7) Build Up Your Confidence Slowly - By having a successful forex trading system, not only will you become more well-versed in forex trading but you will also become more confident when approaching a trading opportunity. But why do I say slowly? It’s good that you are becoming more and more confident as you win trades, but it becomes negative when you become over-confident over your successdul trades. What if suddenly you get into a losing streak? It’s possible that the losing streak will destroy your confidence completely and make you doubt your trading skills next time you identified a trading opportunity. It’s the best when you get one small loss once in a while, this is to make you wary of the forex market and train you to become emotion-free in trading, because there will sure be some losses in trading.

Do Your Homework - There is no free lunch in this world and it applies to forex trading too. If someone told you that forex can make you a lot of money fast and easy, then he’s not telling the truth. No doubt it’s not too difficult to profit from the market, but you’ll still need the skills and time to analyze the market before profits can roll in. Have a trading plan at the starting of the day, decide whether you are going to be a seller or buyer for the day and this will make your decisions easier. Although there’s no trading during the weekends, it’s the time for you to conclude what has happened for the past week and plan what you are doing to do for the following week. Most professional traders do that.

During the weekends, there’s no pressure from the markets, and there’s no need to make any trading decisions, so you can take your time to analyze how and what to trade the next week. If you have already planned to trade at a certain price level, then stick to it and not jump the gun when the market does not reach that level. You must practice self and emotions control, wait patiently for the opportunity to come and you’ll be rewarded. That’s how successful trading takes place.

9) Record Your Trading Procedures -You may think that it’s sounds amateur if you see this as a professional trader’s point of view. But if you really do that, you can see the difference between a normal, unprofitable trader and you, who are writing all objectives, mistakes etc down.

When you are opening a trade position, write down the reasons you believe that it is a good trade, go through the checklist and also write down if there’s anything that is preventing you this trade. Include in your writing journal the entry level, stop loss, profit target etc. By doing this, you will give yourself discipline and mental control. If you are too greedy on closing a profitable trade, write down why you did that and make sure you do not make the mistake the next time round. The above forex trading tips will only make you a more disciplined, risk controlled forex trader. Besides that, you will be surprised that you learn faster and succeed faster in this way.

4) Forex Charts With Multiple Timeframes - This is irregardless of the forex trading system that you use. By using technical analysis to trade, you will be spending a larger percentage of your time looking at the charts. Although there are different types of charts, but the data is almost the same with different visuals.

There are some charts that are very different and need to be analyzed. For myself, I like to use candlesticks charts. The timeframe of the chart you are using is very important. For example, if you are using a daily chart and it provides you a trading signal to trade, make sure you are also using a lower timeframe like hourly or 4 hourly to make sure they are going the same direction. A forex trading tip here is, use a longer timeframe to look for market direction and lower timeframe to enter and exit the forex market.

5) Success Rate Calculation - Besides having a successful forex strategy, we will also need to have precautions and plans because you will need to know if you have made the correct decisions. You should make an effort to calculate your winning and losing trades from time to time. It will be good to analyze the last 10 of your trades to make sure that you are still doing the correct stuffs. If you are still a beginner and have not traded much, look back at past data and see if you would have profited or lost if you done those trades. This will be a good guide on whether you are on the right track.

6) Money Management - I have mentioned this umpteen times and stress how important this can be, but still many people can’t manage it well. While it seems it’s not as simple as it may be, it’s all about how you look at the way you are trading. The first mindset you should have is not about winning but preserving your capital and try not to lose. There will never be short of trading opportunities and instead you have gained something from the trade, and that is experience. If you have already applied stuffs that you have learnt on trading, then do not be afraid to lose little money. You can’t avoid losing in trading, but what you can do is to make it small and preserve capital for future chances. From the losses, you will also learn a lesson and avoid that mistake in the future.

Another tip about money management is to know how to use leverage properly. You are advised not to risk more than 2% of your equity on your trading account. For example you have $1000 trading capital, you should not risk more than $20 for a trade. Do not be greedy to try to profit a lot from a single trade even you are very confident on a specific trade, nothing is 100% guaranteed. Using too much leverage which you can’t afford to lose will mean devastating to your account.

There are many different perspective on forex trading, some may only concentrate on fundamental analysis but some may focus on technical charts. There will be some traders who will take advantage of the leverage while others will keep away from it as the risks will be greater. You do not have to follow them, but these are general forex trading tips to keep you on good shape.

