Tag Archives: trading tips

Smart trading tips

  • Remember that forex trends can continue for a long time, even if fundamentals start to change.

 

  • A good broker will always oŽer a variety of Deposit & Withdrawal methods, including localized solutions.

 

  • Complex trading strategies cause confusion and frustration. You will make less mistakes if you stick to a simple one.

 

  • Forex trading isn’t a get rich scheme. If someone promises you huge profits overnight, turn around and walk away.

 

  • Volatility increases as markets overlap. 8AM GMT and 15PM GMT are the busiest periods to trade.

 

  • The timeframe you use determines how long to hold a trade. If you use an hourly chart you must hold for at least an hour.

 

  • When volatility sinks below its average, an explosive move is not far away. Watch out for the turns.

 

  • If you want to make money in the markets you need to face your fears and you need to pull the trigger.

 

  • If emotions get in the way of your trading, try back-testing a system to improve your confidence.

 

  • Trading in the zone requires nothing but the three P’s: preparation, practice and perseverance.

 

  • You should trade small enough so that you won’t go broke but large enough to make it worthwhile.

 

  • Beware of EAs and black box systems that claim to beat the markets. They won’t continue to win forever.

 

  • Don’t go full time until you can consistently pay yourself a wage and you have 3 months wages saved up.

 

  • The market has no personality and doesn’t need to change, the way you approach the market needs to change.

 

  • Beware of anyone who tries tosell you a system. If the system was that good they wouldn’t be selling it.

 

  • Don’t chase unrealistic returns. 1% a day is unsustainable on so many levels. 1% a month is more realistic.

 

  • Whether your goal is to make a living wage, start a fund or get hired, the important thing is to have one.

 

  • Forex markets only trend 40% of the time so you must have a strategy for whatever the market is doing.

 

  • Always know when central bankers are meeting and what traders are expecting them to announce.

 

  • Demo trading is useful but it doesn’t prepare you for live trading. Emotions become stretched when money is on the line.

 

  • If you’re not in the zone, trading can be torturous. If you have balance in your life, trading becomes fun again.

 

  • Before you get into a trade, know where you want to get out. Have a stop in your mind or a stop in the market.

 

  • If you hear yourself wishing or hoping a trade goes your way, it’s time to get out and rethink your strategy.

 

  • If you’ve been trading forex and you haven’t learnt good money management, it’s time to go back to the start.

 

  • Forex trading should be treated with the upmost professionalism.

 

  • The key to successful trading is defense, defense, defense. And when you’re in position, the occasional offense.

 

  • Trading requires consistency and discipline. Don’t forget the numbers until you’ve learnt those two things.

 

  • Pivot points are important levels watched by forex traders all over the world. They should always be considered.

 

  • Moving averages can be used in a variety of ways, such as smoothing volume or other technical indicators.

 

  • Simple indicators can work just as well as complicated ones so conquer those first before you move on.

 

  • RSI above 70 signals the market is overbought, below 30 the market is oversold. Learn to trade the extremes.

 

  • Don’t dwell on the past. Forget about your losses and missed opportunities and look forward to your next trade.

 




Forex tips and ideas

  • Traders often fail because they don’t learn from mistakes. Keep a diary of trades to discover what works and what doesn’t.

 

  • Setting limit orders and stop/loss orders takes emotion out of the equation and ensures trading discipline.

 

  • Trade small amounts when you are a beginner. Grow your account balance through profits, not deposits.

 

  • Don’t set a stop loss order too close to the opening position price. Normal market volatility can trigger it if you do.

 

  • Don’t chase a losing position out of emotion. Stick to your trading plan and don’t throw good money after bad.

 

  • Don’t reinvent the wheel. Study other forex traders’ strategies to see what works and what doesn’t.

 

  • High leverage isn’t free money. Manage your money wisely and stick to low leverage. That’s what the successful pros do.

 

  • Forex trading isn’t gambling. Look for steady profits rather than hunting a few big wins.

 

  • Plan all your trades in detail before you make them, otherwise emotions can lead to bad decisions later on.

 

  • Don’t hold too many open positions at the same time. Unless you automate them all, you will end up being overwhelmed.

