nobsNetwork
- Nobs Network Forum- Nobs Invest - Nobs Investment Community
- Nobs HYIP Blog
- Forex for Beginner
No Bullshit Forex Blog, A Part of No Bullshit Network
A part of the nobs network
- Nobs Invest - Nobs Investment Community
- Nobs HYIP Blog
- Forex for Beginner
Mar 1st 2009
Learning forex? Here are six golden rules to follow before you start trading for real. Drill this carefully in your head before blowing your first live account.
Keep it simple
Too much information on your screen can prove confusing.
Platforms
Not all trading platforms are created equal. Choose a platform that is proven and tested – don’t fall for an inferior trading platform because it “looks” great.
Set daily limits and follow them – Many traders look for the big score in one day. Trading should not be about changing your life overnight, but it can change your life if you create a realistic daily income and even a daily loss limit for yourself and stop trading for the day once it is reached. Too often, people lose out on profits they had during the day because they get greedy. Stay focused and be disciplined, not greedy.
Lock in your profit quickly
The profit any trader seeks comes from the fluctuations in the currency exchange market. These changes occur every second – if you wait for a huge profit you can lose whatever gains you have made in the blink of an eye. After you make an opening trade, decide upon a small profit level and set a limit order to close the position. Since most Forex providers do not charge a commission, you can make as many trades as you want until your target for the day has been reached.
Be Realistic
Do not set yourself unrealistic targets and do not have crazy expectations. Trading, as much as it can be scientific through technical analyses, is not an exact science - there are other factors that are at play. Setting unattainable targets will lead to frustration and failure when your targets are not met.
Read – It is very important in trading international currencies to know as much as you can about the market. Knowing that the PPI of a country is low is not enough, how that relates to the rest of the world is important too. For example, Producer Prices in one country affect Consumer Prices in another – if the unemployment rate is higher then people buy less goods – which can lead to a lower valued currency.
Trade with your head, not over it
If you are a beginner, make sure you do not trade more than you can afford to lose. Emotions can be detrimental to keeping level trading head. People who cannot afford to lose the money they are trading tend to lose sight of their strategy when the trades are not going their way. This only leads to bigger losses. Create a plan and follow it – no matter what.
The old adage
It is written on every brokerage advertisement and it is true – past performance does not guarantee future results. What happened yesterday might not happen today even if the circumstances are the same. Each day brings something new – do not let your guard down and do not deviate from your plan – even if you think it could make you more money, 9 out of 10 times you will lose.
Learn Forex Today by a demo account. Start with Forex Web Trader and earn 10% of your trades today!
Popularity: 55% [?]
36 Responses to “The Six Steps To Follow When Trading Forex”
- 1 Pingback on Jul 5th, 2009 at 1:34 am
- 2 Pingback on Jul 18th, 2009 at 3:52 am
Really these are six golden rules. As I am new to forex business, these tips are very valuable to me. Thanks for the post.
Although the world economies and conditions are changing every day in ways never seen before, these 6 Principles remain a constant, as they always will, for any type of success in Forex.
Thanks for the reminder.
Really good tips, I would just like to add testing and tweaking your forex strategy is extremely important.You should always be looking for ways to improve.
Hi there,
It’s good forex tips. I agree strongly on the part of keeping it simple and be realistic. Forex trading should be simple and simple trading systems are robust. I have seen people learn too many things in forex and tried to apply everything into a strategy, in the end there are a lot of restrictions before he can even open a trade.
Many people thought that trading is so simple that it can bring fast and easy money, which is absolutely wrong. They will need trading and analysis skills. Even with that, some experience and luck is needed before one can really be successful.
Regards,
Dan (CEO of FTP)
No matter what the market does the basics stay the same. Always stick to your basic plan to weather the rough times.
The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers.
FXCM Micro is for traders who prefer the flexibility and convenience of trading in small (1K, 2K) lots, but are not willing to sacrifice tight spreads or quality execution. With FXCM Micro, you can open an account with as little as $25, yet trade with competitive spreads.
CFDTrading.com is a leading source of CFD news and insights, including research and signals for Contracts for Difference (CFD) trading. We help answer all your CFD questions with our daily, expertly written articles, and extensive up-to-date charts and reports on the state of the worldwide CFD market.
Hi The six steps you shared with us is very useful for everyone who are planning to start forex trading
Wow! thanks for the great info. i will use this tips on my next trading session.
Hello Stuart,
I like how you have your steps simple and to the point.
Like you said, “Keep it simple” !
Im glad you liked the tips guys, i will try to send some more over in the near future.
If you trade at forex web trader we send you over all the help and tools to be a sucessful trader on a daily basis
If you are interested in signing up to trade with us please let me know your trading details when you sign and i will make sure you get VIP care
If Forex traders need the help of a reliable trading company, I would suggest this reputable online Forex trading company that offers technical analysis tools and charting programs as part of their trading platforms. They also help you to make a profit even in a volatile situation with fixed spreads and whether you area beginner or an experienced Forex trader, this online Forex trading company gives the trader the advantages of their services with Free Charts and Trading Tools, Tight Variable dealing Spreads, Superior execution, Automated Trading through Expert Advisors and Trade from Charts.