1) Basic Knowledge - This applies to whatever you do or whatever you approach in your life. How can you expect to fly when you have not even learnt how to walk? Especially for the forex market which suggests some high risk, you should know yourself, what are the risks involved and how the market works before you even trade. There are tons of forex trading systems out there, so choose your methods wisely. Define your short term and long term goals based on your character and personality.

Every forex trading strategy have its own risks and advantages. You will have to choose carefully based on the type of person you are. For example, if you are the type of person who can’t really control emotions well and very anxious whenever you trade, then you should go for a long term investment where you seldom have to monitor your trades.

2) Forex Broker That Suits You - This may be the biggest decision that you will have to make when you decide to step into the forex world. Do not rush into this because you will have to depend on your broker for the rest of your trading. Find a forex broker that really suits your style. So to do that, you will have to read up and find reviews on various brokers to find out their advantages and disadvantages. After that, extensive comparison have to be done before you choose one.

After you have narrowed down your selection to some brokers, you should be comparing their trading platforms. The trading platforms are very important because whether you are successful or not depends on that. You will find that some platforms are not user friendly and you will take a lot of time to figure it out. Try to find one which you feel very comfortable in using. Also make sure that the broker’s support and customer service will be there whenever you need it.

3) Selection of Forex Strategy and Application - There are only two primary thoughts when it comes to analyzing the forex market. One is technical analysis and the other one fundamental analysis. We shall look into technical analysis first. I’m sure you have always heard of ‘The trend is your best friend’. This is so because traders believe that the market will repeat its history and movements. There are many tools to help you to analyze the market such as levels and indicators. But there are cons as well. Most indicators are lagging and you should not just depend on that to trade.

Now the fundamental thoughts of trading. Many believe what gets the market really moving is the news of the specific country. This method is the tougher one as we can’t predict what will be the changes in a country. Not many traders use fundamental analysis as their main strategy nowadays though they still use it as a guide and reference. Whatever it is, choose the methodology that suits you well concentrate on it. Consistancy is the part of the game.

Many traders who have just start forex trading often believe that there are plenty of profitable forex trading systems out in the market. It is actually the marketing and ‘packaging’ that makes the forex products look very classy, fantastic and expensive. After all, it’s always the sleek graphics and salescopy of the products that captured one’s attention the most and the fastest. Of course people will look for prove and testimonials before buying the products, but like I say, those marketers out there can easily market their trading statement and testimonials in such a way that every traders would like to see. If you have realized, most of the prove are profitable, not much losing trades at all…why? Because everyone likes to see winning results

But it’s far from reality and I will reveal the truth. You can be sure that there are tons of forex trading products being sold online, new products are coming out like almost every week or month. But only a few products or methods are actually profitable in the long run while the rest are just too much hype. You may find some of the forex strategies very profitable in the beginning, but over several months or years, they can’t withstand the test of time with different forex market conditions and then failed eventually.

So why do so many forex trading strategies fail, which make up the 95% of the traders who ended up losing money? There are a few reasons. The first reason is the trading strategy may not be proven to be solid and profitable in the first place. In order to be proven a profitable trading system, it has to be tested out over years. Often you will find people trying out some methods, tested it only for a few weeks or months and claimed it’s the holy grail. However, the short-term good results do not last long and ends up losing money in the long run.

The second reason why many forex trading systems fail is because the market condition changes all the time. Although history does repeat itself, but the market is said to be in random walk conditions. Sometimes when you test out a system, you see some good results, but when the forex market condition changes, the system cannot be adapted to it and thus couldn’t generate constant profits anymore. This is a common problem and what can be done is to improve the system to suit all market conditions or just abandon it and look for a constant profit generating trading system.

If you have bought some forex products before and found it not profitable, you do not have to be too upset about it because you have to remember that most of them will probably end up losing money, so don’t set your sights too high on them. The trick is to learn some useful tips and strategies from there and try to use it to create your own profitable forex trading system.

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Recently, there are some discussions going on and that is, what is the real difference between trading forex for a living vs forex trading for wealth building. Actually it is just a thin line between both of them but we will discuss a bit since many people are getting confused about it.

