are applied on a wick-to-wick basis, from a high of 1.3777 to the low of 1.3344. This creates a clear-cut resistance level at 1.3511, which is tested and then broken.

---------- Post added at 02:13 PM ---------- Previous post was at 02:10 PM ----------

TUTORIAL: Top 10 Forex Trading Rules

Improperly applying technical analysis methods will lead to disastrous results, such as bad entry points and mounting losses on currency positions. Here we'll examine how not to apply Fibonacci retracements to the foreign exchange markets. Get to know these common mistakes and chances are you'll be able to avoid making them - and suffering the consequences - in your trading.

1. Don't mix Fibonacci reference points.
When fitting Fibonacci retracements to price action, it's always good to keep your reference points consistent. So, if you are referencing the lowest price of a trend through the close of a session or the body of the candle, the best high price should be available within the body of a candle at the top of a trend: candle body to candle body; wick to wick. (Learn more about candles in Candlestick Charting: What Is It?)

Misanalysis and mistakes are created once the reference points are mixed - going from a candle wick to the body of a candle. Let's take a look at an example in the euro/Canadian dollar currency pair. Figure 1 shows consistency. Fibonacci retracements are applied on a wick-to-wick basis, from a high of 1.3777 to the low of 1.3344. This creates a clear-cut resistance level at 1.3511, which is tested and then broken.

2. Don't ignore long-term trends.
New traders often try to measure significant moves and pullbacks in the short term - without keeping the bigger picture in mind. This narrow perspective makes short-term trades more than a bit misguided. By keeping tabs on the long-term trend, the trader is able to apply Fibonacci retracements in the correct direction of momentum and set themselves up for great opportunities.

In Figure 3, below, we establish that the long-term trend in the British pound/New Zealand dollar currency pair is upward. We apply Fibonacci to see that our first level of support is at 2.1015, or the 38.2% Fibonacci level from 2.0648 to 2.1235. This is a perfect spot to go long in the currency pair.

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By not keeping to the longer term view, the short seller applies Fibonacci from the 2.1215 spike high to the 2.1024 spike low (February 11), leading to a short position at 2.1097, or the 38% Fibonacci level.

This short trade does net the trader a handsome 50-pip profit, but it comes at the expense of the 400-pip advance that follows. The better plan would have been to enter a long position in the GBP/NZD pair at the short-term support of 2.1050.

Keeping in mind the bigger picture will not only help you pick your trade opportunities, but will also prevent the trade from fighting the trend. (For more on identifying long-term trends, s

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. Don't rely on Fibonacci alone.
Fibonacci can provide reliable trade setups, but not without confirmation.

Applying additional technical tools like MACD or stochastic oscillators will support the trade opportunity and increase the likelihood of a good trade. Without these methods to act as confirmation, a trader will be left with little more than hope of a positive outcome. (For more information on oscillators, see our tutorial on Exploring Oscillators and Indicators.)

Taking a look at Figure 5, we see a retracement off of a medium-term move higher in the euro/Japanese yen currency pair. Beginning on January 10, 2011, the EUR/JPY exchange rate rose to a high of 113.94 over the course of almost two weeks. Applying our Fibonacci retracement sequence, we arrive at a 38.2% retracement level of 111.42 (from the 113.94 top). Following the retracement lower, we notice that the stochastic oscillator is also confirming the momentum lower.

---------- Post added at 02:18 PM ---------- Previous post was at 02:18 PM ----------

Now the opportunity comes alive as the price action tests our Fibonacci retracement level at 111.40 on January 30. Seeing this as an opportunity to go long, we confirm the price point with stochastic - which shows an oversold signal. A trader taking this position would have profited by almost 1.4%, or 160 pips, as the price bounced off the 111.40 and traded as high as 113 over the next couple of days.

4. Don't use Fibonacci over short intervals.
Day trading the foreign exchange market is exciting but there is a lot of volatility.

For this reason, applying Fibonacci retracements over a short time frame is ineffective. The shorter the time frame, the less reliable the retracements levels. Volatility can, and will, skew support and resistance levels, making it very difficult for the trader to really pick and choose what levels can be traded. Not to mention the fact that in the short term, spikes and whipsaws are very common. These dynamics can make it especially difficult to place stops or take profit points as retracements can create narrow and tight confluences.

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Remember, as with any other statistical study, the more data that is used, the stronger the analysis. Sticking to longer time frames when applying Fibonacci sequences can improve the reliability of each price level.

The Bottom Line
As with any specialty, it takes time and practice to become better at using Fibonacci retracements in forex trading. Don't allow yourself to become frustrated; the long-term rewards definitely outweigh the costs. Follow the simple rules of applying Fibonacci retracements and learn from these common mistakes to help you analyze profitable opportunities in the currency markets.

[Habib Ahmed]

Forex may wohi log zyada faida othatay hay jo log apni ghaltio se seektay ki koshish kertay hay or jo log apni ghaltio se nahee seektay wo log hamesha loss kertay rehtay hay.

[youngfx]

Using Pivot Points In Forex Trading

rading requires reference points (support and resistance), which are used to determine when to enter the market, place stops and take profits. However, many beginning traders divert too much attention to technical indicators such as moving average convergence divergence (MACD) and relative strength index (RSI) (to name a few) and fail to identify a point that defines risk. Unknown risk can lead to margin calls, but calculated risk significantly improves the odds of success over the long haul.

One tool that actually provides potential support and resistance and helps minimize risk is the pivot point and its derivatives. In this article, we'll argue why a combination of pivot points and traditional technical tools is far more powerful than technical tools alone and show how this combination can be used effectively in the FX market.

Pivot Points 101
Originally employed by floor traders on equity and futures exchanges, pivot point have proved exceptionally useful in the FX market. In fact, the projected support and resistance generated by pivot points tends to work better in FX (especially with the most liquid pairs) because the large size of the market guards against market manipulation. In essence, the FX market adheres to technical principles such as support and resistance better than less liquid markets. (For related reading, see Using Pivot Points For Predictions and Pivot Strategies: A Handy Tool.)

Calculating Pivots
Pivot points can be calculated for any time frame. That is, the previous day's prices are used to calculate the pivot point for the current trading day.

Pivot Point for Current = High (previous) + Low (previous) + Close (previous)
3

The pivot point can then be used to calculate estimated support and resistance for the current trading day.

Resistance 1 = (2 x Pivot Point) – Low (previous period)
Support 1 = (2 x Pivot Point) – High (previous period)
Resistance 2 = (Pivot Point – Support 1) + Resistance 1
Support 2 = Pivot Point – (Resistance 1 – Support 1)
Resistance 3 = (Pivot Point – Support 2) + Resistance 2
Support 3 = Pivot Point – (Resistance 2 – Support 2)

To get a full understanding of how well pivot points can work, compile statistics for the EUR/USD on how distant each high and low has been from each calculated resistance (R1, R2, R3) and support level (S1, S2, S3).

To do the calculation yourself:

Calculate the pivot points, support levels and resistance levels for x number of days.
Subtract the support pivot points from the actual low of the day (Low – S1, Low – S2, Low – S3).
Subtract the resistance pivot points from the actual high of the day (High – R1, High – R2, High – R3).
Calculate the average for each difference.

The results since the inception of the euro (January 1, 1999, with the first trading day on January 4, 1999):

The actual low is, on average, 1 pip below Support 1
The actual high is, on average, 1 pip below Resistance 1
The actual low is, on average, 53 pips above Support 2
The actual high is, on average, 53 pips below Resistance 2
The actual low is, on average, 158 pips above Support 3
The actual high is, on average, 159 pips below Resistance 3

Judging Probabilities
The statistics indicate that the calculated pivot points of S1 and R1 are a decent gauge for the actual high and low of the trading day.

Going a step farther, we calculated the number of days that the low was lower than each S1, S2 and S3 and the number of days that the high was higher than the each R1, R2 and R3.

The result: there have been 2,026 trading days since the inception of the euro as of October 12, 2006.

The actual low has been lower than S1 892 times, or 44% of the time
The actual high has been higher than R1 853 times, or 42% of the time
The actual low has been lower than S2 342 times, or 17% of the time
The actual high has been higher than R2 354 times, or 17% of the time
The actual low has been lower than S3 63 times, or 3% of the time
The actual high has been higher than R3 52 times, or 3% of the time

This information is useful to a trader; if you know that the pair slips below S1 44% of the time, you can place a stop below S1 with confidence, understanding that probability is on your side. Additionally, you may want to take profits just below R1 because you know that the high for the day exceeds R1 only 42% of the time. Again, the probabilities are with you.

It is important to understand, however, that theses are probabilities and not certainties. On average, the high is 1 pip below R1 and exceeds R1 42% of the time. This neither means that the high will exceed R1 four days out of the next 10, nor that the high is always going to be 1 pip below R1. The power in this information lies in the fact that you can confidently gauge potential support and resistance ahead of time, have reference points to place stops and limits and, most importantly, limit risk while putting yourself in a position to profit.

