How to Become a Successful Forex Trader

By: How To Become A Forex Trader.

Forex trading is profitable if you have good trading strategy. You however need more than just a perfect trading strategy; you equally need to have your six senses alert and develop a reliable money management strategy, without which your chances of making profit in forex trading are slim. You can trade forex as a part time or full time trader, depending on what works best for you. As hinted earlier, you need a perfectly working trading strategy as well as a faultless money management strategy in order to make headway in forex trading. You must however note that there is no forex trading strategy that can give 100% positive outcome. However, a good forex trading strategy should give high percentage of profitability.

Before you learn how to be a successful trader, you should know one or two things that make forex traders to fail. They are discussed below:

  • Lack of discipline: Lack of emotional control is paramount among the reasons why forex traders fail. If you are unable to discipline your emotion, your chances of success in forex market are limited.
  • No specific trading plan: If you venture into forex trading without plan, then you stand a good chance to fail woefully. As the saying goes, “he who fails to plan plans to fail.”Successful traders create specific forex trading plans that fit with their peculiar situations and stick to them. They perfect the plans as they progress to make such trading plans more profitable. Traders equally fail when they do not have workable risk management rules and are on the lookout for unreasonable return on investment.
  • Failure to adapt to forex market: A successful trader would preplan trading strategies before each trading day opens. He/she would have moves and countermoves on ground to cater for eventualities in the course of the trading day. Any trader that fails to fully adapt to the changes in forex market is billed to make more losses than profits.
  • Lack of education: One constant factor in forex trading is education. Any trader that refuses to learn is far from becoming a successful trader, that is, if the trader is not depending on forex robots.
  • Trial and error learning: It is more painful when you learn from your own mistakes and errors. No sensible forex trader would just venture into the market without clear understanding of what he/she is venturing into. A successful trader would learn from other people’s mistakes and avoid doing such mistakes.
  • Unrealistic expectations: New traders are guilty of having unrealistic expectations. Many of them think they can make six figures from day one in forex market. Many of them think forex trading is a get-rich-quick scheme and they end up getting their fingers burnt. Many never want to accept that profit-making in forex trading is a gradual process; they end up making silly mistakes and losing every dime in their account consequently.
  • Poor money management: This is yet another factor responsible for failure in forex trading. A forex trader that has good trading strategy without good money management strategy is bound to fail.

Aside the points mentioned above, what other factors must you keep in mind to make you a successful forex trader? Some other important things you must keep in mind on your journey to successful forex trading will be considered below.

Stick to particular currency pairs

Knowledge is paramount in forex trading; you need to be knowledgeable about the forex market and you need to have adequate knowledge about particular currency pairs. These currency pairs do behave in certain ways peculiar to them. You need to know about such peculiar behaviors. Such knowledge is boosted if you concentrate on that particular currency pair especially during your demo trading. Particular currency pair has specific times of the day when it has high volatility. Concentrating on particular pair helps to stabilize your trading and helps you to plan your time on when to trade. This way, you will not have to stay glued to your computer watching market movement all day long.

What currency to trade

As a beginner, truth is it is better to stick to the US dollars against other currencies. Choose among currency pairs like USD/AUD, USD/CAD, USD/CHF, USD/GBP, USD/JPY and USD/EUR. As you gain experience over time, you may test the waters using other currency pairs. Truth remains that the US dollars is powerful and it will be foolhardiness to trade against it if you do not know what you are doing. Are you planning on being a part time forex trader due to limited time availability? Then it is better to stick to the USD/EUR pair. Why so? This pair does not undergo excessive volatility like many other pairs.

What about automated trading?

If you are just coming up in forex trading and have very little experience, you can opt for automated trading. This involves the use of what is called forex robots to place trading orders for you. The robots are designed to read the forex market using preset parameters and place trades on your behalf. They can also exit the forex market for you when their preset exit parameters are met. These forex robots are designed to place market orders and also monitor activities on forex market in real time. The robot makes complete automated decisions and you will never have to lift a finger to make profit in forex trading. Some of the factors responsible for failure in forex trading are lack of discipline and emotional involvement, as discussed earlier. These are factors that are completely eradicated when you trade forex market using forex robots.

Be disciplined and control your emotion

You need to trade forex market dispassionately in order to be successful in it. If you are not depending on automated system for trading, then you have got to be disciplined and put your emotion under check. Do not wait for wide profit margin before taking trades; just place market order when the condition satisfies your predetermined trading strategy. Discipline will enable you leave a position open as long as it still favors your trading plan. Forex market is highly unpredictable. Once your open position starts to move in your favored direction, start trailing the profit since the unexpected may happen and the market may turn against you and this can lead to loss of already recorded profit. How do you trail profit? Simply adjust your take profit and stop loss as the market progresses.

