Forex Trading Tips - 7 Easy Rules to Make a Profit

By Walter Morris

Forex trading used to be exclusively restricted to large banks and financial institutions. But those days have passed by and individual traders are very much welcome, it pays to be careful and make use of some common sense. In this article, you will find seven Forex trading tips to help you in your pursuit to become a knowledgeable and proficient trader.

Forex Trading Tip #1

It is vital that before any actual trading is conducted, that a novice first practices trading. Just like everything else in life, you do need to understand the way to do something new and then actually do it. For a beginner, the key to reducing mistakes and loss is through lots of practice. You can use a demo account to practice where you will be given virtual funds to play around with in a Forex training environment. Demo or trial accounts are actually for free and can give you a significant amount of cash so you can practice your trading skills. You will most probably make your first set of major mistakes on the demo account, which is just fine because you will not lose any money but at the same time you will be taught an important lesson.

Forex Trading Tip #2

Limiting orders and stopping losses are vital to help lessen the losses. It is a must to use adequate money and risk management rules to significantly reduce the losses during trading career. Carefully think about the operations you are engaging in and never be enticed to overtrade.

Forex Trading Tip #3

It is recommended as a novice that you stick to at least two currency pairs to start with. The best option is to choose a few of the main currency pairs as they are less volatile, spreads lower, and is more liquid. Focusing on just a couple of pairs is also an excellent plan if you are trading on a part-time basis. If you do decide to switch then you may need to spend a significant amount of time studying other currency pairs.

Forex Trading Tip #4

The Foreign Exchange market is a dynamic system and it is very important for you to be up-to-date with any sudden changes. Brushing up and regular research on new strategies and techniques every now and then will give you the edge in the market. Employing the services of a Forex broker also helps as they can give you updated information.

Forex Trading Tip #5

As soon as you have your plans and strategies ready to begin trading, it is important that you follow them. And it is imperative to have plans in the first place. It can really be tempting to turn away from your set plan but if you use a good regulated approach then you will not be caught up in the market's unpredictability and the heat of the moment.

Forex Trading Tip #6

Emotion is a strong trait in humans but does need to be left out when trading in the Forex market! Feelings of anger or irritability when a loss is incurred or an opportunity is missed can lead to greed and frustration. As soon as these feelings are brought out, it is nearly impossible to trade effectively and efficiently. It is highly suggested that you take a breather whenever you feel you are becoming too emotional while making a trade. Put your business head back on and get yourself back on the right path as soon as possible.

Forex Trading Tip #7

You have to realize that it is unavoidable that you will incur losses during your stint as a currency trader. There is no-one who does trading on the Forex and makes a profit with every trade. The significant thing here is to be prepared for what will possibly happen and to have an alternative plan to cope with the loss when it does happen.

Last but not the least, take your time to protect yourselves from fraud. Keep in mind that the Forex market is not regulated even though Forex brokers are. Be cautious of companies that do not give you any information about themselves. Take time to do some thorough investigation and research so that you will be able to identify which brokers and companies are the best to be business partners with.

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Killer Forex Trading Tips

By Brian J. Henderson

Forex trading is generally the buying of a certain countries currency by selling another countries Forex; for instance buy the American Dollar and trade it for the British pound in any financial market. The established killer currency trading tips are designed to help all Forex traders to obtain the best results after employing recommended Forex tools.

The Forex killer is not a complete automatic currency trading robot but it requires coordination and operation from the person using it and so you are supposed to include data from the trading platform you are using. Hereby you are able to determine on the rate of your trade whether its percentage is high enough to fit in a low risk trade. It's most advisable that you start trading Forex killer by opening a demo account which can simply be funded with real money or cash money. The demo account should be operated in a way that it's just money that could be coming in and out of your hand access.

When operating the demo account it's very important that you don't take any risky trading procedures not to establish any bad habits while employing the Forex killer. Another tip is that you are advised to trade your account regularly mostly once in a month in order to become very familiar with the Forex killer. Hereby you should be able to take notes according to the signals produced. Another killer Forex trading tip is that you should not employ the Forex killer in trading news because it's not designed to read unlike the operator can read the event news. All news from ongoing events are obtained when trends identified by the Forex killer or trades are reversed.

At this stage you can subscribe for a Forex trading signal service that can address all news events like the Forex peace Army. Having reached the stage of a professional trader you can use the Forex Killer together with the Forex peace army to maximize your profits and returns generally. For high returns it's advisable not to trade with the lower time frames but go with the hourly charts, follow established trends even if the killer Forex goes against it you can easily identify this by analyzing the high time frame charts. It's another important tip that you practice good money management statistically not to risk a loss of more than 5% in a particular trade with reliable broadband connections.

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Free Forex Trading Tip - Forex Global Trading Tips For The Forex Currency Trading System

As the Forex global currency trading system has the highest volatility of any investment market today, it's absolutely vital that you get access to as many Forex global trading tips to fast track your Forex education and to lock in faster Forex profits. This article will reveal free Forex global trading tips for the volatile Forex currency trading market.

The beauty of the internet is that Forex global traders can now go online pretty much anywhere in the world at any time of day or night and get access to free Forex trading tips. With the right Forex currency trading system, Forex traders can reap large profits with Forex global trading.

There are some qualities that a Forex trader should have to become the best Forex trader he or she can be and to lock in faster Forex profits.

It is absolutely vital that you use proven strategies when buying or selling in the Forex global currency trading system. The best way of achieving this is by consulting reputable Forex charts and graphs that are known to be proven indicators and pivot points to follow when investing in Forex global trading.

Contrary to stock trading, as the global Forex market trades in every currency there is never a threat of insider trading. What separates a successful Forex trader and a consistent Forex loser is the level of their Forex trading education and the fundamentals that they follow in their individual Forex currency trading system.

The more that you can educate yourself about the currencies you are trading in the global Forex market the more accurately you will be able to predict the way these currencies will move and the more profits you will be able to reap.

The most savvy Forex traders understand that the best Forex currency trading system is the one that they have perfected and stuck to, with no exceptions. By creating your very own individual Forex currency trading system and sticking to it you will be virtually able to put your Forex global trades on autopilot as you simply follow the Forex currency trading system that you have already created and that has been proven to work.

Margin trading is a very easy way for Forex beginners to lose their money fast. Don't even venture into this Forex currency trading system until you have perfected your own strategies and know exactly what you are doing.

Forex currency trading is not risk free. It is critical that you bear in mind the volatility of the Forex global currency market in combination with what is going on politically and economically in many countries around the world.