Using the Information
The pivot point and its derivatives are potential support and resistance. The examples below show a setup using pivot point in conjunction with the popular RSI oscillator

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his is typically a high reward-to-risk trade. The risk is well-defined due to the recent high (or low for a buy).The pivot points in the above examples are calculated using weekly data. The above example shows that from August 16 to 17, R1 held as solid resistance (first circle) at 1.2854 and the RSI divergence suggested that the upside was limited. This suggests that there is an opportunity to go short on a break below R1 with a stop at the recent high and a limit at the pivot point, which is now a support:

Sell Short at 1.2853.
Stop at the recent high at 1.2885.
Limit at the pivot point at 1.2784.

This first trade netted a 69 pip profit with 32 pips of risk. The reward to risk ratio was 2.16.

The next week produced nearly the exact same setup. The week began with a rally to and just above R1 at 1.2908, which was also accompanied by bearish divergence. The short signal is generated on the decline back below R1 at which point we can sell short with a stop at the recent high and a limit at the pivot point (which is now support):

Sell short at 1.2907.
Stop at the recent high at 1.2939.
Limit at the pivot point at 1.2802.

This trade netted a 105 pip profit with just 32 pips of risk. The reward to risk ratio was 3.28.

The rules for the setup are simple:

For shorts:

1. Identify bearish divergence at the pivot point, either R1, R2 or R3 (most common at R1).
2. When price declines back below the reference point (it could be the pivot point, R1, R2, R3), initiate a short position with a stop at the recent swing high.
3. Place a limit (take profit) order at the next level. If you sold at R2, your first target would be R1. In this case, former resistance becomes support and vice versa.

For longs:

1. Identify bullish divergence at the pivot point, either S1, S2 or S3 (most common at S1).
2. When price rallies back above the reference point (it could be the pivot point, S1, S2, S3), initiate a long position with a stop at the recent swing low.
3. Place a limit (take profit) order at the next level (if you bought at S2, your first target would be S1 … former support becomes resistance and vice versa).

Summary
A day trader can use daily data to calculate the pivot points each day, a swing trader can use weekly data to calculate the pivot points for each week and a position trader can use monthly data to calculate the pivot points at the beginning of each month. Investors can even use yearly data to approximate significant levels for the coming year. The trading philosophy remains the same regardless of the time frame. That is, the calculated pivot points give the trader an idea of where support and resistance is for the coming period, but the trader - because nothing in trading is more important than preparedness - must always be prepared to act.

[youngfx]

Three Ways To Short Gold

Gold’s recent sell-off has been nothing less than spectacular. Over the last week or so, prices for the precious metal have plunged nearly 12%, and touched lows not seen in the last two years. This certainly has stung many gold-bug portfolios, and it definitely came as a surprise. Since 2001, gold prices have surged more than 600% as sovereign bond risk and rock-bottom interest rates have taken hold.



However, the recent improving financial landscape and macroeconomic picture over the next few years seems to have taken the wind out of gold’s sails. Given the improving environment and investors preference for stocks, the golden play over the next few months could actually be to short the precious metal.

SEE: What Is Wrong With Gold?

Lowered Price Targets
Gold prices’ bull-run lasted about a decade -from 2001 to 2011- when prices hit a peak of $1,900 per ounce. Since reaching that historic mark, however, gold has fallen about 22%, and there is no sign of an end to the carnage.

Much of gold’s appeal stemmed from all the global macroeconomic problems facing the world. After all, the precious metal is seen as a "port in a storm" and all the debt, austerity and slowing developed market growth can certainly be seen as an approaching hurricane. So it's no wonder why investors have embraced gold and funds like the SPDR Gold Shares (ARCA:GLD), stocks of mining companies and even gold coins have crept into a variety of retail investors' portfolios.

However, it seems like a lot of those negatives haven’t come to fruition.

Recent bullish employment numbers, rising consumer confidence and lower inflationary pressures have all been gold's undoing. Additionally, the strength in the U.S. dollar and treasury bonds as the "best house in the bad neighborhood" have caused gold to see price declines. Since reaching its peak per ounce price, the U.S. dollar index (USDX) has appreciated almost 50% against gold over the past 2 years. Even Europe’s recent debt woes and the issues in Cyprus barely budged gold prices.

Then there is the coming end to the Federal Reserve’s quantitative easing programs. The Fed has basically telegraphed that it plans to slowdown the pace of its $85 billion worth of scheduled asset purchases in the second half of the year. Some analysts have even speculated that the Fed will end the program early. This, plus weak gold demand from nations like India and China, along with increasing appetite for equities over commodities has many now believing that gold’s record bull market has finally ended.

As such, a variety of investment banks have reduced their forecasts for gold prices over the next few years. Goldman Sachs (NYSE:GS) reduced its target to just $1270 per ounce by the end of 2014, while Societe Generale expects it to average $1500. There has even been some class from analysts that gold will break a thousand dollars and settle at $800 per ounce.

SEE: What Drives The Price Of Gold?

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Time To Go Short
Given the headwinds facing gold, investors may want to short the precious metal. Shares of the two biggest funds in the sector- The SPDR Gold and iShares Gold Trust (ARCA:IAU) –are available to borrow. However, an easier way could be by using one of the dedicated short gold exchange traded funds (ETFs) now available.

The biggest of which is the ProShares Ultra Short Gold (ARCA:GLL). The ETF is designed to deliver twice the daily inverse return of gold bullion prices. With more than $100 million in assets and with nearly a 330,000 shares trading hands daily, the fund is the most popular choice of investors looking to short gold. So far it’s up about 26% this year as gold has fallen.

For those investors not wanting the leverage that comes with GLL, the PowerShares DB Gold Short ETN (ARCA:DGZ) can provide the same effects. However, the gains- and potential losses- will be muted.

With production costs rising, the miners of the precious metal have been forced to deal with shrinking profit margins. That fact has been exacerbated by the falling gold price. As such shares of gold producers like Barrick (NYSE:ABX) and Newmont (NYSE:NEM) have imploded over the last few weeks. To that end, shorting the various mining stocks could also make sense. The Direxion Daily Gold Miners Bear 3X Shares (ARCA:DUST) provides a leveraged way to short the popular Market Vectors Gold Miners ETF (ARCA:GDX). Like GLL, DUST has surged as the price of gold has dwindled.

SEE: The Midas Touch For Gold Investors

Bottom Line
With the improving global macroeconomic picture taking some of the luster away from gold, investor enthusiasm for the precious metal has been falling by the wayside. For portfolios, that could mean it's time to get short the metal. The previous ETFs along with the VelocityShares 3x Inverse Gold (ARCA:DGLD) make it easy for investors to do just that.

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5 Forex Day Trading Mistakes To Avoid

In the high leverage game of retail forex day trading, there are certain practices that, if used regularly, are likely to lose a trader all he has. There are five common mistakes that day traders often make in an attempt to ramp up returns, but that end up resulting in lower returns. These five potentially devastating mistakes can be avoided with knowledge, discipline and an alternative approach. (For more strategies that you can use, check out Strategies For Part-Time Forex Traders.) TUTORIAL: Forex

Averaging Down
Traders often stumble across averaging down. It is not something they intended to do when they began trading, but most traders have ended up doing it. There are several problems with averaging down.

The main problem is that a losing position is being held - not only potentially sacrificing money, but also time. This time and money could be placed in something else that is proving itself to be a better position.

Also, for capital that is lost, a larger return is needed on remaining capital to get it back. If a trader loses 50% of her capital, it will take a 100% return to bring her back to the original capital level. Losing large chunks of money on single trades or on single days of trading can cripple capital growth for long periods of time.

While it may work a few times, averaging down will inevitably lead to a large loss or margin call, as a trend can sustain itself longer than a trader can stay liquid - especially if more capital is being added as the position moves further out of the money.

Day traders are especially sensitive to these issues. The short time frame for trades means opportunities must be capitalized on when they occur and bad trades must be exited quickly. (To learn more on averaging down, check out Buying Stocks When The Price Goes Down: Big Mistake?)

Pre-Positioning for News
Traders know the news events that will move the market, yet the direction is not known in advance. A trader may even be fairly confident what a news announcement may be - for instance that the Federal Reserve will or will not raise interest rates - but even so cannot predict how the market will react to this expected news. Often there are additional statements, figures or forward looking indications provided by news announcements that can make movements extremely illogical.

There is also the simple fact that as volatility surges and all sorts of orders hit the market, stops are triggered on both sides of the market. This often results in whip-saw like action before a trend emerges (if one emerges in the near term at all).

For all these reasons, taking a position before a news announcement can seriously jeopardize a trader's chances of success. There is no easy money here; those who believe there is may face larger than usual losses.

[youngfx]

Trading Right after News
A news headline hits the markets and then the market starts to move aggressively. It seems like easy money to hop on board and grab some pips. If this is done in a non-regimented and untested way without a solid trading plan behind it, it can be just as devastating as placing a gamble before the news comes out.