Here’s the first defination for trading forex for a living. If you are using the profits of your trading to pay for your daily expenses like food, housing rent, tax, utilities bill etc, then trading is like a job to you and the profits you earned is the salary you are getting. You put all your time in it and you take home the pay (although some full time traders do not spend too much time in front of their computer). On the other hand if you are trading forex to build your wealth, then you mostly you will not be using the profits of your trading to pay for your daily expenses. Instead, you will be trading on longer term and treat it like an investment and keep on building on that.

So What Are The Approaches For The Both?

1) Mindset - If you are trading to pay for your living expenses, then that means you will have to make a certain amount of profits every month, and that income has to be somehow constant. Of course there will be some months you’ll be making more and some months lesser, but there can’t be too much variation or else you risk not being able to pay the daily expenses. So what does that mean? It means you really have to be an experienced and skillful trader before you consider being a full time trader Even that, you’ll need to have some savings as precaution because a very good trader can even lose money sometimes. A trader who builds wealth from trading, on the other hand, is able to afford some drawdowns because he does not use it to pay for general expenses.

2) Trading Frequency - Those who trade for a living tends to look for smaller profits and trading on regular basis. But my advice is, you can even trade for a living with larger profit taking targets because you only look for quality trades and not high frequency small profits trades. But full time traders do not necessary have to trade everyday to be considered trading for a living. Traders who aim to build their wealth will not trade too often. Once they find a short or long swing opportunity, they will go in and wait for a few weeks, or even months to take their profits.

3) Risk - Drawdowns do not affect wealth builders too much because their know future profits will make up for it and make even more than that, so they are taking bigger risks. For a trader who trades for a living, his forex strategy have to be different. A drawdown will mean the account size can reduce and that puts pressure on the trader as the future income will be affected. Therefore, he has to using a forex trading system that have smaller drawdowns and of course the position sizing will have to be smaller.

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Recently, there are a few emails asking me how do we trade news when we do not even know what’s the outcome of the news releases/fundamental reports. It’s not only just that, how are we going to handle different sources of potentially high impact news and reports that are going to hit the forex market. So below I’m going to share on how to handle those in forex trading.

I understand how frustrating it can be when there a constant stream of data/fundamental reports that is releasing every now and then, and it may hinder your decisions for your trading. Forex traders seemingly have loads of stuffs to keep track before executing their trades like countries’ economic data, who is going to speak that will affect the market etc.

Well, I’m going to give you an example here. A stock trader only has to worry about the earnings reports of a certain company, but whereas retail sales reports may be useless to them. For a forex trader, he has to worry much about interest rate change, employment and unemployment figures and some other stuffs but do not really have to worry on what the president of European Central Bank (ECB) have to say. It is possible to narrow down on the items that will have an impact on the forex market that you trade because you can choose the calendar events that that you need to focus on for a certain currency pair. You can refer to a very popular news calendar in forexfactory.com. If you are trading USD pairs, then you should look out for any orange or red coded USD news as it will affect your trade. Below are the 3 ways to approach news events.

1) Predict ahead of the news releases, speech etc. and get into position.
No one can predict where the forex market can go and what the news releases may be. So this is definitely gambling to me and I’ll never recommend this to anyone if you want to trade forex the right way.

2) Avoid the news event by waiting and not trading.
This is the best forex strategy for me when I’m a short term trader. When there is a news events coming up, I will not trade 2 to 3 hours before the news are released, this is to keep me out from unexpected results and choppy markets. Sometimes the market will be very volatile and it can only be challenging but NOT profitable for most traders. So it’s better we stay out of the unpredictable and see how the market moves after that.

3) Trading in a timeframe where intraday swings do not have much impact.
This applies to traders who are not using intraday as their strategy. Instead, they are using short swings and long swings as their trading strategy. The approach here is that when you use swing trading strategy, you will have larger stop loss and these kind of intraday swings are just small fluctuations. But of course, you have to be able to take huge stop loss and your forex trading system must be proven to be able to take in these small swings. If your system can do that, it means the news releases are already factored into your trading system.

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If you are new to forex trading, you might have found that searching for a very good forex broker isn’t that easy after all. Why do I say that? There are many requirements that traders look for in their search of brokers, but usually there’s no perfect broker for everyone. One trader might want to look for a broker which provide  lesser spreads for currency pairs while the other one might prefer brokers with easy deposits and withdrawals. Below are 4 forex trading tips that can help you to find a forex broker that you are looking for.

