When it comes to Forex, no trader is an island. Finding a trading partner for whom you can be accountable to, a partner you can discuss and swap ideas is invaluable.
Good word of advice here, I don't know why so many persons in forex have problem demo trading. It is true we don't get real money from it, but it can help in a large way, especially newbies.
It is very important for newbies to interact with other experienced traders. They should never overlook information possessed by other traders. Reading books about forex are important. Books can provide you with a solid basis in a short time, providing a foundation to build on.
Trading on the forex is exciting, fun, risky and the rest, but it is important to keep our emotions under control. It is crucial not to get carried away because of this. Successful traders approach trading like a business, not a hobby.
Trading news can be both profitable and extremely risky as well. If you don’t know what to do, do not trade news. You can wipe your trading account within a few seconds to minutes because price can move against you so fast you will be caught out.
Follow the last line in the reply then we'll hardly go wrong, as emotions seem to cause a lot of havoc in the market. Rash decisions, wrong planning and bad reactions to lose!
If you have any currency pair that has moved strongly in your favor you can close out half of your lots, the "rule of thumb" we use, adjust your stop order on the remaining lots to break even and let the remaining lots ride on the larger trends if they are strong. If you choose to close out a portion of your lots after a strong move you can do so at the end of the USD session in an approximate window of time around 10 - 11:00 am Eastern Time.
I would add also something that need to constantly learn and try to learn about the market as much as possible every day!
you know even at this point some of us would like to go on hoping for more profits, without know that things can just go wrong anytime because of the versatility of the market.
Very nicely written article where you have pointed out 5 important points. In my opinion, traders need to give themselves enough time to learn the art of trading. They always have to be prepared to take the loss. As they say "Cut your loss short and let your profit run". The earlier we learn how to do this, the earlier we achieve the success in the Forex market.
I'd like to advise here, that beginners should make their Own Trading Decisions. Avoid taking advice from any one person or any news channel, eventually, you and only you are responsible for the profits or losses in your trading account.
When trading with a live account, you might get a black out, and forget all the lessons you’ve learned. That’s very natural. Don’t worry. It’s important to remember just one thing:write down your weaknesses and keep these notes handy and read them. Although you’ll still want to stick your nose to the screen and see how your trade is going, taking a break to read your notes will calm you down and keep you on track with your trade plan.
You couldn't be more right, even old traders need to continue learning and learning non stop. Things change, new things come and new devices for the market!
To eliminate problems associated to wild and fluctuating openings, never trade in the first half an hour unless you are absolutely positive in the direction a security will move. If you have any doubts, wait for half an hour.
For beginners, do not try to outguess the market; let it serve as the guide on how to trade the setup.
I'd rather say that the market could be forecasted, but not outguessed. As a trader should analyze and try to see where the price moves by himself
Exit planning must deal with the good, the bad and the ugly. In other words, keep a profit protection strategy to exit winning trades, a stop loss strategy to get out of bad ones and a fire drill in case disaster strikes. You’ll need all three tactics in every trade because anything can happen once you hit the order button.
For short-term traders, the most important thing to know is that large price changes tend to reverse and small price changes tend to trend.
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