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Forex Trading Strategy - An Easy to Understand Method Which Makes Triple Digit Profits!

By Kelly Price

The Forex trading strategy we will look at here is simple to learn, easy to understand and will make huge gains. This method doesn't predict but trades the reality of price change and will catch every major big trend and profit - Let's take a look at it.

The Forex method is based on the way all the biggest and best trends start and continue and if you look at any currency chart you will see how they do start - by breaking through resistance and making a new high and as a trend continues, the currency will continue to do this.

Now the above is true and you can see it on any chart but most new traders fail to see it and don't base their strategies on this method. The pro traders do and the reason the novice trader doesn't, is simple - he believes that to make money in FX trading, you need to buy "low and sell high" so he looks to predict lows and highs in advance of the move. The problem is no one can predict, its another word for hoping and guessing and these traders soon lose.

The smart trader knows if he buys a breakout he misses the first part of the trend but why does that matter, when there is a huge profit to be made from the break?

The answer is it doesn't matter at all - your aim is to make money not try and do something which is impossible which is to buy the low and sell the high.

In terms of breakout trading, you need levels of resistance which have been tested and held several times before the break occurs and as a general rule, the more times the level has held before the break, the higher the odds are of a continuation of the break once it occurs. Try and trade six tests or more and keep in mind that the wider the tests are in terms of time, before the break occurs the higher the odds are of the break continuing. Look for two tests to have occurred at least a few weeks apart and if the gap is a few months this is even better!

Once the break occurs, your stop goes under the breakout point so if you are wrong, your loss will be small.

When you devise your breakout Forex trading strategy all you need to do is look for levels of resistance that are firm and wait for them to break. You can simply use charts on there own but it's best a few momentum oscillators in so you can see if price momentum is on your side when the break occurs, to increase your odds of success.

Breakout trading is simple, logical and works so learn this Forex trading strategy and get on the road to a triple digit income in just 30 minutes a day.

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Forex Trading Strategy - 3 Basic Steps For Forex Success

If you want to trade forex you need a forex trading strategy, which will allow you to enter the elite 5% of traders who make money and avoid the 95% who lose all their money. Let's look at a forex trading strategy for success.

1. Basics

Many people think they can buy success from a vendor on the net but you can't - most of the advice sold is junk and you can get better info for free. Any one who promises to give you success for a few hundred bucks is lying - success comes from within only you will make yourself rich, no one else your on your own.

Educate yourself from the great free resources on the net as the basis of your forex trading strategy. Use a technical approach it's far easier than fundamental analysis. The latter, will get your emotions involved and with news instantly discounted, its impossible to trade it so don't try.

Your Forex Trading System

If you educate yourself on technical analysis then you need a system and here is what you need to look at:

1. Learn about breakout methodology (see our other articles) its easy to understand and apply and works.

2. A fatal mistake made by most traders in their forex trading strategy is they try to predict where prices will go.If you do you will lose. You are relying on hope and if you rely on hope like in any venture your are going to lose.

3. Trade the odds and this means price momentum should support your view and confirm the trade before you enter. Two great momentum indicators are - the stochastic and the Relative Strength Index - look them up and use them.

4. Money management is essential and you need to protect what you have - with a breakout methodology that's easy, your stop will be close behind the breakout when it occurs.

If you follow the above 4 steps in constructing your forex trading strategy, you will have the basics of a system that's easy to understand apply and makes big profits.

3. The Key To Success

The key to success is to have confidence and discipline

The above system will give you that.

Confidence is essential as it leads to discipline and if you don't have the discipline to follow your system you have no trading system in the first place.

The other key is to work smart not hard - You get no rewards for effort just for the success of your forex trading signals, so trade infrequently.

Using a breakout system and only trading the best trends means that you can learn everything in about a week and your forex trading strategy will take around 30 minutes a day to apply.

If you base your forex trading strategy on the above 3 points you will have the ingredients needed to enjoy currency trading success.

Good luck!

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Forex Trading Strategies - Choosing Your Own Personal Path Into the World of Forex Investing

By Vern Harrington

Basic Forex trading strategies are all about managing risk and reward. They're generally simple concepts to get our head's around. However, as you get into the process of Forex investing you'll realize that these basic strategies often evolve into extremely complex formulas. If making boat loads of money in Forex were easy...then everyone would be doing just that, right?
The first thing to determine when looking into Forex trading and learning about the various Forex strategies is -- how much time can you devote to your Forex investments? If you can't devote a sizeable portion of your day to learning how to Forex day trade then you'll probably be interested in investing in a Forex managed account.

A managed account allows an experienced Forex trader to make and manage all your trades for you.
Of course, some people love control and won't be interested in this route. They're only interested in learning about Forex day trading and doing it all themselves. Either way, be honest about the time that you can devote to learning Forex strategies because that will determine which route is really best for you.

If you can indeed devote a good amount of your time to learning Forex trading strategies then it's best to learn everything that you can about automated Forex trading software.
Every currency trader in existence today uses high level software to make hundreds of calculations within in seconds. If you don't have access to automated Forex trading software you're going to get eaten alive and all your hard earned money is going to be consumed by the Forex market vortex.

Getting the right advice and signing up to receive what are called Forex signals from a professional Forex consulting company is something many beginners feel comfortable doing. These Forex signals or Forex alerts will tell you when a market is starting to "make a move" so that you don't miss out on big profits.
These alerts should go immediately to your mobile device. Chose Forex signals from a trusted source and one that isn't over saturated. Do your due diligence.
In order to make good money from Forex trading strategies you've got to trade on demo software until you are consistently making a profit. Then and only then should you cautiously enter the world of Forex investing.

This is not to scare you, this is the reality. Although the basics of currency trading are easy to understand, once you start making real trades you're going to need to rely on an entire world of knowledge and training...it will save you from a lot of bitter tears.


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The 7 Secret Forex Tip Trading Rules You Should Be Following

By Walter Madenford

Ask any professional forex day trader and they'll tell you that rules will become your best friend. There have always been rules, and by following them, you can ensure your own financial security. However, if you choose not to follow simple and successful rules, you may just end up broke by investing your money in the wrong way. Follow these forex tip trading secrets to make the most of your investing.

Rule 1 - Always Think Long Term

Once you begin investing, and put money into your account, forget about taking it out. You should be leaving it in there assuming that you'll never be using it as a cash fall back if things don't go as planned right away. If you're thinking on a shorter term basis, chances are you'll get emotional about your money or make bad decisions which lead to making less money on your investment.