1. A good forex broker will be able to justify by providing informatin about the clients who are successful and can attest to their own qualifications and success history. Let’s say you are a client of a certain broker, will you testify for their strengths if they did a lousy job or provide bad customer service for you? A client testimony should be present in any forex broker to indicate their credibility. Although testimonies are important, but they should not be just the deciding factor in your research.

2. Another good way to test the reliability of the forex broker is the amount of education, courses, resources and other stuffs that they are willing to release to you. Most brokers are of high reputation with a solid background. However, there are also many that do not have good history or no history at all. You are advised to stay clear of these brokers because you do not want to regret trading with them.If the broker provides a forex trading system for you, then it’s a good chance to test out their customer support on how much they are willing to help you.

3. Word of mouth is very important too. Ask your friends about those brokers and how they met. If not, you can search for reviews in forex forums as well. Most of the forums are active on this topic and this will equip you with ideas and resources that you might not have thought before. Through there, you can get to know of the pros and cons of specific brokers before you make a decision.

4. The other factor in finding a good broker is the margin of return that is offered. A forex trading margin used to influence your money and many forex brokers offer different margins. A broker who gives a margin of ten isn’t very good, so it’s worth your time to research more. It’s also all about customer service and if they do not answer to your doubts within a reasonable timeframe, then you are advised to look for a more suitable one.

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Hey guys, my forex trading blog was down yesterday and for those people who visited my blog will find the empty page with the words ‘Oops…Nothing is here’. I sincerely apologize for that as many people emailed me that they couldn’t access my blog. I emailed my host for support and I was told by the administrator that the database was corrupted, likely due to high traffic. Wow…this is the first time I encountered this and I have learnt a lesson here, I must backup my database next time!…and maybe I will need to upgrade to a more powerful server Anyway, my blog is up and running now again and we shall continue where we left off for the forex trading psychology post. If you have missed the first post, you can find it HERE !

4. Do what you are supposed to do. When the trend is weakening, you should take steps to protect your profits regardless of the forex trading systems that you are using. Remember that in forex trading, you should be thinking how to minimize losses first and not thinking how to win. Even a breakeven trade is considered a successful trade because it’s not a loss. Likewise when the trend goes in your direction, you will want to set a higher level profit target and on the same time protect your floating profits.

5. You do not like, hate or fall in love with your trades. The currencies pairs are not your friends in the forex market and your only friend is forex trading psychology. Trading with a plan is the #1 forex tips because when a trader is already in a trade position, he/she tends to see the market differently from the first time of analysis. He hopes that the trade will move in favor of him and neglect the factors which may change the market conditions.

6. Increase your position size accordingly. Increase your position size when you have an increase of maybe 10% of your account, this is to build up your trading capital. Likewise, you should reduce the lot size that you are trading when your account have reduced by 10%.

7. Expect the unexpected. In forex trading, always be prepared for both good and bad things. Understand those events and be prepared, so that you can take necessary actions when it happens to you. A good forex trading psychology is where you can take into consideration things that are unpredictable in the forex market. For example, if the trade is going in your direction, you must have a mental preparation that it can go against you anytime, so that you will not be surprised if that really happens.

8. Remain emotionally detached. A good forex strategy is that you don’t check how is your trade going on every now and then. If you keep watching it, you are going to make wrong decisions I can guarantee you! This is because greed and panic may happen and therefore you adjust the trade. Just leave it to the market to hit stop loss or profit target once you have traded.

Have You Got My F.ree Forex Ebook With The Strategy That Made Me 505 Pips In 5 Hours?

Learn to trade forex using my simple, time tested and proven forex trading system , CLICK HERE to download my f.ree 56-page “Forex Trading To Riches” ebook now. You will also receive my f.ree weekly PowerPips Newsletter jammed packed with useful forex training, forex signals, forex strategies in the forex market, forex education etc. If you have any further comment please do remember to comment below.

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Hey, this is the 2nd part of the post. If you have missed out the 1st post, you can find it by Clicking Here . Today we will continue on how you can learn forex by having the right forex education.

