Forex Trade – Intelligent Forex


Forex Trading Tips – Things That You Can Count on For Being Productive

Posted in Forex Tips by intelligentforex on March 5, 2010

If you want to be on a certain business, you need to set up your goals and implement strategies that you need for you to attain great profit. So, you want to be in the world of Foreign Exchange, you need to keep those things in mind. Here are some of the tips that you can follow on how to get a great deal with Forex trading:

o Have a different point of view- it is actually very simple to follow certain charts and trends of Forex. Try to look out for the best way on how you could easily trade with it. Try switching yourself with every trend and be flexible enough to face things regarding this matter.

o Decide for your target Forex market- most of the people and even the professional Forex trader set up goals that they could not easily reach. So, try to make simple, yet attainable goals when you are in Forex market. On the other hand, do not expect for too much about it, as it might some times lead you in losing your money. Put things in the right places, do what you need to do and expect only little things, as you will be in a great delight once you win higher trades as what you expected.

o Do not deal too much- dealing too much is not actually a good thing for you. If you deal so much with Forex within a day, it might lead you up in losing your money. Simply think about the investments that you will deal for a day and think about the wins and loses that you have. Is the loss is greater than the amount of your winning trades? Well, think about such and see how it could help you.

o Get back to basics- with every business; you need to get back to basics, as it is one of the most essential parts of being profitable. It also goes well with Forex trading. You have to learn essential things and get yourself back to into the basics of trading.

Forex business is great, it could help you about many things and can assist you on how to be profitable. You only have to do things being mentioned above and implement them into the reality. Help yourself and let Forex help you in earning hundred of dollars within a day.

Forex Trading Made Simple – Simple Tips Anyone Can Use to Get on the Road to Triple Digit Profits!

Posted in Forex Tips by intelligentforex on February 5, 2010

Forex trading is essentially simple yet, its a well known fact that 95% of all new traders lose money here, we are going to look at the errors you need to avoid and what you need to do to get into the winning 5%, who make huge regular gains.

Forget about making money with no effort or buying success, if your are thinking of buying a cheap piece of software to help you win, don’t bother trading Forex. Forex is a profession and you have learn skills and NO ONE, will give you a lifelong income with no effort for a couple of hundred of bucks or less. While you have to work for your success, the really good news is contained in the next point which is:

Simple systems, tend to make more profits than complex ones, because there more robust and have fewer elements to break. Base your system on trading the big long term trends that yield the really big profits and if you do this, you will spend less time on your trading and make bigger overall profits.

Ever wondered why if anyone can learn to win 95% of traders lost 50 years ago, lose today and will lose in the future despite, all the advances in technology? The answer is technology does not improve the odds of success traders lose because of their mindset.

The simple fact is most traders run losses and hope they turn around and lack the confidence, to run profits and snatch them early. When trading you need to not only have the discipline to cut losses and take them, you must have the courage to run profits – can you learn to do this?

Of course you can, adopting the right mindset is a choice and all you have to do is make that choice and accept you will have losses but know by keeping them small, you will get big trends you can run for profits.

So learn a simple system, trade it with discipline, keep losses small and have the courage to run the big profits and Forex trading success can be yours – it really is that simple!

4X Money Trading – Tips and Tricks

Posted in Forex Tips by intelligentforex on February 5, 2010

Forex trading is essentially the buying and selling of currencies from around the world on a centralized foreign exchange system. The basic means of making money in this area is to capture the differentials in currency prices.

For example, if you purchased Japanese Yen you may be able to trade 104 Yen for every dollar. If the Yen then moves up in value against the dollar, you can buy back into the dollar at a better exchange rate.

Foreign currency trading is done in lots of $100,000. While this sounds daunting, the foreign exchange system allows high margin rates. Of course, margin increases your exposure to loss, so you really have to know what you are doing.

One recommended way to get around this is to trade a mini-Forex account, and to use a Forex trading software package. This option allows you to trade in $10,000 lots. Therefore, with the high margin allowances in the Forex, you could make trades with as little as $100. One cautionary note about small trade sizes however, is that you will need bigger pip differentials to make a decent profit.

Currencies fluctuate for a variety of reasons, and predicting these fluctuations can be accomplished with technical analysis, and observation of current events, politics, and the economy of the country whose currency you are interested in. Many traders choose to focus their efforts on one foreign currency and look for buy and sell signals by trading the dips and swells of that currency.

