Forex Strategy Trading Tips: 5 Secret Trading Tricks I Learned From a World Class Trader By: Jay Molina From: http://myfxinvestment.com/ Welcome back, I hope you have enjoyed all the previous articles and Forex strategy trading tips. In this occasion, I would like to talk to you about 5 powerful Forex strategy trading tips that I learned from a professional trader I used to work with. Never chase a trade: If you have been trading for a while you probably have already missed out in some good trades. This is a situation that every trade must go through, however; if you want to be consistent and a profitable trader you need to make sure you do not chase trades. When you decide to chase a trade you will be more likely to commit mistakes. First, you will need to recalculate your risk and money management parameters. Second, you will be subject to the psychological pressure of the market. Remember, when you chase a trade the chances of you actually making a good amount of profits are substantially reduced. If you make a mistake and take a wrong trade close it immediately: I know a full time Forex trader who trades his family fund that used to commit this mistake. He would press the “sell” button instead of the “buy” button. He would call me and ask me what to do and this is what I told him every time he called. “If you take a trade by mistake, make sure you close it immediately, don’t let a small mistake turn into a large loss.” Focus on the process not on profits: This trading trick change my point of view as a trader and as an investor altogether. When you focus on the amount of money you are making or losing you become more exposed to the psychological influence of the market. The reason for this is that as humans we see money in a different way. We see $1000 as a mortgage payment or a vacation to the beach and as a result we are more likely to let our emotions control our trading. In contrast, your trading strategy and computers see $1000 as a number, a value from an equation that is used to achieve a predetermined result. Focusing on the process will require you to see your trading capital as a computer would, and that is as a mean to a purpose. Focus on your execution, money management, and trading strategy and your profits will increase substantially over time.
Learn from your mistakes and become a better trader: I personally believe that mistakes are an important part of any traderâ€™s career. Committing mistakes allows us to make adjustments and make changes to our trading along the way. Every successful trader has developed the ability to learn from his/her mistakes and improve their trading from them. Never become greedy and try to get back to the market: This has happened to me when I was a beginner. A couple of times I double my account in only 2 months and when I started to lose some of my earnings I would not accept my losses. As a result, I was trying to get back to the market by taking more trades. This only brought me more losses and made me lose a portion of my earnings. When you try to get back to the market you are letting your emotions (and greed) control your trading. Emotional trading is the best way to blow up your account. I hope I was able to enrich your trading career and help you to become a better trader. To your trading success, Jay Molina Pro Forex Trader and Educator
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Published on May 26, 2011
5 powerful Forex strategy trading tips that I learned from a professional trader