If you are going to trade aggressively then you are going to have to find other ways to make money apart from forex trading. Some traders swear by technical analysis or some other indicator based system. When this happens professional forex traders become frustrated because they have wasted time and energy on a worthless system. The best currency trading advice you can receive is to simply take action.

This sounds simple but it is not as easy as it sounds. There will come a day when all your analytical work is going to be put to waste and you will be left to scrabble up some figures to show your broker how well your trading investment is doing.

The best free advice, you should always take is to stick with your plan. Many traders want to jump into the day trading and make a lot of money but they often end up losing all their money rather quickly. It is easy to get wrapped up in the excitement of the markets and make impulsive decisions that result in bad trades. You need to be disciplined and take your emotions out of the picture when trading in the currency market. Professional forex advisory services often use several different signal alert systems.

This allows them to diversify their investments. It also allows for more sophisticated analysis. The signals sent by the systems can alert you to upcoming trends and changes which can really help to make more money and prevent losses.

Keep your timing in sync. Expectancy is the formula you use to determine how reliable your system is. You should go back in time and measure all your trades that were winners versus losers, then determine how profitable your winning trades were versus how much your losing trades lost. Take a look at your last ten trades. If you haven't made actual trades yet, go back on your chart to where your system would have indicated that you should enter and exit a trade.

Determine if you would have made a profit or a loss. Write these results down. Although there are a few ways to calculate the percentage profit earned to gauge a successful trading plan, there is no guarantee that you'll earn that amount each day you trade since market conditions can change.

However, here's an example of how to calculate expectancy:. Before trading, it's important to determine the level of risk that you're comfortable taking on each trade and how much can realistically be earned.

A risk-reward ratio helps traders identify whether they have a chance to earn a profit over the long term. Risk can be mitigated through stop-loss orders , which exit the position at a specific exchange rate. Stop-loss orders are an essential forex risk management tool since they can help traders cap their risk per trade, preventing significant losses.

One loss could wipe out two winning trades. If the trader experienced a series of losses due to being stopped out from adverse market moves, a far higher and unrealistic winning percentage would be needed to make up for the losses.

Although it's important to have a winning trading strategy on a percentage basis, managing risk and the potential losses are also critical so that they don't wipe out your brokerage account. Once you have funded your account, the most important thing to remember is your money is at risk. Therefore, your money should not be needed for regular living expenses. Think of your trading money like vacation money. Once the vacation is over, your money is spent. Have the same attitude toward trading.

This will psychologically prepare you to accept small losses, which is key to managing your risk. By focusing on your trades and accepting small losses rather than constantly counting your equity, you will be much more successful.

A positive feedback loop is created as a result of a well-executed trade in accordance with your plan. When you plan a trade and execute it well, you form a positive feedback pattern.

Success breeds success, which in turn breeds confidence, especially if the trade is profitable. Even if you take a small loss but do so in accordance with a planned trade, then you will be building a positive feedback loop. On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade. Perhaps a pattern is making a double top , and the pundits and the news are suggesting a market reversal. This is a kind of reflexivity where the pattern could be prompting the pundits, who then reinforce the pattern.

In the cool light of objectivity, you will make your best plans. Wait for your setups and learn to be patient. A printed record is a great learning tool. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart, including emotional reasons for taking action.

Did you panic? Were you too greedy? Were you full of anxiety? It is only when you can objectify your trades that you will develop the mental control and discipline to execute according to your system instead of your habits or emotions.

The steps above will lead you to a structured approach to trading and should help you become a more refined trader. Trading is an art, and the only way to become increasingly proficient is through consistent and disciplined practice. Trading Skills. Company News Markets News Cryptocurrency News Personal Finance News Economic News Government News. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Table of Contents. Define Goals and Trading Style.

The Broker and Trading Platform. A Consistent Methodology. Determine Entry and Exit Points. Calculate Your Expectancy. Focus and Small Losses.

Suggesting Forex trading advice on how you approach the trading experience is tricky. It might be useful and might not. This is because every individual has different personality traits. Some might be risk-takers, while others are conservative. Some could have strong mental stress absorption, while some may be more susceptible. Having said that, the suggestions I present below are not meant to limit your thinking about the trading process, if it suits your personal traits take it, if not find your own conclusions.

Have you ever met a trader making a double-digit percent return per month in a consistent manner? Trading is not a get-rich-quick scheme. Trading professionally with proper money management would likely get you a return of a few percent a month.

