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Forex Trading Mistakes - 10 Deadly Ones That Will Slash Your Profits

If you want to learn currency trading the right way then you need to get the right forex education and avoid these common mistakes - make one or all of them and you will lose all your money…

Here are your 10 forex mistakes, in no particular order of importance:

1. Day trading or scalping

All short term volatility is random and all forex day trading and scalping systems lose money longer term. You can’t win at it so don’t try. If you want to know why so many people claim to make money day trading, check out point 5.

2. Trade news stories or expert opinion

News stories are just that - stories and opinions and should not be traded.

All forex news is instantly discounted in the price and therefore cannot be traded Furthermore, the news always reflects the opinions of the crowd and the majority always lose.

3. Try to predict forex prices

If you try to predict forex prices in advance and what they might do, you are simply hoping or guessing and you will see your forex predictions become as
accurate as your horoscope.

Trade the reality of price change only and confirm every move.

4. Using scientific methods

You will see vendors selling forex trading strategies based around such methods as Gann, Elliot Wave and Fibonacci and they all don’t work - think about:

If forex prices were predicable with scientific accuracy, we would all know the price in advance and there would be no market.

Leave the above to the dreamers and the far out investment crowd and concentrate on trading the odds.

5. Following a mechanical System From a Vendor

This is true in 99% of the cases.

The huge majority of forex trading systems sold on the net come with the disclaimer “simulated in hindsight” in plain English this means the vendor made the track record up. Avoid these trading systems

6. Using to Many Indicators

20 indicators are better than 2 right? Dead wrong!

If you use too many indicators in your forex trading strategy you will lose, as your system will have more elements to break.

Simple systems work best and always will so keep it simple!

7. Using indicators incorrectly

How many times have I seen traders buy dips to moving averages and execute a trading signal? I have lost count - hundreds of times but moving averages are a lagging, not a leading indicator and should not be used in this way.

The above is the most common example but there are many more.

8. Working to hard

In many occupations the more effort you put in the more you get out - not so in forex trading, you get paid for being right with your market timing and that’s it.

Don’t make the mistake of working to hard and thinking you will win - you won’t.

Work smart and get the right forex education and forget about working hard.

9. Over leveraging

Forex brokers will give you leverage of up to 400:1 - this is way too much to be using. De leverage, so you can take more risk per trade and this leads me on to the final point:

10. Placing stops to close and trailing to fast

Most forex traders because they over leverage, have to put their stops to close and then get taken out by the market noise. They try so hard to avoid risk, they actually create it and guarantee they will be stopped out. Most traders also trail their stops to quickly and never manage to run a profit.

The 10 mistakes above are made by most losing traders if you avoid them and get a sensible, simple, trend following method which trades the odds, you can enjoy currency trading success and make big profits.

NEW! FREE PDF REPORTS

CATCH THE BIG TRENDS NOW!

 Get free essential trading Pdf’s on catching the big profits from the big moves and more on forex trading basics visit our website at: http://www.forextrendfollowing.com

Author: kelly price

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Forex Trading Basics - 10 Losing Character Traits That Will Wipe Out Your Equity!

Here we are going to look at forex trading basics and 6 character traits that if you have them, you are going to lose. The vast majority of the 95% of traders who get wiped out have them, so to enjoy currency trading success you must avoid them…

1. Won’t accept responsibility

This is a common trait.

People continually try and shift responsibility for their success to others - but only you can give yourself success. You can do it - BUT success rests on your ability to learn the right forex education and execute your forex trading strategy with discipline.

2. Want To Have Fun

It always amuses me when I see traders who say they like to have fun, that’s why they trade.

Trading is not fun in itself, its satisfying, when your making money. I don’t trade for fun, I trade to make money. Sure, if I win I have fun with the money but that’s not the same as having fun trading.

If you trade for fun above all else - chances are you like the action, so take low odds trades and lose.

3. The Action Man

This really can be combined with point 2.

This trader cannot stay out the market and lacks patience.

He is trading in the hope that the more he trades, the more he will make but markets don’t reward you for effort, they reward you for being right with your trading signal and that’s it.

4. Believe Experts

This group of traders like to trust expert opinion and believe what CNBC news tells them or some bank trader.

This always reminds me of will Rogers’s famous saying:

“I only believe what I read in the papers”

He was joking of course but its surprising how many people believe anything their told by an expert.

This also goes for the vast group of traders who buy a Forex trading system from a vendor and think with no effort, they will make money. Sadly, forex trading is not that easy.

5. Thinking Your Clever

There are many traders that think their clever and that this will bring them success. It doesn’t - they tend to over complicate their forex trading strategy and lose. Simple strategies work best and this is a known fact so keep it simple.