As you gain exposure to the Forex business you will notice the frequent use of the word “pip.” The Forex market trades currency prices in pips. A pip means “percentage in point.” In the Forex world this pertains to the fourth decimal point, which is equal to 1/100th of 1%.

Forex trading can be complex, so again, advanced training is highly recommended for new traders. Overall, here are some common Forex tricks and tips to get you started:

· Use a 15-minute chart to monitor dips and swells.

· The majority of currency trading focuses on the following currencies: U.S. Dollar, Japanese Yen, Euro, British Pound Sterling, Swiss Franc, and the Australian Dollar.

· As you gain experience you will not for bigger pip spreads in your exchange differentials. A pip spread of 20 is generally considered a good trade.

· Normal technical analysis techniques you may have used in stocks do not necessarily work in currencies. You will need to learn technical analysis specifically designed for Forex.

· Minimize losses by setting stop-loss orders.

· Be careful how you interpret tips and your gut instinct. Learn to base your trade decisions on verifiable facts.

Forex, options and futures trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Don’t trade with money you can’t afford to lose.

3 Benefits to Trading Currencies

Posted in Forex Tips by intelligentforex on January 24, 2010

Why is the foreign exchange market bigger than all the other financial markets combined and why is it growing at such a rapid pace? This article will explain the 3 core benefits to trading currencies in the forex market in an effort to answer the question of it’s unprecedented popularity.

1) Liquidity

The foreign exchange market is larger than all of the other financial markets combined, including all stock markets, futures markets and options markets. In fact, if you put all of these other global markets together, they would still only amount to one quarter of the size of the forex market. It is gigantic and therefore highly liquid. The more liquidity there is in a market, the more trading opportunities exist for both small and large traders alike.

2) Leverage

In terms of leverage, the forex market is king there too. In fact, some dealers (brokers) offer up to as high as 500:1+ leverage allowing traders to control huge sums of currency for only a modest deposit. This high leverage allows traders to make very healthy profits from only small movements in the currencies they are trading. No other market in the world offers this kind of leverage.

3) Low Barrier To Entry

Gone are the days where the forex market was only available to financial institutions and large currency speculators. Nowadays rapid advancements in data technology have opened the door to even the smallest of home traders. 24 hours a day, 5 days a week the fx market is trading and it is completely accessible to anyone with a computer, an Internet connection and a trading platform with a forex dealer (broker).

Further to this, the growing competition among forex dealers (brokers) has dramatically lowered the amount of deposit required to trade, and the spreads themselves have tightened considerably. This enables curious traders to enter the market and ‘get their feet wet’ for as little as a $500 deposit (or even less), trading mini lots. Yes, gone are the days where you needed to trade in full size lots or more. Now there are dealers allowing you to trade as low as.01 of 1 lot, which until recently was completely unheard of.

So liquidity, leverage and low barrier to entry are the 3 core benefits to trading the forex market. There are many more (such as ‘automated trading’ which is a whole other topic on it’s own). However, it is these 3 that are the driving force behind the seemingly unstoppable growth that the forex market is currently enjoying.

A word of caution. If you are interested in forex trading please be sure to educate yourself well before diving into a live trading environment. With forex trading comes significant risk that needs to be managed effectively. Don’t be fooled into thinking that you can make a fortune overnight. It takes hard work and discipline to successfully trade this market and there are no short-cuts beyond getting yourself an experienced and successful mentor who is already enjoying the forex trading success that you seek.

Money Management Tips For Forex Traders

Posted in Forex Tips by intelligentforex on January 8, 2010

There’s no doubt that forex trading is a growing industry, but most traders find that it’s not easy to become a profitable trader. A major problem encountered by the majority of novice traders is that they do not know how to successfully manage their money.

This can be critical because even if you employ a successful trading strategy, you may still end up losing money if you are playing with high stakes that you can’t really afford. The worst thing you can do is to adopt a gambler’s mindset and open a large position when you are full of confidence about a particular set-up that may occur.

Sure you may get lucky and enjoy some huge winnings, particularly if you use a lot of leverage when opening the position. However it only takes a couple of losing trades to make a serious dent in your trading capital, and if you don’t employ any stop losses you could easily lose all of your money.

So the point is that it’s important that you forget about the idea of getting rich quick through forex trading. This is nothing more than gambling and it’s definitely not the most effective way of generating sustainable long-term wealth.

A more productive strategy is to try and build your trading pot slowly and steadily. As long as you are employing a tried and tested trading strategy, you should find that your account will grow nicely in the long run simply because the size of your positions will increase in accordance with your trading capital, providing you risk a certain percentage of your capital on each trading position.

