Trading forex has a huge risk in the process. All of us want to produce million dollars in an instant by trading forex. Indeed, a big success in trading forex can change our life. But it’s not easy to be a successful trader in forex trading. There is a huge chance we lose a big amount of money in an instant. Having a deep knowledge and skills is a must if we want to take a part in forex trading.

Without that, don’t even dream of being a millionaire. The following are the tips about how to make trading forex easier and avoid losing big money.

Master a method that suits us

Most of the traders enter the world of forex hoping to get a lot of money in short time. They look for the latest indicator all over the internet. They believe that those indicators will do the job for them. But it’s a wrong fact. First of all, get rid of this mentality for our mind if we want to make a lot of money in forex.

Price action trading is one of the best methods that can be used in the market. It’s been around since a long time ago and the expert predicts that this method will last for years in the future. The best thing about price action trading is it works well regarding the fast pace of market movement.

It’s far way better if we pick a method that suits our style. Once we decide it, make a commitment and practice until we mastered it.

Exploit higher time frames

Many traders believe that they can make more money with the lower time frame chart. Indeed, it’s true that the lower time frame chart provides more signals. But there are tons of fake signals out there. Therefore, it’s even harder to make more money in lower time frame chart.

For beginners, it’s the best to play in higher time frame chart. The chance to turn the tables is higher in this case.

The daily chart is a lot of better than lower time frame chart. The signals are much reliable and powerful than the hourly basis. Receiving full information in 24 hours is better than one-hour information. We can observe the whole movement that happens in the day with daily chart.

Don’t too obsessed with the charts

Once we commit to using the daily charts, it’s time to stop looking the chart all the time. This is one of the bad habits that we need to get rid of. It should be fine if the trader looks the chart all day long and take no action. But in reality, looking the chart every time often leads to the fatal mistakes. For examples, they enter the trade that they shouldn’t and stops in very promising trade.

It’s different if we commit to using the daily charts. We only need to look at it once per day. When the curtain is closed for the day, we should observe and seek for the potential trade. If there is no promising trade, it’s time to turn off the computer and do something else. There is nothing we can do about this, just let the market do their job.

Strengthen our mind

The psychological side is also taking a big role in forex trading. Most of the traders only work on the method or system without considering this psychological aspect. It’s one of the reasons why most of the people fail in forex. The mind and the skill must work in sync to be a successful trader.

The common mistakes are how the trader approach and think about the markets and trading. Forex trading is a war and the market is the battleground. We need to have a correct mindset and thinking to win the battle. If we don’t have it, forex trading will always be a difficult battle for us.

We need to focus on the forex trading elements and learn everything that we can. Reading a books or tips from the professional is the best way to strengthen our mind. Observe their way of thinking and try to implement it. Learn from the experts is the best way to become their rival.

This is a most common question forex traders ask especially when there are almost 50 currency pairs a typical broker would offer. The choice in picking a currency pair to trade can be overwhelming, similar to a child walking into a candy store and looking at the varieties like flavors, colors, textures and sizes that are on offer and to choose from.

So what is the choice? The most obvious to most experienced traders is to trade the mostly traded pairs like the EUR/USD. GBP/USD. JPY/USD, and AUD/USD which are known as the Majors. Since these pairs are traded most, the spreads between bid and ask price are tight or narrow. The key advantage is that the trader can move in and out of trades quickly on short-term or scalping trades with lowest fees. News on these currencies are also covered on daily basis and traders can follow the economic and political factors of the countries more readily, like the recent US elections and UK’s Brexit votes.

On the far side of the Majors, are currencies of some emerging economies or thinly traded pairs, known as Exotics. Examples are USD/PLN. USD/MXN, EUR/ZAR, GBP/NOK. As the trading volumes are much lower than Majors, the bid-ask differences can be noticeably wider on Exotics. Therefore, the commissions or fees associated to trading are comparatively higher than common pairs. As trading volumes of Exotic currencies can be significantly small, such pairs are said to be illiquid and so, can see a much larger fluctuations in spreads and price. So why trade exotics? You may ask. In one of my trade strategy, I include exotics to take advantage of large daily price movement on these pairs and when traded correctly, it can easily offset the transaction cost associated with the higher spreads.

Actually, when traders ask about which is the best currency to trade, they actually not asking much about the technical stuffs about spreads, currency popularity and costs but to know which currency trade they can have the lowest risk and highest winning potential. This is a valid concern. The answer: All currency pairs have more or less the same risk, whether it is EUR/USD or ZAR/JPY. If you are risking a 2% or 10% on a trade, then if the trade is against you, the lost will be the same, whether it is Major, Minor or Exotics pair.

Each currency pair will move and react differently and has its own “character”. If you have a trading idea or trading rules, then this is the moment to put it to the test. You have to confirm which currency pairs can produce a more consistent win rate and smallest loss when you backtest the trades based on your trading rules. Consequently, you will be amazed to see that some currency pairs may be more profitable or getting you reliable trade entries and exits on your trading system and those pairs may not be the popular pairs other traders may trade. Only you can decide the pair that works best on your system. If you haven’t got a workable trading system, then you can’t afford to risk a trade on any pair. This is how you would decide on what pairs to trade.