Rule 2 -Use Investing Money Only

Remember, money that you invest should be used exactly for that purpose... investing. In essence, investing is similar to gambling as there are no guarantees for success. Don't ever put money you don't have or can't afford to lose into the forex market.

Rule 3 - You Must Use Resources Other Than You

This rule is harder to apply that most others. When you are a beginner investor, you'll believe you can attack this journey completely on your own. You should be thinking about who can be a mentor to you, ideally a person who's had years of experience in various other investment endeavors, to help you invest wisely. Once you begin to gain confidence in your own trading abilities, you can then expand to make your own decisions.

Rule 4 - Follow a Trading Plan

There's a reason why successful traders always have a strategy. And that's because it works. If you're going to trade, you need a trading plan. And if you want to trade profitably, you'll need to follow your trading plan. Because the forex market is so fast-paced, it's impossible to react real-time and make the right decisions, therefore follow a trading plan.

Your trading plan is an essential element because it removes any emotions and no thinking is necessary, which usually means you no longer have to analyze complicated graphs in real-time. There's all kinds of software that can analyze for you and the data it uses to calculated decisions is much more reliable than not using a system. If you choose not to use a system, might as well be rolling the dice and blindly guessing.

Rule 5 - Be Consistent

If you're going to trade forex, do it consistently. You will no doubt have some losses, but hopefully the number of wins will override the losses. Remember, that even the best traders lose all the time.

Rule 6 - Remove Any Emotion

This is the downfall of many a trader, but be certain that your trading system allows you to be emotionless about decisions to take with trades. Let your profits run, and kill your loses fast. Follow a system and you can easily remove any emotions that would otherwise lead you to make bad decisions.

Rule 7 - Diversify Your Investing

And finally, invest your money in several areas, making sure you distribute into different investment vehicles. When you do this, you protect your startup capital and ensure that no big portion of your funds can be lost at any given time, no matter how the market moves.

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Forex Trading Tip - Learn 80 - 20 Rule and Instantly Enhance Your Profit Potential

By Kelly Price

The 80 / 20 rule will help you make money in forex trading and if you are new to forex trading or trading already and not making enough money this forex trading tip is for you...

The 80 / 20 rule is simple.

It simply states that:

80% of your success comes from 20% of your efforts.

Let's take a simple example of a sales organization.

It's well known that 80% of the income normally comes from 20% of the clients.

In trading terms therefore: 80% of your profits come from 20% of your trades and the rest (80%) give you just 20% of your profits.

If you think about the 80 / 20 rule, you can apply it to many areas of life and try applying it to your forex trading and you will see it makes sense.

So what should you do?

Cut your trading frequency!

It's a well known fact that most forex traders try to hard, they think they need to trade a lot or always be in the market to win.

What happens?

They take low odds trades and lose. Keep these two points in mind:

- Unlike most activities you don't get paid for effort in forex trading you get paid for being right with your trading signal and that's it.

- The amount of trades is NOT In any way related to your profit potential.

To give you an example - I know traders who trade less than once a month yet make 100% + annualized gains!

The fact is most short term volatility in forex trading is random. This means you can't get the odds on your side and you won't win. Ever wonder why you never see a winning day trader or forex scalper?

Well, the reason is they trade to much and trade low odds or trades and this means an erosion and eventual wipeout of equity.

If you trade longer term, your chances of success with your forex trading system will be more because you are focusing on high odds trades.

If you really want to win, use the 80 / 20 rule and get the odds in your favor.

Try trading long term high odds trades and trade valid breakouts to new highs and lows (most major moves start from them), be selective and follow the market action and lock into these big breaks and follow the big trends that develop.

The 80 / 20 rule is logical in life and in the forex market and if you understand it, you can make big gains.

Many people like trading frequently - but their just playing a game and not interested in making money, it's a thrill seeking exercise - personally I would rather go Scuba Diving!

If you believe forex trading is all about making money and NOTHING else, then you will see how you can use the 80 / 20 rule to your advantage.

Think about the above and using it in your forex trading strategy and you maybe glad you did!

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Best Currency Pairs to Trade

With 196 countries in the whole world, there is a handful of currency pairs to trade. The question is, which currency pair are worth trading and why? What do most traders trade? Which currency factors influence the trading success?

Major Currencies

The most advisable currencies for beginners in forex trading are:

· Euro (EUR)

· US Dollar (USD)

· British Pound (GBP)

· Japanese Yen (JPY)

· Canadian Dollar (CAD)

· Swiss Franc (CHF)

· Australian Dollar (AUD)

Favorite Pairs

The basic rule of forex success is "the more you know about the currency you trade, the better". The most information and resources, including daily expert analytical data and advices, are available for the following major currency pairs:

· EUR/USD

This is the most popular pair among traders. It has the lowest spread among most brokers. The pair follows the basic technical analysis and usually isn't too volatile, meaning that there is less risks and closer stops. Besides, there are tones of information on the net for this pair, which makes decision making much easier.

· GBP/USD

This is one of the favorite pairs, because of the possible large jumps and profitable pips. Keep in mind that, whenever the profit opportunity is higher, the risk is higher too. This pair belongs to rather volatile group. Despite the volatile warning, traders love this pair, since there is plenty of market research and analysis available, which protects from making stupid trading mistakes!

· USD/JPY

Here is another lovely currency pair. It is offered with low spreads and follows smoother trends, compared to other pairs. Trading usd/jpy promises a cheerful ride with lots of profitable opportunities.

Why Are They the Easiest to Trade?

Because the mentioned currency pairs are favored among traders, the volume of trades creates the needed liquidity necessary to make daily profits.

Also, the major currency pairs have tight spreads, compared to other available choices. The exception for this phenomena is GBP/USD pair, due to its' volatility.

EUR, GBP and JPY are traded against US dollar, meaning that the most active and, therefore, profitable hours are during the New York trading session.

Lots of online resources - expert analysis, seminars, webinars, blogs, forums, ebooks etc. - are available on a daily basis. You don't have to break your head looking for information or advices. Most forex brokers offer, for example, daily analysis which can be found either on the broker's site, or receive it via email. That is sure helpful during the decision making!

Which Currency Pairs are Better Avoided?

My advice, stay away from all the exotic currencies for which there is almost no information on the net. In order to trade such uncommon pairs, forex trader requires extra knowledge and some kind of access to details and analysis needed for trading.