Fundamental and technical analysis very important

A complete forex trader is one that is knowledgeable on both technical and fundamental analysis. Fundamental analysis has to do with news trading, while technical analysis has to do with what happens on the forex trading platform. The general understanding is that the news actually controls, to a great extent, what happens on the trading platform. News release can abruptly change the situation obtainable on the trading platform. Some experts advise that a trader basing his/her trading strategy mainly on technical analysis should be on the lookout for high impact news release. It is advised that such traders should not make market orders around the time when such high impact news will be released; as such news can change market movement abruptly on the trading platform.

What account to open?

As a new and inexperienced forex trader, it is better to start trading using relatively small amount of money. Start by opening mini forex account. You will only need to deposit small amount of money to operate such account and it will enable you control up to 10,000 currency units. Cash deposit for mini account depends on the forex broker you choose. Some may require minimum deposit of $2,000 to operate mini account; some other ones may allow you to deposit an amount as small as $200 for the mini account. With mini account, you will have access to high leverage and this will make you substantial profit per winning trade and can equally lead to substantial loss if the trade goes against you.

Before you fund your trading account…

Every forex trader hoping to succeed in the forex market should never trade with any amount they cannot afford to lose. This is why it is never advisable to trade forex using borrowed money. If you cannot afford to lose that money, then do not use it in trading forex. Do not place too high expectation on the money you are depositing; for all you know, things can turn against you. Be ready to accept your profit and loses. When you may profit, do not expect it to be consistent. When you make loss on the other hand, never attempt to take your revenge on the market; you will get your fingers burnt. When you experience any loss, take a break and analyze what led to the loss. Make corrections and prepare for another challenge the next day. Do not forget that you cannot have your way with forex trading all the time.

Demo trading is a must

Never venture into live trading before perfecting your acts via demo trading. Demo trading enables you to fine tune your trading strategies and gain lot of confidence. The chances of error will be minimal if you have fine-tuned your strategy on demo trading. There is no specific length of time to spend on demo trading before venturing into live trading. However, make sure you have gained adequate level of knowledge and confidence with your chosen currency pair and your preferred forex trading strategy.


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The Benefits of Trading the Forex Market

By: How To Become A Forex Trader.


In times past, only the big wigs or the money bags were allowed to trade in the forex market. Some of the big wigs include multinational corporations, and major banks. They have the required financial muscles; as a result, they are able to play around with large trading volume and size. Technological and internet advancement had however brought about a change in all that and have now made forex trading available to all and sundry, even if they do not have the big financial muscle of the multinational corporations and banks. Over time, forex market has also become a very popular way of making extra income for many people.

Some of the benefits obtainable in forex trading are listed below

  • It is available for the 24 hours of the day and it is only closed for trading during the weekends.
  • It is highly efficient and very liquid
  • It is highly volatile too
  • The cost of transaction is very low
  • It is easy to make use of high leverage
  • Profit can be made both from bear and bull markets

Continuous, 24-Hour Trading

The forex market is thrown open for the 24 hours of the day as hinted above. It can be used as a secondary source of income after the usual 9 to 5 job. Buyers and sellers are always on hand on every of the time frames on which you may decide to carry out your trade and this ensures you are able to make profit on any time frame and on both bullish and bearish market movement conditions. With the time frame arrangement, the trader can easily add forex trading to daily activities.

Liquidity and Efficiency

Forex traders are able to buy or sell currency pairs at a price that has great proximity to the very last market price due to availability of lots of buyers and sellers in the market. In comparison with all the other markets in the world, forex market is undoubtedly the most liquid. Traders have access to trading volume that is 50 to 100 times bigger than what obtains at the NYSE.

Direction of movement of the Stock market can be determined by news coming out from the country where that particular stock is domiciled. If for example a company sacks one of its directors or the company had just produced a new product and it is being released into the market, these news will determine the movement of that company’s stock. If big companies decide to buy lots of shares of a particular company, this will also affect the direction of the sstock. Many of the news that affect the forex market are instant and you may be too late to catch in on them if you put your trust in the print or electronic media to get trading information.

Lots of factors have been known to positively or negatively affect forex market. While stock market may be affected by individual actions or inactions, forex market is too big for that and just an individual’s activity will be too small to have any meaningful impact. The forex market is not easy to manipulate at all due to its huge size. This means it is hard for anyone to get engaged in ‘inside trading’ the disadvantages suffered by the average trader is reduced a great deal. Every investor and traderin the forex market is trading on equal playing ground.

