What Are the 3 Things That Will Cause You to Fail As a Trader?

Genuine Online Forex Trading - What Are the 3 Things That Will Cause You to Fail As a Trader?

When trying to trade online it's easy to listen to the hype and get carried away with how easy it's going to be to make money. From newspaper ads to internet sites, everyone claiming to show you the easiest way to become rich beyond your wildest dreams.

Here I will list the three things that will cause you to fail as a trader if you are just starting out. Remember that our goal is to stay in the game, if you lose all your money out are out.

1. Risk Exposure

This is simply risking too much money on a given trade, it's not rocket science yet most novice traders want to start earning the big bucks right away. If you start off with $1000 in your bank, and you risk $200, all it takes is two or three losses in a row and you are down 60%, after that you need to make over 100% just to get back to even again - Reduce your risk per trade now.

2. Being Emotional

Your emotions will cost you a LOT of money in this game if you don't get them in check early. So you open a position at $10.00 and say to yourself ( or you may even set a stop loss ) that you will exit at $9.00. Next day the stock opens down after some bad news, it opens at $8.50. Now you know that it's value is over $10, so you decide to hold on and wait for it to recover - you are being emotional. At this stage either it continues to go down and you continue to convince yourself that it's worth more and you lose more money or even worse, it rebounds and rewards your emotional behaviour. Why is this second outcome bad you say? Well completely by chance it has rewarded you for not having a plan, so now the next time when you have more money on the line you will do the same thing again, only this time the stock continues south and you lose a fortune. Writing out a trading plan and STICKING to it is the most important lesson in trading.

3. Expectations

I know I suffered from this. I had unrealistic expectation when starting out. This incorporates both of the above mistakes. You need to slow down. If you are losing money stop trading straight away and change over to a demo account. The markets will be there tomorrow, next week, next month so don't worry about that. Forget about missing that big move and focus on learning one system, perfect that in the demo account then start small and you will succeed.

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Expert's Guide To Forex Trading Analysis

Expert's Guide To Forex Trading Analysis

If you are looking for some lessons on Forex Trading analysis, then you should continue reading this article. In this article, I will discuss 3 common analytical skill that I use during day trading. They are Fibonacci retracement level, MACD (moving average convergence divergence) and stochastics chart. After reading this article, you should be able to apply the 3 common Forex trading analytical skills and reduce your risk in Forex day trading.

Firstly, I love to use Fibonacci retracement level to find out when should I place my entry. Fibonacci retracement level indicates the possible support and resistance level during a period of time. It is very easy to use the Fibonacci retracement level, you will just need to find out the high and low price, and you will be able to find the level. The Fibonacci retracement level is very important since most of the Forex traders are using it as a guide line to place entry, therefore, you will not get wrong to place your entry at these levels.

Secondly, I usually look at the MACD to find out possible reversal. By combining MACD and Fibonacci retracement level, the probability of placing entry at the wrong support or resistance level will be lower. The easiest way to find possible reversal is through MACD crossover. This happens when the fast line in the MACD crosses over the slow line in MACD.

Lastly, stochastics chart is also very important in my Forex trading analysis bible. Stochastics chart can indicate whether the current market is overbought or oversale. Just a thumb of rule, when the stochastic line is above 70, then the market is overbought, you should combine this with MACD as well as Fibonacci retracement level to find out whether there will be a reversal in the next resistance level. Vice versa, when the stochastic line is below 30, then the market is oversale.

In conclusion, while it is possible to use only one of the method above to help you in Forex day trading. However, it will be wise to always use more than one indicators to aid you in Forex trading analysis because all indicators are not perfect and they need to be double-checked using other indicators.

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Real Time Currency Trading

Real Time Currency Trading

I'm going to share with you some of my real time currency trading advice that can really help you improve your trading experience and profitability. This market is quite unique because it has over three trillion dollars being traded each day and it's open 24hrs a day. That makes it such a powerful market for a lot of people to trade in. If you have a full time job, you can easily come home in the evening and make some trades. It's the easiest way for a person to make a second income for themselves. I've been trading in this market for a few years now and I've learned a lot in that time that I'm going to share with you.

Real time trading requires you to be aware of any volatile behavior in the market or that may come to the market while you're in the middle of a trade. It isn't the most enjoyable trading experience when you move into a trade right before the market goes chaotic. This is why I suggest you start watching the news. Just regular news. The reason is that they talk about the economy and you should be able to dig up what will cause the market to have issues. Pay attention to the central bank and the general economic indicators. The central bank changes its interest rates to change the supply of money. Obviously this changes the price. A raise in interest, will raise the price. A decline in interest, will decline the price. It's very simple.

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