Also, it is a good idea to keep away from currency pairs with high spreads. Please note that spreads may vary from one broker to another, so don't "disqualify" a selected currency before first checking spreads with couple of brokers. The acceptable spread is 2-3 pips. When things get above 6 pips, currencies become volatile, meaning that an inexperienced trader may find it extremely difficult to trade.

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Beginners Forex Tips - How to Keep it Simple

Beginners forex trading are usually overwhelmed by the huge number of products available to the newcomer. A lot of the sales material used to attract new forex traders make wild promises about how easy it is to make money with the most minimal of effort. As a forex beginner there are certain things that you should be aware of regarding the different forex trading strategies on the market.

There are essentially two different approaches you can take to trading: either follow a fully automated system or study a training course that teaches you the building blocks which you can then

The best forex trading systems are usually the most straightforward but beginners often think that the more complicated the system the better it is. This is not true When chosing a system pay particular attention to the following forex tips;

1. Avoid any system or guru who tells you that it is possible to me 100% accurate when trading. This is simply untrue, even George Soros and Warren Buffet get it wrong from time to time.
2. Look for a system that pays attention to the prevailing market trend. The expression "the trend is your friend" exists for a reason.
3. A system should have at the very least the following 4 components: an entry signal, an exit signal, a protective stop and a trailing stop.
4. Professional traders realise that their system is only part of their success. They also pay a lot of attention to their money management - it's not as sexy as a screen full of charts and flashing quotes but this aspect is arguably MORE important than the system itself.
5. Trading can be a tough business and the more attention you pay to getting the right mindset then the more money you will make.

Don't forget that the currency markets are massive and there are a lot of very sophisticated forex traders and financial institutions that participate in forex on a daily basis. As a result, prices can often move rapidly in one direction so if you don't enter the market armed with a plan then it is very easy to panic and make errors.

As well as following a clear trading plan, forex beginners should decide what type of trading they want to adopt. For example if you have a full time job then it would make more sense to follow a strategy that you could work on out of office hours, decide on your trades and automatically enter them in your chosen forex trading platform rather than try to react to changing prices during your working day. Obviously if you have more time on your hands then it might be an idea to check out forex strategies that could be applied to the day trading market.

Mark Stoker is an experienced trader, who has studied forex, futures and options markets for 15 years. If you want more beginners forex tips then visit http://www.beginnersforex.org

Make Money Fast in Forex Trading - Simple Tips For Bigger Profits Quickly!

If you want to make money fast in Forex trading you can and this article, will give you some simple tips on how to get on the road to big Forex profits.

Many traders try to restrict risk so much they actually create it and guarantee they will lose - they place stops too close and get stopped out by the market noise, risk so little of their equity that they can never make a big gain and equate trading frequency with profits - they day trade and scalp and make a lot of effort for nothing.

The savvy trader knows that to make money fast in Forex, they must take risks at the right time and this involves waiting for the right opportunities.

Patience

You need to be patient! The number of trades you make or the effort you put in doesn't guarantee success. In fact you should be patient and wait for the high odds trades and hit them hard.

You Have to Bet Big

When you see a high odds trade, you need to risk enough to make the reward worthwhile and this applies especially to small accounts. Many guru's tell you, you should risk no more than 2%, well risking 2% on a $1,000 account is 20 bucks! You wont make much on that and will have to have your stop so close, your almost guaranteed to get stopped out. Instead, look to risk between 5 - 10% on high odds trades, to make the reward worthwhile.

Don't Diversify

Diversification is supposed to reduce risk but really it's another word for diluting profit potential - if you have a small account, pick a high odds trade and focus on it and don't dilute your potential profit by diversifying into lower odds trades for the sake of it.

Don't Have Stops to Close

Most traders place stops and trail them within the market noise and this means, they continually get stopped out. You need to give the market room to breathe and while it looks like your taking more risk - your not, your simply keeping your stop outside the market noise and that is the only way to make big gains. If you don't know anything about standard deviation of price, make it part of your essential Forex education and learn how to place stops correctly.

Make Money Fast in Forex Trading

The above tips are ones most traders won't follow but that's no problem, most forex traders lose but if you do use them and understand you have to take calculated risks to make big gains you can incorporate the above tips in your currency trading strategy and make money fast.

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Forex Trading Strategies - A Must For a Trader

By Walter Morris

A Forex trading strategy is simply the process of trading to create a profit. An excellent trader should have the capability to calculate where and when there will be a profitable trade on the marketplace. These traders should be able to determine the ideal time to leave a trade open for maximum profitability or the time to close an operation minus any losses. Traders are equipped with the skills and knowledge needed to employ trading strategies for the Forex market.

Most often, one finds that Forex trading strategies are a practiced set of "regulations" to be followed to make sure that the trader earns money. It basically makes use of techniques that time and again have been confirmed to work which allow traders to lessen the risk of losses and does not eliminate the need to make decisions like that of an automated Forex robot. There are a number of methods that the trader can learn, of which the principal objective is for the trader to be able to read the market, analyze charts, make quick and accurate decisions, including calculating the ideal time to exit and enter a trade. A really good currency trading strategy will educate the trader about proper management of money and how to lessen the risk of losing that preliminary investment.

A number of trading experts who have been in the business for quite some time will offer their best strategies for Forex trading, such as video tutorials, e-books, DVD's or written manuals that contain "insider" information which you need if you wish to trade as if you have been doing it for years. What they are basically doing is giving you "insider knowledge" -- to discover how the experts conduct trades and receives big profits, with the use of time honored strategies and techniques, and without making use of automated robots, automated systems, and software.

Some traders who have mastered the trade actually developed Forex trading strategies that suited them well and they now wish to share these with other traders. Make no mistakes; these strategies are definitely the fruits of several years of errors and mistakes made whenever they traded on the Forex market. These trading experts have conducted research that resulted in an ideal strategy to guide amateur and new traders in avoiding the mistakes similar to those they made.

Strategies for Forex trading are available in different forms. As previously mentioned, you may have to buy DVD's, books, or watch tutorial guides. Several of the available strategies actually give you a more hands-on approach. Using a sample account, charts, software, and other indicators is the most common method of teaching an individual the strategy that they are most interested to learn about. It is also possible to have a trading system that is automated that will help guide you through the entire procedure of entering, beginning, ending and completing a trade. However, these kinds of systems still requires you, in some extent, to use your head but it does away with the meticulous task of needing to look at the market to identify any trading opportunities that has great potential.

