Beginner Friendly Tricks Forex Trading

Stepping onto the forex arena for the first time might feel a bit daunting, but keep these currency trading tips in mind and you’ll soon find yourself running with the pack.

• Casinos are for gamblers. The forex markets are for traders who are interested in the investment, not the big win. Study and analysis will prove a far better ally than long odds or luck.

• Practice makes perfect. Before you start throwing your money into an account, practice with one or more of a variety of demo accounts. This the most critical of all forex tips for the new trader. Get good at analyzing and actual trading before you start plunking down your own funds.

• Find a good broker. Do your homework and find a broker that fits your trading style and philosophy and offers the features and services you want.

• Don’t buck the trend. Trends mean that more of the same is up ahead. Keeping with a trend will help you continue to make a profit. Generally, when the trend is up, don’t sell; when the trend is down, don’t buy.

• Check your emotions at the door. Forex is about methodical analysis of the market trends, not about searching for the next hot trade. The trader who lets his or her emotions take control is the one who will watch profits drop and losses skyrocket.

• Overwhelmed traders make mistakes. If you find that the data sitting in front of you is too much to handle, then stand up, walk out, and take a break. Then, back up a few steps and go to a place in the process where you feel comfortable. Stay there for a while, and take baby-steps when you’re ready to move up.

• Guarantees are like unicorns and leprechauns – they don’t exist in this world. If someone tries to tell you that they have forex secrets, like a system, trick, or bot that guarantees a profit, you have only one thing to do: Run away – far, far away.

• Patience really is a virtue. Of all currency trading strategies, this last tip is one of the most important. Don’t expect to make your money all at once. Build it slowly over a large spread, by using consistent money management, and you’ll be able to weather almost any forex storm.

Forex Trading Easiest Way Tricks

Day Trading refers to market positions which are held only a short time; typically the trader opens and closes a position the same day. The concept got a bad reputation in the 1990’s when many beginners began to day trade, jumping onto the new online trading platforms without applying tested stock trading strategies. They thought they could “go to work” in their pajamas and make a fortune in stock trades with very little knowledge or effort. This proved not to be the case.
Yet day trading is not all that complicated once you learn a simple, rules-based strategy for anticipating market moves, such as that taught at Online Trading Academy. Here are 10 secrets to day trading for beginners:

1. Look for scenarios where supply and demand are drastically imbalanced, and use these as your entry points.

   The financial markets are like anything else in life: if supply is near exhaustion and there are still willing buyers, price is about to go higher. If there is excess supply and no willing buyers, price will go down. At Online Trading Academy, students are taught to identify these turning points on a price chart and you can do the same by studying historical examples.
   

2. Always set price targets before you jump in.

   If you’re buying a long position, decide in advance how much profit is acceptable as well as a stop-loss level if the trade turns against you. Then, stick by your decisions. This limits your potential loss and keeps you from being overly greedy if price spikes to an untenable level. Exception: in a strong market it’s acceptable to set a new profit goal and stop-loss level once your initial target is achieved.
   

3. Insist on a risk-reward ratio of at least 3:1 when setting your targets.

   One of the most important lessons in stock trading for beginners is to understand a proper risk-reward ratio. As the Online Trading Academy instructors point out, this allows you to “lose small and win big” and come out ahead even if you have losses on many of your trades. In fact, once you gain some experience, risk-reward ratios of as high as 5:1 or even higher may be attainable.
   

4. Be patient.

   Paradoxical though it may seem, successful day traders often don't trade every day. They may be in the market, at their computer, but if they don’t see any opportunities that meet their criteria they will not execute a trade that day. That’s a lot better than going against your own best judgment out of an impatient desire to “just do something.” Plan your trades, then trade your plan.
   

5. Be disciplined.

   Again, you need to set a trading plan and stick to it. At Online Trading Academy, students execute live stock trades in the market under the guidance of a senior instructor until right decisions become second nature. If you’re trading on your own, impulsive behavior can be your worst enemy. Greed can keep you in a position for too long and fear can cause you to bail out too soon. Don’t expect to get rich on a single trade.
   

6. Don’t be afraid to push the “order” button.

   Novice day traders often face “paralysis by analysis” because they get wrapped up in watching the candles and the Level 2 columns on their screen and can’t act quickly when opportunity presents itself. If you’re disciplined and work your plan, actually placing the order should be automatic. If you’re wrong, your stops will get you out without major damage.
   

7. Only day trade with money you can afford to lose.

   Successful traders have a “little bucket” of risk capital and a “big bucket” of money they’re saving for retirement or another long-term goal. Big bucket money tends to be invested more conservatively and in longer-duration positions. It’s not absolutely forbidden to use this money occasionally for a day trade, but the odds should be very high in your favor.
   

