Category Archives: How To trade the Forex Market Successfully

Automated Forex Trading Tips for Newbies !

Foreign exchange markets refer to the market in which currencies of different countries are traded. If you are a newbie in forex, then it is better to have some background on this before you start trading as this will only help you to go ahead with trading in forex. The terms like currency pairs, exchange rates, BID, ASK and so on are some of the main terms associated with forex trading. The rate at which trading of currencies take place is known as the exchange rate. The buy price is referred as BID while the sell price is known as ASK. So what is the difference between these two called as? It is known as spread.

It is essential to understand that with forex trading, you have to make every trade of your a learning opportunity so that it would help you in the future and build up your experience of trading in this market. An automated forex trading is the one in which there is no need to input the trade manually as here is the computer which will do the task for you.

For those who are new to automated forex trading, before you get into this trading it is better to carry out some research with regards to such automated forex trading especially in the context of how well it can adapt to the ever changing market conditions. If you wish to create a system of yours, then this could be done with the help of software of forex trading. But one of the main aspects to mention here is you have got your basics right with respect to forex trading and you have taken steps to learn about this.

Try to learn as much as possible with the automated forex trading system. Also with automated forex trading, make sure you know what each and every aspect stands for and you do not simply go on adding them without knowing what is their purpose. Try to get a sense of the time as well as the kind of trade which the automated system will be doing for you. It will help you to know the perfect time frame which is offered by your system. You can undertake back testing wherein you would be able to apply the rules to the data which is historical so that you would be able to know the potential of the idea which you have. Since the system is an automated one here, you have to be very careful regarding the rules which you are going to apply for the system.

To get sufficient understanding on any automated forex trading system the key lies in analysing and here it is not about a few days or few weeks as the more time you put in analysing the more better it is. The market conditions as mentioned earlier are not static but dynamic in nature and hence if you have a non-adaptable approach in terms of exit target then it will simply mean that you are not allowing yourself to take the benefit of adaptability which may play a role in offering you better returns over a longer time frame. Having a fixed approach in terms of exit strategies may not help you a lot in bagging higher profits and hence the adaptability approach. Try to understand the entry as well as exit signals. Also one of the aspects which need to be mentioned with regards to automated trading system is that it is better to monitor the system so that if there are any machine related issues then those could be managed in a better way.

So these were the tips with regards to automated forex trading. It is always better to have an understanding of the same before you start trading.

For more information contact Patrick Sekhoto Here:

Http://www.bannaga.com/

 

These are the 4 Keys to Successfully Trade the Forex Market.

Did you know that only 3% Forex traders out there make money, when they trade currency market .Now in this blog post I will discuss all the fundamental principles you need to know if you want to earn a living trading the currency markets profitably.

What every Forex Newbie should know-Before  trading the forex markets!

Now in today`s article I am going to take it further by revealing to you the 4 Keys That will help you Unlock The Foreign Currency Market!

Putting them in a chronological order, they are: • Having A Robust tried and tested Trading System.

  • Have a Forex Mentor who is actively trading the FX market.
  • Money management rules, to help you manage your trading capital.
  • Be discipline and holistically follow your trading strategy.
  • Money management rules, to help you manage your trading capital.

Now let me elaborate more on each of them:

Having A Robust tried and tested Trading System.

It does not matter what kind of a trader are you, the most important thing to remember is that you should develop a trading system that will help you know when to enter and exit the market.

Your trading strategy should also tell you in advance how much money you are going to lose if the trade goes against you.

Thin is very important to know because it will help you sleep well at night, knowing that your money is save.

In other words you should always make sure that you trade with currency trading systems, which incorporate a trading stop loss.

Have a Forex Mentor who is actively trading the FX market.

Majority of newbie traders, fail to make any money out of trading the markets because they make a mistake of either buying trading Robots, then hope that they will make all the money for them while they sleep.

The other mistake they make is to just buy Forex trading strategies then follow whatever trading instructions prepared by the creator and then hope that they will start harvest those Forex pips on a consistent basis.

The key to successfully trade the forex market is to pay for the services of a trading mentor who is also actively trading the Forex market.

The reason why is important to have a mentor is because you will have someone who have been there and therefore will help you avoid some of the major pitfalls, that may be detrimental to your trading career.

I have been trading the forex market for more than 5  years myself, but even today I can tell you that I also have not one but two Forex mentors by the name of Bill Paulos of profits run and Hector DE Ville of www.forexknights.com

Need to strictly follow some money management rules, to help you manage your trading capital.

It does not matter which trading system, you will always have some losing trades, and anyone who tells you otherwise is not telling you the truth.

Forex trading is a serious business just like owning any bricks and mortar business.

The only thing that differentiates success traders from 97% of losing traders is the way they manage their trading capital.

Successful traders never adds on a losing traders, but instead they cut their loses while they are still small, forget about the trade and look forward to another new trading opportunity, while losing trades based their trading decision on hope.

As already mentioned somewhere in the above paragraph, one of the most important tools to help you become a successful trader is to always trade with a stop loss.

 

You also need to know how many lot sizes you need to open based on you trading capital.

They will help you become a discipline trader, and help you overcome whatever challenge the market throws back at you.

Be a discipline trader who follow your trading strategy rules.

Assuming that you give 2 traders the same trading strategy as well as the same trading capital, then come back at the end of the month, to check how much money they make, the fact of the matter is that, they will make different profits and loses,  because we as human beings are unique in the sense that we are being affected by greed and fear differently.

Forex trading is a dog eat dog trading business, so   be prepared to put whatever you have learned in this blog post to good use.

In my next article I will teach you about the importance of knowing what your trading edge is?

I hope you did enjoy reading this blog post, and also will put whatever information I share with you here to good use, in order to help you take your trading career to the next level.

From: Patrick Sekhoto