Thursday, February 17, 2011

Forex Trading Tips

Written by Jonathan Taylor

Best Forex Trading Tips

These forex trading tips will help pave your way towards

* Follow the trend: Successful forex trading requires trading with the trend. However, if you intend not to trade with it, you must have extraordinary skills, attention and courage.

* Watch out for larger trends: Look at time frames larger than those you are trading with. This helps get a bigger picture of the price movements.

* Trade in the most suitable and comfortable time frame: Trade within a time frame that is the most comfortable for you. The time must be enough for you to analyse the market and trade well.

* Trade calm: Do not let your emotions influence your trading decisions. For instance, if you lose a trade, do not get revengeful; while winning, do not get greedy. Over trading adversely affects money management and increases risks. Typically, traders should not risk more than 2-3% of their total trading account.

* Know yourself and your requirements: Understand yourself and identify your goals. Then, assess your risk tolerance and identify the right capital allocation for your needs.

* Stick to your plan: Merely creating a goal and plan is not enough; you must also stick to it. The planning phase should also include defining failure and success, the trading time and the time for trial and error.

* Choose broker carefully: Choose a reliable broker that matches up to your expertise and goals. Also, check their trading platform, customer service and trading styles.

* Start small: When creating an account, begin with a mini account and graduate to standard accounts, as you learn and practice. It is best to start with small sums and low leverage and add to the accounts through profits.

* Focus on a currency pair before expanding: Beginners must trade in a single currency pair, for instance, their own country’s currency, before expanding. They can also start with a currency pair that is the most liquid or widely traded.

* Study your success and failure: Keep a journal of your trading activity to understand your best strategies and methods. This enables you to monitor your mistakes and successes carefully and learn from them.

Finally, traders must persevere, while keeping their risk at the minimum as mastering techniques takes time and practice.

Wednesday, June 9, 2010

Finding The Best Forex Traders

The forex trading market has become the biggest financial market in the world today and online currency trading is now one of the fastest growing investments. There are many ways to find information on forex trading and online currency trading but finding the best forex traders can be difficult if you don’t know where to look.

With the growing popularity of forex trading and the information publicly available on the internet finding the best forex traders is no longer as difficult as it may have been. The currency analytical reports are now available to the public online and you can even access live data if you know where to look. Finding the best forex traders has become even easier and more and more people are beginning to reap these profits.

What Are the Best Forex Traders

Forex traders are the currencies that are traded by investors and the best forex traders are the currencies that are making the most profit for their investors. Currencies fluctuate constantly and keeping up to date with the state of these currencies used to be extremely difficult for small time investors.

The forex traders that are most popular and the ones that should be monitored closely are the “majors”. These are the EUR/USD combination, the USD/JPY, the USD/CHF, and the GBP/USD. This combination change constantly and knowing where these forex traders stand will allow you to make the profits you choose from your forex trading.

Forex trading guides and forex training education programs are available for anyone looking to earn money from this extremely lucrative system and most of these programs are designed with beginners in mind explaining all the technical language in simple easy to follow terms.

Forex trading could help you change your future; why not invest in it now?

Five Forex Trading Tips You MUST Know

Jumping into Forex trading with both feet? Here are five must-know tips on forex trading and mini forex to help you stay afloat in the Foreign Exchange currency market.

Know your forex trading market.
Educate yourself about the currencies that you trade. The more you know about the country whose currency you’re trading in the forex market, the more accurately you’ll be able to predict which way the money will move.

Pick a forex trading system – and stick with it.
Savvy forex traders will tell you that system is everything. Forex trading by system lets you automate your trades based on history, following the traditional peaks and valleys. Set up a system and live with it to make the most of your forex trading strategies.

Practice makes perfect – but it’s not the real world.
Practice forex trading accounts are great for learning how a particular trading account works – but they’re not the real world. Many experienced traders recommend starting off with a mini forex account to minimize your losses while you get acclimated.

Keep your eye on the margin.
Margin trading is a great way to lose a lot of money quickly. Stay away from forex margin trading until you’re sure you know what you’re doing.

The only win that counts in forex trading is the bottom line.
In forex trading, the bottom line is how much money you made at the end of the day. Don’t count won or lost trades – only dollars and cents.

How To Pick A Good Forex Broker

If you are doing forex trading, then you know the importance of a good forex broker. This is especially true if you are just starting out and do not have a lot of experience. A good forex trader will work with you and provide the information and tips you need to make the best trading.

Even though your forex broker will be offering you tips and advice, they do not make the final decision to buy or sell. You do. Therefore it is important you know what you want and make your own decision. It is ok to ask a lot of newbie forex questions to your broker if you are new to forex trading but make your own mind and accept the results.

As you can see, a good forex broker is important as you will be seeking his/her advice and you certainly want someone who’s the best in the forex business. So how do you go about choosing one? Here are some tips to help you

1. Registered Forex Broker.

It is important that your forex broker is a registered member of a financial institution. Ask for his/her credentials. You want the assurance that he/she will be able to act on your decision and access the funds needed.

Check with the NFA (National Futures Association) if you doubt your forex broker is registered.

2. On-call Broker.

Your forex broker should remain in contact at all times. Whether it be via cell phone, email, instant messaging etc. Your broker should know forex trading is a 24 hour standby job and fluctuations in trading can happen quite quickly. Therefore it is important you can get hold of your forex broker when you need him/her

3. Experienced Broker.

Before you select a forex broker, ask for his/her references. Call those references and ask them about their opinions on the forex trader. By doing this, you can assert whether the forex broker is experienced and whether he/she is able to execute a trade effectively and successfully.

It would be best to contact more than one references to get an accurate feedback on the forex broker.

4. Cost of Broker

Many people when looking for a forex broker are overly concerned about the cost. Usually more experienced forex brokers as well as those with a good track record of successful trades demand a higher price.

My recommendation is to select a few forex brokers that you are comfortable with, have credentials, have a proven good track record. Once you have done that, then you can talk about cost.

Sometimes the price for a forex broker affiliate with the above qualifications can be high, however you need to keep in mind, they can help you make more money in the long run and offset the cost.