8. Never risk too much capital on one trade.

   Set a percentage of your total day trading budget (which might be anywhere from 2% to 10%, depending on how much money you have) and don’t allow the size of your position to exceed it. Otherwise, you may miss out on an even better opportunity in the market.
   

9. Don’t limit day trading to stocks.

   Forex, futures and options are three asset classes that display volatility and liquidity just like stocks, making them ideal for day trading. And often one of them will present appealing opportunities on a day when the stock market is going nowhere.
   

10. Don’t second-guess yourself, but do learn from experience.

    Every day trader has losses, so don’t kick yourself when the occasional trade doesn’t go your way. Do, however, confirm that you followed your rules-based strategy and didn’t get in or out at the wrong time.
    

Blackhat method to Earn Money by Forex Trading

For many forex traders (or any type of trader, for that matter), long gone are the hopes of making millions of dollars overnight, and all they wish to do now is stop losing money and begin to turn their trading accounts around. There are many mistakes that traders make that contribute to getting themselves into this situation, and this article is going to cover the top five things traders can do to turn their accounts and performance around!
Pick a Trading Method and Perfect It
Traders who come to forex in most cases are looking to make a lot of money and do so very fast. To achieve this, they begin to chase the "Holy Grail" that will make them all their riches. Instead of looking for a method that will give them gradual success, they search for the latest fancy indicator that will do all the work for them. I am here to tell you that we all would be rich if this were possible!
If you are serious about making money in the forex markets, it is time you get rid of this mentality and settled into learning a method that you can use for the long term.
One method that can be used to trade the markets successfully is price action trading, which has been around for a long time and will be around for a long time to come. Price action trading will not stop working every time the market dynamics change.
Price action trading involves learning to read the raw price on a chart and focusing on high-probability price patterns that repeat themselves. Price action is a very simple method that most traders can get their heads around with a little help and the correct education.
Once a trader has picked the method that best suits their trading style, they need to give up on the idea of the "Holy Grail" and begin perfecting their chosen trading method. Chopping and changing trading methods only leads to confusion and frustration.
The only way to perfect your chosen trading method is to commit to it, and practice until you have perfected it!
Learn to Trade on Higher Time Frames
Many traders have the misconception that the lower the time-frame chart, the more chances they have to make trades, and thus, make money. While it is true that traders will get more signals on lower-time-frame charts, it is also true the lower the time frame, the more false signals there are and the harder it becomes to make money.
Traders can begin to turn their trading around by taking just this point on alone! The higher-time-frame charts are where most trading should be done for beginning traders.
One of the best reasons the daily chart is a lot more powerful than a lower-time-frame chart such as the one-hour chart is because of the time that goes into making the signals. An example of this is an inside bar.
If we see an inside bar on the one-hour chart, we know that price could not break out of the previous candle's range for one hour. If, however, we see an inside bar on the daily chart, it means price has gone through all trading sessions including the UK and US sessions and has been unable to break out of the previous day's range.
Obviously, a candle with 24 hours worth of information is telling us a lot more than a candle made up of only one hour, and because of this extra time that goes into making the daily chart signals compared to the lower time frames, the signals are much more reliable and powerfu

Easy Ways to Make Profit at Forex Trading

I want to think the best of people. I really do. But then I come across an article in the November 12 New York Times and I start to doubt myself.

The piece details an illegal network of traders at many of the world's largest investment firms, each with their own special nicknames and secret handshakes. They all plotted to rig the global currency exchange markets on behalf of their clients. And they got caught. So far, "regulators fined some of the world's biggest banks a combined $4.25 billion for conspiring to manipulate the foreign currency market." Again, that's "so far."

 

In one case, a trader at a well-known firm "sought out other traders" 33 seconds before the 1:15 pm fix for the euro/dollar exchange. They planned to trade in the same direction to build up a "large book of orders" and influence the price. This 33-second maneuver made the firm $99,000.

 

That brought to mind this quote:

 

"There are three ways to make a living in this business: be first, be smarter, or cheat."

 

This quote about what it takes to succeed in finance is from Margin Call, a 2011 Oscar-nominated film. When I first heard that line, I chuckled. But after reading this article about forex traders rigging the markets -- and dozens more examples of cheating on Wall Street -- it really does seem that "be smarter, be first, or cheat" are equal options for some people in the business.

 

May we suggest a fourth option?

 

There is a way to "cheat" the system and not break a single law; a way to prepare a large book or single order in advance of big moves. That way is easyt ways analysis.