Note about price gaps:

If you have ever been involved in other markets aside the forex market, you would have heard of what is called price ‘gaps’. They come to being when market price changes its position without any gradual movement or change. For example, a share may have closed

at $10 yesterdayand it suddenly opens at $5 today due to one or more events that had taken place overnight while you were sleeping and the said price may decides to be on the downward movement all day long.

The issue of gap had been discovered to be one of the factors conferring uncertainty on the forex market. The problem of gap is more defined when stop loss is applied to trading. For example, a trader might have set his stop loss at 7 pips or $7 from his entry position because he/she does not want to remain in the trade if his position goes down in value up to $7. However the position may remain open all through the night and it will put the trader at a big loss.

Longer time frames like daily charts, 4-Hour and 3-Hour charts rarely have gap on them at all. This is unlike what obtains in smaller time frames.


Fluctuation of price brings about opportunity to trade. No trading opportunity occurs if the price of a share remains at the same value where you purchased it. This change in price or value is what is referred to as volatility. Volatility brings profit in forex trading. A trader is able to benefit from greater volatility with the combination of fewer trading instruments, high liquidity and big transaction volume, especially of the trader is a day-trader. Due to this high volatility, it is possible for the trader to make money on forex trading more than in shares up to 5 fold.

Volatility of the forex market gives an idea of how much the trader is able to make as profit. Forex traders can have access to volatility as high as 500, while stock traders are limited to volatility between 60 and 100.

This means that a trader involved in equity market will not be able to make as much profit as one involved in forex market.

Low Transaction Costs

Forex trading does not attract transaction fees or commission. The forex trader is only required to pay the spread for that trading position he is taking. ‘Slippage’ costs are also very rare due to the efficiency of the forex market.

‘Slippage’ is the price the trader is required to pay for entering a trading position at a lower level than intended. If for example a trader is charged $2.50 for a trading position he intended to pay $2.00 due to lateness in order execution, the slippage cost for that trade is 50 cent. Forex traders who trade with large volume are the most affected by slippage cost. There is excess supply of buy orders when such traders purchase large commodity quantity. Consequently, the price will shoot up due o the pressure applied. Their intended price would have shifted by the time they had beenable to make all the purchases they intended. They do an oversupply of the market when they sell their trading positions. The pressure makes the price to take a dip and at the end of the day, the selling price is lower than their original intention for making the sales.

It is possible; for an individual to trade on the forex market at relatively small cost due to intra-day volatility with high strength, minimum slippage and lower cost of transaction. This means the trader may expect that a particular opened position will only cost a spread of 0.03%. This means that the trader will only have to pay about $3 or 3 pip speared by buying or selling $10,000.


Banksand other lending house will rarely give anybody loan to trade forex market. The financial houses may find it rather difficult to get committed to any body’s trading ideas due to how very risky and unpredictable the forex and stock markets are. This means the stock trader will only be able to buy as much stock as the cash he has on him.

While stock may be limited in this regard, forex trading has an edge. Forex brokers make use of ‘borrowed money’ to trade. This means the trader can participate in a market that worth $10,000 and all he requires to participate is about $50 to $250 in his trading account. As a result, of leverage, an average trade with little money in his or her trading account can easily make profit from forex market.

Profit from a Bull and Bear Market

The increase in stock value leads to an increase in price of the stock and this necessitates an increase in profit. You will look to sell off your stocks when the price of the stock is taking a dip or it is moving sideways. No profit is ever recorded when the price is depreciating in stock market. This is a direct opposite of what happens in the forex market. In forex market, a trader can profit from both the upward and the downward movement of price of a commodity or currency pair. Once you notice that a particular currency pair is about losing value, you can decide to sell it and make good money in the process. Why is this possible? It is because forex trading has to do with buying and selling either member of a pair of currencies. As one currency is losing value, the other one is gaining in value and profit can be made from both movements. Consequently, some schools of thought have called the forex market an eternal bull market.


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Forex Money Management

By: How To Become A Forex Trader.

You must have been hearing of money management in forex and you must have been told a number of times how very important it is to adopt a workable money management strategy in forex in order to be able to make good profit out of forex trading. If you are new to forex or you have been trading forex for quite a while now and will want to improve on your knowledge and expertise, this write up will open your eyes to a number of workable money management strategies in forex to ensure you do not exhaust your account too fast.

What is money management?

Money management is a series of processes put together to enable you manage your forex account and enable you make consistent profit at a rather steady state without making too many losses. If the truth must be told, money management places some restrictions on you and prevents you from taking certain trading decisions. While those missed trading opportunities may seem to be goldmine at the initial stage, they might make you lose your investment if you had taken them.