For example if you are prepared to risk 5% of your trading capital on each set-up then you will be risking $500 per trade if you start off with $10,000. However if your account does well and goes up to $15,000, for instance, you will then be risking $750 per trade, so as a result your gains will go up as well whenever you experience some winning trades.

I don’t personally believe that you should risk as much as 5% on each trade. I think 3% is a more cautious and suitable amount because it then becomes much easier to absorb a handful of losing trades without making too much of a dent in your capital. We all strive to achieve a 100% success rate, but this is simply an unrealistic target, so it’s worth bearing in mind that you will have losing trades along the way so risking 3% of your capital is a sound strategy.

A very productive strategy is to let your winning trades run for as long as possible because this will automatically lower your required success ratio and it will also mean that your successful trades will be far in excess of your initial stake. For example if you are risking 3% of your money on each set-up, you may find that a trade that moves heavily in your favour could easily generate the equivalent of 6-10% of your overall bankroll.

So I think it’s worth making the point that it’s absolutely essential that you protect your trading capital and use a sensible staking plan when trading the forex markets. If you don’t do this you will end up gambling your hard-earned money away.

The 3 Indubitable Principles of Currency Trading

Posted in Forex Tips by intelligentforex on January 8, 2010

As I look back on my career in the forex market, I really had no clue what I was doing when I first got into it. I had a few ideas, but when the professionals is the market at the time told me that I had to have the right mindset about things, I really didn’t understand what they meant. Well after years and years of successful trading, I have developed exactly what these individuals were trying to clue me in on. I just wish I had the forex tips laid out for me that I am about to share with you.

If you want to learn how to trade forex right, you will have to realize that there are three indubitable principles that are the key to being successful in the forex market. They are mindset, risk management and strategies. Get a grasp on all three of these early on in your career and you will find that you have a much better chance of being successful.

Mindset is the first and probably the most important of the three. Having a mindset that you are only in the trading market to make a lot of money is absolutely the wrong thought process. Of course, we all know that is why you are ultimately in the market, but having the mindset that you are going to be in the market to set up profitable deals rather than a set amount of money is a much better approach. By having this approach, the profits will come naturally and you will not necessarily be obsessed with a specific amount on your deals.

Once your mindset is straight, you need to adapt a good risk management philosophy. You have to set up a range that you are willing to risk on each and every deal that will set the boundaries for your trades. Personally, I like to use a 5% line. If I take a loss at that point, I know I have to get out of the deal and get my money to work somewhere better. Establishing a good risk management philosophy is a large key in protecting you when you make a mistake in a deal.

Finally, your forex strategy is the last of the three keys that you need to have in order as you enter the forex market. One example is forex scalping, where you look to get in and out of a deal quickly and make a quick profit.. The forex strategy that you implore is going to take advantage of the way that you analyze the market and get involved in deals. This is actually a bit of a culmination of your mindset and risk management philosophies. You are going to find that patience will be your biggest asset when developing good forex trading strategies.

Following these three keys will have you way ahead of any new trader jumping into the forex market. Understanding why these are important is just about is necessary as developing good philosophies. Take the time to get your head straight and you will have no problem being successful in the forex trading market.

Fundamental Trading Tips to Get Started Trading Forex Profitably

Posted in Forex Tips by intelligentforex on January 8, 2010

The Forex market has an average daily turnover of four trillion dollars, making it the most liquid financial market in the world. It is very easy for a beginning trader to lose their way in this market, and be left in financial ruin if they do not follow simple guidelines and a strategy that is well suited to their trading style. Here are a few fundamental Forex trading tips for the beginning trader, which will hopefully guide you in creating a strategy of your own.

Know the analysis – Technical analysis is a technique for forecasting future prices of a currency using analytical tools; the most popular tool being moving averages. There is also fundamental analysis which uses economic factors such as announcements on economic stability, interest rates etc to forecast the future price of a currency. It may be difficult at first to understand how to interpret the information of these two analysis techniques but it is important to know how and when to use them in Forex trading.

Know when to walk away- Do not be greedy; we would all like to watch a currency rise or drop to our advantage, make a ton of cash and call it a day; Am afraid the Forex market is a little more complicated than that. Case and point: You will hear many stories, for example a trader in the US made 40 ‘percentage in points’ (pips) on NZD/US in 20 minutes and instead of closing, left an open position till morning hoping it would rise even further. The Interest rates were announced in New Zealand while he slept and his investment account was wiped clean. After performing your analysis and making a position on any currency pair, it is advisable to set a target price or take profit price to automatically close your open positions when you’re set profit price is reached; most trading systems will allow you to do this. In addition never take any position on any currency pair without setting an acceptable stop loss i.e. the total amount you wish to risk.