News announcements often cause whipsaw-like action because of a lack of liquidity and hair-pin turns in the market assessment of the report. Even a trade that is in the money can turn quickly, bringing large losses as large swings occur back and forth. Stops during these times are dependent on liquidity that may not be there, which means losses could potentially be much more than calculated.

Day traders should wait for volatility to subside and for a definitive trend to develop after news announcements. By doing so there is likely to be fewer liquidity concerns, risk can be managed more effectively and a more stable price direction is likely. (For more on trading with news releases, read How To Trade Forex On News Releases.)

Risking More Than 1% of Capital
Excessive risk does not equal excessive returns. Almost all traders who risk large amounts of capital on single trades will eventually lose in the long run. A common rule is that a trader should risk (in terms of the difference between entry and stop price) no more than 1% of capital on any single trade. Professional traders will often risk far less than 1% of capital.

Day trading also deserves some extra attention in this area. A daily risk maximum should also be implemented. This daily risk maximum can be 1% (or less) of capital, or equivalent to the average daily profit over a 30 day period. For example, a trader with a $50,000 account (leverage not included) could lose a maximum of $500 per day. Alternatively, this number could be altered so it is more in line with the average daily gain - if a trader makes $100 on positive days, she keeps losing days close to $100 or less.

The purpose of this method is to make sure no single trade or single day of trading hurts the traders account significantly. By adopting a risk maximum that is equivalent to the average daily gain over a 30 day period, the trader knows that he will not lose more in a single trade/day than he can make back on another. (To understand the risks involved in the forex market, see Forex Leverage: A Double-Edged Sword.)

Unrealistic Expectations
Unrealistic expectations come from many sources, but often result in all of the above problems. Our own trading expectations are often imposed on the market, leaving us expecting it to act according our desires and trade direction. The market doesn't care what you want. Traders must accept that the market can be illogical. It can be choppy, volatile and trending all in short, medium and long-term cycles. Isolating each move and profiting from it is not possible, and believing so will result in frustration and errors in judgment.

[norway01]

There are many mistake of Forex trading of traders. Trader should avoid there greed at first. Then they should trade in Forex learning and also experiences. They can trade in Forex with patience.

[youngfx]

How to Avoid the Top 10 Most Common Forex Mistakes

The most common mistakes made in forex options are the result of the trader not keeping to his budget, not following his strategy and instead of making well researched decisions begins to get emotionally involved in his decisions.

For example a trader who has some success suddenly believes that he can predict forex prices in advance. This is taking fundamental analysis to the extreme. Stick to the economic calendar and study the data that will be announced. Watch interest rates, unemployment numbers and other important economic data and make informed decisions, not predictions.

Relying on science alone won’t make you money. There are hundreds of vendors selling systems based on Gann or Fibonacci claiming that their systems are accurate and foolproof. Don’t believe them. Use Gann and Fibonacci as a part of your technical analysis but not as a scientific method to predict the market.

Many traders believe that using every indicator that exists they have a better chance of making money. By doing this they are over complicating the elements that lead to a signal. Keeping it simple works better and produces more accurate signals. Use 2 or 3 indicators no more.

How many effective forex traders use lagging indicators such as moving averages as leading indicators and wonder why they are losing money. Make sure you know the uses of both lagging and leading indicators.

Losing traders make the mistake of thinking that day trading movements indicate trends. This is not true. Short term price movements are random and trading short term movements as a long term strategy will lose you money.

Don’t be lulled into thinking that the more you put in the more you will take out. Trading is about timing and working smart, not working hard. Learn the forex trade, get a good mentor and trade smart.

Don’t trade a news story after it has been announced. Once announced it is an old story and would have been already discounted in the price.

Many traders fail to read the small print which says ‘simulated in hindsight’ when they buy trading systems on the internet. Don’t touch these systems as the small print means that the track record was manufactured after the events.

Another mistake traders make is to over leverage. Using high leverage such as 400:1 means that you have to take less risk per trade. Lower your leverage to 100:1 and take more risk per trade.

Using stop loss and trailing stops is prudent. However having a stop loss too close to your traded price is risky and you will be taken out by market noise. The same goes for trailing stops. Don’t run them too quickly otherwise you will not make a profit.

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Forex Trading – 7 Rules To Succeed

Forex trading success isn’t easy to achieve. It’s a matter of studying hard, having a lot of patience and commitment. The following 7 rules will allow you to be on track and make high and consistent profits.

1 – The minimum deposit requirement: A lot of Forex brokers allow you to open a trading account with a very small amount. Although this is a great advantage since it allows all individuals to participate in the Forex market, it may not be such a good idea to open your account with such a low amount. If you decide to open your account with the minimum required by the broker, usually you’ll end up opening extremely large positions when compared to your opening balance. Rather, you should try to open your account with a strong amount and start trading smaller.

2 – Getting a Forex system without seeing it’s actual performance: There are a lot of Forex systems, either manual or automatic, available in the Internet. Some show you the performance they’re currently achieving, others show you their past performance only, and others don’t show you any performance at all. Keep in mind to run from this last ones. Why should you get a Forex system that you can’t even see if it works before you get it, when you have so many different options to choose from? Also, a helpful thing you can do is to go to a Forex reviews website, and see what other traders feel about that particular system. If the system is well rated by other traders, then it might be a good solution for you too.

3 – Using stop losses: A lot of traders simply don’t like stop losses. If you’re one of them, you might want to reconsider. The stop loss, when used effectively, will help you limit your losses, and allow you to keep focused on whatever strategy you’re using. Otherwise, your emotions will almost certainly come into play, and you’ll end up losing more than if you had previous set a stop loss.

4 – Keeping a trading diary: All professional Forex traders have one, and this means that if you want to succeed in this market, you need to have one as well. Make sure you annotate all your thoughts and insights about all the trades you make as well as take some time to go through it. A trading diary is a highly effective way for you to learn from your mistakes and improve your chances of success.

5 – Having a trading plan: This is essential for any kind of business, and this is how you should treat Forex trading. You need to have a well-detailed plan, and stick to it. Remember that having a good trade is one thing, but in order to have some consistency, you need to know what you’re doing and what your ultimate goals are.

6 – Picking tops and bottoms is useless: Yes, there are a lot of Forex systems out there that try to pick tops and bottoms to give an entry signal. But they’re not the most reliable though. In order to get some consistency, you should rather be paying attention to the trends that are being formed and targetting the best entry price.

7 – Trading adrenaline: Most Forex traders fail because they’re simply looking for the adrenaline of a quick trade. This will make them overtrade, and just not knowing when to stop. Trading Forex involves patience, not only when you’re looking for a good trade to enter but also when you’re in a trade.

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How To Adjust Your Portfolio In A Bear Or Bull Market

Investment success generally hinges on long-term thinking; however, most investors can’t help but worry about day-to-day shifts with their portfolios. Some of that worry is certainly justifiable given the recent increases in volatility over the last few years. Truth be told, both bull and bear markets are completely dissimilar animals and behave quite differently.

While investors shouldn't completely change their long-term plans at the drop of a hat, making simple adjustments to a portfolio can help cushion losses or exaggerate gains. Even the smallest retail investor can benefit from making some tweaks to his or her portfolio allocations, depending on the market, and see results. Bull or bear, there are chances to move with the market’s flow.

Volatility Reigns Supreme
History has shown that the stock market and the economy move in cycles that repeat over and over; therefore, understanding the different stages of the economy can help guide your investment decisions. Market conditions come in two flavors: bull and bear. Each comes with their own set of nuances.

Bull markets are generally defined as periods when investors are showing immense confidence. While, technically, a bull market is a rise in value of the market of at least 20% - such as the huge rise of the Nasdaq during the tech boom - most investors apply a much looser meaning to the term.

Indicators of this confidence include rising stock prices and surges upward in major market indices like the venerable Dow Jones Industrial Average (NYSE:DIA). Conversely, safe-haven assets, like gold and bonds, will fall by the wayside in the face of a bull market. Additionally, the volume of shares traded is higher, and even the number of companies looking to tap the equities market via IPOs increases. Other economic factors such as consumer confidence, natural resource demand and better jobs data all play into this confidence.

On the flipside, bear markets are simply the opposite of a bull: a market showing a lack of conviction. Stock prices drift sideways or fall, indices fall and trading volumes are stagnant. At the same time, brokerage cash and bond balances generally are higher, headlines in your local newspaper's business section turn pessimistic, and all in all, investors feel less confident about the near future. While a few up or down days don't make a bull or bear market, two weeks or so of stock surges or declines could signal what kind of market we’ve now entered

[youngfx]

Adjusting for a Bear
Given that a bear market is all about a lack of confidence in the economy, investors should turn toward safe havens during this period. That could mean adjusting the percentage of bonds you hold upward. Essentially, a bond is a fancy IOU that companies and governments issue to fund their day-to-day operations or to finance specific projects.