Another problem with people who think their clever is they come with egos and a big ego means they have a problem accepting they are wrong and in forex trading, you are going to be wrong - refuse to set stop losses or run losses to far and you will be wiped out.

6. Lack of Discipline

Comes from a combination of all the above. This is the single biggest cause of traders losing.

To acquire discipline you must learn currency trading the right way and get the right education, so you understand fully and have confidence in what you are doing.

If you don’t understand and have confidence in what you are doing, you will not stay disciplined through inevitable periods of losses.

To win at currency trading, you must stay disciplined through periods of drawdown, to enjoy long term trading success.

ANYONE Can Learn Forex Trading

It’s a fact that everything about successful currency trading can be learned by those people with a desire to win and the willingness to learn the right information.

Once you have the right method, you then need to have the discipline to apply it. If you cannot apply your method with discipline you have no method.

Forex trading basics means - Not only getting the right forex education but also the mindset to succeed as well.

NEW! FREE PDF REPORTS
CATCH THE BIG TRENDS NOW!

Get free essential trading Pdf’s on catching the big profits from the big moves and a Best Currency Trading Systems visit our website at: http://www.forextrendfollowing.com

Author: Michelle Hendrix

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Forex Trading Strategies Using Trendline Analysis

When your trading strategy involves a technical analysis you will need to chart the data, which means that you must become comfortable with using charts to determine trends and indicators. You must able to spot ongoing trends and recurring patterns that disrupt the continuity of data.

Charted data may be divided into two categories, which includes reversal patterns and continuation patterns. Reversal patterns indicate a market entry point or time to liquidate an open position. Continuation patterns indicate that a trend was disrupted and then continued in the direction of the original trend.

Market trends present a pattern of the market’s broad movement. Trend lines are determined by connecting two points on a linear graph of historical market data as either peaks or troughs in the data. Even though a trend may be established with only two points, more points provides a better picture of true market trend. Trends may be established for any chosen timeframe, from minutes to years. Trend lines may indicate an upward or downward pattern or they may not point in either direction. Data sometimes settles into familiar charting patterns

A common analytical technique is to analyze the intersection of trend lines with the most recent price. If a downward trend intersects with the most recent price, it indicates that you should buy. If an upward trend line intersects with the most recent prices, it indicates that you should sell.

Trend lines are controversial because many traders become confused as to where to actually draw the lines. Since trends are defined by price actions, trend lines are intended to be a tool for determining the direction of a trend. Upward trends represent higher lows and indicate that prices are going up while downward trends represent lower highs and indicate that prices are going down.

With an upward trend, you should draw a straight line that connects the lowest low to the highest high and in a downward trend; you should connect the highest low to the lowest high. Prices are then expected to fall within these boundaries. Many traders are confused as to whether they should draw the lines at closing price highs and lows or the highs and lows of a particular period.

They are confused as to whether the lines should be adjusted to account for spikes in the data, whether spikes in the data should be ignored or whether trend lines should be adjusted to the scale of the chart.

Advocates of trend lines use more sophisticated trend line channels. These channels connect the lows of price actions on one side and the highs of price actions on the other side and a purchase is made at or near the support trend line and a sale at the line of resistance. The objective is to buy cheap and sell at profit several times over the length of a price action. This can very profitable so long as price remains within the chosen channel. Should the price break out of the channel, traders need to make consideration for several factors and establish parameters for their measurements.

Author: Andrew Daigle

 Andrew Daigle is the owner and author of many successful websites including ForexBoost, a free Forex educational site to learn Forex trading strategies and a Free Forex Training blog for keeping online Forex trading records.

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Forex Charts - A Simple 3 Step Method for Huge Gains

On any Forex chart, you’ll see repetitive patterns that you could have traded for profit. This article is about spotting these repetitive patterns – and using technical analysis to create big consistent gains from them.

Use Forex charts and follow these 3 simple tips for success:

Step 1. Understand Support and Resistance
If you want to make money in Forex trading, you need to understand support and resistance - and incorporate it into of your Forex trading strategy.An important point to keep in mind is to only trade valid support and resistance - as market participants consider these important.

Firstly, forget about using support and resistance in short time frames – it doesn’t work. All volatility is random in short time frames - so if you’ve been thinking about day trading - forget it. You need to look at your Forex chart, and see support and resistance that’s held for weeks or months - and already been tested several times. As a general rule look for five tests or more.

You then need to decide whether support or resistance will hold, or break - and this is the difficult bit for any currency trader.