3. A Proven and Profitable Forex Trading System

You do not have to be a genius to find a good forex trading system. What you can do is to search for reviews in websites or forums to find out more information about the product that you want to buy. In fact, you can get one for f.ree in forums and some other websites. If you learn forex trading correctly, you will see why simple systems are most robust and easier to follow. In forex education, most experts will ask you to trade using technical analysis and use the news as a fundamental guide. Based on any simple forex strategy, you will be using support and resistance for sure and you will either look for a continuation of trend or a breakout from it. What you need to do is to confirm with a forex signal before entering a trade. If prices break above resistance or below support, learn to follow the breakout using the breakout strategies.

4. Be Careful With Risk and Leverage

High leverage is what makes forex trading so lucrative, but ononthe other hand, it also destroys newbies’ accounts because they could not handle the high leverage since they are inexperienced. You will need to learn to take calculated risk whenever the trades are in your direction. If you are using some forex indicators in your trading systems, then you should follow them strictly and only trade when there is a high probability on your side. Besides that, you will need a very good money management. Do not ever try to risk too much as the forex market can stop you out easily. Try to have a 1:2 healthy risk to reward ratio, and risk only 1% to 5% of your trading account per trade, this ensures that you have enough capital to continue trading in case you loose.

In any other businesses, you need a plan and forex trading is no different, set a realisable target and work towards it. Take your time to learn forex and experience the market yourself. Be patience and follow the rules, and the market will reward you.

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Learn to trade forex using my simple, time tested and proven forex trading system , CLICK HERE to download my free 56-page “Forex Trading To Riches” ebook now. You will also receive my free weekly PowerPips Newsletter jammed packed with useful forex training, forex signals, forex strategies in the forex market, forex forex education etc. If you have any further comment please do remember to comment below.

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Hey guys, if you really want to learn forex and be profitable in the forex market, you will need to get the right forex education from the right mentor (well, I’m not hinting that I’m one of them ). Why would I say that? You can get lots of different course out there in the market, but who can really provide a good support for the members, and whenever they need help, the mentor will be always there for them? I have came across some people who can’t provide good online support once after they sold their online products. That is why I would want to help as many people as possible to become successful in forex trading. I understand that all of us have been beginners before, and everyone deserves to learn forex the right way. So let’s look at some of the tips for your forex trading.

1. You Must Depend on Yourself Because There is No Free Lunch

If you think that someone can sell you a good forex trading system or product and make you filthy rich in trading, think again. If the products are very effective and can make you lots of money, then why are there selling you at such a cheap price? Most of them are less than $100. But that doesn’t mean expensive courses and products are worth the money, it maybe just a marketing gimmick.

Although there are many good forex education around, you will need to think and can’t simply follow blindly. In order to have a profitable forex strategy, you must understand it , have confidence in it and practice it. Without the 3, it’s hard to convince yourself that you have mastered the forex strategy. If you don’t really understand how your forex methods work, then you would not have confidence in it and therefore wouldn’t have the right mindset to practice it. Lastly, you won’t have the discipline to follow through your forex trading system if it loses trades.

2. Avoid the Common Pitfalls and Mistakes

Many traders put in a lot of hard work and effort trying to learn forex, but what they learnt was the wrong forex education and those methods that they tried never seems to work. Below are the 2 more common mistakes that forex traders can make.

Think it’s easy like ABC:

Many newbies think that forex trading can be very easy and profitable in very quick period of time. Their mindset is already wrong and they do not treat forex as their business. It’s never going to be that easy in the beginning and all new traders should expect a steeper learning curve.

Predicting from hindsight:

We are human beings and we can’t guess anything right all the time. Many traders are just guessing or depend on feelings on where the prices are going. Once again, predicting is like gambling because you are not analyzing. I can be dead sure that no one can rely on guessing and make money in forex trading all the time. A lot of traders turn to scientific theory and say history repeats itself. It’s true that history repeat itself on the forex charts, but the past cannot guarantee the future. Those are just analysis that increases the winning probability and if we know everything in advance, then there will be no forex market at all.

Have You Got My Free Forex Ebook?

Learn to trade forex using my simple, time tested and proven forex trading system , CLICK HERE to download my free 56-page “Forex Trading To Riches” ebook now. You will also receive my free weekly PowerPips Newsletter jammed packed with useful forex training, forex signals, forex strategies in the forex market, forex forex education etc. If you have any further comment please do remember to comment below.

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