Bonds are less likely to lose money than stocks are and can reduce your portfolio's losses during stock market declines. Secondly, bonds pay interest regularly, so they can help generate a steady, predictable stream of income from your savings in bad times. Adding a fund like Vanguard Total Bond Market ETF (NYSE:BND) or iShares Barclays 20+ Year Treasury Bond (NYSE:TLT), which both bet on high quality bonds, can be used to quickly gain access to the asset class. (See The Advantages of Bonds.)

At the same time, focusing on blue chip stocks could prove fruitful in bear markets. Blue chips are better equipped to handle any possible downturns in the market and their bulk offers advantages in a slowing and uncertain economy. These advantages include their larger dividends, ability to acquire floundering smaller competitors and lower volatility. The Guggenheim Russell Top 50 Mega Cap (NYSE:XLG) is a prime play on larger firms.

Finally, there are some alternatives investors can bet on to tackle the bear. Shorting stocks through an inverse ETF or adding bear market mutual funds could provide short-term relief from dwindling stock prices. At the same time, betting on market volatility or its “fear” through a vehicle like the iPath S&P 500 VIX ST Futures ETN (NYSE:VXX) could make sense.

Let the Bull Run
Given all the euphoria that surrounds a bull, investors should feel confident to take on more risk. That means loading up on stocks with dodgier profiles. Certain sectors like energy, consumer discretionary and basic materials and/or commodities producers all do much better when the economy is cooking. These sectors tend to do exceptionally well during bull markets; overweighting them through various sector ETFs is a good idea.

Then there are emerging markets to consider. Given the fact that many of these nations are still going through their “growing pains,” stocks located in China or Brazil are considered a riskier bet than, say, multinationals in the United Kingdom or Germany. As such, funds like the iShares MSCI Emerging Markets Index (NYSE:EEM) tend to surge when the bull is running.

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Finally, even in fixed income there are bull market plays. High-yield or junk bonds' return profiles have more in common with stocks than traditional bonds. At the same time, high-yielding real estate investment trusts (REITs) or pipeline master limited partnerships (MLPs) offer a chance to participate in rising stock prices as well as collect big dividend checks. A fund like the SPDR Dow Jones REIT (NYSE:RWR) is perfect bull market fodder.

The Bottom Line
While investors shouldn't feel compelled to change their portfolios radically in reaction to the market's daily moves, small adjustments in the face of a bull or bear market could be a prudent move. Adjustments to how the market perceives risk could save investors from catastrophic losses or help create exaggerated gains.

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Right knowledge and right timing are the main secrets to forex success. A client with a good knowledge and right timing in this kind of trading will surely go to the winning side always. Lately, the forex market were flooded with the ultra rich traders, making it seem unaffordable for an ordinary trader. Trading units in the early years were too large to handle by the ordinary investor. Foreign exchange brokers broke down those large inter- bank trading units, allowing more people to engage in such kind of trading .To know the secrets to forex success we must fully analyze and understand its basics.

In the forex trading market, trading is done from one currency to another. It is very much affected by the trend in the international trade, the business elements, as well as the political and current events of countries that are involved in this kind of trading. A country's currency may go up or down. Anticipating the ups or downs in the currencies of the countries being watched, an investor can gain profit and this is the main secret to forex success. Knowing what currency will go down as against another currency sure profit can be achieved.

Currencies are always traded and prices were compared with each other in forex trading, It is understood that the currency that is listed first is the stronger of the two. For example in GBP/$ , it means that the British pound is dominating against the U.S. dollars. Just an example that today's trading the value of one U.S. dollar is equivalent to 1.9534 of British pound, meaning one pound is equal to 1.9534 U.S. dollars. Another secret to forex success is that depending on which currency will gain strength that day, a trader can buy any of the currency he wants to start the trade, and then once that currency moves he might sell that contract back and take his profit from the trade. Sometimes a trader decides not to execute trading or buying of the currencies he had in closing the trading, and this is called an open position. This is another safe secret to forex success.

In forex market. The values of currencies are good up to the fourth decimal place. For example, the GBP/ $ can be bid at 1.9534 and sold at 1.9537. Trade profits are called "PIPS" meaning "percentage in point". A pip is the smallest unit of currency change in the forex market. For most pairs this is equivalent to 0.0001, meaning one over one hundredth of one percent or simply one basis point.IN the given example the achieved spread is 3 pips wide. Exempted form this kind of valuation is the Japanese yen (JPY) having a currency value of only up to the second decimal place. For example currency trading between U.S. dollar and Japanese yen is $/JPY is 1 : 117.89 meaning one U.S. dollar is equivalent to 117.89 Japanese yen.The secrets to forex success is different from secrets in winning at the stock market.

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Advantages Of Forex Market

Forex market is one amongst the largest financial markets of the world. Basically, this market deals in real time exchange of currencies of different countries. It has a greater number of buyers and sellers, than in any other financial market of the world. Forex is the only financial market, which is open 24 hours a day, 5.5 days a week, across the globe. This market is one of the most popular speculation markets, and is well known for its huge volume, superior liquidity, as well as the steady trading prospects. There are many advantages of forex market. By trading in this market you can make a large amount of money in a short period of time. One should be well aware of the benefits of forex market so as to earn profitable amount of money while trading.

Some of the great advantages of forex market are given below:
High leverage

The first unique feature of forex market is its high levels of leverage. Starting from a minimum of 100:1, this market offers a great amount of leverage, which implies that you can produce large profit by investing small amounts of deposits. This is one of the greatest advantages of forex trading.
No commission

Another great forex market benefits is that forex trading transactions actually have no commissions apart from the natural market difference i.e. spread. Spread is the difference between the prices of a supply and demand. The retail transaction cost is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be less than 5 pips, and may widen considerably in fast moving markets.
24 hour market

Forex market operates 24 hours five days a week. This flexible trading hour gives many traders a great opportunity to trade in the market in their own desirable timings. It is also beneficial for those traders who want to trade on a part time basis since they could select their own timing to trade whether it�s morning, noon or night. Yet this is one of the other benefits of forex market.
High liquidity

One of the other unique advantages of forex market also includes its superior liquidity as compare to other markets of the world. Forex trading stop orders could be carried out more simply and also with less slippage. The forex market is open 24 hours a day and 5 days a week. This makes forex trading more liquid and permits forex traders to take benefit of trading opportunities as they happen rather than waiting for the market to open the next day.
Profit potential in both rising & falling markets

Currencies in forex market are always quoted in pairs. This enables you to find great chance to make money in anytime, regardless of the fall or rise period of one single country currency. In every open forex position, an investor is long in one currency and shorts the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that potential exists in a rising as well as a falling. However, the ability to sell currencies without any limitations is one of the distinct forex market benefits.

Get the above advantages while trading in the forex market

[youngfx]

Advantages Of Forex Market

Forex market is one amongst the largest financial markets of the world. Basically, this market deals in real time exchange of currencies of different countries. It has a greater number of buyers and sellers, than in any other financial market of the world. Forex is the only financial market, which is open 24 hours a day, 5.5 days a week, across the globe. This market is one of the most popular speculation markets, and is well known for its huge volume, superior liquidity, as well as the steady trading prospects. There are many advantages of forex market. By trading in this market you can make a large amount of money in a short period of time. One should be well aware of the benefits of forex market so as to earn profitable amount of money while trading.

Some of the great advantages of forex market are given below:
High leverage

The first unique feature of forex market is its high levels of leverage. Starting from a minimum of 100:1, this market offers a great amount of leverage, which implies that you can produce large profit by investing small amounts of deposits. This is one of the greatest advantages of forex trading.
No commission

Another great forex market benefits is that forex trading transactions actually have no commissions apart from the natural market difference i.e. spread. Spread is the difference between the prices of a supply and demand. The retail transaction cost is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be less than 5 pips, and may widen considerably in fast moving markets.
24 hour market

Forex market operates 24 hours five days a week. This flexible trading hour gives many traders a great opportunity to trade in the market in their own desirable timings. It is also beneficial for those traders who want to trade on a part time basis since they could select their own timing to trade whether it�s morning, noon or night. Yet this is one of the other benefits of forex market.
High liquidity

One of the other unique advantages of forex market also includes its superior liquidity as compare to other markets of the world. Forex trading stop orders could be carried out more simply and also with less slippage. The forex market is open 24 hours a day and 5 days a week. This makes forex trading more liquid and permits forex traders to take benefit of trading opportunities as they happen rather than waiting for the market to open the next day.
Profit potential in both rising & falling markets

Currencies in forex market are always quoted in pairs. This enables you to find great chance to make money in anytime, regardless of the fall or rise period of one single country currency. In every open forex position, an investor is long in one currency and shorts the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that potential exists in a rising as well as a falling. However, the ability to sell currencies without any limitations is one of the distinct forex market benefits.