Several different strategies can be used to maximize the return on investment in the Forex market. Automating the negotiating process will certainly improve your chances of making more money. The software used to automate the trading process is called Forex robots. This robot performs all the functions of Hardcore for you, such as market analysis and put the trade in your name, when you go out.

Adapting to an evolution of market trends is quickly an important strategy to achieve success in Forex. The Forex quality robot that can be customized according to the parameters of the shift is an asset for the merchant. Some examples of sound, including the Ivybot, Forex Megadroid, and FAP Turbo. This system can be easily twisted to maximize benefits.

Another approach to trading in the Forex market is the creation of its own trading system. You can buy software from vendors like Market traders Institute to build and modify your own Forex trading system, unlock your earning potential.

Mapping applications are another form of Forex trading. This software facilitates the dissemination of the latest market fluctuations and allows operators to understand trends and make the right decision.

Although this platform reduces the pressure of mental, emotional and psychological, there are some pointers to consider before trading in Forex. Speculation-based negotiation-intra-day trade often brings many problems. Therefore it is better to avoid the trading day software, the simpler the better one. Simple trading platform increases your chances of getting more benefits. Meanwhile, a complicated system works effectively under certain conditions, if the system faces an unexpected market situation that cannot be corrected immediately; These systems tend to withstand the losses and eventually become a date.

The features offered by the trading system automatically include integration with existing WEB applications, sub management, and multilingual support. Under management allowing some operators to simultaneously commit to a single server. Then the robot is designed to run a profitable business in its absence. Alternatively, you can be alerted to negotiate manually once you find profitable opportunities.

With the platform running automatically on Forex trading, you can forget about the computational complex mathematical equations, manually. Undisputed Forex Robot Plus, they are responsible for all their concerns related to the increase and decrease of the market, the calculation and the execution of orders. But education and experience is an equally important element in achieving success, your analysis is synchronized with the trade signals of different types of Forex trading platform is very important to make online transactions Profitable.

With buying an automatic platform, individual needs, budgeting, system efficiency and customer support are important parameters to help you make a decision. Ask from your social networks, read the comments online and subscribe to the demo account before you really start to operate, after all, is the money of your effort results.

Trading is an art and there is no shortcut to becoming a Forex millionaire. Those who are losing money on regular basis and always looking for bigger profit even though they don’t have enough capital and trading knowledge. There is saying in Forex market that you should never risk more than 2 % of your account capital. So do you know why the successful traders in the United Kingdom follow this saying blindly? They do so because they understand the importance of a positive equity curve in their portfolio.

It’s true that if you take the bigger risks then you can easily make more money but considering the overall scenario, you are increasing your risk exposure to a great extent. You need to learn all the basic details of this market and only then you will be able to understand how to manage your risk exposure to make profit consistently. In today’s article, we will give you few simple tips which will help you to become a better trader at UK financial spread betting.

The golden 2% rule of money management

You might have the precise trading knowledge and the best trading system in the world but this doesn’t mean that you will be trading with a big lot size. Leverage is nothing but a double edge sword. If you can use it in an efficient way then chances are very high that you will be able to make a huge profit from a small trading account, but in the hands of the wrong professionals, it will cause disasters. Being a new trader you should never risk more than 2% of your account capital in any single trade.

Aim for high-risk reward trade setup

Having the perfect risk-reward ratio is crucial for your trading success. When you get involved with professional UK financial spread betting, you have to understand that you will always have to face losing trades. No matter what you do losing trades are inevitable. So the best way to recover your trading loss is to trade with high-risk reward trade setup. For instance, if you risk £100 then you must win £200 from that trade which will give you 1:2 risk reward ratio.

Trade with price action signal

Instead of trading the market with the indicator based trading system you need to learn about price action trading strategy. The price action trading system is often considered the best way to learn the art of trading. If you are completely new in the financial market then you might have a tough time to learn about the different formations of the Japanese candlestick. If you study the psychology behind the formations of the price action confirmation signal than things will be really easy for you.

Learn multiple time frame analysis

Many traders love to trade the lower time frame data.IN lower time frame data you will have lots of trading opportunities but this doesn’t mean that you will be making a huge amount of money. The more you trade the higher chance you will have to lose money. However, if you still want to trade the lower time, than make sure that you learn about multiple time frame analysis. Multiple time frame analysis is often considered the best way to filter the false trading signals in the market. But when you do it make sure you give emphasis to the higher time frame data.

Trade with confidence

Confidence is the key to success in any industry. Being a new trader it’s very obvious that you will not have enough confidence to trade the market. But there is nothing to worry about it. You can easily use the demo trading account to develop a unique trading system. In the demo trading environment everything is same only with one exception. You don’t have to lose you real money since you will be trading with the virtual dollar.

