Fx Currency Trading

Posts Tagged ‘Currency’

This is a video overview of how to improve the timing of your trades using moving averages. The goal of the forex trading strategy is to align market and price action for the best chance of success when you pull the trigger. Video produced by FX Bootcamp, LLC (www.fxbootcamp.com

www.leveragefx.com — Learn how to make money trading the foreign currencies using Pivot Points

www.leveragefx.com | How to make money in Foreign Currencies using Fibonacci Retracements and Fibonacci Profit Targets.

Consistency is very important to have in your trading routine because it allows you to truly measure how successful you are as a trader. If you have a sound trading system but always break your rules, how can you ever really know how good your system really is? Your trading plan will keep you on target. Read it every day and stick to it.

Trading is a business and successful businesses ALWAYS have plans.

I have never seen a successful business not start out with a plan. Do you honestly think Walmart was just created on a whim and then magically became successful? Or what about McDonalds? I’m sure almost anyone can make a better hamburger than McDonalds, but the difference between them and the individual is that they have a successful business plan that guides them to success.

In the same way, you can relate the McDonald’s story to your trading career. Whether it’s by luck or experience, everyone can make money in the forex. However, the difference between a losing trader and a successful trader is the PLAN. If you have a good trading plan and you are disciplined enough to stick to it, you will be successful!

Trading plans can be as simple or complex as you want it, but the most important thing is that you actually HAVE a plan and you FOLLOW the plan. With that said, here are some of the essentials that every trading plan should have.

A trading system

This is the heart of your trading plan. This system should be one that you have thoroughly backtested, and have traded for at least two months on a demo account.

Include all the necessary information about your system such as: time frames you use, criteria for entries and exits, how much you risk during each trade, which currency pair(s) you trade and how many lots you trade.

Example: I am an intraday trader and I trade off of the 10 minute charts. I enter when there is a moving average crossover and all my indicators support the direction. I only trade the EUR/USD and I risk no more than 2% of my account on each trade. For now, I trade 5 mini lots and will increase my lot size according to my 2% money management rules.

2. Your trading routine

This is a crucial part of your plan because it will determine three very important things: when you will analyze the market and plan your trades, when you will actually watch the market to take trades, and when you will evaluate your actions during your trading day.
3. Your mindset

Ask any trader out there and they will all tell you that one of the hardest things to do when trading is to take out your emotions from it. This section of your trading plan will describe what frame of mind you will be in when you are trading.

Example:

* I will see what is on the charts and not what I want to see.
* No matter how biased I am towards a direction, I will make sure to trade only what my eyes see and not what my feelings tell me.
* I will not get “revenge” on the market if I lose on a trade.
* I will not beat myself up if I make a losing trade. Instead I will take it as a learning experience and move on.

4. Your weaknesses

Yes, we all have our weaknesses. We just don’t like talking about them. But ask yourself this, “How will you ever get better, if you don’t admit to what you need to work on?” This section will be an objective way to keep track of things that you need to work on in order to become a better trader.

Example:

* I tend to overtrade. Whenever I lose on a position, I get upset and immediately try to get “revenge” on the market.
* I tend to exit early on trades.
* I don’t stick to the rules of my system every time
* I don’t stick to my money management rules every time

5. Your goals

“To make a lot of money” is not a good goal. Sit down and really think about what you want to accomplish as a trader. Do you want to trade for a living? How much return can you realistically expect from trading based on your knowledge and experience? Your goals don’t even have to be about making money. Maybe you would like to be more disciplined or gain more confidence. These goals can be personal. What do YOU want to get out of this? Use these goals as your motivation when times get tough. These goals will be your vision, and you must always keep your eyes on the prize!
6. Your trading journal

This will be a valuable tool to helping you become a better trader. Make sure you log all your trades and why you took them. Later down the road you can look back and evaluate your trades and see how you are progressing. I’ve looked back at my trade journal and have seen just how much I’ve grown as a trader. My first entries were very basic and as I’ve progressed, my trades make more sense to me now. I’ve gained a lot of confidence throughout my career and by looking back at my trades, I’ve really been able to evaluate myself and see if I am getting closer to my goals. This tool will help you tremendously in the long run, so take a few minutes each day and log your trades. You’ll be happy you did!

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The pressure on Andy Murray is building as he begins his quest for the prize that has eluded British tennis players since the great Fred Perry won Wimbledon in 1934. The amazing thing about Fred is that he is the last Brit to win any tennis grand slam,…

The pressure on Andy Murray is building as he begins his quest for the prize that has eluded British tennis players since the great Fred Perry won Wimbledon in 1934. The amazing thing about Fred is that he is the last Brit to win any tennis grand slam,…

Technical Analysis is basically the study of price movements in the FX Currency Market. In one word, charts. The concept is a person can look at historical movements in prices, and, based mostly on the price action, can identify at some level where the price will go. By having a look at charts, you can identify trends and patterns which will help you find good trading prospects.  One thing you will find is that the trend is what drives technical analysis. Once you can identify a trend you may make money using the different methods wit signals and indicators that can alert you of when to enter or when to exit, the trend is your friend in technical analysis.

Fundamental Analysis is a method of taking a look at the market thru economic, social and political forces that may affect demand and supply. simply, you look at whose economy is doing well, and whose economy sucks. The idea behind this kind of research is if a nation’s economy is doing well, their currency will be doing well. The reason being because the better a country’s economy, the more trust other nations have in that currency. For instance, if the U.S. Dollar has been gaining strength as the U.S. Economy is gaining strength. As the economy gets better, rates get higher to control inflation and as a consequence, the value of the dollar continues to extend. or if the Economic outlook looks bad like in recent years then the currency will weaken.  You have to read newspapers, watch news and that is how you can somewhat predicth the prices in the Forex Market.