Get the above advantages while trading in the forex market

[zuhaibsafdar]

Yes , i am agree with you because it is a very big business and in this business we take risk which is necessary in this business so if we on mistake and face loss then after it we realised of this mistake and then we don't do this mistake so i think when a man face loss by mistake in forex , he got experience more about forex .

[Delhi]

mistakes throughout forex I'm sure it will be could generally all of us practical knowledge and even mistake it will eventually constantly proceed through the item all over again repeatedly and it is tricky not to do it again a similar mistakes and thus a lot of forex professionals exactly who point out that if you wish to properly management on their own.

[rijve27]

there are many new trader who are very curious to make money fast they are lose money easily and there are some trader who are very greedy to make money they are lose money in Forex business.

[kaldizar]

thank you for the precious info it really helps knowing about all the trad mistakes in order to avoid them in the future

[munni]

there are many trader who are make many mistake in Forex business and it is they are want to make money fast to be a earn money and be rich and they do no practice in demo .

[lutfun]

Forex is very sensitive business here you can easily lose money if you greed there and most of the trader are very greedy to make money fast so they fail to earn money .

[hamza4916]

One of the biggest mistake that trader make is Pre-Positioning for News
Traders know the news events that will move the market, yet the direction is not known in advance. A trader may even be fairly confident what a news announcement may be - for instance that the Federal Reserve will or will not raise interest rates - but even so cannot predict how the market will react to this expected news. Often there are additional statements, figures or forward looking indications provided by news announcements that can make movements extremely illogical.

[abeeha1]

thank you so much for sharing such a detailed and informative article it is enhancing others knowledge and a expert trader should also read this in my view all the traders should be aware of the fact that they are doing trading on right time or not, should have good knowledge about trading, should take away their greediness,fear and emotions.

[japor101]

Man is not high from mistakes so Forex mistakes is not sins. I know Forex is a good site for all person who try for income or business. It is easy for all so invite other person.

[lutfun]

many newbies are make many mistake and most of them are greedy to make money fast so they fail to earn money and they do not practice in demo very well.

[akber90]

I think the mainly joint take for in Forex is to trade with impatience and indiscipline.We mostly assorted for the reason that of greed and be scared of.Lack of education and experience is in addition major rationale.If we desire to earn reliable profit in Forex afterward we requisite trade using decent strategy....................

[shafqatirshad]

people in forex do a so much mistakes and their mistakes is bad for them they loss a money in this way. their lack of knowledge; do not follow forex rules; do not take a demo and not experience in forex. there are many mistakes people do.

[zewara]

mental test of will in time loss, as loss if he got up again or give up. when a loss most people would choose to give up, but if he did again, never give up, like if you lose today, to learn more. many people became great because of the attitude of never give up, but a lot of losers who were born because the attitude is always to give up.

[norix]

mental test of will in time loss, as loss if he got up again or give up. when a loss most people would choose to give up, but if he did again, never give up, like if you lose today, to learn more. many people became great because of the attitude of never give up, but a lot of losers who were born because the attitude is always to give up.

this way the trader when faced the lost Become hopeless and try to leave this business, markets with no stoploss it really is among the even worse point the actual investors do this when they Prevent this kind of errors

[andriarto]

error in forex I guess that we are too aggressive and greedy. it is very dangerous for ourselves for being bomerang for us. as it also usually we menagndalkan feeling, it is also very dangerous for us

[samdanihossain]

I was talking about, one that becoming an expert at something is the best way to manage it in a pan to make money in a very powerful and effective way become expert in Forex.

[fxrafi4]

in purpose one I mentioned that turning into a specialist in one thing is that the best thanks to master it pan create cash at it well the foremost effective and effective thanks to become a specialist within the field of Forex..............

[samdanihossain]

well in Forex business there are many mistakes and the main reason is the greed and many trade trade it like a game but they are easily lose money here .

[fibo]

mental test of will in time loss, as loss if he got up again or give up. when a loss most people would choose to give up, but if he did again, never give up, like if you lose today, to learn more. many people became great because of the attitude of never give up, but a lot of losers who were born because the attitude is always to give up.
Yes right patience trader will do better in forex trade, and this is true. Forex is such a trade where risk of loss exists in every step of trading. Especially patience is very important while trading; because of unmindful trading for a while can be the cause of great loss.

[toutik]

Make money on beautiful at best and a powerful solution for becoming experienced in a fix position within a single we are talking about what is going to be a professional in the ultimate way to improve something in a pot.

[erkin]

mental test of will in time loss, as loss if he got up again or give up. when a loss most people would choose to give up, but if he did again, never give up, like if you lose today, to learn more. many people became great because of the attitude of never give up, but a lot of losers who were born because the attitude is always to give up.
In forex i think to be a trade we just took a few minutes did not take long, but to be a good trader we need a long time and it's also a challenging journey through our emotions, it is difficult to achieve.

[dareking]

Bhai aapne jo screen shot ko share kara hai, wo kafi achchi information hai, jo aapne candlestick ke bare mein kafi achcha bataya hai, aur usse bhi achcha jo aapne article share kiya hai, wo successful hone ke liye bahut jaruri hai.

[mansoorlund]

janab brother ap ne jo hmain ya maloomaat farahim ki hai ya forex trading ke bary main bohat aham information hai jo ke aik kisi bhi trador ke lea bht aham hai is screen shot pe jo maloomaat hai is se hamain bharpoor faida hasil hoga or is se hmain bharpoor faida hasil karna chahea or isi mai main hamari kamyabi hai.

[abosheffa]

among the sin we've within forex is usually to make certain that i'll deal all very well and also guarantee that i am making big money on the market place like that all of us will certainly all have the opportunity to make certain that we've traded in quite enough.

[mkb]

Fear, greed and emotions are the three common mistakes in forex trading. Moreover indiscipline, lack of confidence and implementation of wrong strategy in trading are also very fatal.

[vodo]

i think access along with the quit position tend to be the key think the actual speculator should choose the best access along with the quit position usually the item turn out to be very hard to have the achievement.

[kanchan]

owo I have no experience about that but I read all of comment and learn many things from here... whatever I will try to learn about all information about forex trade. thanks a lot

[sikhendy]

forex is not mistakes and sins, through forex many people gain their profit and build their own wonderful life. if we understand deeply what forex can be done for us, i know everyone would say forex is very helpful and useful...

[ludric]

To minimize our mistakes demo trading is our first step before going live trading but we must have good knowledge first about the basic of the market so that we are trading with a good chance of success...

[tigase]

yak knowledge sharing were very helpful from you, and I think for most beginners is greed where beginners are eager to get rich quick and a very large open lot, but they are just a beginner in forex trading, they are not aware of a large open lot even make large losses, they believe if they win in forex trading is easy but it is not easy.

[crestex1122]

forex trading is very risky business and many poepole fail due to greedness and lack of knowledge so learn well to get good profit and also avoid gree xdand bad habits like lack of knowledfge poor plan and emotions .

[fxmoney]

Most of the time traders try to make same mistake again and again for many time so if they try to avoid such mistakes then they can make good amount of profit very easily. so they must have to avoid mistakes for every time.

[wabas]

mistake forex ma her trader karta ha shoti shoti mistake sa hum forex ma bohat loos ma chal jayte ha is laye mistake ko countrol karna chaye aur apni sins ko use kar ka market ma trade karna ho gai

[abcdeforex]

i think most dangerous mistakes is invest full capital by fall in emotion.Greed is also the major dangerous reason which can be the cause of lose.first dangerous mistake is people invest full capital by fall in greed which is the cause of their lose.they should control emotion.

[sdawadawa]

For me i am a new in forex markets and i can also follow many new trader are lose money easily because they are very greed in a real accounts when they are trade and they are not practices in the demo so they are lose money easily in forex markets !!

[schakinda]

For me i am a new in forex markets and i can also follow many new trader are lose money easily because they are very greed in a real account when they are trade and they are not practice in demo so they are lose money easily in forex markets !

[princeua]

A very nice explanation of Forex mistakes but major mistakes in the forex market is that this market does not like greedy traders who have here a lot of traders have greed for this reason lose money very quickly and without any hesitation and this error as possible be avoided.

[ArRozzak]

Every trader make mistake sometime, that make him to loss, both expert and un-expert make mistake, because mistake is part of human life, without making mistake, we can`t trade Forex and get out successful, i know that mistake that we do make us to loss, but if we don`t make a mistake on our trading, we will not know the exact place we are going wrong, so mistake let us to no where or how we are going wrong :yes2:

[Naseem123]

new comers have big mistaks that leads yto failure so avoid mistakes and the start trading you can avoid incase of learning well so learn well and then start trading and get good profit in some days.

[sdawadawa]

For me I am total believe on that concept from my core hart that if you didn't any mistake then you will really suffers a lot same like sins and every single time you will despond for yours previously mistakes. Hopefully we all will more careful in the forex market while placed our order because there is no chance to mistakes !

