GENERAL GUIDE TO FOREX TRADING





This is my general guide to getting started in the Forex Market so that you are able to stay focused from the beginning. Often times traders jump into this market without any clear goals defined which leads to only moderate levels of success that can take an unnecessary amount of time and experimentation. Once you know your goals and how to get to them, you will reach your goals in a much shorter time with fewer setbacks along the way.



1- DETERMINE HOW MUCH MONEY YOU WANT FROM FOREX TRADING


Many times people jump into Forex Trading without knowing what they want from it. This then leads to experimentation for a longer time than is necessary and with the 1000s of strategies out there, you can easily get lost and frustrated.




2 - FIND OUT WHICH METHODOLOGY/STYLE OF TRADING CAN GET YOU THAN MONETARY TARGET



If there is a strategy out there that can get you what you are looking for, there is no need to reinvent the wheel. If there isn't one, then develop a strategy for yourself. Either way, practice the strategy on a Demo and ensure that it hits your targets for 3- 6 Months before going Live.



3. DO NOT RELY ON FREE OR LOW COST TRADING TRADING INFORMATION AND STRATEGIES


The reason that most of them are Free and cost very little is that they are not providing you with anything new or worthwhile to improve your trading. Most of it is recycled information or information which just focuses on one aspect of trading. Although most of them are useful by themselves, they cannot be expected to provide you with a complete/profitable Trading Plan.



4. CONTRARY TO POPULAR OPINION, THERE IS NO POINT IN TRADING A LIVE ACCOUNT WITHOUT A PLAN " JUST TO SEE HOW IT FEELS" 

Like most areas of life, emotions and feelings have no place when it comes to money. Brokers and marketing companies often encourage persons to invest their money in a Live Account without any or very little practice on a Demo Account. This only benefits the brokers who depend on commission from your money for their profitability, regardless of whether you are making money or not. The end result is usually trading losses in your account.
To avoid giving away your money to them without anything in return, ensure that you have a trading plan that is profitable and has been tested on a Demo Account.


5. CREATE A DETAILED TRADING PLAN WITH GUIDELINES THAT ENSURE YOUR REMAIN DISCIPLINED 




This is extremely important when you have moved to a Live Account where self-control are crucial to your success.
For example, I use and tell people to have a Holding Period Rule when trading. This ensures that you do not become greedy. If the market is only going to give you 150 Pips on a trade, you must not try to hold out for 200 Pips or more just because you want to make up for a previous loss. If you do, the market will pullback to take away your gains, causing even more frustration. 
Take this recent trade on the GBP CAD made. As you will see in the Video, if I had held on to the trade for even a few minutes or hours more than I should have, the market would have taken away the Pips gained in the blink of an eye.






7. BE PATIENT, STICK TO YOUR TRADING PLAN AND NEVER LOSE YOUR COOL



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Comments

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    Lisa Conley

    ReplyDelete
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    1. Best Forex Broker
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    Here is a list of the best forex instruments:
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    2. EA Builder - Custom Strategies Autotrading.
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    ReplyDelete
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