Have a plan and stick to it

One of the most important money management strategies to consider while trading forex involves making plans and sticking to those plans. Before you start trading, make up your mind regarding the number of times you want to trade each day, the particular period of time you want to trade as well as how much you want to make per day. Once you have made that particular amount initially decided on, you should exit the market without taking yourself through further risk of trading. If care is not taken, the next off-schedule trading move you make may lead to the loss of virtually all the money you have in your account.




Do not try to revenge

There are times your trading moves and decisions will not favor you. You might have predicted that the market would move in a particular direction only for it to move in the opposite direction. When this happens, some rookies may want to make effort to recover the money they lost due to the wrong trading decisions. If care is not taken, they may end up losing even more than they lost initially. You should never put yourself in this kind of situation. If a trading decision goes against you, do not try to take your revenge on the forex market in an effort to get your losses back; you will most probably incur more losses as a result. Once the market moves against you, it is better to exit the market and try again the next day after you must have taken time to assess what went wrong. This way, you can come back stronger and more enlightened than initial.

How much do you risk per trade?

You must not risk too much of your capital per trade. Some experts in forex trading suggest that it is not right to risk more than 1% of one’s trading account or equity. This means that if you make up to 10 different wrong trading decisions, you will still have up to 90% of your account intact. You may be able to make more profit when you risk higher percentage of your equity, but you will also make huge loss if you lose the high percentage you have risked. It is better to grow your account slowly and steadily instead of seeking to grow the account to 7 figures overnight because someone had hyped things up that you can become overnight billionaire in forex trading.

Never forget your take profit and stop loss

Some so called seasoned forex traders are of the opinion that it is not right to set stop loss when trading forex. They believe that the broker may manipulate the market and make it move in the direction of your stop loss, which will lead to loss in trading. This claim had not been verified by anyone. Stop loss is designed to help protect your profit while trading forex. It will also help protect your account and ensure your account is not wiped out in the event a trading move goes against you. Never forget to set your take profit and stop loss when you enter into trade; it is in your best interest.

Adjust your stop loss as the market progresses

If you are already cashing in on a trendy market, you should endeavor to adjust your stop loss in the direction of the trend to help protect the profit you have already made. This will help you to ride the trend for as long as possible, while not losing the profit you have already made.


You need to understand that the money management skill adopted by someone else may not work for you. It is in your best interest to develop a money management strategy that perfectly suits your style of trading. Keep in mind also that forex trading will not make you an overnight billionaire.

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Forex Scams Look out for Them

By: How To Become A Forex Trader.

Forex trading is a very popular money making means and it is being engaged by many out there today. Just like every other hot money making methods, forex trading has its own measure of scam activities. If care is not taken, you may fall victims to these scam activities in forex trading and lose your hard earned investment. This is why you must always seek information in forex trading to enable you identify scams when you see them and escape them without getting your fingers burnt. This write up is designed to open your eyes on the signs to watch out for regarding forex scams and how to avoid getting scammed. It promises to be highly informative.

Never believe if it looks too good

When you come by a forex trading strategy or system or forex trading information that looks too good to be true, you do not need any superhuman ability to know such information can only be false. If it sounds too good to be true, then it is most probably not true. If any particular website gives you promise of very big profit overnight, then the alarm bell in your brain should sound this out as a scam. The truth remains that forex trading is not as easy as many of these sites make it to look like; there is no easy walk to freedom when it comes to forex trading.

Take some time to investigate these get-rich-quick-in-forex sites and you will discover that they would only have some dollar bills blinking but no meaningful explanation on how to make huge profit. They usually come with flashy and extremely attractive graphics.

What does the general populace has to say

Before you believe anything any of these websites have to say about forex trading profit, ask other people around who also have ideas about forex trading. Does the outlet publicizing that particular forex trading strategy have their address listed on the forex material you are reading? If so, pick up the phone and give them a call. Use your discretion to assess their responses and determine if they are for real or they are trying to perpetrate forex scams. Talking with them will help you to determine if they can back up their products or not. Do not even do business with them if they do not have their brick and mortal office address listed on their sales page.

What does Google has to say?

Before you take their words for it, take some time to ask for Google’s opinion. A school of thought believes that “Google is your friend” and this seems to ring true even in today’s business clime. A simple Google search will protect you from falling into forex scams. Type the product name and add “scam” in front to find out if the product is a scam or not. If anyone had been scammed via this forex product, it will be shown by Google and this will protect you too from getting involved and getting scammed. If there are too many results pointing to this product as scam, then you should know that real people are getting scammed already by the same product.