[dmdaknsxa]

I believe that every trader ofcourse have facing lost and a lot of the mistake during their trade in this bussines so i think better we trade properly to make sure that there is no mistake anymore at a time from us because too many mistake will kill you !!

[kdajnwa.dafgwa]

The forex and other business which is mostly done by the people of others the countries you have to controled some of the mistakes in the forex and the mistake some sins in the forex markets will lead you have to lose all your mney in the trding in order to predict the forex markete too much actual factors is needed !!

[schakinda]

For me My spouse and i mentioned of which learning to be a consultant in some thing is usually the simplest way to get good at the item pan generated incomes at the item well the tops along with useful means as a consultant in euro-scientific foreign exchanged !!!!

[ishvara]

I believe that many traders are sabotaging their trades in forex trading basically because of the fact that they make silly mistakes that makes them to lose in their trades. We should b steadfast in forex

[pakistan001]

Forex tread ma be mistake ho jate hia liken humay in ka khas khail rakhana ho ga.sb sa big mistakes ye hia ka ap ak account pa zyada ip open na karay warna ap ka bohat loss ho ga. number 2 pa ap question ka hulavay sa ans day. or apna work roz karay.

[midle]

forex trading is incredibly profitable only after apply on meta trader will not perceive the forms correctly in order that the candle will not have the confidence however if it may master the worth action then u huge profit in forex business.

[rahimmughal]

in forex trading mistake and sin are not acceptable when u mistake in trading u can lose all ur money in that trading aria so becase no mistake are allowed first to learn then to earn the ammount of forex

[gretos]

9. Over-trading / being too involved
I think in this case it may be true, and when we are over it may not be a good trade for our health and bodies can also be disrupted in terms of health, and when we can get a lot of profit, you should secure it to withdraw, and do not in hold-resistant, so you can enjoy the results of your trading

[DBC]

i believe forex trading is incredibly profitable simply after observe on meta trader will not perceive the forms correctly ensuring that the candle will not have the confidence however if it might master the value action then u huge profit in forex business.

[asif786]

App logon ne bahut hi achi information share ki hey. mare khiyal mian hum sub ko trading main careful rahna chhaiye. ham main kisi k pass bhi itn paise nhi hoty hen k wo loss ker sakain. es liy kam risk lie ker ache rules follow ker k apna thora sa profit bhi sahi hy takeh kamyab ho sakain trading main.

[dareking]

App logon ne bahut hi achi information share ki hey. mare khiyal mian hum sub ko trading main careful rahna chhaiye. ham main kisi k pass bhi itn paise nhi hoty hen k wo loss ker sakain. es liy kam risk lie ker ache rules follow ker k apna thora sa profit bhi sahi hy takeh kamyab ho sakain trading main.

haan bhai ye thread kafi achchi hai, aur kafi achchi ismein information share kari gayi hai, candlestick ke pinbar ke bare mein jo screen shot diya gaya hai, usmein kafi achchi tarah se explain kiya gaya hai.

[babar]

is forex men sins ke kafi zarurt hoti ha kun ka is ka bagir is men hum is kamyab nii ho skty is men mistaks bii ho jati hen but un ko theek krna chay

[thirupathi]

To make a diary of your trades to keep written on going track record of your progress. I cannot tell you guys with enough emphasis how important your trading journal track -record is except to say that if you dont keep a trading journal or at least regularly analyze your trading history and equity curve, you are extremely unlikely to every make consisten money in the mistakes.

[ashvi]

The common mistake which the traders make when they are trading in the forex market is that they get greedy to make some quick money due to which they forget the basic trading rules and thus they tend to fail in the forex trading business.

[bogelfx]

I do not understand what sin is doing forex trading, forex trading for me is a legitimate business, it is very different to gambling, so we do not do forex trading like a gambling game, it is very risky and not profitable

[kdajnwa.dafgwa]

For me i believe that the best thing to consider if you are the trading and a getting failures that failures are not always mistakes.The only mistakes that you produced in the forex markets is not subsequent your plan.I believe provided that you follow your strategy you're proper if that you do not you're wrong !

[shinji]

For me i believe that the best thing to consider if you are the trading and a getting failures that failures are not always mistakes.The only mistakes that you produced in the forex markets is not subsequent your plan.I believe provided that you follow your strategy you're proper if that you do not you're wrong !
We know in forex it is easy to earn money and make profit.Sometime forex traders as well as we got loss forex trading. The causes of losses are lack-age of knowledge about trading or business and if we don't analyze the market strategy and don't collect the update information about market than we have to face losses.to avoid losses traders should be follow the flowing causes.

[sdawadawa]

The complete not experience a trading logic is a major inaccuracy. If you complete not experience the trading a logics so importances that you will likely be trading based managed is the held fall apart.Experiences a trading logic wealth you experiences the guidelines and objectives and how to pull off a sunny goal in her trading !

[fibo]

As trader forex many things are necessary to make the good money.good learning , better education, and have a good experience about the forex is more necessary in the forex trade if you adopted all things then you become a successful trader...

[ashvi]

The main forex mistake and sin that the most of the traders do is to trade in the forex market without having any knowledge regarding the forex market. Also they trade without proper analysis of the forex market and improper money management.

[waqas1]

forex ma mistake ki waja sa trader loos kayta ha jo mistake ho jayti ha us ko countrol karye aur dobera aysi mistake na ho sins ka sath hum aci trade ker sakte ha is ko use ker ka ap ko market ma expert ho sakte ha

[Avenger]

Talk about cost activity dealing is very pleasant just after exercise on mt4 can not comprehend the types properly so that the candlestick does not have the assurance but if it can expert the cost activity can certainly profits in forex

[smoundawa]

The errors in the acting must have landed on all traders, just how the merchant does not make it to her repeatedly. because if it is not too often we get the rules out most or even all of us out without the remaining investments !

[andihaerani]

There aren't any sins on your trading even you do something wrong if you don't know what you do is wrong before you do your trading, but if you know what you do is wrong but you still do it, that is we called "sins". There are only mistakes that we have to learn from it as a part of our process to be a good trader, I guess so.

[mar1990]

a.o.a
~~!!@@@
trading mmain los ki boht see reason bnti hannn kun k yahh boht hee riskyy saa kamm hayy iss ki wjha syy trader ko trading mmain kamm krny k lyy boht hee carefull ho kk kamm krna chahayy ................ trading mmain jo sb syy phlyy mistake hoti hayy woo trader ka profit ko dakh krr greedyy ho jana ... lake off interest in trading ......... work on trading without take profit ........... no patient ............ no full educated in trading and no have more experience in trading ................ no hard working that's reasons are reasons off trading loss ................~~!!@@@@##

[mamakamrul]

A good book is a collection of traders is a mechanical trading system in the Web. By repeating history and expectations, to spend it? Many Forex trading for beginners. Simulation to know that Hong Kong is fast and easy. -But they do not know whether the transaction was difficult.

[3084]

Do you ever stop trading for a while after hitting a few losing trades just because you think if you �wait it out� your bad streak will endtrading in a forex market provides great opportunities to make some extra money. However, to be successful in forex trading, it requires discipline and proper learning to know how to trade Forex.

[fxmoney]

we can do any type of mistake while trading in the forex market so try to avoid such type of mistakes from your trading then you will able to improve your trading performance otherwise it is difficult to gain from forex.

[3084]

This is a BIG mistake; there is no logical reason to become less risk averse after a winning trade or more risk averse after a losing trade, because your previous trade does not determine the outcome of your next trade.

[jain.lavina22]

Wao what a great post you have done, its very knowledgeable and helpful for me, thanks for this mind blowing and such a long post of you, it has all the information about forex market which make me so aware about this market and trading, its really very helpful for beginners and for all

[ahmedreda]

Stop Sabotaging Your Forex Trading

Forex Traders have a tendency to sabotage their own efforts in the market, and most of them don�t even know they are doing it. The inherent paradox of trading is that the harder you try to make money or avoid losses, the more these things tend to elude you. This is something that you probably have noticed or felt via your own frustration in making money in the markets.

Do you ever enter another trade immediately after a winner closes out, and then later realize you sort of just jumped into the market without your edge or strategy being present?

Do you ever consciously risk more than you know you should on a trade, and then regret it as the trade immediately goes against you?

Do you ever stop trading for a while after hitting a few losing trades just because you think if you �wait it out� your bad streak will end?

As humans, our biology tends to interfere with our trading much more than we think. It has been proven that people become less risk averse after a winning trade or a series of winning trades, and more risk averse after a losing trade or series of losing trades, even if they are following an effective trading strategy to the T. This is a BIG mistake; there is no logical reason to become less risk averse after a winning trade or more risk averse after a losing trade, because your previous trade does not determine the outcome of your next trade. Traders tend to ratchet up their risk amount after winning trades because they feel euphoric and over-confident and it�s these emotions that will soon lead them to give back all of their recent gains, and probably more.
Stop giving back all your winnings

I�m sure you�ve experienced a nice winning streak in the market, and you were getting excited that your account was growing. Then, probably faster than you made that money, it was gone, and maybe even more. You were left feeling confused, angry, and frustrated. Then the self-doubt sneaks in, the self-criticism, and you might feel like you are just not cut out to be a trader. Does this sound familiar??

