For many Forex Trading beginners, after many days and nights of learning and digesting Forex courses, purchasing of various Forex Trading Software and System, you still find yourself with a huge hole in your initial capital.As times go by, slowly, your dreams of financial freedom and success begin to fade. You will begin to ask yourself, are you a failure? Are you not intelligent enough to become a profitable trader? After all, there are many successful trading experts out there who are living their Online Money Making dreams....So the money making online million dollar question - Are you cut out to be a profitable Forex Currency Trading trader? Yes, you can become a profitable Forex trader! You just need to treat your online Forex Trading like running a successful online money making Business.
Forex Trading Style
Similar to Stock Trading or any form Investment Trading. You must ask yourself - what is your trading style - news trading, swing trading, momentum trading, pattern trading and intraday or longer term trading? It is alright to have a "library" of trading style or setups, but what most profitable trader does is to concentrate on a niche or particular trading style. Learn to do one thing consistently well instead of trying to master too many trading methodologies. You have to pick a style that suits you.
Online Forex Trading Plan
What is your foreign currency trading plan? Before any trade entry, you have to ask yourself is this the right set up entry for your trading style? Where is your exact trade entry point? What are your Stop Loss target? What is your profit target?Anyone involves in Foreign Currency Trading and not having a well defined stop loss is going to have their entire online trading account wipe out before they even realized it. I knew someone did just that recently. A US$10,000 account was wiped out within a week without Stop Loss trading a few currency pairs. You also need to know what is your profit target point is. What is the point of having an winning trade but your trading account does not make money. For one simple reason, you didn't take the winning money from your trade and market reversal against you.
Forex Trading Profit & Loss Plan
Lots of beginners don't realized the important of reward to risk factor in Forex Trading. You will never make money online if you risk $500 but make $100.
Follow your Well-Defined Forex Trading Plan
Once you have written down a well-defined trading plan, you must have the discipline to stick to it. All beginners must remember that Discipline and Money Management are the two most import aspects of trading. Even the greatest Forex Trading System or methodologies will fail if you can't stick to it.JoonTrader is the owner of www.forexdiscover.com. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
Saturday, February 16, 2008
How to be a Successful Forex Commodity Trader
Only have basic knowledge about forex commodity trading is not enough to guarantee your success in this commodity bussines. To be a successful forex commodity trader there are several point that you must have. Let discuss this one by one that i think you should have to be success.
1. Trading Strategy
I believe that every forex trader should have a good strategy or system that allready tested before, without having good strategy you will never successful in forex trading. If you allready have one good forex trading strategy that make profit i suggest you to stick with it and dont change you strategy just because anyone tells you that there are another strategy that can make you rich.
2. Money Management
Money management is very important if you wanna success with your forex commodity trading. I have seen many trader failed because they dont manage their money to trade and all they can say is "oh i shouldn't risk that much for this trade". Control your money and don't let your money control you.
3. Stop Loss
Allways use stop loss in every trade. If you not using stop loss it means you playing 50:50, don't ever let the loosing trader become bigger there is allways another trade to make.
4. Indicators
Find indicators that suitable for you. Never make a trade just because of your feeling tells you to. Even simple Moving Average indicator can make profit for you if you know how.
5. Analysis
Make your forex trading analysis before and after the trade. By doing this you know the reason why you make profit or losses in a trade.There are many more point for you to be a successful forex commodity trader that i don't mention in this article. If you thought one feel free to give it by make comment.
1. Trading Strategy
I believe that every forex trader should have a good strategy or system that allready tested before, without having good strategy you will never successful in forex trading. If you allready have one good forex trading strategy that make profit i suggest you to stick with it and dont change you strategy just because anyone tells you that there are another strategy that can make you rich.
2. Money Management
Money management is very important if you wanna success with your forex commodity trading. I have seen many trader failed because they dont manage their money to trade and all they can say is "oh i shouldn't risk that much for this trade". Control your money and don't let your money control you.
3. Stop Loss
Allways use stop loss in every trade. If you not using stop loss it means you playing 50:50, don't ever let the loosing trader become bigger there is allways another trade to make.
4. Indicators
Find indicators that suitable for you. Never make a trade just because of your feeling tells you to. Even simple Moving Average indicator can make profit for you if you know how.
5. Analysis
Make your forex trading analysis before and after the trade. By doing this you know the reason why you make profit or losses in a trade.There are many more point for you to be a successful forex commodity trader that i don't mention in this article. If you thought one feel free to give it by make comment.
Monday, December 3, 2007
Mini Forex Broker's World
FOREX TRADE
The Forex trade is the best known of all day trading, but it definitely isn't the only commodity swing trading that occurs. While most people are familiar with the stock markets, many people not involved with trading are not aware of the other markets available to day traders, some which are even more widely traded than the stock market. For example, Forex trade occurs at a rate of over $2 TRILLION per day, many times higher than the volume you will find on Wall Street.
Commodities Markets for Day Trading
Many of the commodities markets are involved in day trading, including futures contracts, options, currencies and stocks. Some of the more popular markets for day trading are:
• Currency markets for Forex trade. (US dollar to British pound, euro to Swiss franc)• Options contracts on futures.• Futures based on stock indexes (S&P 500 Emini, NASDAQ 100)• Futures based on commodities trading (corn, soybeans, crude oil)If you noticed that the mention of stock trading was limited to index based commodities that is because the US Securities and Exchange Commission has restricted day trading of US stocks. Only day trading on the various indexes is allowed.
Exchanges for Day Trading
There are a number of exchanges throughout the world that allow day trading; some of the better known exchanges for trading commodities include the following:
• The Chicago Mercantile Exchange, best know for the S&P 500 Emini and Forex trade.• NASDAQ, which specializes in the NASDAQ 100• The Chicago Board of Trade• Deutsche Boerse in Europe• Euronext Paris in FranceThese exchanges establish their own specifications for the markets and process each trade that is made on their specific markets. Given the high volume of activity that occurs in such commodity investing as the Forex trade, these exchanges perform amazingly well.
Brokers
It is possible to trade directly with the exchanges such as performing Forex trade with the Chicago Mercantile Exchange. In spite of this, many day traders choose to do online futures trading and other day trading with direct access brokerages. These companies allow the day trader to have access to all of the various exchanges, but this access is made easier because the investor is able to use the same interface for each market. In other words, the setup for Forex trade will look basically the same as the interface for online stock market trading. The common interface allows investors to learn one company's software and not five or six different packages.
What Markets you will Trade
Deciding on where you will do your commodity trading is dependant on several factors such as your risk capital, your desired commodities, your trading plan, and your general approach to trading. If you're interested in the Forex trade, you will need different amounts of money, experience and time than someone who is interested in trading stock indexes. For a beginner investing, you might want to start with a market that has low margin requirements, a low tick value, and moves at a slower pace than something like the Forex trade, where the amounts can be high and the pace can be rapid.
Conclusion
No matter which type of day trading interests you, whether it is corn futures or Forex trade, it is important to understand the requirements, including the terminology, exchanges, markets and available brokers. Day trading can be very profitable and if an investor will take the time to follow the necessary steps: performing technical analysis, establishing a trading plan, charting and following the news, he or she can be successful whether trading pork bellies or entering the Forex trade.
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