Thread: 10 Tips for your success in Forex trading

1. Implement a trading plan.

“If you fail to plan, you plan to fail�. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.

2. Trade within your means

If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings. Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.

3. Avoid emotion trading

If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.

4. Ride on a win and cut your losses

Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.

5. Love the trends

Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.

6. Stop looking for leading indicators

There aren’t any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn’t be giving the secrets away.

7. Avoid trading in a thin market

Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.

8. Avoid trading in too many markets

Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.

9. Implement a proper trading system

There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.

10. Keep learning
The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.

Source: golearnforex.net

Im new in this forum, but I think I like it already. I like also, your fist point, I think that’s what every trader has to keep in mind. A plan is like a way to get, obviously, beginners can change it every time they get new knowledge or know new strategies, it could be great if the same plan is from the beginning to the end.

I always follow the idea to get away of feelings or emotions, I did it once, let tell you that once I traded when I felt lucky, but after that I made too many mistakes, that´s something I won’t do again. That´s a big mistake a beginner can do, also, be careful, there are some brokers doing that because they know the market for years, so for them can be ok, but for people as me (kind of beginner) is don’t working at all.

Im not familiar with tin markets, but about your other advices we can keep in mind. Those are good.

I like the way you finish your post, Keep learning, it´s so important when you want to do something right in your life.

I like the way you finish your post, Keep learning, it´s so important when you want to do something right in your life.

If you want to achieve Forex trading success, you need to understand the key combination your Forex Trading strategy must contain to win and that is the subject of this article...

It's a fact that forex trading is a specifically learned skill - traders are not born their made yet, still 95% of all traders lose. This is down to the fact they do not understand the two core concepts that Forex Trading Success is built on. Let's look at this key combination.

1. Simple Odds Based Forex Trading System

Most people think that prediction is the way to make money and this myth is perpetrated by vendors selling junk products but its not. Prediction is hoping and guessing and try it and your predictions will be as accurate as your horoscope.

Trade the reality of price change as you see it on a Forex chart and forget prediction.
Trading the Odds is the key to making money, as Forex markets are an odds based market. They do not move to science or mathematics, as many people claim (if they did we would all know the price in advance and there would be no market!), you are simply trading probabilities. Like the good poker player, you will lose many hands but if you play and bet on the high odds hands, you will make a lot of money.

In general terms the forex trading system you use should be very simple - simple systems work best! The reason for this is they are very robust in the brutal ever changing world of Forex. Complicated systems break easily and there is no correlation between complexity and success whatsoever. Putting together a Forex trading strategy based upon the above is easy - execution of the strategy is the hard part and we will look at that next.

2. Discipline in the Face of Emotion.

You now need to execute your trading strategy with discipline and money management through long periods of losses which may last weeks. Don't think you will have a long period of losses?
You will, all traders do, even the top traders. This doesn't mean they don't win long term - they do but short term they ride out these periods with discipline.
Another big myth about Forex trading is drawdown periods don't last long and it's again put around by vendors selling junk products. Drawdown periods do occur and how you deal with them is the key to your success.

You must keep going executing your trading signals, as the market takes your money and makes you look stupid. You are going to have to stay on course and we all hate losing and have egos but losing is part of winning and you need to understand this.
You can enjoy forex trading success but you must keep losses small and stay on course. This is the hard part of Forex Trading and separates out the winners from the losers.

The above Sounds Easy

However its not and that's why so many people lose at Forex trading.
If you think discipline is easy then you have never traded - the good news however is you can become disciplined and you can win. Like learning a method it's a learned skill.
The rewards of Forex trading are huge, if you can get the above combination right of:
A simple robust forex trading system, executed with discipline, you are on your way to Forex trading success.

Regards

I totally agree about the make a plan in the first post, I read once that somewhere else and Im following that idea. I think traderkenny has written from the experience he has. I like it so much.

Just follow Market Technician Mr. Daniel Bruno www.AskaMarketTechnician.com

Hey thanks buddy, I really liked your tips. I am new to Forex trading, just having couple of month experience. I alway first plan out things i have to do. Then i start investing.... however, tips are great, thanks for posting them