 

  • There isn’t a single perfect trading strategy. The most important thing is to pick one that suits your personality.

 

  • When you are following a trend, use a trailing stop to lock in your profits.

 

  • Some currency pairs are volatile and others are relatively stable. Choose the pairs that best suit your risk profile.

 

  • Technical analysis is well-suited to short-term analysis, while fundamental analysis may be useful in the longer term.

 

  • Weekends are a good time to learn from your past week’s trading and to plan for the week ahead.

 

  • If you find yourself getting tired, angry or frustrated when trading, take a break to get yourself back under control.

 

  • If you keep positions open for a long time, be aware of rollover charges. Some accounts charge these each day at 5 PM EST.

 

  • Pay attention to economic calendars. Surprises in GDP and other data can move the market quickly.

 

  • Make market analysis part of your daily routine. It’s better to make a few informed trades than many random ones.

 

  • Successful traders study their craft. If you are a beginner, consider taking an online course to master the basics.

 

  • When starting out, study a single currency pair. Don’t spread yourself too thin by trading multiple pairs.

 

  • Don’t let greed turn a profit into a loss. Stick to your trading plan and don’t let emotions get in the way.

 

  • Remember that your goal is to make long-term profits. Don’t let a single good or bad day change the way you trade.

 

  • Not all forex trading advice is good advice. Filter your inputs carefully based on the reputation of the source.

 

  • You can learn from other traders, so share your experiences. However, make your own decisions since it’s your money.

 

  • Set stop/loss and limit orders to reflect your tolerance for risk. The further apart they are, the more risk there is.

 

  • If someone has a way of doubling their money each week, then why would they tell you? Stick to proven strategies.

 

  • Automate your trading whenever you can. This will stop your emotions from doing damage when you have an open position.

 

  • There is no such thing as a guaranteed profit. Remember that small losses that you planned for are wins as well.

 

  • Choose a reputable forex broker that offers you trading conditions and currency pairs that match your trading strategy.

 

  • Boredom is no reason to open a position. Be patient and look for real trading opportunities.

 

  • Volatility is an opportunity for both profit and loss. Converging Bollinger Bands often indicate volatility ahead.

 

  • Don’t get overconfident when you have a big win. Stick to your trading strategy and don’t take reckless risks.

 

  • Interest rates, employment and geopolitical events are the main factors to consider in fundamental analysis.

 

  • Don’t go against trends unless you have the financial and mental strength to survive a long string of losses.

 

 

  • You make the best trading decisions when you are healthy and rested. Get plenty of sleep and exercise.

 

  • If you over-leverage your trades, there is a real risk that you will be forced to exit a position at the wrong time.

 

  • Pay attention to the spread between the bid and ask. This can change and make the difference between profit and loss.

 

  • If you start out by making simulated forex trades, remember that real trading is very different because of emotions.

 

  • You will often find the highest trading volumes when New York opens in the morning and Europeans come back from lunch.

 

  • Always plan your exit strategy up front. At what rate will you cash out winners, and when will you cut your losses?

 

  • Always look at the potential downside of any trade and plan to limit your losses if the worst happens.

 

  • When manufacturing economies such as China grow, commodity-based currencies such as CAD and AUD often rise.

 

  • Don’t just rely on technical or fundamental analysis. Successful traders take both into account before they trade.

 

  • Study horizontal support and resistance levels. Look for price action at these to find high-probability opportunities.




Forex trading tips from the pros

Be prepared before you start trading with your money! Here you can find some useful tips that will help you to be a better trader.

Be patient, don’t expect to be rich quick. Forex trading experience can make you rich.

Do your own fundamental and technical analysis before starting a new forex trade

If you lose 3 trades in a row go away from your trading station

Be independent and not a follower

Most of the new forex traders fail

Focus only on one pair

Stick to your trading method and try to improve it

No forex trading method,  system or style will be 100% profitable




Choose a single time frame and keep things simple

Keep your charts clean, do not put many technical indicators they confuse you

 

Read more forex trading tips

Forex Bonuses Glossary

Forex Trend Trading

Short-Term Forex Trading Strategies

Forex Trading Tips

Kamikaze Defense

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