Anyone can learn to trade Forex, it’s a specifically learned skill but 95% of traders lose money, this isn’t because they can’t learn to win at Forex trading, it’s because they either fall for the numerous Forex myths or take information from vendors selling dubious products that don’t Work. If you want to win at Forex trading then the 10 Forex trading tips below, will point you in the right direction.
1. Don’t Trust Get Rich Quick Robots or Expert Advisors
These are the choice of most new traders and they promise instant wealth for no effort for the cost of a couple of hundred dollars or less they look to good to be true and they are – if you think you are going to get rich with them then you will be very disappointed, they don’t work, that’s why there so cheap.
2.Accept Responsibility
If you want to win at Forex trading, you have to take responsibility for your actions and all successful traders do. If you always want to seek advice or don’t have the confidence to stand on your own two feet Forex trading is not for you so do something else.
3. Learn Skills and work Smart
To win you need to know the basics and learn skills this doesn’t mean you have to work hard you need simply to work smart in Forex trading, you don’t get rewarded for effort just being right with your trading signal. It’s a fact that anyone can learn to trade successfully in just a few weeks and your then all set to seek currency trading success.
4. Keep Your System Simple
In Forex trading simple systems work best as they are more robust than complex ones which tend to break. Forget complex mathematics, Forex markets are simply odds based and in this brutal environment, simple systems will always work best.
5. Use a Long Term Trend Following Methodology
You can swing trade but the best systems tend to be based on long term trend following and if you look at a chart its obvious why – Forex markets trend long term and these trends last for many weeks, months or years and by locking into them, you can make a lot of money. A good way to trade is with a Forex breakout trading system, it’s easy to understand, easy to apply and will always make money.
6. Money Management is Vital
If you want to succeed at Forex trading you need to play great defence and keep your losses small, it’s the foundation of Forex trading success. When deciding money management parameters you need to take into account volatility and this means you need a through understanding of standard deviation of price, if you don’t know what it is make it part of your essential Forex education.
7. Trade the Reality of Price change
There are many people who will tell you that you can predict Forex prices in advance but that’s nonsense; if you try it your predictions will end up as accurate as your horoscope. If you want to win forget prediction and simply trade the reality of price change as you see it on a Forex chart. If you do this, you will have the odds on your side and that’s the way to win. Leave prediction to the losers and the far out crowd and don’t believe mystical nonsense such as Fibonacci and Elliot Wave to name just two predictive theories
8. Be Patient and Wait for High Odds Trading Signals
You don’t get rewarded for how often you trade, you get rewarded for how accurate your trading signal is and that’s it. If you are trading long term and trend following, you can make triple digit gains trading just a few times a month. Don’t try and force the market to give you high odds trades wait until it does and if you are patient you will be rewarded.
9. Learn to be Disciplined
This is the very basis of Forex trading success! If you cannot apply your Forex trading system with discipline, you don’t have a Forex trading system at all.
10. Know and have Confidence in Your Trading Edge
Your trading edge can be anything but it is the specific reason, you think you will win, when 95% of traders lose. All edges of traders are different, but the fact is you must have one and you must be able to trade it with discipline through periods of losses, until you hit a home run. If you don’t know what your trading edge is you simply don’t have one! So continue your Forex education until you do.
The tips above are simple to learn, easy to apply and can put you on the road to success with your Forex trading strategy.