Step 2. Trade with Momentum
Most currency traders simply see prices approach support and resistance - and buy or sell - hoping the levels hold. Try this, and you’re sure to lose money. You’re guessing, and hoping - and the Forex markets will wipe out the equity of any trader that does this!
To be successful with your currency trading system, you need to calculate the odds of levels holding or breaking. This means looking closely at the momentum, and strength of price.
For example, if price momentum weakens into resistance, then you can sell. If however, price momentum accelerates into resistance, then you should hold back - and wait for the break to execute your trading signal. This way you’re always trading with price momentum - and there are several indicators you can use.
Two of the best indicators are the stochastic and Relative Strength Index (RSI) – which we’ve already covered in previous articles.
If you use stochastic and Relative Strength Index in association with your Forex charts, you’ll gain a huge advantage - by getting the odds in your favour.

Step 3. Cutting Losses and Running Profits
Cutting loses is actually the easy bit - you place your stop when executing your trading signal behind the breakout point - nice and simple.
The hard bit is running profits - most traders simply cannot accept big profits. This may sound odd, as all traders want to run profits. However, few traders can manage to run profits - due to human nature. Why? Because Forex traders are so obsessed with not losing money, they can’t make big gains.
A trader will see a profit on his Forex charts and get excited and nervous at the same time – excited they’ve made a profit - and nervous they might lose it!
The Bigger the profit becomes the more tempted they are to take it - so they move their stop up to close - and gets taken out by normal market volatility. The trader may also snatch the profit, when the temptation becomes too much. Do either of these and of you’ll never make big gains.
You need the courage to hold your stop back - and accept dips in your open equity, as part of Forex trading. Sure, it’s not nice losing a thousand or more per day in open profit - but you need to keep your eyes on the bigger prize!
Look at any Forex chart, and you’ll see trends that can, and do, make Forex traders $10,000 to $50,000 – maybe even more. You just need the courage to hold on.

If you check your Forex charts for valid support and resistance, and trade with momentum on your side, and have the courage to run your profits – then you’ll make huge currency trading profits.

By Sacha Tarkovsky

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MORE FREE INFO & AUDIO AND PDF DOWNLOADS On all aspects of self improvment and more on achieving success visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html
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Forex Trading - Instantly Increase Your Profits With The 80 - 20 Rule

The 80 – 20 rule was not devised for Forex trading - however if you apply it in your trading, you’ll instantly increase your profit potential. The rule is simple to understand and apply - and all Forex traders should use it.
So, what is the 80 – 20 rule, and why is it so powerful in terms of making Forex profits?

The Logic of the 80 – 20 Rule
In the nineteenth century, Vilfredo Pareto, an Italian philosopher, observed that a small section of the population held most of the money and power. He postulated that in most countries, 80% of the money and power was controlled by around 20% of the people. Therefore, 20% of the participants accounted for 80% of the results.
The 80 – 20 rule applies to many other areas of life - including Forex trading, and in simple terms, the key point to consider is this:
80% of your results will be generated by 20% of your efforts.

This also means that:
20% of your results will be generated by 80% of your efforts.

In Forex trading, it’s a fact that most traders make this critical error – they trade too much - and try to force results by working too hard.

Here’s what you need to do, to apply the 80 – 20 rule in Forex trading, and increase your results:

1. Cut out short term trading - like Forex day trading. In day trading, you trade frequently - but it simply doesn’t work. This is because all short-term volatility is random - and you can never get the odds in your favor.
2. Only trade significant technical patterns - such as critical breaks of support and resistance, with your Forex trading system.
3. Risk more per trade on the “good trades” - up to 20% is OK. Remember, risk goes with reward - and you need to take meaningful calculated risks, when the odds are in your favor.
4. Don’t diversify! Forex traders think this spreads risk, but all it does, is simply dilute profit.

In terms of your Forex trading strategy: Focusing on the above will make you more money – but you’ll also reduce the effort you put in.

Shift your emphasis to long term trading - and only trade the best signals. By doing this, your workload - and the amount of time you need to spend on your Forex analysis will be reduced.

If you apply the 80 – 20 rule to your Forex trading in the above way, you’ll cut the effort you put in. You’ll also increase the profits you make - and that’s what all Forex traders want!

Cutting the Effort You Put In and Getting Bigger Rewards
Many people think that the more effort you put in, the better the results you obtain. This is true in many areas of life - but not Forex trading! Here you are paid for being right with your Forex trading signals - that’s all.
Also, don’t fall for the myth that the more you trade, the better your chance is of having Forex trading success. This is simply not true - because the big trades, with the best ratio of risk to reward don’t come around that often.

Incorporate the 80 - 20 rule in your Forex trading strategy, and watch your profits soar.

By Sacha Tarkovsky

Author information
MORE FREE INFO & AUDIO AND PDF DOWNLOADS On all aspects of self improvment and more on achieving success visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html
Learn more at www.net-planet.org

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