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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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