Know when to play – The Forex market, is a 24 hour market, that operates from Sunday 5pm EST to Friday 4pm EST. Personally I find that the best time to trade is when both the London and the New York market trading sessions overlap at 1pm and 4pm GMT or when the Sydney and Tokyo market trading sessions overlap at 11 pm to 7 am GMT. In time you will find that greater volumes are traded between these periods which results in more opportunities to make trade positions that can realize anywhere between 40 to 80 ‘percentage in points’ to your advantage.

In conclusion, I will leave you with some parting words; if this is the beginning of Forex trading for you and you do not wish to risk too much, avoid the major currency pairs (EUR/USD, GBP/USD, USD/JPY); as these tend to be much more volatile and sensitive to economic speculation. You can always increase you confidence in analysis and ability to decide when to trade, with the other currency pairs until you are ready. I hope you found these tips informative.

Double Your Profit by Using Parabolic Stop and Reversal to Help You Time Your Entry

Posted in Forex Tips by intelligentforex on January 8, 2010

There are a lot of questions about how to properly time the entry of a trading position and this is no doubt one of the major factors that affects the success of a trader. However it is pretty hard to find an answer to this question online and it is also one of the answers I am looking for when I was new to trading some years back.

Being able to enter a trading position at the right time means that you are less likely to be stopped out in your position and you will be able to grab more profit and either one of this can make you a successful trader. A lot of successful traders who make a living from trading rely a lot on their ability to time their entry as it will prevent them from being stopped out more frequently and thus help them to make more winning trades.

There are various ways you can use to help you time your entry but I will be going through one forex indicator called the parabolic stop and reversal or commonly known as PSAR. The way this indicator works is by placing a dot either below or above the candlestick in your chart.

When the dot is below the candle, it basically is indicating a bullish movement and when the dot is above the candle, it is showing a bearish movement.

However, you do not trade solely with the position of the dots. You need to integrate the parabolic stop and reversal indicator into your trading system and then use it to time your entry after the confirmation from other indicators in your system. Personally, I use it together with the multiple moving averages as well as the moving average convergence divergence to create an entry system.

For the moving averages, I use the 50, 100 and the 200 exponential moving averages as a way to show me the trend. As for the moving average convergence divergence, I use the crossover between the line and its trigger line to confirm a trend. As for the parabolic stop and reversal indicator, I use it as a way to give me signal to enter a trade.

When my multiple moving averages are stacked upward in good angle and separation, it is actually signaling an uptrend. I will take a look at my moving average convergence divergence indicator for a bullish crossover after a dip in an uptrend and I will only enter a trade when the parabolic stop and reversal in my lower time frame flips to the bottom of the candle which is also indicating to me an uptrend.

When my multiple moving averages are stacked in a downward manner with good angle and separation, I will then wait for a bearish crossover to appear in my moving average convergence divergence indicator and I will move to my lower time frame chart to wait for the parabolic stop and reversal indicator to flip to the top of the candle before I enter a trade.

I rely a lot on the parabolic stop and reversal tool for the entry of my trading position and so far it has been quite reliable. I have made quite a number of successful trades with the it and I hope that you can also put this tool to your trading plan to enhance your success.

Forex Tips For Beginners

Posted in Forex Tips by intelligentforex on January 7, 2010
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guideto forexIf you are new to Foreign Exchange Trading (Forex) it can be quite lonely and costly to be trading at home by yourself. Do not trade in a vacuum. As well as being tuned in to market news you also need to understand the psychology of people in the Forex industry. Through joining a Forex Club you can gain knowledge just listening to others – their wins and their losses. Hopefully it will point you in the right direction and certainly it should help you avoid the costly mistakes which every trader makes when starting out on their own.

There are many online articles on trading to assist your education in the markets. Essential reading before you take your losses. However no matter how much formal education or whatever you spend in acquiring books and videos the real education in Forex Trading comes when you enter the market. Time in the market is the best way of learning. Unfortunately many would be “gung ho” traders self destruct very quickly. They lose their entire trading capital and disappear in smoke.