 

Let's use the recent performance of the same market that was manipulated by the trader in the New York Times article: The euro/U.S. dollar exchange, known to forex traders as EURUSD.

 

On May 5 -- not 33 seconds before, but 3 DAYS before the euro peaked at a 2 1/2 year high --  

International's European Short Term Update showed subscribers this chart, which included two very rational reasons why the euro's upside was about to give way: 

First, an easy ways ending diagonal pattern was nearly over. For newbies, ending diagonals are a 5-wave move usually occurring in wave 5, the last wave of the trend, and right before big reversals. In all cases:

• Ending diagonals are found at the termination of larger patterns
• They indicate exhaustion of the larger movement
• They are followed by a dramatic reversal  

 

Second, the May 5 Daily Sentiment Index reading of 91% euro bulls matched levels that preceded two euro peaks over the past year.

 

The May 5 European Short Term Update wrote:

 

"The euro is pushing up against the 1.39 level that marked the April high... We continue to think that the 1.40 level will be seen before any lasting decline in the euro materializes."

 

On May 8, the euro peaked at 1.3993. The following day, the May 9 European Short Term Update confirmed the completion of the ending diagonal and prepared subs for the imminent downside drama:  

 

"Yesterday our top scenario unfolded dramatically in the euro. Prices took out the March 13 Minute wave iii, 1.3966 top. The print high was 1.3993. The euro has quickly collapsed since completing the easy ways, ending diagonal structure. Prices are back to those April 7 levels in just a few hours. Ending diagonals should see fast retracements, and so far that is exactly what is unfolding in the euro."

 

The broader implications of the ending diagonal were then addressed in our June 2014 European Financial Forecast via this chart and analysis:

 

"Last month, prices broke below the diagonal's lower boundary, confirming the end of the larger-degree rally. The decline should be the first of many down waves that carry the euro lower over the remainder of 2014."

 

 

From its May 8 peak, the EURUSD has fallen 10% to a 2-year low, a wholly testament to the power of the expected post-diagonal price reversal.

 

How to Win Forex Trading Continuously

Most people will think that success in Forex trading depends entirely on the system or trading strategy you use. In truth, it doesn’t. What it actually depends on, the foundation upon which true success as a trader is built is your mindset and psychology – how you think and feel about the market and how you react to it.

Forex websites trying to sell some indicator or robot-based trading system won’t tell you this, because they want you to believe in their products and that you can make money with them. That’s the source of most of the stories you hear about people who attempt Forex trading and lose money. They come into the market with unrealistic expectations, such as thinking they are going to quit their jobs after a month of trading or thinking they are going to turn $1,000 into $100,000 in a few months. They create a mindset that pressures them with the need to make money and end up trading emotionally – the fastest way to LOSE your money.

I have a friend that says, “I’m not here to be your friend. A friend will tell you what you want to hear. I’m here to be your BEST friend, someone who will tell you what you NEED to hear.” While it is very important to have an effective and uncomplicated trading strategy, it is even more important to manage your emotions around your trades. You need both to experience long-term success in trading.

Before you even start thinking about trading and risking your hard earned money, before we even start discussing strategy, if you feel you want to explore trading as a means of growing your income and wealth portfolio, you need to enter the market with the right mindset.

Discipline
The first thing you need to understand is that trading is a discipline. It is a long-term game of probabilities, you will win some trades, you will lose on some trades, but as long as you a disciplined enough to stick to your trading strategy, to not be emotionally attached to your losses, or worse your wins, you will tend to make more winning trades than losing trades and nett a profit.

Mastery
You need to know what your trading strategy is and you need to master it. You have to know it inside and out and have absolutely no doubts or questions about that the market needs to look like before you risk your money in a trade. You have to become a “sniper.” Once the market conditions match your strategy criteria, you place your trade, without the fear holding you back.

Risk Management
You always, ALWAYS manage your risk on EVERY single trade. The moment you loosen your control over your trades, you allow emotion to creep in and before you know it, you’re in a downward spiral of emotional Forex trading and losing trades. Only risk the money you are prepared to lose in every trade. In fact, you should go in expecting to lose on any given trade so that you’re constantly aware of the very real possibility of it happening.

Plan
You need to be very organized. Have a trading plan and journal to track your trades consistently. Think of Forex trading as a business rather than placing a bet in a casino. Invest with your calculator and not your heart, stay calm in your dealings with the market.

Again, keeping your Forex trading mindset right is the outcome of always taking a conscious effort to practice, manage, and control your emotions when it comes to trading.