Great Tips, The only thing I would add is to learn learn learn. Most newcomers to forex get excited by the possibility of making some money and launch in way to fast, but they should take the time to learn how everything works. If they open a demo account like the one you have suggested and try out the strategies on practice money before using the real stuff, they can greatly reduce the losses that most new forex traders experience.
” If you are a beginner, make sure you do not trade more than you can afford to lose. ”
I like this statement mentioned in your blog. They are many new commers lose all their $$$ because they do not know how to manage their $$$.
Awesome information!
You have posted some really good tips for both the novice and expert forex trader.
I totally agree with the part about keeping it realistic and simple. Forex trading should be simple and when it comes to using automated forex software, it can really supercharge your results.
If you wanted to supercharge your current or potential forex income, you need to look at forex robots/forex automation, I recently found a great review site that has independant reviews on all the top forex robots/forex automation software. Checkout
Forex Traders Edge
Keep up the good work and awesome articles.
-Jeremy
www.lampcorporation.com
With all the negativity in the market I thought it worth mentioning that they are still systems and people who work. Thaks for the six golden rules. they are great!!! I found this interesting comment at http://forexconfidanteriches.blogspot.com/
Maybe forex is not just for losing money after all…
KISS - Keep it simple, stupid. That’s the way to do successful trading. Thank you very much for sharing these steps.
“Too much information on your screen can prove confusing” — definitely yes!!
-Anatoly
http://forex-vps-reviews.blogspot.com
Many thanks for the golden tips..
But I would suggest to ad Discipline and adaptation to the market behavior as Rule #1…
All the best
Im glad you all like the blog, we will be looking to bring you guys even more special offers soon in addition to the excellent 10% deposit bonus offer currently available
http://www.forexwebtrader.com/?aid=4803&btag=a_6888b_3341&cg=8
“I would like to suggest to add Discipline…as Rule #1″
Once you have a trading plan with a known win/loss ratio, clear rules for entry, exits, stops and money management in writing, it really is all about psychology. You can say you need the right mindset, that you need Discipline, that you have to control your emotions. But that doesn’t work. Evidence: all the traders who try that and still can’t stick to their trading plan.
That’s because most traders are missing a basic concept about emotions: emotions are not the enemy; they are information. Most of the time, say 99%, the information is about you…not about the market. And you treat is as though it is about the market. Big mistake.
The thing about the market is it’s ambiguity.. that is we don’t know what the market is going to do. We have theories, indicators, systems, etc., that help predict market movement, but none of these things tell us what the market is going to do each and every time. When we are faced with ambiguity (we don’t know what’s going to happen next), we feel uncomfortable, unsure. This is the perfect scenario for our emotions to run wild. Some of the emotions we feel are certainly fear and greed, but there are a lot more than that. We can feel inadequate (I’ll never learn how to do this), angry (at the market: I’ll show you I can trade, I’ll double my lots; at self: How could I be so stupid, I moved my stop again), despair (I just can’t take another loss, what is my wife going to say?), elated (I’m so hot today I can trade anything!), and so on. All of these examples of emotions are information about the trader him/herself, not about the market.
So the first step is to get the emotions you are feeling to a consciousness level where you can deal with them. One of the best ways to do this is to talk out loud. Whenever you are aware of being anxious, angry, hesitant, etc., say what you are feeling. Speak out loud what you are saying to yourself internally… about the market, about your ability to trade, about the money, about what others are going to think. Remember that all feelings are acceptable; it’s what you do with them that is the important part.
I like “Lock in your profit quickly.” It seems easy enough to close a trade when you have made money but how many people ignore the profit waiting for the big gains? I’d rather win many small trades then risk everything on a big trade.
I like the way you put info in this post I wonder if I can use some of this in my Forex Education Center & in my new eBook, waiting for your response & thanks a lot for sharing that with us.
Don’t forget to always trade on a demo account before trying to trade with real money. If you lose on a demo account try a new forex trading method.
Nice… helpful article. The Forex market is the most traded exchange in the world with over 3 trillion dollars traded daily. Since today forex is available to anyone with a computer and a desire to invest, forex has turned into financial market with the largest online presence.
Cheers for the great post - I loved reading it! I always love this blog.
Buddy, if you are look for a trading strategy, here got a lot of Step
Click here !M
I like rule #3. i think we all should be realistic when trading of forex market
thanks for the article, very interesting
Again, thank you for your useful information!
Ivan.
http://hotmail.zulutrade.com AUTOTRADING FOR FREE …. You open account and add a signal provider. The best forex system …..Here is MY LIVE PERFORMANCE http://zulutrade.com/Follower.aspx?&ref=1&id=119023
Great article!
I personally recommend the Metatrader 4 platform, for all those who are still not sure which trading platform is best for them. you can trade virtually anything and it’s very user friendly.
to chech it out and download it for free, go to:
http://www.ava-metatrader-trading.com/metatrade-download
Thanx for tip.
Wow, Great Tips. I am really new to forex, and this tips are good to me. Metatrader platform is good for me, i have downloaded this software.