There are times competitors seek to give other people’s products bad names by making up scam reports that are really none existent. This can be detected when you are making your search. If the number of scam reports coming up regarding this product is few, then it is possible competitors are responsible for such fake scam reports in an attempt to tarnish the image of the product. But this would not be the case if the number of scam reports is much.

Any presence on LinkedIn?

Before you take their words for it, take some time to check them out on LinkedIn. Many of the leading professionals have link on LinkedIn and the outlet selling this forex strategy or forex trading system should also have link on this social media site if they are truly the professionals they claim to be. If they are not found on LinkedIn, then you should be suspicious of their real intentions and your mind should go to forex scams. If they are true, then they should have built an audience over the years in forex trading and it should not be difficult to track them down in full representation of the top professional outlet they claim to be.

Watch out for the signal sellers

Do you want to hear the truth? Most signal sellers are pure scammers. So, watch out for them. They ask you to send in your money and they would trade on your behalf or send you signals and ask for money in return. Some of them may send you unprofitable signals, while others may even disappear into thin air after collecting your hard earned money. However, not all signal sellers are scammers, but most are. So, you should watch out. As hinted above, know their brick and mortal office address and verify such before you trust them with your money.

No get rich quick in forex trading

How else can you identify forex scams? Look out for those promising to make you rich via forex trading overnight. They claim their special never-seen-before trading system is 100% reliable. Never allow yourself to be carried away by this. The truth is no forex trading system can ever give you 100% return on investment. Every forex trading system has its down time. The forex market is ever dynamic and ever unstable. This makes it rather impossible for any forex trading system to give 100% positive outcome all the time.

Watch out for scamming brokers

Some brokers are scammers, pure and simple. All they are interested in is fleecing you. They would allow you to open account with them, trade and make profit, but they will not allow you to make your withdrawals. They would also tell you their terms and conditions are subject to change anytime without prior notice. So, watch out for them to safeguard your hard earned money. Find out also if their trading station is operating to your liquidity expectation. Do not be taken in by too many promotional materials and promises of high level performance; they are mostly signs of scam.
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Forex Scams Look out for Them

How to Trade Forex for Beginners

By: How To Become A Forex Trader.

Six  Key Factors

Forex trading is undoubtedly profitable and it can become your only source of consistent income. You can make it big in forex trading if you do things right. Yes, there are some things you must keep close to your heart when trading forex in order to make good profit out of the endeavor. In the same vein, there are some things you must run away from if you are not to make loses one after the other. Do you plan to go into forex trading as a beginner? Some of the important things you must do and keep in mind will be made known below.

Start out by defining your goal

Before you ever venture into forex trading as a beginner, you must first define your goals. What exactly do you want to achieve in forex trading? What is your desired profit margin? What is your desired style of trading? Do you plan to trade in the morning or you prefer to trade at night? Do you prefer to ride the market for long or you prefer to trade as a scalper? These are some of the very important things you must plan out before you ever venture into forex trading. You also want to find out about your personality. If the truth must be told, some personalities are not best for forex trading. You must first determine if your personality can withstand the mental and psychological pressures of forex trading, then you can go into it.

Who is your forex broker?

In order to succeed in forex trading as a beginner, you need to work with a good and reliable forex broker. If the truth must be told, the broker contributes a great deal to how successful your trading endeavor ends up. Never work with any forex broker if you do not feel comfortable with their terms and conditions and never open account with any of them if you have not taken time to read through their terms and conditions. If there is any uncomfortable item there, it is in your best interest to look around for another broker with better terms and conditions that you are comfortable with. Different forex brokers offer different kinds of trading platforms. Go only for those among them that are offering trading platforms that perfectly suit whatever your trading style is.

What method do you want to apply?

Before you start off on forex trading as a beginner, you must first take time to choose your trading method of trading strategy. First decide what your trading strategy should be. What method do you want to adopt? You must make up your mind if you want to make use of technical analysis or fundamental analysis for trading or you want to use a combination of the two. It is not enough to choose a particular trading pattern; you must also stay glued to that pattern. This will help you to develop further and make the most of your chosen trading pattern.


How to Trade Forex for Beginners


How to time your trade

You need to be methodical about everything you do in forex trading in order to get the best out of your trading endeavor. Firstly, you need to time your entry and exit very properly so as not to miss out on great profiting opportunity or make loses where you would have made loses. How can you do this? The best method to adopt involves using one of the shorter time frames for timing your exit and entry. Additionally, make use of the longer time frames to get the right direction of the market at any particular time. You must not add too many technical indicators to the chart so as not to get confused. When starting forex trading as a beginner, choose only one or two technical indicators to read the chart. You can increase the number of indicators you use as you progress and improve in your understanding of the forex market.

What do you expect from forex trading?

