A guide by Professionals
– Tips and Tricks –
Forex Trading is extremely rewarding. You should have a Forex Trading system and strategy in place. Learn, not only to increase your winning chances, but how to limit your losses. To start Forex trading you should find a mentor as early as possible. A good mentor will help you to avoid the common pitfalls.
Tips and tricks
Every trade has unlimited tips and tricks. Knowing them can give you an edge. Ensure that the tips are coming from authenticated sources. The tricks should have proven record. Do not get caught up in the euphoria of a beginner, swayed by the unrealistic promises of big money.
Forex trading forums
There are a number of forums out there that you can follow. They all have the following in common:
- They have some kind of a trading system
- They have some strategy
- They talk a lot but have little to show
One of such forums is Forex Factory. At the start, it is ok to read and see the various systems. Once you are done with the reading and looking, make a note of them for comparison.
Try and keep your focus on excellent systems that deliver. With the number of non-performing systems out there, it is easy to get lost. This will cost time and money.
Recognize the trading systems worth studying with following features:
- They have some sort of order flow analysis
- They provide you market news and analysis before others
- Their analysis and tips are accurate most of the time
- They should be able to report the things that move the market
At the end of the day, it will boil down to having excellent order flow generators that will assist you to achieve your targets. Once you have a great system, stick to it. With time and experience you will learn what to look for.
Remember, if there was a perfect system, everyone would have it. In fact the ones who have it would not reveal it to others. They would use it to generate immense wealth.
myFXbook.com is an excellent place to check out information and test trades and theories. It is a credible and authenticated source of information and strategies.
Information analysis
Information analysis is your best navigator. There are multiple methods of analysis. Each one has its own strength and merit. Master them. You should be able to use fundamental or technical analysis comfortably. In certain situations you may use combinations.
Short term traders normally do not have the fastest access to information. They access what is termed “delayed information”. In such situation of delayed information and economic data, it is better to rely on technical analysis.
Long term traders should have access to almost real-time economic data and news that affects their investment. They should base their decisions on fundamental analysis.
The art of losing
Some professionals state:
“Your success in Forex Trading will depend on your capability to manage losses…”
It is estimated that 80% of all new traders blow up their whole account at least once.
Summary
Forex Trading is a hard business. You will be rewarded well for your efforts. Do not take it lightly and educate yourself before entering it. Find a mentor as soon as possible and learn to trade with minimum losses. Visit credible sources like myFXboo.com to learn and test strategies and trades. Your capability to succeed will depend on your skill to manage your losses. If you do it right, you will be a rich person.