You can use up a huge amount of time online to see the wide range of strategies for Forex trading that you can pick from. Set aside ample time to carefully read reviews about all of the different option available so that you can find a couple of strategies that you think will best suit your trading style.

To get more info about this topic, please go to: http://www.myforexlessons.com/trading-strategies-for-forex.php

Our website tries to help people to take the first step toward the aim of becoming a Forex trader. What we can offer is a way to shorten the learning curve trough the analysis of the best strategies you can find on the internet.

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Forex Trading Strategies - How Good Are They?

By Vladimir Fazilov

Forex is the most popular and highest trading market across the globe. Every day thousands of people are attracted to Forex trading to gain quick money. This across the counter trading involving the major currencies is a bit tricky yet highly profitable trade, which needs a good understanding of the Forex trading. This can be seen by the percentage of people everyday, who lose their money in trading due to lack of proper knowledge and skills. This makes the other 5 to 10% of people gain huge profits. However, with a good observation, and learning of the Forex trading strategies, anyone can make profits or at least secure their hard earned money.

Early Trading Strategies

Through decades, experts have come up with various Forex trading strategies that can minimize the losses and improve the profits. With a little understanding of the basic strategies, one can secure their money, meanwhile improving the skills through practicing. Over and over, new Forex trading strategies are developed with the changing market conditions, rules, and experiences.

Various players like banks, financial institutions, brokers and training institutions designed their own strategies and provide a huge knowledge base for the new comers, yet all of those accept some basic strategies which are necessary to learn by anyone who intends to learn Forex trading. With the knowledge and practice of basic Forex trading strategies, and advanced concepts are introduced by the people who had hands-on experience on Forex trading.

Forex Trading Strategies: Some Examples

Let us have a look at simple to complex Forex trading strategies in detail.

• SMA: Basically the moving averages (usually two, fast and slow moving) are set to two different time periods, and when fast crosses the slow moving average, the trader can buy the Forex and vice versa. Depending on these fast and slow moving averages, the entry and exit point are determined. This is a simple strategy that is advised to the users with no knowledge about the Forex.
• Fibonacci Trading: By using Fibonacci levels in the Forex trading, the highest swing and the lowest swing are interpreted and the best price to buy or sell the Forex is calculated. Here, the best time to buy is when the Fibonacci is at the lowest level and vice versa. However, a good knowledge, and luck is needed to study the complex Forex trading strategies to gain.

Caution:

There are more than 100 Forex trading strategies available for the new entrants and new strategies are adding to that day by day. This is because; no single strategy is good for all. Remembering this point, each user should learn the strategy, understand his own trade and requirement, and make his own strategy. To achieve this, the user may need to practice on with minimal risk, till he understands the Forex trading and starts playing with it. At the same time, the user should be willing to take the risk to lose some of his hard earned money in the process. But, experience speaks and may be after some time he might design his own strategy to turn it to millions.

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The Different Forex Trading Strategy to Help You Make More Money and Minimize Risks

People need to make money in order to live a comfortable life. They need it in order to pay for the utility bills, pay for food, for education and other things that are necessary in life. This is why people tend to do anything to make money. Some people work in a company, some people prefer putting up their own business and some people trade in the financial market as a career.

One such financial market that you can really make money from is the Forex market. The Forex market is the largest and the most liquid market in the world with trades open for 24 hours a day and exchanges that amounts to trillions of dollars each trading day.

In order for you to be successful in this market, you need to know the basics about the Forex market. You need to be able to know how to trade, when to trade and what to trade. You will also need to know the different trading strategies in the largest financial market in the world which is the Forex.

Knowing about the different trading strategies in Forex will allow you to minimize the risk of losing money and increase your chances of making huge profits.

First of all, it is important that you should remember that the Forex market can give you the chance to earn a lot of money. It is a known fact that people who have traded in this very liquid market have made millions of dollars almost overnight. You also have to know that the Forex market is also a very risky market to be in. It is also a known fact that many traders in this market have experienced losing a lot of money even to the brink of bankruptcy or beyond.

This is why you should know the different strategies that are necessary in the Forex market. Without these strategies, you will be like a blind man crossing a busy intersection with no one to guide you.

First, you need to realize that Forex trading strategies are very different from the strategies used in stoke trading. If you know about the different trading strategy in Forex, then you will really earn a lot of money from this very large financial market.

One of the most useful strategies that you can apply in the Forex market is called leverage. This is one of the most common strategies that you can use in the Forex market and most Forex traders are familiar with the leverage strategy and many have made large profits from this strategy.

If you already have a funded Forex account, you can use the leverage strategy to help you trade more effectively in the Forex market. Leverage strategy works by giving you 100 times the amount of money that you can trade in your deposited account. Therefore, if you do win, your income will also increase 100 times. This will allow better results in your trades.

Another strategy that is commonly used in the Forex market is called the stop loss order. This strategy is used to protect you from potentially losing a lot of money. This works by letting you choose a predetermined point in the trade where you will not trade. Therefore, it will eventually minimize the risks. However, if the movement of the currency is not like what you actually predicted, you will end up losing potential money making opportunity with this kind of trade.

Automatic entry order is another Forex trading strategy that you can use when you trade in the Forex market. This will allow you to enter the Forex market automatically when the price of a particular currency is right for you. The price is predetermined and once it reaches that predetermined price, you will be automatically entered into the trades.

These strategies will help you trade in the Forex market more effectively. It will eventually help you minimize the risk and maximize your income earning potential. However, you should always remember that you should know when you should use these strategies. It is also important that you should remember that there is always the risk of losing money when trading in Forex. These strategies will not necessarily eliminate the risk but will minimize it.

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Seth Hamilton is a full time Forex Trader who has established himself as an expert in the world of Forex Trading and Currency Exchange.

Currency Forex Trading System - How To Test Any Forex Trading Strategy By Using This Unique Method

With the popularity of forex trading since middle of year 2004 when it even overtook the interest in futures and commodities trading, we have seen a lot of forex trading systems being developed. As new technology evolved, we have also seen the power of the desktop computer being harnessed for running trading platforms involving all sorts of forex trading systems instead of using computer mainframes.

The usual way most traders would want to test their forex trading systems is to use a forex strategy builder and back test on historical data, and then to discover what parameters in that trading strategy are important to the results, and to forward test again on past historical data to check the results.

Some traders will merely back test historical data, and then run the system to test on simulated data. If they find that the system could generate good results based on the system parameters, they then adopt the system for actual use in real trading instead of a paper trade.