Before you even start trading forex trading as a beginner, you should first determine what your expectations are and work towards it. What is meant by expectation here is your financial reward for trading. If the truth must be told, you may not be able to meet up with that expectation the first few days in forex trading. But you will soon be able to meet up and even surpass that expectation as you improve in your trading. All you need are consistency and persistence and you will be there in no time.

Loses will come at times

If the truth must be told, no one can ever claim to have made no loses in forex trading. You must always keep this in mind that loses will come. When it comes, be ready to embrace it and move on. Each time you lose, take some time to find out what could have been responsible for the loss. This will help you to improve on your trading method next time for better profitability. When starting forex trading as a beginner, never allow anyone to stuff you with the wrong idea that you will never make loses. Of course you will make loses, but you must not let that fact weigh you down.

No Holy Grail trading method anywhere

One other thing that can easily deceive you when starting forex trading as a beginner is promise of unending profiting. The so-called forex gurus would tell you all sort of stories about the trading strategy they want to sell to you, calling it the perfect forex profit system. They would say the system had never made any loses before, only gains. Never believe them. There is no such perfect trading system anywhere that can give you only profit and no loses. You need to keep this close to your heart before you ever venture into forex trading. It will help to disabuse your mind about forex trading and will help wake you up to some of the unavoidable realities of forex trading.

One last message you must take home is that you must continue to learn in order to make something really tangible out of forex trading.


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Forex Trading Tips

By: How To Become A Forex Trader.

10 Things You Need to Know About Trading Forex – Forex Trading Tips

Forex trading is profitable, that is, if you know what you are doing. Forex trading is not a game or a toying thing for kids; it is a trading opportunity for matured minds. Maturity in this regard does not have to do with age; it is more a matter of the mind. Only those who have good money management skills are able to make headway in forex trading. Some newbie see forex trading as a means to get rich quick. But they have been proved wrong time and again. If you plan to trade forex for quick riches, then you are in the wrong business. Do you want to be a successful forex trader? Some of the forex trading tips you must know before you kick start will be shown below.

  1. Forex trading is risky

There is no point in covering up the truth. Forex trading is risky; that is the simple truth. If you must go into forex trading, you must know and accept this undeniable and irrefutable fact. The forex market moves in a rather unpredictable manner most of the time. The movement pattern you see today under certain conditions may not repeat itself tomorrow under the same circumstances. This is why you need to learn more and continue to learn in order to make headway in forex trading.

  1. How much risk can you bear?

Forex trading is risky. You must determine how much risk you can bear before you ever invest any amount of money into forex trading. Anyone going into forex trading must have a high threshold for risk taking. If you are not ready to take risks, then you are not ready to trade in forex. As true as there is a linking point between forex trading and risk taking, make sure you only take calculated risks. Never take any risk if you do not have a fair understanding of what you are doing and of what the possible outcome would be.

  1. Have a plan and follow it

This is one of the important forex trading tips you must consider. Before you ever venture into forex trading, make sure you have a plan and make sure you stick to the plan. How much do you want to make per day? What time period do you want to trade everyday? Settle these questions in your mind before you venture into forex trading.

  1. Which platform to register with?

This is one of the important forex trading tips you must keep at the forefront of your mind. Your broker is your life in forex trading. The trading platform you partner with goes a long way to determine how your trading experience ends up. Make sure the platform is reliable before you work with them. Register with a broker providing demo trading platform

The platform on which you trade must be ready to provide you with demo account. With the demo account, you will be able to properly test any forex trading strategy before you ever risk you real money with that trading strategy. This way, your losses can be minimized a great deal and you will be able to make headway in forex trading.

  1. What account type to trade

There are different account types in forex trading. Each account type has its requirements, especially regarding the minimum account opening amount for that particular account. Go for an account type you have enough money to operate.


Forex Trading Tips


  1. How to manage your account

Start forex trading with small amount of money. Grow the account using the profit you make by trading. Never make too high deposit per time, especially if you are a newbie. It is better to allow the account to grow by itself instead of funding it. Never be afraid to start small. Never be afraid also to make small profits. The small profits can add up over time to transform your account to a real big one.

  1. Invest only what you can afford to lose

If you cannot afford to lose any particular amount of money, do not invest it into social trading. Only invest what you can afford to lose and this will help remove emotion from trading to ensure better profitability. This will ensure you do not get emotionally attached to the money and to your trading orders. This way, you can trade with more peace of mind and concentrate on making the right trading decisions.

  1. Trade single currency pair

It is better to restrict yourself to single currency pair as a newbie. You can add another currency pair as you progress. This will enable you learn so much about that particular currency pair. It will also enable you perfect the art of trading on the currency pair. Each currency pair has its own specific way of behaving. Restricting your trading to a particular currency pair will enable you to understand how it moves and you will not have problem mastering the pair and making more profit from it.