To avoid becoming an early casualty it is prudent to take your introduction to Forex trading very slowly and cautiously. Preservation of trading capital if the number one objective you should have – not to make profits from day one. Start with a practice account, where there is no money at risk. Then when you can successfully increase the make believe capital in the practice account start trading a mini Forex account – where you can not lose too much money suddenly because the contract sizes are small.

When you become proficient trading a mini account then grade up to a standard account – as the small scale of mini accounts makes it hard to accumulate funds. A lot has been left out in these few lines about how to trade – that is what you must learn over time.

If your sole goal is to make money rather than gain an education first then please do not attempt to trade Forex yourself. The best way to approach trading if you do not want to spend the time and effort in learning everything there is in order to be a successful forex you should employ an automated Forex trading robot. Even then it is wise still to learn as much as you can about Forex trading and also learn about the various FX Robots.

Many professional traders use a number of Forex robots – as they recognize the power of trading robots to crunch numbers and process data – far faster than any human can. That is not to say that the decision making of trading robots surpasses that of talented human traders; it is just that humans can not match the speed of the robots. Which probably accounts for why the better robots are able to scalp extremely well and make profits when their human counterparts do not.

Best of luck if you are just starting out – stick around and enjoy the luxury lifestyle that success brings.

Forex Trading Tips

Posted in Forex Tips by intelligentforex on January 5, 2010
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Forex Trading TipsWhy do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?

This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.

Trade pairs, not currencies – Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

Knowledge is Power – When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.
The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.
Unambitious trading – Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

Over-cautious trading – Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don’t place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.
IndependenceIf you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:
Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);
Seek advice from too many sources – multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome – by yourself, for yourself.

Tiny margins – Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

No strategy – The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.
Trading Off-Peak Hours – Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple – don’t.
The only way is up/down – When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That’s it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you’ll be amazed at how hard it is to blame anyone else.

Trade on the news – Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.
Exiting Trades – If you place a trade and it’s not working out for you, get out. Don’t compound your mistake by staying in and hoping for a reversal. If you’re in a winning trade, don’t talk yourself out of the position because you’re bored or want to relieve stress; stress is a natural part of trading; get used to it.
Don’t trade too short-term – If you are aiming to make less than 20 points profit, don’t undertake the trade. The spread you are trading on will make the odds against you far too high.
Don’t be smart – The most successful traders I know keep their trading simple. They don’t analyse all day or research historical trends and track web logs and their results are excellent.
Tops and Bottoms – There are no real “bargains” in trading foreign exchange. Trade in the direction the price is going in and you’re results will be almost guaranteed to improve.
Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.
Emotional Trading – Without that all-important strategy, you’re trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don’t tend to make the wisest decisions. Don’t let your emotions sway you.
Confidence – Confidence comes from successful trading. If you lose money early in your trading career it’s very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.

    The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.

    1. Take it like a man – If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders – permanently. Try to remember that the market often behaves illogically, so don’t get commit to any one trade; it’s just a trade. One good trade will not make you a trading success; it’s ongoing regular performance over months and years that makes a good trader.
    2. Focus – Fantasising about possible profits and then “spending” them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride – you have no real control from now on, the market will do what it wants to do.
    3. Don’t trust demos – Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker’s system works, start trading small amounts and only take the risk you can afford to win or lose.
    4. Stick to the strategy – When you make money on a well thought-out strategic trade, don’t go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.
    5. Trade today – Most successful day traders are highly focused on what’s happening in the short-term, not what may happen over the next month. If you’re trading with 40 to 60-point stops focus on what’s happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you’re trading intraday.
    6. The clues are in the details – The bottom line on your account balance doesn’t tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.
    7. Simulated Results – Be very careful and wary about infamous “black box” systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results – historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.
    8. Get to know one cross at a time – Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.
    9. Risk Reward – If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you’re trading on, it’s more likely to be 1-4. Play the odds the market gives you.
    10. Trading for Wrong Reasons – Don’t trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it’s probably because you can’t see the trade to make, so don’t make one.
    11. Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn’t taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it’s out of your hands.
    12. Determination – Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade’s life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.
    13. Short-term Moving Average Crossovers – This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don’t fall into the trap of believing it is one.
    14. Stochastic – Another dangerous scenario. When it first signals an exhausted condition that’s when the big spike in the “exhausted” currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you’ll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).
    15. One cross is all that counts – EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time – if EURUSD looks good to you, then just buy EURUSD.
    16. Wrong Broker – A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.
    17. Too bullish – Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.
    18. Interpret forex news yourself – Learn to read the source documents of forex news and events – don’t rely on the interpretations of news media or others.