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10 keys to become a better fx trader

Discussion in 'General Forex Talk' started by siriyke, Sep 11, 2010.

  1. siriyke

    siriyke Banned

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    Hello to all :)

    Here are few steps we can keep in mind while trainding forex market. These steps seems good for the newbies.

    1. Education: I would talk about this because before we trade fx , we need first key as Education. Here we learn what fx market is all about. This involves series of studies from some basic educational resources about fx.

    2. Planning: Try to plan your trade, what time is better to enter trade and exit your trade?

    3. Risk management: Trading fx involves substanitial risk to capital , non argueably 100% of your starting capital. However to trade fx , ask yourself,what is your money management rule? It is wise to trade with minimum margin requirement 5-10% with a complete obedience to your stop loss point. The easiest killer and savior for each trade is your margin requirement for each open position. Remeber the higher the the margin , the higher the profit and the higher the loss. learn to minimize your risk .

    4. Try to trade the news: in a cycle of clock, series of economic news are released that influences the market movement . Learning how to trade positive and negatives news events increases your chance to profit in market.

    5. Analyse your profits : While on profits what do you need to do , hmm , better take your profit faster before the market turns against you or to luck some profits while your trade is on positive side . Remember the adage, if you fail to plan ,you plan to fail. Ignoring this rule calls in the next point: Greediness.

    6. Avoid greediness in trading : Uhh , this have happened to me many times when I was a newbie . Sometimes my trade pofits 150USD in a positon and I keep anticipating further rise in profits instead of taking my profit or lucking atleast 65-70% of it. Then the enemy greediness intrudes my trade and the trade goes back against my profit and at last I must regreat. So I learnt a lesson at this point and avoid such bad mistakes in trading.

    7. Trade with your profit : While you have invested your initial capital, a shrewd trader would quickly withdraw all his starting capital and tade with the profits . This limits risking your hard earned money in fx.

    8. Emotion/Pysychological trading: A trader must control his or her emotion and try to understand that the market is always right and your analysis could be right or wrong . So when failure takes in, try to plan next phase. Try not to fight the market trend .

    9. Take your profits.

    10. Enjoy your living :)
     
  2. 5of7

    5of7 Representative for TheCollectiveFX

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    Bravo!

    I like your list.

    I would only expand on #1, and also include classical training as a trader. It seems too many people jump into forex, and use EA's as a crutch to learning.

    -Trader 5of7 of TheCollectiveFX-
     
  3. siriyke

    siriyke Banned

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    Thank you pal,

    I agree with you about the view on EA , many trders depend on their services, and I am not to condemn their services here but to say my view aswell, jumping into trading without prior knowledge of fx < basic fundamental & technical training > gurantees failure to success in fx , yep. EA services is not quite good because most of them provides late signal, most time when the market trend is about to change , moreover they provide signals as buy high sale low which is wrong. A good trader must know when it is neccesary to sale the market at low price and still profit and the trend will not turn against him and aswell buying at high and still profits. Many traders have run short of their capital because of this point and self training on fx greatly improves investors positive performance than expert advisors . One way to do this is, readying articles about techincal trading and testing a few different techincal indicators atleast 3 times in a week and doing this would provide a trader the best indicator that provides a better entry and exit signals to trade withing weeks of trail :)
     
  4. florentin29

    florentin29 Recruit

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    other rules

    good list

    i would like to add ... experience it is very very important to be experienced to feel the market and also to be experienced needs to be in the market for quite some time .... which is yet a performance

    some of my accounts get burned in few days ... at the start of trading ;)
     
  5. kalkarin

    kalkarin Recruit

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    I like those the most. :D
    Just i am not sure whether you have to follow these rules to become "a better trader", or you HAVE TO BE "a better trader" in order to enjoy #9 & #10. :D
     
  6. RahmanSL

    RahmanSL Major

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    "I would only expand on #1, and also include classical training as a trader. It seems too many people jump into forex, and use EA's as a crutch to learning."

    Yes, cannot agree more with that....sort of like learning to drive an automatic gear shift car before learning how to drive a manual gear shift one....and burning out the gear box on a manual gear shift car simply because the driver thought that 1st gear is for "Go" and didn't know there are at least 3 more gears to shift.

    The more I learn and understand Forex Trading, the more incompetent and ill equip I become. ....I take I should take a long holiday and come back to rethink and re-strategist.
     
  7. florentin29

    florentin29 Recruit

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    sometimes is not so good to try to know all details and is better to try to focus only in few things which proved to be relevant...

    but the BIG Question is which are really relevant ?
     
  8. Marochka

    Marochka Recruit

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    Try to trade the news: in a cycle of clock, series of economic news are released that influences the market movement . Learning how to trade positive and negatives news events increases your chance to profit in market.


    ooohh yeahh
    I'm learning with this during a year. But my results are not stable yet
     
  9. siriyke

    siriyke Banned

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    Hmmm,

    For one that is used to driving Automatic gear shift cars, it is always advisable to remain on automatic driving or to have a complete training for manual cars before use. otherwise he may end up crashing out. Same with fx , one way to improve your trading is not only the time you have spent on fx but development of new strategies as you spend more time on the market. Try not to be tempted to enter market at an unfair market rate . Before you enter the market , understand the direction of the trend and confirm the trend with 2 or more indicators before you enter . This will improve your perfomance. You can also try to choose to trade not more than 5 currency pairs. It will help you to study the currencies and know how to follow them well. Try out these steps and you will see a different view on fx. For the newbies I always advice them to use pending orders that is set at least 120 pips above or below the current daily opening and with not more than 90 pips Stop loss and as well 90 pips TP order and you can try this out and see what will happen to your strategy . If this improves just send me a note . Taking a holiday is another good choice to refresh your memories before trading again.

    You can join my facebook page I made for forex : The link is named forex live trading and my nick is Dr.pips
     
  10. siriyke

    siriyke Banned

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    hello pal,

    It is good Idea learning the rules for news trading. To improve more on your news trading, you must know which are high impact , medium impact and Low impact news to trade on fx. not all the news are important. You can learn some high impact news and others from Forex Factory and you must know this: The previuos market news value on the particular currency and the forcast value. And dont trade immidiately after the news release, wait at least 1-2 minutes to digest the news. If the forcast value is few points better than the previous value. it would be a nice time to enter long on the currency affected depending if the economic news is better when Values expected are higher or lower. Some news comes higher than expected but the currency falls because the news was not favorable for a higher data release. So Learn which news are better when values are higher or lower and this will improve your news trading strategies.

    All the best

    Dr.pips
     

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