  1. What trading strategy to use

Never use a forex trading strategy if you do not understand the strategy. First take some time to perfect the trading strategy by testing it on demo account. After you have mastered how it works, you can then use the trading strategy to trade real money. Carry out the back-testing of that particular forex trading strategy before you commit it to real money trading. This way, you will never make a wrong turn. You must know also that there is no 100% perfect forex trading strategies that will never make losses. The best you can do is to improve on the strategy to reduce its losses and increase its profitability.

  1. Money management will help you

This is among the most important forex trading tips you will ever learn. If you do not have money management skill yet, then make sure you learn the skill before you venture further into forex trading. You should not just adopt any money management skill, make sure the skill adopted is good and reliable, something that can serve you for years on end. Money management teaches you how to manage your profits and your losses and it ensures your trading account does not get exhausted unnecessarily.


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6 steps to improve your trading skills


By: How To Become A Forex Trader.

Regardless if you are a seasoned or a new trader, you are going to benefit from learning important steps that can help you to be more successful in your trading.

1 Strategizing, analyzing and diarizing

Successful professional traders normally do things that amateur may forget about. They plan a certain strategy, they follow up the market and they are able to diarize, to track and to analyze every trade. While planning for your business, you should choose the pair that it is good for you, decide on the position you wish to take and choose the target position you wish to achieve to. You should also follow up the information about the market and to keep the diary of what it is going on in your trading and the results you get from a certain trade.

2 Managing the risks

The best trader is not always the one who is able to take good positions but also the one who can manage the risks. He is not emotional about the losses and the gains and he can set the profits target or loss limits for the positions he takes. To achieve this, you should know how to limit the orders automatically and how to stop the losses when you have achieved maximum losses. This is going to help in capping the losses when you have chosen a losing position.

3 Learn how to analyze the market

There are two options when it comes to analyze the market and to win you should be aware of how to analyze them in a successful manner. The technical analysis is used to know the movement of the price by the use of the historical data in order to predict the future price. The basic for this is that when someone has information about the movement of the price, he can make an informed trading decision. The charts are the primary tools used in the technical analysis. Fundamental analysis focuses more on the political, social and economical analysis that are behind the demand and the supply. Different traders use different indicators in the fundamental analysis.


6 steps to improve your trading skills


4 Chart your own course using technical analysis

A technical analysis requires the use of the charts in order to predict the future and by studying the past movements in the market. By the use of the technique, the forex trader has the ability to monitor the market. Since many people use the technical analysis, the reaction to the market is the same and the technique has been strengthened. This is a self-fulfilling prophecy and it increases reliability from the signals that are being generated from the analysis.

5 Get more information about the fundamental analysis

The traders who use the fundamental analysis want to forecast the impact that different events have on the price of the currency. The prices may be affected by different macroeconomic factors like industrial production, unemployment and inflation. According to how they analyze the data, the traders do take the position in the market after deciding on how they can make the profits.

6 Do not fail for the psychological pitfalls

There are different traders who take their trading seriously while others lack the required discipline for trading. The analysis of the market should also include the possible upside or downside. For every trade, you should make a target which is realistic. You should choose the loss limit that can accommodate the normal fluctuations of the price in the market but which does not limit your profits. You should not be emotional about the trading, do objective analysis and stop a trade when you see that your position is losing. You should avoid over trading and remember that trading on margins may not be the best option for every trader.


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Forex Trading for Beginners Basics

By: How To Become A Forex Trader.

Top 10 Ways New Forex Traders Lose Money

Forex trading is not a get rich quick means; all intending forex traders and newbie in forex trading should take good note of this. If you think you will make it big over night in forex trading, then you are making a very big mistake. There are many gurus out there today who never made anything tangible out of forex trading until several years of consistent trading. However, you may not have to wait for 5 years or ten years before you can start making something meaningful out of forex trading, provided you have access to the right kind of information. The purpose of this written piece is to get you adequately informed to ensure you do not have to wait for long before making profit and to give you all the facts you must consider when venturing into forex trading.

You can make money fast and lose it fast in forex trading and all forex traders must keep this in mind. If you do not have the right kind of trading strategy, things may go wrong with your trading plans. However, consistent success in forex trading goes beyond just having very good strategy, it bothers more on having good money management. Many newbie in forex trading lose money, not because they do not have good forex trading strategy, but because they do not have the right money management skill or lack the maturity to implement their money management skills. Some of the things newbie do that make them loose money in forex trading will be looked into below. The purpose of this write up is not to scare off intending forex traders, but to open their eyes to some of the errors that can hinder them and to make them guard against such so they can start smiling to the bank more often.