From my personal experience, a percent return on capital per month is a very realistic number. In the second example smaller equity , the return would likely be unsatisfying for someone looking to trade for a living. Would it be for you? Assumptions we make will always have a percentage of failure. The main goal is to keep your risk limited, your targets bigger than your risk, looking for consistent profit over the long run.

If you toss a coin and forecast the toss outcome correctly you will receive two dollars, and even if your guess was false you will lose one dollar.

Also in terms of probability, it is a random mutually exclusive event, what that means in simple terms is that every toss outcome has no impact on the next toss outcome. And lost times 1 dollar, which equals dollars. Resulting in a net profit of although everything is random!

Even having a trading strategy is not enough! what if not have one. What do you expect?. Trading requires confidence and confidence happens ONLY after educating yourself about it.

And building your personal strategy one step at A time, testing it, and improving. Some might think of using other guru trader strategies instead of going through all this.

While this might work for a bit, it will shortly fail. The moment the strategy starts to lose, the trader will get shaken. I get amazed when newcomers ask me if they can learn trading in six months. My short answer is no. However, there is no typical answer to this question. As people are different. Some traders might start to be profitable in a relatively short period of time a year or two , while others may spend a decade without getting anywhere.

Trading is a very difficult endeavor. It is emotionally derailing and stressful by nature. If you want to be a trader, you need to know what you are expecting. If you are not up to the challenge you better not even start. Do not try to forecast where markets are headed all the time. What a successful trader does is wait for the market to GIVE him certain conditions that validate a trade setup that he tested before. How many times did you ignore your stop-loss convincing yourself that you will close at a better price?

It may have worked sometimes, but what if the price goes against you more and more? Are you mentally strong enough and able to close at a bigger loss? Over-analysis and complicating your tools will lead to confusion and is not necessarily efficient. Over-analysis is probably a sign of the lack of a clear trading strategy. Good traders have a constant tool-set and trade setups they utilize repeatedly. Initiating a trade requires technical evidence, three, four, or five conditions that occur concurrently.

If you do not have a trading strategy all that is left is an unconfirmed bias that leads to the dark abyss. We will always have this inner forcing feeling that pushes us towards a certain direction, whether buy or sell.

This feeling the vast majority of the time is incorrect. Start from the higher time frame to the lower time frame. The higher the time frame the more strong and invulnerable the trend is, and the more strong and invulnerable the support and resistance levels are.

Trading setups that occur within the context of the trend tend to have a higher success rate than those against it. This is a proven fact, why we love to forget it! It can go up to 10 losing trades. Get notified when a new post is published. We do not spam! Check your inbox or spam folder to confirm your subscription.

Hi, my name is Luay Afouneh AKA Technician and I am here to share knowledge. My posts are my personal thoughts and journey. Save my name, email, and website in this browser for the next time I comment. Yes, add me to your mailing list. Well, every trader develops according to his beliefs and find his unique way. These are not rigid rules for everyone. It might not suite everyone, it might suite some. your technical analysis is precise and sort of I try to validate my chart and seeing your chart helps.

We would like to localize it in Arabic and publish in ar. com, with reference to your website, if you agree for sure. Seems like I will spend hours and hours on this website. Some of the points you mentioned are provided everywhere, but difference is your deep explanation. If you searched google for the three Introduction Identifying a trend reversal in Forex is not an easy task, and will never be false proof.

However, following a consistent process to I would like to invite you on a special journey in the chart and in-between candlesticks. I will do my best to make the ride enjoyable. I will TRADE SETUPS TRADING TUTORIALS START LEARNING. Follow me: Twitter Youtube Facebook Menu. Forex Trading Advice: 11 Life-Saving Things to Consider. Forex Trading Tutorials. Updated July 9, 11 comments. TABLE OF CONTENT.

Trading is a normal investment that gets traders a return on capital. You should be well-capitalized. Small accounts will probably burn you. No Trading Strategy? Trading is not about forecasting the market.

Limit your risk. Ignore your bias. Always use a top-down analysis approach. Trend trading increases your chances of success. Please leave this field empty Don't Miss Updates! Written by Lu'ay Af. Trade with care, Technician. Yes, add me to your mailing list Δ. What u think about agressive trading with extensive experience and excellent trading strategy?

Hi Technician, What would be your book list for learning to trade? Further reading. Updated August 17, 4 comments. Never wonder, the answer is definitely not. Here is why. Updated October 19, 6 comments.

However, following a consistent process to Your Money. Saxo Bank. Facebook Instagram LinkedIn Newsletter Twitter. This is because every individual has different personality traits. From my personal experience, a percent return on capital per month is a very realistic number. Trading setups that occur within the context of the trend tend to have a higher success rate than those against it.

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