James Sanders – Tips for Successful Forex Trading

Tips for Successful Forex Trading

Introduction 

Forex trading is the act of buying and selling currencies.

This is the world’s largest financial market with a daily turnover of $5 trillion and it involves many people – and many currencies.

Ways of Forex Trading ď‚Ą

The best traders hone their skills through practice and discipline. They perform self analysis to see what drives their trades and learn how to keep fear and greed out of the equation.

Set a Clear Goal ď‚Ą

Consequently, it is imperative that you have clear goals in mind as to what you would like to achieve; you then have to be sure that your trading method is capable of achieving these goals. Each type of trading style requires a different approach and each style has a different risk profile, which requires a different attitude and approach to trade successfully.

Choose a Methodology and Be Consistent ď‚Ą

You must know what information you will need in order to make the appropriate decision about whether to enter or exit a trade. Whichever methodology you choose, remember to be consistent. And be sure your methodology is adaptive. Your system should keep up with the changing dynamics of a market.

Calculate your Expectancy ď‚Ą

Expectancy is the formula you use to determine how reliable your system is. You should go back in time and measure all your trades that were winners versus losers.

Then determine how profitable your winning trades were versus how much your losing trades lost.

Perform Weekend Analysis ď‚Ą

On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade. Perhaps a pattern is making a double top and the pundits and the news are suggesting a market reversal.

Develop a Strong Work Ethic ď‚Ą

A robust work ethic means taking essential actions to move forward and get better, regardless of whether you want to or not. It involves being prepared for each forex trading day or week with proper research.

Focus on Your Trades and Learn to Love Small Losses ď‚Ą

Once you have funded your account, the most important thing to remember is that your money is at risk. Therefore, your money should not be needed for living or to pay bills etc. Consider your trading money as if it were vacation money. Once the vacation is over your money is spent.

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James Sanders is a successful business man who provides the help in property trading, forex tarding and business management in London.