The currency trading tips enclosed ,are simple and easy to understand and can help you avoid the 95% of traders who lose money and enter the elite 5% who make big consistent profits.
Let’s first start with some tips which will help you avoid the losing majority and top of the list is don’t follow Forex robots or any of the other cheap get rich quick systems which promise a huge income and no effort – they don’t work! If they did 95% of traders wouldn’t lose money and everyone would be a trader – these systems cost so little because they don’t work!
Next on the list of things you shouldn’t do is – don’t learn to much and try and be to clever. In many jobs you get paid for effort in Forex trading, you get paid for results only and the good news is you only need a simple trading system to win.
The fact is simple systems are more robust, than complex ones which have to many elements to break. Forex trading education is all about focusing on the RIGHT knowledge, not knowledge for the sake of it.
You can easily put together a simple, robust Forex trading strategy, in a few weeks and once you have done this, you come to the key currency trading tip which will lead you to success and its having the discipline to trade your system. Discipline is essential because if you don’t have the discipline to trade your system as it should be traded, you don’t have a system at all!
The reason discipline is hard is because we all have egos and emotions and when traders hit losing runs, they let their emotions come into play – they start to hold losses and hope they turn around, trade more than they should to get losses back or they keep changing systems.
The main point to keep in mind is – any system at some point, will hit a long period of losses but this won’t stop you making a lot of money long term, so long as you have the discipline, to keep them small and keep your equity intact.
When trends re-emerge you can then run your profits to cover your losses and make a great overall profit. See taking small losses, as your overhead ( all businesses have them) and don’t let your ego get involved. Take your losses and keep them small and if you do, the market will reward you with big trends you can run for profit.
Anyone can learn a simple trading system and that’s all you need to win – but you must combine this with the discipline to apply it and while it is hard to trade with discipline, if have the confidence from a solid currency trading education, you can trade in a disciplined fashion and make yourself a great second income in around 30 minutes a day.
No other industry, can reward you so highly for your effort and we hope these currency trading tips can point you in the right direction for success.
By: Samuel Leslie Berkovits
Posts Tagged ‘Emotions’
Currency Trading Tips – Essential Tips to Enter the Elite 5% of Winners Who Make Huge Profits
March 18th, 2010The Real Secret to Day Trading Forex Currency
February 9th, 2010
You want to know the real secret to day trading forex currency? Well, here it is: Confidence and understanding of the market. There you go. There’s your real holy grail. If you can accomplish these two feats then you can write your own paycheck. Happy? Ok, so you probably need a little more information. Fine. Here it is:
Confidence! I cannot begin to tell you how many forex traders in the world are having anxiety attacks watching their trades just as I am typing. If you can’t handle a trade or trading or in general, then don’t do it. You’ll never have success day trading forex currency if you are watching every pip move like it’s life or death. Emotions can destroy a trader. A trader’s fear can cause him/her to hold a trade even though the obvious trend is going against them. It could also have the adverse effect in which a trader closes a trade WAY too early because he’s afraid to hold it, even though all the signs are pointing in the right direction.
I could give you the greatest trading system in the world, but it won’t do you much good if you don’t have any confidence in trading it.
The understanding of the market goes hand in hand with the confidence. When I say understand, I mean just that: Understand what you are looking at. Don’t be like everybody else who has to use indicators to tell them what the market is doing. Does anybody understand what these indicators even mean? Can you honestly tell me what using an MACD Divergence does? It’s colorful and its pretty on a chart, but what does that have to do with the tea in China? Take the time to understand the underlying causes of price and market movement.
Take off the indicators on your charts and see if you notice some repeated patterns. If you can start to see them then you can be ahead of the other 95% of forex traders who end up losing money on the markets. After all how can you have confidence day trading forex currency if you have no idea what you are looking at.
By: Jim Buhs
Forex Education – Identifying The 4 Human Weaknesses
January 6th, 2010
The 4 basic human weaknesses in trading: Greed, fear, impatience and pride. How do these emotions cause so many Forex traders to lose money? Let’s examine the ways.
Greed
Greed causes poor traders to increase the size of their trading positions the moment they’re “in the money” (in a winning trade). This often results in these traders having the largest position size trade just before the market turns in the opposite direction. As a result, this causes them to suffer large losses.
Fear
Fear makes people avoid entering into good trades because they don’t know what they’re doing. Heard of the phrase “buy low, sell high”? Unfortunately, many traders think that this is true. The profitable traders however, know that a more accurate phrase would be: “buy high, sell higher”.
Fear is often the result of not knowing what one is doing. If you have a proper, reliable trading system, fear shouldn’t be in your trading vocabulary.
Impatience
The opposite of fear, impatience leads people to enter into trades when there are no clear trading signals. Needless to say, most of these impatient trades usually turn out to be unprofitable.
Pride
This is very possibly the worst trading weakness of all! Pride makes a trader hold on to losing positions with the false hope that the position will turn around in his favour. Winning traders are humble, and aren’t afraid to admit that they’ve made a mistake when they lose money. After all, no one can be right all the time!
Unfortunately, many losing traders refuse to admit that they’re wrong, and often lose money to pay for their pride.
Summary
Understanding the effects of these emotions is crucial before one can be a consistently profitable trader. Use this knowledge as a tool to make money from ignorant traders, and don’t fall into these traps yourself!
By: Harold Hsu
