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m (New page: 5 Methods to Improve Your Forex currency trading Learning about Forex can be difficult and many of us can improve our trading by focusing on small volumes of. In this article I will lis...) |
Current revision (18:27, 19 August 2012) (view source) m (New page: 5 Methods to Improve Your Forex currency trading Learning about Forex can be difficult and many of us can improve our trading by focusing on small volumes of. In this article I will lis...) |
Current revision
5 Methods to Improve Your Forex currency trading
Learning about Forex can be difficult and many of us can improve our trading by focusing on small volumes of. In this article I will list 5 ways to improve regardless of whether you're a new comer to trading or an advanced trader.
1. Don't Over Trade - Many Forex traders don't plan to over trade. Often ultimately that the new trader learns a method with fairly large stops that are well-intentioned but when losses occur the trader's account falls quickly. The tendency would be to trade shorter and shorter time frames before the trader is scalping; meaning many more trades. There's nothing wrong with scalping however it can result in over trading. Make certain that you have a specific reason to enter each trade and stay disciplined.
2. Concentrate on 1 or 2 Currencies - One of the greatest tips I received after trading for several years ended up being to focus on just a few currencies. A primary reason is you start to know very well what the currency is most likely to do in certain situations. Among the best tips would be to look at two non-correlated currencies and depending on the situation trade the one that provides you with the best chance to succeed given the conditions.
3. Use Fewer Trading Indicators - Many traders believe that the greater indicators that agree, the better their trade entry. Research has shown this to become untrue because indicators have no way of correlating with each other. If you have an indicator that by itself gives you a 60% success rate; adding another that has a 40% rate of success does not necessarily mean you will have a 100% opportunity to succeed if both indicators agree. You will simply have a 60% possibility of succeeding. Most traders who've added many indicators to confirm their trades have discovered this to be true.
4. Learn About Momentum - Momentum is the reason why a currency move. Good traders learn where and when momentum will occur in the marketplace and in which direction its likely to go. They learn how to read the "conditions around the ground" so-to-speak. They anticipate the trade simply because they did their research.
5. Be careful not to focus an excessive amount of on technical analysis - Most traders trading Forex spend a great deal of time trying to develop the perfect technical system. Which will never happen. Whether it does, the markets will close. Learn how to browse the fundamentals of the market before you decide to trade and then use your technicals to provide a good place to enter.
Trading Forex is difficult work but it can be rewarding if traders follow simple principles and ideas. Hopefully you found those to be helpful for your trading.