There is a lesser known way of testing a forex trading system, and that is to actually port the trading system to test it on actual historical individual stock data.

In other words, you can use the forex trading strategy to test it on historical stock data and to check how the system performed with stock market data.

Stocks and shares normally have less volatility then forex, the difference being trading stocks and shares would involve a study of accompanying volume. In contrast, we are concerned with price and time action in forex and not volume. Further. many forex traders are more familar with trading stocks and shares, and to use a forex trading system on stocks and shares would allow the trader who is transiting from trading stocks and shares to trading forex, an easier way to learn how to trade forex.

A general guideline for testing a forex trading system with individual stock data is this - if you find the forex trading system to perform well with an individual stock data, returning profits consistently, you can have reasonable confidence that the same forex trading system will function as well for trading forex itself. If the forex trading system does not perform well with stocks and shares, the general understanding is that the system may not be robust enough for the volatility and velocity of trades inherent with trading forex.

As always, this is not a dogma, but a general guideline. That is why any forex trading strategy or system have to be tested prior to being adopted for trading.

What is significant is that you can uncover the power of a forex trading strategy to use on trading stocks and shares in this manner. Some forex trading strategies have been performing very well on stocks and shares, and it follows that these will also perform as well with forex.

Are you still struggling to become profitable trading forex? Discover how you can get help to personalize 3 powerful trading systems from a successful professional forex trader by visiting the author's blog at http://1forex-trading.blogspot.com

Forex Trading Strategy - 6 Simple Steps To Success

If you want to win at forex trading you need a forex trading strategy that can help you enter the elite 5% that make money and avoid joining the vast majority of losers. This article is all about devising a forex trading strategy for success in 5 simple steps.

1. Accept Responsibility

The first point to keep in mind is that you are responsible for your own success - if you think you can buy success from a vendor for a few hundred dollars - you are going to lose.

Only you can make yourself successful and this means you have to develop your forex strategy on your own. The good news is, everything about forex trading can be specifically learned and is free on the net.

2. Learn the RIGHT knowledge

Forex trading is all about learning the right knowledge - This is an important point, many traders simply think the more the better in terms of knowledge, but this is simply NOT true.

You get rewarded for results in currency trading and the accuracy of your trading signals, not the effort you make.

Your forex trading system that you use in your trading strategy should be kept simple and easy to understand. This way, ensures it will be robust in the face of ever changing market conditions.

Simple systems work far better than complicated ones and have the added benefit of being easy to understand by you - This means that you will have the confidence to follow it with discipline.

3. Deciding Your Methodology

You will need to decide if you want to a technical or fundamental trader.

By far the easiest is to be a technical one and use forex charts to spot trading opportunities. You need to get the odds on your side and this means NO forex day trading! It doesn't work, as all short term volatility is random. Instead, base your forex trading strategy on swing trading, or long term trend following.

Both these methods will work and the one you choose is personal preference.

You then need to have a clear understanding of support and resistance and some momentum indicators to help you get into trades ( this is covered in our other articles )essentially you need to confirm price momentum is on your side when you trade. Finally, learn the concept of "breakouts" it's a timeless very profitable methodology.

4. RISK and Money Management

If you don't like risk don't trade forex markets. Most traders don't understand risk and are so frightened of it, they end up being to cautious and lose. If you want to make money you need to take calculated risks, at the right time. You need to have the courage of your conviction. If you come into forex trading thinking you can risk 2% of your equity and make money do something else, as you will lose.

5. Trading is in the head

Most traders fail because they cannot obtain mental discipline, to follow their forex trading system through bad periods i.e. they lack discipline due to lack of confidence.

If you develop your forex trading strategy yourself, you will understand exactly how and why your system works - this will instill confidence and from confidence flows discipline. Keep in mind if you don't have discipline to follow your system you have no system!

6. Realism

Sure people get rich quickly but that's the norm for most currency traders. You need to have a realistic forex trading strategy and that means aiming for 50 - 100% per annum. If you can achieve this you will be up there with the best and this will compound to a lot of money over time.

REMEMBER!

You don't need to buy any material to construct your forex trading strategy, its all free online. You just need to research it and avoid people telling you that you can buy success from them, for a few hundred dollars - you cant, there are no shortcuts. The good news is, everything about forex trading can be specifically learned and you can do it all on your own, if you are prepared to put in a little time and effort.

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Forex Trading Tips - Simple Advice on How to Win When 95% of Traders Lose Money!

95% of traders lose money but the paradox is anyone can make money if they get the right education and mindset and here, we will show you how to avoid the losing majority and get in the elite 5% who make the really big gains.

First I want to outline a famous experiment which shows anyone can win and it was conducted by trading legend Richard Dennis.

He took a group of ordinary people which included a clerk, a boy just out of school and a lady auditor to name just a few and taught them a system in two weeks and these traders were then given trading accounts and they rewarded Dennis's confidence in them, by making him $200 million dollars in under 4 years. He proved anyone could win and while you may not make as much money as these traders, it shows anyone has the potential to make profits - Forex trading success can be learned.

The first point to understand is you don't get rich following cheap Forex robots. They claim for a hundred dollars or so you can make huge gains with no effort but none of these cheap systems have an audited track record to support their gains and if they really did work everyone would quit their jobs and trade!

You have to trade a logical system which can make money and never believe in easy money, the rewards are so high in trading, because you have to make an effort but the really good news is for the effort you need to make, the gains can be life changing and even better news is the best Forex trading systems are simple.

Simple systems work best because they are more robust than complicated ones. If a system is to complicated, it will have to many elements to break and if you take Dennis's system as an example, it was very simple and easy to learn and that's why the traders mastered it in just two weeks.

While many traders pick the wrong system or use a system based on flawed logic, another group of traders cant even win with a good system! The reason for this is they can't follow it with discipline, If you want to win you must accept you will have losses. The system Dennis devised had far more losers than winners but it made huge gains because its winners were far bigger than its losers.

All the traders who traded for Dennis commented that learning the system was the easy part, controlling their emotions and following it with discipline was far harder but they had confidence in the system and knew that's what they had to do to win and they were very well rewarded for their efforts!

So now you can see why so many traders lose and what you need to do to win and if you understand this article, you can get on the road to currency trading success and make huge gains in around 30 minutes a day or less.

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Forex Trading Tip - 3 Tips to Super Charge Your Profits

The forex trading tip enclosed is all about increasing your profitability and there logical, easy to apply and work. So here are your 3 trading tips, to increase the profitability of your forex trading strategy.

