A lot of people ask what are the secrets to forex trading?
Well, there are a number of important guidelines or what you may call, forex trading secrets or forex hints, that in fact apply to other types of trading as well. And they’re important, because if followed, they’re the basis for making forex trading very successful for you.
And the pitfalls?
Well, they’re the opposite to these so called secrets that I’m about to list. And you know what, I’ve seen just about every one of these rules broken by someone I know. And they usually learn pretty quick and get back onto the squeaky clean rules quick smart!
Here they are:
1. Know the basics of forex thoroughly!
2. Always trade a system that has been shown to be profitable, and has an acceptable drawdown. A system like this would have been backtested, and also traded in realtime to prove that it is a profitable one. If you can, get details of the float, risk management and examples of exact trades which achieved those results.
3. When learning a system, firstly trade on a demo account to prove that you can follow the system, and that you know the rules well. You’d also be showing that the system is behaving as expected.
4. If you have any questions about the system rules, clear them up with the author of the system, or via the support forum.
5. Most systems are pretty mechanical, but if there are any discretionary bits, these may need some extra practice.
6. Make sure you apply good money management rules to ensure you easily survive and thrive through any drawdowns.
7. Choose a system that fits in well with your daily routine. For example, some forex systems take a total of 1 hour per day to trade, such as 15 minutes four times a day on average. Also see if the times that the system trades is suitable as well.
8. Trade appropriately: don’t overtrade. If there are no trades for that day, then you’ll just have to wait til the next day.
9. Avoid revenge trading, by trading larger trade sizes and hence increasing risk, if your last trade or trades were losses.
10. Monitor your progress to see how your system is performing over time, both in returns and drawdowns, and any mistakes that you made in trading.
11. If you’re choosing to trade with forex signals, automated forex, or managed forex instead, make sure you do your due diligence to make sure the company is sound and ethical, can give you samples of their results, including details of the float, risk management and exact trades which achieved those results.
And then proceed from there to choose a great forex system.
Best wishes for your trading.
Well, there are a number of important guidelines or what you may call, forex trading secrets or forex hints, that in fact apply to other types of trading as well. And they’re important, because if followed, they’re the basis for making forex trading very successful for you.
And the pitfalls?
Well, they’re the opposite to these so called secrets that I’m about to list. And you know what, I’ve seen just about every one of these rules broken by someone I know. And they usually learn pretty quick and get back onto the squeaky clean rules quick smart!
Here they are:
1. Know the basics of forex thoroughly!
2. Always trade a system that has been shown to be profitable, and has an acceptable drawdown. A system like this would have been backtested, and also traded in realtime to prove that it is a profitable one. If you can, get details of the float, risk management and examples of exact trades which achieved those results.
3. When learning a system, firstly trade on a demo account to prove that you can follow the system, and that you know the rules well. You’d also be showing that the system is behaving as expected.
4. If you have any questions about the system rules, clear them up with the author of the system, or via the support forum.
5. Most systems are pretty mechanical, but if there are any discretionary bits, these may need some extra practice.
6. Make sure you apply good money management rules to ensure you easily survive and thrive through any drawdowns.
7. Choose a system that fits in well with your daily routine. For example, some forex systems take a total of 1 hour per day to trade, such as 15 minutes four times a day on average. Also see if the times that the system trades is suitable as well.
8. Trade appropriately: don’t overtrade. If there are no trades for that day, then you’ll just have to wait til the next day.
9. Avoid revenge trading, by trading larger trade sizes and hence increasing risk, if your last trade or trades were losses.
10. Monitor your progress to see how your system is performing over time, both in returns and drawdowns, and any mistakes that you made in trading.
11. If you’re choosing to trade with forex signals, automated forex, or managed forex instead, make sure you do your due diligence to make sure the company is sound and ethical, can give you samples of their results, including details of the float, risk management and exact trades which achieved those results.
And then proceed from there to choose a great forex system.
Best wishes for your trading.
