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  1. #1
    Norman2008 is offline Junior Member
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    Default Five easy steps towards a profitable Forex trading

    Before we discuss the five easy steps towards a profitable Forex trading system, you need to learn first the three main characteristics of a successful Forex trading system. These are as follows:
    1. A successful Forex trading system is simple. There is no need for a complicated trading system with too many rules. It is a proven truth that simple systems work better than complicated ones, and they have higher chances of success despite of the “brutal” characteristic of Forex trading.
    2. A successful Forex trading system cuts losses and runs profits. Keep in mind that you need a trading system that gets the huge possible profits and eliminates losses quickly, if not instantly.
    3. A successful Forex trading system follows long-term trends. You will never cover your losses if you are just generating small profits. Keep in mind that the Forex market is worth $2 trillion U.S. dollars, thus there is no point in trading in exchange for just small profits if you have the opportunity to make trades for larger revenues. Focus on long-term trends and you will be able to see better results.


    Now, here are the five easy steps in building a profitable Forex trading system:
    1. As previously mentioned, your trading system must be as simple as possible. Integrate few yet essential rules and an extensive investment management system.
    2. Always look for long-term trends (preferably on a weekly basis), then shift to daily charts and to time entry. This will help you analyze market trends efficiently.
    3. The ideal way of trading foreign currencies is through breakout method.
    4. Always watch for any break that you will note on your chart, which is commonly confirmed by stochastic crossed with bearish divergence. This will be your great timing tool whether you will enter a certain deal or not.
    5. You must integrate effective time management within your system. Time is gold and is one of your precious resources. Design a trading system that is time efficient—where you can maximize the potential of your time resources to generate huge profits.


    Get away from complicated systems. It will just ruin your entire Forex trading career. Build a simpler one and see for yourself how profitable it is.

    http://www.forex-money-exchange.com

  2. #2
    felipeca25 is offline Junior Member
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    Default

    Wow Norman, They are so good advices! I´ll try to follow them. Let me ask you something; is MT4 a good software to trade with? I like so much, I can understand everything from there, so, I don’t know if is so good, for me it is.

  3. #3
    karinpero is offline Junior Member
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    Hi Norman, I want to ask you something I`m not new but I`m not experienced person; you said “Get away from complicated systems” so which one is not a complicated one? What would you recommend me? I really want to be a great broker, but I need the advices for people like you. Thanks.

  4. #4
    duvuacris is offline Junior Member
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    I don’t know about the 3th step. I like your post, is good for everyone but in the 3th one, if someone want to stay all day long in front of the market, is good to use a short term trends like daily. So you can be able to read about the news and get in the market easily.

  5. #5
    missuieh is offline Junior Member
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    Default

    Quote Originally Posted by felipeca25 View Post
    Wow Norman, They are so good advices! I´ll try to follow them. Let me ask you something; is MT4 a good software to trade with? I like so much, I can understand everything from there, so, I don’t know if is so good, for me it is.


    nice advice.. thanks.. i hope i figure it out yesterday

  6. #6
    kataley is offline Junior Member
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    Wink

    Also, got a PLAN for trade, don’t get crazy because you don’t know what way to take, always have a goal in your mins, even if it´s a little one, doesn’t matter what really matters is get a plan and don’t be a disaster when you are trading.

  7. #7
    liowkc is offline Junior Member
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    The point about cutting losses is very pertinent. Humans by nature do not like to lose and to consciously remind ourself to cut losses instead of holding on a losing position is very critical.

  8. #8
    Jenforex is offline Senior Member
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    Hi Friends,

    Here are some more simple tips that will help you increase your profit potential prevent you losing money.

    1. Select your first broker

    When you first decide to trade Forex you will need to locate a reliable broker. It's very important that you familiarize yourself with the software the broker uses for making trades analyzing the market any other features they may offer. Many have a training or tutorial account that will allow you to signup make trades for free. Use this to your advantage before just jumping in tossing your money in.

    2. Get simple method you understand

    In forex trading many people think that the more complicated a method they use in forex trading the more likely they are to make money. The fact is that is not a truth the simple systems work best. As you know there are two main ways to analysis the currency rate: fundamental technical analysis. Simple systems are more robust easier to trade with discipline as you underst the logic can therefore follow it with confidence when it has a losing period.

    3. Trade the big trends not trade frequently

    Although short term trading long term trading are both good you have to catch the big long term trends that make the big profits. The big moves in forex trading with optimum risk to reward come just few times a year so don't trade for the sake of trading wait for these moves - These are the that will make you the big profits that's why you're trading.

    4. Work smart not hard

    Once you have a system your happy with that's it. People go on about working hard in forex trading to educate yourself but once you have your system stick with it. The market doesn't give you extra dollars for effort you get your reward for trading correctly.
    Forex trading is risky so you need to manage your money place your stop order far enough away the market action to allow for volatility.
    Placing stops too close to entry not taking enough risk dooms most traders to fail.
    Also when you have a profit don't move the stop up to quickly be patient give the trade room to breathe.

    5. The formula to success

    The formula to success in forex trading is to do the following:

    Using Simple Method + With Discipline + Control Risks = Forex Trading Success

    Keep these simple tips in your mind you could make some big profits on forex trading.

  9. #9
    quigly is offline Junior Member
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    I like your steps, but they are for non beginners, I want to choose a broker when I’ll learn more and I can understand what the broker is telling me. I don’t want to give my money and don’t know how the market works.

  10. #10
    barryrian is offline Junior Member
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    About the first step is good to say that get the demo in a good site, this is when you are using it for the first time. When you are getting a broker to invest, is good to make a list of some brokers with new reviews or good comments.

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