I can assure you this is actually �normal�, most traders go through a similar situation at some point in their careers. The reason it�s �normal� to give back your winnings to the market, is because we are actually biologically wired to do so.

� It�s a fact of human biology that we become less risk averse after a series of winning trades.*

� It�s a fact of human biology that we become more risk averse after a series of losing trades.*

� In reality, you aren�t any more likely to win after a winning trade or lose after a losing trade, assuming you are strictly following your trading edge / trading plan.

� If you are strictly following your trading edge and trading like a sniper, you are only going to decrease your profit factor by reducing risk after a losing trade, and you are only going to open yourself up to larger losses if you increase risk after a winner. Because you are NOT more likely to hit another winning trade just because your previous trade was a winner, nor are you more likely to hit a losing trade just because your previous trade was a loser. This is due to the random distribution of winners and losers that exists for any given trading method.

So, the reason you�ve given back a lot or all of your winnings in the market, is that it�s natural for us to feel more euphoric and over-confident after we make some money in the markets. We then tend to forget a little more about the risk on any given trade and focus more on trying to turn our recent winnings into even more; essentially this is greed getting the best of you. Similarly, when we hit a string of losers we tend to cut down our risk more than we should, or we become afraid to enter valid trade setups all together. This is also emotion getting the best of you; it has nothing to do with logic or reality, because in reality you are not more likely to lose on your next trade just because your last one was a loser.

I can�t even tell you how many emails I get from traders saying something like they �built their trading account up a decent amount and now are below their initial starting value�; almost every trader goes through this at some point. You have to decide if you are going to recognize that you are doing something wrong and try to fix it, or stop trading all together. We are all inherently flawed as traders, just because we are human, but we have the gift of a very powerful and highly-evolved brain that can overcome these flaws if we make a conscious effort to do so.
Stop second-guessing your trades

Top traders are always confident in any trade they take, because they know what their edge is, and they don�t trade unless it�s present.

Thus, top traders don�t second guess their trades, whether a trade results in a winner or loser, they fully accept the outcome before it happens and they don�t enter unless they�re confident that it�s a valid instance of their edge.

You never know �for sure� what is going to happen even though at times it can seem like you do. This fact alone accounts for most problems that traders face. It has been said that money management and trading psychology are the most important aspects of successful trading. This is true, but it�s also true that one�s trading method heavily influences their trading psychology, so you need to be sure you aren�t also sabotaging yourself by using confusing and overly-complicated trading systems. These trading methods can certainly cause you to second guess yourself, since you aren�t really sure how to enter or you have to line up 10 different indicators to find an entry signal.

Having a clear and clean trading strategy like price action will go a long to help you remain clear-headed and objective, and this will help to prevent you from committing the trading mistakes we discussed previously. We have to do everything within our power to avoid sabotaging our own trading efforts by giving into the emotion-laced temptations that we face in the markets. Trading with an uncomplicated yet highly effective trading strategy like price action will help us to put the odds in our favor.

we can say that making mistakes for any beginner trader is so useful to know more about this business and it is a great chance to improve your own skills and your own strategy and to improve your way to make profits .

[zubaircic]

well my dear very good there is a good article and informative for traders and especially of new beginners . If any trader read it care fully he learnes many points frome its which can help to become a good trader. I want to become this type trader if trader also. that my opinion that i explain.

[the-phantom]

Splendid in rank. Besides, an extra lone is what percentage traders approve of a mechanical Forex commercialism logic rancid the mess with a simulated track confirmation and expect it to induce on to them money? the majority of novice Forex traders fall professional this however of manner, a simulation created in savvy, knowing the finishing costs is simple - however commercialism not knowing them is that the difficult half.

[sangam]

well my dear very good there is a good article and informative for traders and especially of new beginners . If any trader read it care fully he learnes many points frome its which can help to become a good trader. I want to become this type trader if trader also. that my opinion that i explain.

We do make all sorts of mistakes while we are doing trades. The best thing we can do is to keep improving and also learn from the mistakes that we make in the past and get the benefits from this. Forex markets is not just about mistakes but also about learning and gains :)

[fxstar]

do demo trading again and again untill you can,t done well in demo trading for real trading set your mistakes in demo trading because in real trading we don,t have chance of mistake because we earn real money there and lost also real

[pangsa]

The first step to become your partner and he spoke to me in a few professionals more money on it, but a successful strategy for the control of this dish, but the euro has become a trade scientific Pro even better is usually the best.

[samdakdan]

Certainly that the common mistake which the traders makes when they are trading in the forex market is that they get greedy to makes some of the quick money due to which they forget the basic of the trading rules and thus they tend to fail in the forex trading business !

[jisamjam]

A certain level, I spoke to the specialist is the master of his NAP with a great way to make money doing this correctly in Forex specialist bivomi the most effective and efficient

[slato]

The purpose of I am the best by controlling the money to build the pot become an expert in something, is running fine and efficient thanks to the specialist in Forex bivomi

[harami]

NICE! He knows exactly what to write. As a result, in fact, perfectly presented without effort, you can easily visualize the person who claims the plodder. He said: I've always been the last a certain period of time, is one of the best things about online communities.

[mainka]

Common errors list believes that fast usually undoubtedly currency trading is some Exchange. But how nothing is true if the about Forex trading he was precisely that learning to learn in practice. Position, actually very quickly often before they considered completely jump complete with badly needed for much more money.

[redlif]

So beautiful and only editor really knows what he's trying to say that this may be one of the best articles I've seen in recent weeks at this stage.

[naim10]

I think these are the mistakes and sins of the forex .try trade without the knowledge of the company, without any planning, with greed, increasingly lucrative business, breaking rules seem bumpiness negotiations as a game and so on.If makes these mistakes and sins that can not be succeed in business.

[limon25]

At one point is only my husband and I to a specialist on some of the things are actually means the easiest to understand that pot to make money with it well, also as useful as a specialist in the field of Forex.

[mana03]

Thanks to the experts in the field of the exchange rate, and effective become money and the goal of a more powerful said to build a bread

[hellelali]

Personal life and forex trading is Two parallel universes, which in no way be be some time for forex, and a specific time for a personal life, nada keep this balance. But nada give preference to his personal life, since success in Forex depends on success on the personal side.

[samdakdan]

Certainly that the most common mistake in Forex is to trade with impatiences and the indiscipline.We mostly loose because of greed and fears...The Lack of the knowledge and experience is also major reason.If we want to earn consistent profit in Forex then we must trade using great of the strategies !!

[moimwoa]

Certainly that it's a very good thing to always review every trade, lost or the profit. What we seeks is to identify the strengths and weaknesses underlying the decisions to trade them. Truly, not all your good trades had the perfectly as a setup, neither did all your bad trades had faulty entry. Therefore the review must not be as a biased. You'll probably have better insights into trading your strategy better !!!

[hygtf]

The purpose, as I said, that an amendment to a specialist in the one thing is that the best thank you Sir to build money doing good thanks to a number of active masters in Forex expert.

[matelampu]

if you do not have a trading system meaning you will likely be trading based approach is said fall apart have a trading system means
you have the guidelines and objectives and how to achieve a clear goal in her trading.

[naija]

One of the common mistakes in forex is not planning money management before a trader makes decisions for trading. So with this, in the events of loss happening, it would results to high and unexpected losses.

[kalulu]

There are some mistakes that most tradeing personel does all the time when tradeing that is when you put too much tradeing that is they exposes them to too much of riskes

[h.jakir42]

The purpose, as I mentioned, due to the fact that the driver of the Pan deposits, thanks to the win at Forex expert professionals, to build a line of effective become

[karmina]

I find that the one of the typical currency the dealing errors are many peoples think that the currency dealing trading is an simple business. However, the truth is that it needs appropriate studying to procedure to know each and everything about how to business in foreign exchange industry. Because deals think it is simple, they often leap in before they are actually prepared and this outcomes in losing lot of cash needlessly !!

[Sara Khan]

One of the common mistakes in forex is not planning money management before a trader makes decisions for trading. So with this, in the events of loss happening, it would results to high and unexpected losses.

Common mistakes that are often done by most forex traders actually comes from internal errors such as a lack of discipline, impatient and greedy. but if we can control the psychological well, then the trading activity would be good and beneficial activities, for good psychological condition can minimize the chances of infestation such negative attitudes

[zitani]

trading without knowledge is like a blind man walking without a cane. knowledge we can from the education or training is not the main indicator that should be understood better. psychology play a huge role in trading. I experienced, the analysis is correct, but afraid to OP. it is often the case.