1.No adequate experience

Many newbie want to start making it big from day one. They may even have access to forex signal services or even have access to top notch trading strategy, but lack of experience on how to put it all together can spell doom for their trading and they will end up losing money. Even if they have started making something tangible at the start, their lack of experience may make them lose everything they have made within a very short period of time. There are so many things to be put into consideration when trading forex. Forex trading should be seen as a real business on its own and the best way to prosper in a real business is to learn all you can in that business. This way, you will be able to make profitable trading decisions. There are some basic principles, ideas and terminologies a newbie needs to learn about forex trading. The newbie needs to be familiar with how the market works and how to apply the candle sticks, the trading indicators and the news events to make a profitable outcome.

2.White elephant ideas

Many of the newbie out there today have great dreams of making millions in forex trading in their first day of trading. They have heard stories of how other make it big and they too have this unreasonable and unattainable expectation that they would make it big the first day. As a result, they end up making unwise trading decisions that will lead to the loss of their investments. Some so called forex gurus and forex coaches have a way of painting the forex market in bright light and any unlearned newbie will fall for these tricks easily. The pictures painted by these gurus make people think forex trading is an easy money-making means where you will not do anything much but make something big. Because of these unreasonable expectations, some newbie even quit their jobs before they start making profit in forex. This is very unreasonable to say the least.

3.No trading plan

Many of the newbie flooding forex trading today do not have any thing called trading plan. They just buy forex strategies from so called gurus or get them free online and they are ready to start applying their new “fail-safe” strategies to real trading without delay with the hope of making it big the first night. This is a very unreasonable perspective about the forex market. If you do not have good trading plan, you are sure of losing money big time. You must make up your mind on the exact amount you want to make each day. After reaching your goal for the day, it is only right to stop trading for that day and wait till the next day for another trading session.

4.No discipline

Many of those who lose their money in forex trading today do so due to lack of discipline. They just hit social trading platforms without properly schooling themselves on self control during trading. Patience is one virtue that must be considered by a forex trader that wants to make consistent profit. Many of the newbie lack patience and they end up losing their investments over and over again. They never know when to stop and they may end up losing all their profitable positions.


Top 10 Ways New Forex Traders Lose Money


5.Stop loss and take profit

Lots of so called forex gurus might have taught you never to bother about stop loss, since forex brokers tend to work towards your stop loss and manipulate the market to make sure that you lose your money. If you are following this kind of instruction, you are doing your trading a great damage. Stop loss is designed to help protect your investment. Take profit helps to ensure you do not miss out of possible profitable position.

6.Too high leverage

A sensible newbie will never go for leverage too high than he can manage. It is true that high leverage in social trading platforms gives you better opportunity to making huge profit, you should also know that high leverage opens you to the risk of making very big loss. High leverage is as good as when you are winning, but it can ruin your account when you are losing.

7.How many open positions at once?

If you are not well experienced in forex, you should not open more than one or two trading positions. If you open more than this, you will be doing your investment lots of damages. If things turn against you, it may wipe off your account before you very eyes at the twinkle of an eye. With too many open positions, you will have so many things happening around you at the same time. This can be confusing and can make you lose potentially profitable trades.

8.Riding the trend for too long

Social trading platforms can be sweet, especially when the trend is going either bullish or bearish in your preferred direction, but things can turn against you suddenly if you hold that open position for too long. For example, a sudden opposite spike due to newly released high impact news can turn the table against you and make an erstwhile profitable position to become a losing one. This is where you must never forget about your stop loss and take profit. After the trade had moved in your direction for some time, lock it in by adjusting your stop loss. This way, you will never be caught unawares.

9.Never ignore pip spread

Pip spread is the means via which the forex brokers make their own profits. If the pip spread is too high, it is not in your best interest to trade that currency pair. Some experts recommend that you should not trade a pair if the pip spread is higher than 3. This will help ensure a more profitable trade. If you do not choose your pip spread carefully, a winning trade may be suddenly turned to a losing one. Some currency pairs have very low pip spread and some other ones have high pip spread, it is important to watch out for these so as not to make wrong moves.

10.Lack of proper money management

Any trader that wants to make anything tangible out of forex must have good money management skill. It does not matter if you are trading with some of the best forex brokers in the industry, a bad money management skill will ruin your trading opportunities. Lack of good money management skill makes a trader to fall into temptation and greed. You will find yourself entering into some rather ridiculous trades that you should have avoided. Forex trading must never be seen as gambling; it is real business and must be handled as such.


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