1. Learn The 80 - 20 Rule

It's a fact that in many areas of business work etc that 80% of your profits come from 20% of your efforts and it's also true in forex trading.

Most traders over trade and trade for the sake of trading, they think that if their not trading they will miss a move or the more they trade the better and this is not true. What you need to do is:

Cut you're trading dramatically and only focus on the high odds set ups. I know traders who trade less than once a month but earn triple digit profits. They know trading frequency has nothing to do with forex trading success and you should learn this to.

2. Don't Diversify

Diversification is seen as a way to cut risk - that's only true if you diversify into good high odds trades, but most traders think they should trade a spread of positions, take marginal trades but all that does is dilute profit potential.

Most forex trader's accounts are so small they simply can't diversify and have meaningful gains. No you need to concentrate on high odds trades and then use the next tip to milk them for all their worth.

3. Load up The Risk Reward

How many times do you read that you should only risk 2% per trade well for a small forex account of say $5,000 you wont make much doing that that's $100!

No you need to risk up to 20% on the high odds set ups - if you don't take a risk, you won't make big gains, its as simple as that.

You are not being rash, you are taking a calculated risk based upon the odds and like a good card player, you are going to load up your trade.

The tips above are simple and mean that you have to see forex trading for what it is a high risk - high return odds based game, where you need to be patient, to wait for the right trades and when you see them - hit them hard.

Think about the above simple forex tips and you will see they make total sense.

They will help you enhance your forex trading strategy and enjoy forex trading success.

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Mini Forex Trading - Tips You Must Have Before You Start Trading on the Forex Market

Have you heard of Forex demo accounts? You probably have if you've started to look into trading the Forex market. The reason you need to have one is to practice your trading. It's a critical part of becoming a full time trading professional. But, you need to be careful with these accounts. To enter the world of mini Forex trading, there are a few things you need to know about demo trading accounts.

Having a practice account to work on your trading skills or to test software is something you need. One thing to watch out for is the settings. When you start to trade with real money, you should start out out with a mini account because the risk is low. With demo accounts, they are typically set to standard. It's smart to have the account settings match to truly replicate what it would be like to trade.

The next thing to be very aware of are your emotions. Trading with pretend money is not stressful. You can trade away and not be hurt financially. Your emotions will be radically different when you have money on the line. Try to treat your practicing like its real money and you will be much farther ahead of the game.

If you decide to use any trading software, you'll need to be sure to use it like you would with real money trading. Some software packages will trade for you by accessing your account. If you are using one of these systems, you'll need to check if the software will work in a demo account.

Tracking your trades is a very important part of the learning process. Even though you will be using play money, you should make notes on each trade. Writing down the good and the bad details of each trade will allow you to catch any problems you might have with your trading strategy.

When you decide it's time to venture away from practice trades, be sure to start with a mini Forex account. The risks are small and will allow you to start out slow and get your emotions in line. Once you start to make some consistent profitable trades, start adding more lots per trades. Later on, you may want to switch to a standard account.

Well, there's some food for thought about doing mini Forex trading. Finding a trading strategy will be your next step.

Hector Breton's passion is mini Forex trading. Find out what he recommends as the only proven method to trade at http://www.automatedforexsystemtradingblog.com.

Forex Tips to Help You Acquire Wealth Through Currency Trading

One of the most interesting things about Forex trading is that there are not so many wealthy people among the retail traders in Forex trading. There are actually no unknown secrets to Forex trading; it is all about how you attack your own Forex battle.

The main points about Forex trading have been discussed over and over again since the beginning of Forex trading. Most facts have been already established within Forex for a long time.

Therefore, the main hindrance to being successful in Forex trading does not lie in how one knows much about the technicalities in the market, but in how a trader is able to overcome difficulties and rise above any problem they encounter in trading.

Here are some tricks and attitudes you can adapt to become a better trader and be able to acquire wealth out of it:

1.) Be disciplined. This includes being systematic in dealing with the Forex market. You have to devise your own system and be disciplined enough to stick to it. Some deadly practices for Forex trading includes non-compliance to rules, unwise choices in trading sizes and carelessness in risk control. As a trader, you have no choice but to stick to logic and be disciplined enough as you wait for the results. Since the Forex market is volatile, you have to create a system in which you can have a back-up plan or strategy that you can use whenever the time asks for it.

2.) Do not take risks haphazardly. A wise trader should know how to manage his risks. No matter how volatile the market is, you should still be able to manage your risks wisely based on intelligent analysis of the market and its movement. Do not be too fantastic about your moves lest you lose your game.

3.) Base everything on the market. No matter how big or genius your system or ideas are, you should still be humble enough to accept that everything would be based on how the market moves. It is your ultimate arbiter for any of your plans.

4.) Always be keen about learning. A trader should never stop learning about economics and his trading game. This way, you can increase your knowledge and be able to come up with better choices as you continue to trade in the Forex market. There is always something new to learn about Forex market dynamics. Accept new information and get rewarded in the future.

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Five Sure Shot Forex Tips to Help You Make More Money

Forex trading or currency trading is quite simple and if one knows the basic of Forex trade, one can easily get good results out of it, and not fall prey to the myth that most investors lose money in Forex trading. Here are some tips on how to better one's chances in this field.

• Know the basics and work smart - Do not believe anyone who says he can how you a shortcut to Forex trading because there is none. One must know the basics of the commerce of Forex and the factors that cause all the change in trends. So instead of buying some get-rich-fast kit online, a little amount of time spent in studying the market, yields greater results. Nothing academic, just some basic know how of how things work in Forex, which can be achieved in a couple of week's research.
• Simple Strategy - A simple Forex strategy works better than a complex one, because a simpler one is more flexible - a very essential quality to have in these times where markets change trends in minutes.
• Discipline in Trading - It is very necessary to have a trading discipline in Forex. By discipline i mean, one must have a consistent approach to this game of Forex - an approach suiting one's strategy and wherein one lets go of emotions while investing. Losses will come at times but one cannot afford to invest more out of revenge to recover them. This alters their pattern and does not co-operate with their existing system - thus leading to more losses.
• Small Losses, Big Gains - it would be unwise to perceive that one will not lose some amount of money in Forex. But the trick lies in taking in those losses as long they are small and work within your system so that in the long run you gain money and that too, bigger amounts, just because you didn't let the losses bog you down and you stuck to your system. Such a sort of attitude is essential to have in Forex trading.
• Know The Factors - It is very imperative to know what are the general and basic factors that affect Forex - both historically and also in the future. Economics factors like Government budget deficits or surpluses, balance of trade level and trends, inflation trends, GDP, productivity of an economy, etc are good to know and follow. Also internal or external political factors like change in government strategies or change in ruling parties affect Forex. And last but most important, market psychology - one must be aware of any unsettling international event, one must also be aware that markets generally follow a steady long term trend, and one must also study price charts to understand the changes in patterns formed by a currency pair - like EUR/USD rate.