[dalowa.xabwa]

Certainly that These topics/articls are really very good and impressive and every one can easily understand what you say....And you works on its really as a regularly and you must follow the rules then you can earn alot r

[hussain837]

for mistakes you need to know that things will go for it also kno about how tings will go ft it so that things can get easier for you you to be also. sometimes you need to think about how long you know about how things iwll go foe it also.

---------- Post added at 08:28 PM ---------- Previous post was at 08:27 PM ----------

forex mistakeas are tken for it an need to keepthings about it near your self about thigns also need to know about it also about it also. sometimes you need to learn about how thindga can get goinf ro it also about things.

[loulou852]

The Forex may wohi log zyada faida othatay hay jo log apni ghaltio se seektay ki koshishes as a kertayes hayes or jo log apnis as a ghaltios se nahee seektay wo log hamesha loss kertay rehtay hays !!!

[ratna]

thanx lots. i scan your whole story. and also the stuff you wrote concerning forex mercantilism science, well it matches with my condition. i went through the similar state of affairs once facing some serious losses. i'm greatly benefited

[vona]

There are some mistakes that most tradeing personel does all the time when tradeing that is when you put too much tradeing that is they exposes them to too much of riskes

I think it does have a point, because it can make us kecapean difficult concentration and the decisions that we take so wrong, it made the account we have profit so the loss, so it is time we should remember, too, never too much trading because it was so bad for health, but if there's a chance we might be trading.

[liezang]

We can learn quick if we have a tendency to learn from our mistakes and therefore the expertise that we have a tendency to get from mistakes that we have a tendency to keep in mind for ever lasting. I take each mistake as mistake however once we met with constant mistake once more and once more at that point that's a sin for our commerce.

[krustnim]

Well, I mentioned the one goal to become an expert in one thing, that were created by the best cash Professor pan is the most effective and efficient with an expert in the field of Forex bivomi

[korek]

I think a slip-up in mercantilism there ar 2 sorts, initial of ourselves each from the skin. losses don't seem to be essentially wrong. the sole mistake you create in forex is to follow your arrange. i believe as long as you follow your arrange, you're right, if you are doing not you wrong. for that we have a tendency to should stay centered within the analysis. as a result of i believe plenty of traders create the error of carelessness yourself.

[sidra habib]

jahan tak mjhe forex ka pta hai or is bare me meri knowledge hai to us k mutabik forex aik pateform hai jo k trading k liye sab ko acha moka deta hai yahan kisi tarhan b hum ko ko thora sa b cheat nai ker sakty lekin business kerny kch rules hoty hain agr wo un logon ko pta chal jaen jo trading nai kerty wo un rules ko dosron ko dhoka dene k braber kahty hai lekin aisa nai hai isi liye forex kisi b tarhan koi mistake nai hai or na hi koi sin hai

[thirupathi]

To trading strategy like price action will go along to help you remain clear headed and objective and this will help to prevent you from committing the traidng mistakes we discussed previously. We have to do everything within our power to avoid sabotaging to our own trading effort by giving into the emotion.

[setiawanedi]

offenses that we do in forex trading is one of the most common offenses only. offense is certainly due to the lack of own experience we analyze the trading market that we do not pay attention to the movement of the market very well. The error occurred because often we rush headlong to want a big gain until we forget the main analysis.

[thirupathi]

To trades and follow some kind of written plan. i mean by anticipate your trades is to make sure you never jump in the market on a whim or without any predefined reason you want to always make sure you are basing your trades on logic and objectivity not irrationality and emotion.

[eyank-subur]

Not having a commercialism system could be a major mistake in forex. If you are doing not have a commercialism system, then you may tend to trade primarily based approach arguably and matted mess however may you expect success from a nasty technique. Traders United Nations agency have a commercialism system means that you have got the rules and objectives and a transparent manner of achieving goals in areas of commercialism. Having a commercialism system will increase the probabilities for achievement, as a result of you have got tips for entry, exit market or standing a aspect. In alternative words, you're positively on target to attain your goals.

[smoundaw]

Certainly taht there are as many new trader who are very curious to makes the money fast they are lose money easily and there are some traders who are very greedy to makes the money they are lose money in Forex business !!!

[dalowal152]

The large-scale mistake traders if trader or traders who have long wrestled with the worlds is so inseparables from the emotionals as a trading and trading administrations are really as directed . while this is still a allotment we met a trader who just understand about the world primarily in forex trading !!

[muna1982]

a lot of advice to make aware about the loss in forex. i think we have to keep them in mind and execute in right time. forex is a uncertain market so it is not possible to trade here without mistake i means loss. to make our trading profitable it is necessary that we must make a good strategy of trading which is profitable enough. the price action strategy is a very good one but need to understand well.

[wickybaba]

Sins and mistake in our daily trade
1)Buying at the top.
2)Sale at the bottoms.
3)Growth leaders sale.
4)Growth leaders buying.
5)Fall leaders buying.
6)Fall leaders sale.
7)Buying of past growth leaders, recently fallen.

[fakher]

I think these are the mistakes and sins in Forex. try to trade without having business knowledge Without any planning having greed try to more and more profit disobeying business rules seem trading as gambling and so on..........

[nanoni]

Trading supported value actions will so create an enormous profit as a result of during this method ready to} grasp the trend merchandiser normally simply to be able to perceive the worth actions isn't simple for novice traders

[burq]

Wow i dont get ur point

[mutokhir]

It's a superb factor to forever review each trade, lost or profit. What we tend to request is to spot the strengths and weaknesses underlying the selections to trade them. Truly, not all of your sensible trades had the right setup, neither did all of your unhealthy trades had faulty entry. so the review should not be biased. you will likely have higher insights into commercialism your strategy higher.

[msg abbassi]

ap forex men mistakes sy sikh sakhty hein aor ap ka loss be hota hai mistakes sy pr ap agr in sy sikhen to ye ap k liye faida man be sabit hoti hein aor hamen sikhna chaiye mistakes sy ..

[hamadraza]

this is the good article simple language and clear words i appericiate for this type of language. because any person who knows littel english can also understand about what you want to say.

[ajk92]

make mistake in forex and loss money is not sins but a weakness of forex trader, we must throw out our weakness by increase our skill and become smarter in forex trading day by day. so sin in forex if we trade forex in order to do money laundry.

[hemavallika]

mainly mistakes in market movement time opening many orders ..this is very big problem for all trading ..

when losing the money time open many order ..

not control the his emotion ..

not maintaing money management and risk mgmt...

[ee1234w]

Purpose, I even mentioned to become a specialist in the one thing best thanks to master Mr. to build money doing good thanks to a series of effective become expert in Forex

[babar butt]

if you are mistake in this platform so you are loss in this platform becoz it is already risky platform if you are mistake in it so you are huge loss in it it is a real platform in all over the world

[karimforx13]

hloooo Discuss price action trading is very enjoyable just after practice on metatrader can not understand the forms correctly so that the candle does not have the confidence but if it can master the price action can certainly profit in forex
thnaks and good luck... ^^

[rajasingh]

To learn from out mistakes and the experience that we get from mistakes that we remember for ever lasting. I take every mistake as mistake but when we met with same mistake again and at that time is sin for our trading you can stay at home in the office or in a cafe and carry out transactions at forex mobile phone.

[shoaib515]

yes i believe that The bulk of novice forex traders fall for this but of course, a simulation done in hindsight, knowing the closing prices is easy but trading not knowing them is the hard part for earning and trading .

[bolbol_07]

once more thing to add which is trying as much as possible not to allow our needs and wants affect our trading decisions.

[kkdanwa]

I see that Bhais as a aapnes as a jos as a screen shot ko share kara hai, wo kafi achchi information hai, jo aapne candlestick ke bare mein kafi achcha bataya hai, aur usse bhi achcha jo aapne article share kiya hai, wo successful hone ke liye bahut jaruri hais !!

[jibrahom]

Certainly that Fear, greed and emotions are the three common mistakes in forex trading. Moreover indisciplines, lack of the confidences and the implementations of the wrong strategy in trading are also very fatals really !!!

[Maswood]

Purpose, as I have mentioned, will be a specialist in the one thing is that the best thank you master Mr. Create money that well thanks to a series of effective become an expert in Forex.

[kash4455]

i think forex have no mistakes it provides a lot of profit from trading business.lyken jab ham is par work karty hain to hmari apni galtiyon ki waja se loss kar jaty hain is main forex ki koe mistake nahi hoti.

[dkdaolwa]

The Fear, greed and emotions are the three common mistakes in forex trading. Moreover indiscipline, lack of confidences and the implementations of a wrong strategy in trading are also very fatals !!

[ibnkhdasajwa]

For me I am total believe on that concept from my core hart that if you didn't any mistake then you will really suffered lot same likes as a sins and every singles times you will despond for your previous mistake. Hopefully we all will more careful in the forex market while placed our order because there is no chance to mistakes !!