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
Posts Tagged ‘Trading Currency’
The Real Secret to Day Trading Forex Currency
February 9th, 2010Currency Trading Tutorial – Getting Started in Currency Trading
January 21st, 2010
This is a concise currency trading tutorial, which will give you all you need to get started in currency trading and develop a trading system for triple digit annual gains…
The first point you need to keep in mind is 95% of traders lose and only 5% win. While anyone has the ability to learn currency trading and win, most lose.
So what separates out the winners from the losers?
The real difference is mindset and currency trading is really 20% method and 80% mindset and some explanation will make this clearer.
Discipline and Self Control
Anyone can learn a forex trading system but the key to success is, executing it with discipline when you are losing. It’s not easy to keep putting in your trading signals, while the market hands you losses and makes you look a fool. You need to be disciplined until you hit a home run.
You only get discipline from confidence and understanding.
This means, learning currency trading basics, on how and why prices move and getting the right forex education. You can then build a simple currency trading system.
Sheep Get Slaughtered
The traders who act like sheep and try and follow others, by buying forex robots or gurus and mentors never win.
Most of the forex advice just mentioned, is poor and even the minority which is good, a trader who doesn’t understand the markets will never have the discipline to follow it.
You must accept success is on your shoulders and comes from within – NOT someone else!
You must understand what you are doing and why it will be successful and this point cannot be stressed enough.
Getting a Simple System For Huge Profits
Any currency trading system that is successful is simple!
Many traders think the more complicated they make their system, the better the chances of it being successful – but this is simply not true.
Simple systems work best and always have as they have fewer elements to break in the volatile and brutal world of currency trading.
A simple long term breakout system, with a few confirming momentum indicators, is all you need and we have covered how to build one in simple steps in our other articles, so look them up.
Why Anyone Can Win
Its because currency trading is a learned skill – you just need to work smart and learn the right forex education and have the right mindset and now I want to tell you a story to inspire you…
Richard Dennis decided to prove anyone could learn to trade so he picked a group of people of all ages, both sexes and of varying levels of intelligence. The varied in occupation from a security guard to an actor and Dennis set about teaching them.
In 14 days they had completed their trading education and went on to trade, they quickly went on to make $100 million dollars and go down as trading legends.
So why did this group do so well?
They had a good teacher for sure – but he only taught them a simple trading system.
The key element he gave them was the confidence and discipline to apply it for themselves and in later interviews, many of the traders said:
Learning the system was the easy bit – remaining disciplined was hard.
So get a simple system you understand and the chances are, you will be able to maintain discipline and go onto achieve currency trading success.
Anyone can win at currency trading and the real lesson to take from this currency trading tutorial is:
That the market doesn’t beat the trader, the trader beats himself.
So work smart, have the right mindset and you could be making a great second income, or even get on the road to financial freedom and remember – success can be yours if you understand the points in this article.
By: Kelly Price
Important Forex Trading Terminology
January 19th, 2010
For somebody who is new in the forex business, it is a must that he or she should be knowledgeable in the differing terminologies that are used in this kind of trading business. Forex trading terminology is a must learn for those who plans to involve themselves in this undertaking. Otherwise, they would subject themselves to greater risk of losing their investments if they do not fully well know the meaning of basic forex terms. Hereunder are the different basic terminology and their meanings that you will be well advised to take note of if you have plans to invest in forex trading.
Base Currency: The value of a particular currency in relation to another currency as denoted by a currency quotation represented in this expression as USD/CAD whereby the first currency is always the base currency. This example shows USD as the first currency, which makes it as the base currency.
Quote Currency: This will be the second currency in a currency quotation expression. The above currency quotation indicates CAD as the second currency in the expression thus, it is the quote currency.
Long Buy: In forex trading, you are considered in a long position if you buy base currency and sell quote currency.
Short Buy: The opposite of long buy. Your position is considered short if you sell base currency and buy quote currency.
Ask: This is a forex trading terminology whereby the dealer has come to a decision to call on a currency quotation whereby he will be selling on an ask price a base currency in exchange of quote currency.
Bid: When the dealer has decided to call a currency quotation whereby he will be buying on a bid price a base currency in exchange of a given quote currency.
Pips: Pip is a shortcut for price interest points which would be indicative of profits for forex traders. One pip is equivalent to one hundredth of one percent of a currency contract price.
Leverage: This is one attraction given to forex investors by forex brokers. You deposit 100 dollars with your forex broker and he will lend you 1,000 dollars from his own account for you to trade in the forex market. This will give you a good leverage in your trading but the moment your broker is not satisfied with your trading, he can cut you off depending on their policy on leverage.
Slippage: This situation would usually result to the disadvantage of traders due to lost opportunity in gaining pips because of the broker’s inability in correctly handling and fulfilling the order at the requested price. This situation does not happen often, however.
Spike: These are sudden fluctuations in currency rates brought about by global breaking news that can impact heavily on a currency traded pairs. These fluctuations can either swing wildly for or against a pair of traded currency depending on the nature of the global breaking news.
Retracement: The peaking out of a sudden and wild swing of a rise or fall of a particular currency in a currency pair caused by an international breaking news that would impact on subject currency. Once this sudden rise or fall of a currency reaches its peak or bottom and starts to normalize, we call this process as retracement.
Stop Loss: A forex trading terminology that denotes a mechanism used by traders to limit losses. A particular amount estimated by the trader will be set up by him as his stop loss mechanism whereby once this amount of trading losses will be reached; trading for this trader will automatically be cut off.
By: Peter Flemming