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Hedging - Forex Tips Explained

If you are somebody who is just getting started with Forex trading, then you really need to take the time to understand how hedging can not only mitigate your risk, but also potentially improve your long-term profitability.

When we talk about hedging, we are talking about employing trading tactics and techniques that essentially enable you to profit regardless of how a particular underlying trade turns out. For example, think about it this way. Imagine that you have car insurance. You pay money for having his car insurance. However, if you are in an accident, you don't have to pay as much money as you would have if you didn't have the insurance. In some ways, that is very similar to the process involved with hedging your foreign currency trades.

Some people really do not like the idea of employing hedging techniques. They feel as if though these techniques limit their upside. Well that is sometimes true, what most of these people do not realize is that the most successful people who are still involved in the Forex market today are those who learned how to limit the amount of money that they would lose even if it meant tapping the amount of money they could potentially make. That may not make the most sense, but you need to realize that the people who have been playing the Forex game for a long time understand that the name of the game is capital preservation.

Once you have a very clear idea of the kind of trading system you are going to be using, you really need to stop and think about the hedging strategies that you are can use to make sure that you don't get wiped out on one particularly bad trade. The general rule of thumb that a lot of experienced Forex traders swear by is to ensure that you have a hedging system in place that limits your downside risk to 10% of the amount of money you are speculating with.

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Forex Tips - Double Your Profit by Using Parabolic Stop and Reversal to Help You Time Your Entry

There are a lot of questions about how to properly time the entry of a trading position and this is no doubt one of the major factors that affects the success of a trader. However it is pretty hard to find an answer to this question online and it is also one of the answers I am looking for when I was new to trading some years back.

Being able to enter a trading position at the right time means that you are less likely to be stopped out in your position and you will be able to grab more profit and either one of this can make you a successful trader. A lot of successful traders who make a living from trading rely a lot on their ability to time their entry as it will prevent them from being stopped out more frequently and thus help them to make more winning trades.

There are various ways you can use to help you time your entry but I will be going through one forex indicator called the parabolic stop and reversal or commonly known as PSAR. The way this indicator works is by placing a dot either below or above the candlestick in your chart.

When the dot is below the candle, it basically is indicating a bullish movement and when the dot is above the candle, it is showing a bearish movement.

However, you do not trade solely with the position of the dots. You need to integrate the parabolic stop and reversal indicator into your trading system and then use it to time your entry after the confirmation from other indicators in your system. Personally, I use it together with the multiple moving averages as well as the moving average convergence divergence to create an entry system.

For the moving averages, I use the 50, 100 and the 200 exponential moving averages as a way to show me the trend. As for the moving average convergence divergence, I use the crossover between the line and its trigger line to confirm a trend. As for the parabolic stop and reversal indicator, I use it as a way to give me signal to enter a trade.

When my multiple moving averages are stacked upward in good angle and separation, it is actually signaling an uptrend. I will take a look at my moving average convergence divergence indicator for a bullish crossover after a dip in an uptrend and I will only enter a trade when the parabolic stop and reversal in my lower time frame flips to the bottom of the candle which is also indicating to me an uptrend.

When my multiple moving averages are stacked in a downward manner with good angle and separation, I will then wait for a bearish crossover to appear in my moving average convergence divergence indicator and I will move to my lower time frame chart to wait for the parabolic stop and reversal indicator to flip to the top of the candle before I enter a trade.

I rely a lot on the parabolic stop and reversal tool for the entry of my trading position and so far it has been quite reliable. I have made quite a number of successful trades with the it and I hope that you can also put this tool to your trading plan to enhance your success.

You can visit Kelvin's blog for more information on forex buy and sell signals.

Kelvin is a Forex enthusiast and a full time Forex trader. His website offers simple yet powerful Forex Tips and strategies to help other traders to make their 20 pips a day.

Eleven Tips For Safe Forex Trading

Forex trading is a hard environment. These forex tips will suit to the beginner, but can also be useful for the expert trader.

• The first rule is always: save your capital.
• Never invest money you will use for your primary needs.
• Think twice before placing your stop loss order: if you choose a good risk/potential profit relationship, profits will take care of themselves.
• If you are a beginner, use a leverage from two to five, if you are an expert, you can go for a ten to fifteen, a leverage above twenty should be used only in exceptional cases.
• Cut the losses and let profits run.
• If you are in a winning trade, use trailing stops orders, as they will follow the trend. Just make sure you do not place them to close to one another.
• Do not be let the environment around you influence you. If you have carefully planned your strategy in advance, stick to it, the others could be wrong.
• If you have gone through a series of losses, stop trading and rethink your approach to forex trading. Do not use the same strategy, as there is obviously something not working with it.
• It does not matter how upset you are after a loss: doubling the investment to make up for it is the safest way to lose again and reach the 300% loss.
• Forex market can be very profitable but it is also a very hard, unforgiving environment.
• A successful forex trading is not about betting, it is about building, one brick at the time. There are no shortcuts, it does not matter if you do it as a hobby or professionally, it is something that takes time and dedication.

Andrea has been trading with forex for years and has many forex tips to share. Also check out this review of ACM forex, one of the most important forex brokerage services.

Forex Trading Tips

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?

This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.


Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.



Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.

The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.



Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.



Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.



Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:

Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);

Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.


Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.



No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.



Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.



The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.



Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.



Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.



Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.



Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.



Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.



Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.



Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.



Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.


The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.




Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.



Focus - Fantasizing about possible profits and then "spending" them before you have realized them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.



Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.



Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.



Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.



The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.



Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.



Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.




Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.



Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.



Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.



Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.



Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.



Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).



One cross is all that counts - EUR USD seems to be trading higher, so you buy GBP USD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EUR USD looks good to you, then just buy EUR USD.



Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.



Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.



Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.





John Gaines
[http://www.forextrading-system.com/]online trading, currency trading, financial service

A veteran of online trading, John Gaines offers the financial services industry his perspectives and expertise on a variety of trading systems and financial instruments, including forex, CFDs, futures, options and stocks.