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Tips
For Successful Trading 4
Here
are some further
tips for
successful Forex
trading
...
A.
You have traded for a
while now and recognize
that it is you (not the
market) who makes
mistakes, and you try
to overcome
them.
B.
This fact is awkward,
but you are now part of
the market and you
can’t really leave. It
doesn’t matter where
life takes you, you’ll
always check the market
and you’ll also always
want to continue being
an integral part of
it.
1.
For smaller accounts
($25,000 and under),
you will need to trade
with the trend. A lot
of beginners search for
trades that flow in any
direction. Whereas
FOREX trading easily
allows for
bi-directional trading,
trading with the
ongoing trend will
improve your odds in
the long
run.
2.
Try to have at least
two accounts. One real
account and one demo
account. You won’t stop
learning new things
when trading real
dollars starts. Keep
the demo account and
use it to test on any
alternative trades etc.
For instance, you can
shadow your real trades
with identical ones in
your demo account, but
you will want to
broaden your stops in
the demo in an attempt
to see if you're being
too
conservative.
3.
There aren’t any
leading indicators so
stop looking for any.
Though some firms make
a lot of money selling
software that can
foresee the future, the
truth is that if those
products really worked
properly, they wouldn't
be telling you about
it.
4.
Always analyze the
daily charts, the
four-hour charts and
one-hour charts are
there to help you time
your trades. While
you’re trading at 30-
and 15-minute time
increments, it takes a
great deal of
skill.
5.
Don't trade the time
frame which is offered
to you. Try to trade
the pattern instead.
Reversal patterns,
hesitation patterns and
breakout patterns tend
to show up a lot. Learn
to look for the pattern
within any time
frame.
6. If
you have a sufficient
amount of money,
trading two lots of
money is always safer
than just trading one.
Trading three lots is
safer than two and so
on. Trading is always a
big pile of emotions,
technical analysis and
money management. One
lot alone will
therefore make it
difficult to weigh all
these elements when you
have to decide on
whether to enter or
exit.
7.
When you think about
it, extreme trading can
be the most
conservative kind of
trading. Extreme
trading can increase
the odds that you
might’ve chosen the
right
direction.
8.
You should completely
verify the Big Five the
dollar/yen,
euro/dollar, Swiss
franc/dollar, euro/yen
and pound/dollar before
you settle on taking a
position in any one of
them. There could be
something obvious that
you might’ve
missed.
9.
Follow the Upside Down
Rule. If you can turn a
chart upside down and
it still looks the
same, avoid it all
together.
10.
In your first 20
trades, don't keep
track of your profits.
Instead, you can keep
track of the percentage
of wins. Once you know
you choose a direction,
profits will be
increased with
multi-plot trading and
through using
variations in your
stops. So, now is a
good time as ever to
take your personal money management
seriously.
Forex Trading Guide
next step: Forex
Rules
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