One of the reasons why many retail forex traders lose money in the market is because they do not trade like the successful institutional traders. Institutional traders have many habits which put them on top of the trading food chain. One of their habits is that they learn to save for the rainy day.. in another sense than what the idiomatic expression actually means. It means that one of the ways that they trade is to slowly but surely compound whatever money they have made in the market along with their original capital, into very large positions in the market over a long period of time. This form of trading is called long term compounded trading.

There are some of you retail traders who are reading this article that have been in the market for at least 7 years with nothing to show for it except mini-successes or downright failures. For such traders, maybe it is time to take a break and change the way that you trade. For some of you, a long term approach may be the way to go and that is what will be demonstrated in this piece.

The profit challenge that we have created for the trader reading this is to use seed capital of $2000 and the trading methodology to be provided to generate a sum of $306,300 in three years of trading, or if the trader is up to it, $1.6 million after four years of trading. If this project is commenced right away, that means that by July 2017, the trader should be worth at least $1.6 million. This is enough money to start off businesses that will provide several streams of income to guarantee a life-time of stress-free financial freedom.

What does this approach entail? It entails the deployment of the following strategies in the market:

1. Starting with a capital of $2000.
2. Trading three days a week during the three to four years that this project will be run.
3. Aiming for a maximum return of 15% in a month. If 15% is seen to be too ambitious for the month in question, adjustments will be made.
4. Aim to make at least $306,300 in three years or $1.6 million in four years. Whichever one appeals to you is what you can go for.
5. A trade plan on Excel.

Trading Capital

Trading capital of $2000 is something that traders can get access to if they are serious about it. There are forex companies that award forex bonuses of up to 100%. Due to the fact that the trading activity on this account will be long term in nature and no withdrawals will be made on the account for at least three years (spanning 468 to 624 trading days), there will be no problems with withdrawals being tied to bonuses as is obtainable in the terms and conditions that come with bonus awards.

In that time frame, the trader would have generated the required trade volume to cover the bonus and the bonus amount would also have paled in significance to what the trader would have made. In essence, the trader can get some money and look for a forex company that will be able to provide some form of bonus to support the capital. If it is possible for the trader to come up with the entire trading capital, this can also work very well for such a trader.

Trading Three Days in the Week

An independent forex service provider Babypips has done some research on when the forex market experiences the greatest market activity. In this research, it was found that Tuesdays, Wednesdays and Thursdays were the most actively traded market days. It is not hard to see why this is the case. On Monday, half the world is still asleep half of that trading day. By Friday, part of the trading world would have closed shop for the weekend. On these two days therefore, trading volume is thin. Thin volumes mean there isn’t much volatility, and there is no sense in a trader taking unnecessary risks in trying to pick money that isn’t truly available for the picking.

For this strategy therefore, we will only stick to the three days when the markets are fully alive and kicking, and that is on Tuesdays, Wednesdays and Thursdays.

15% Returns Per Month

This is where many forex traders end up having loads of problems. It seems illogical to aim for just 15%. Why not anything from 40% to 60%? And if we have “robots” out there which are supposed to be forex profit harvesters on autopilot as touted by some vendors, why don’t we get it on with those?

The answer is simple. We are not in this for quick, hefty gains. Trying to make so much money in such a short time goes against the grain of this compounding strategy. The strategy here is to use as minimal risk as possible to achieve what looks impossible. 15% a month means the trader who starts with $2000 in the first month will be aiming to make $300 over 12 trading days in the first month (3 days per week and 4 weeks in a month).

This boils down to about $25 a day for the first month. A trader who aims for $25 a day can effectively do that in 2 trades of $12.5 each or even 1 trade using a trade volume of 0.1 lots. All it takes is to get one great trade opportunity per day. Those who are swing traders can even pick out one great trade opportunity on the daily chart which can be held for up to five days or more, and grind out 300 pips in profit on a 1 mini-lot trade. That would not only produce the trade target for the first month, but would serve as a template for trade setups in subsequent months.

If you have been following this blog and all the articles on trading strategies that we have been dishing out, it will not be difficult to pick out a good trading strategy or a combination of strategies that can be used to achieve the profit targets for the month set out for this strategy.

$306,300 in 3 Years: How Possible is This?

So how possible is it to compound $2,000 into $306,300 in three years or 1.6 million in four years? It is possible using what Albert Einstein called the 8th wonder of the modern world: compound interest.

The principle of compound interest means that a trader can use a certain sum of money, make money on it, and use the original capital AND the profit to invest in the same vehicle at the same rate of return in order to keep increasing the amount as time passes by. The higher the amounts derived and invested, the more that can be put in that investment vehicle at the same rate of return, not higher and not lower.

So for our strategy, we will aim to compound $2,000 into a higher amount every month. As the months go by, the value of the 15% return that the trader makes in a month increases, and the value of the lot sizes placed in the trades will also increase. So while 15% will be worth just $300 in the first month, it will be worth more than $30,000 a month by the time the investment period is about to end. This is one of the reasons why compound interest is regarded as the greatest wonder of the investment age.

The strategy is simple. The trader achieves his 15% monthly target of $300 for the first month. The next month starts with a capital of $2,300. If he does well, his new profit will be $345 and new capital for the next month will be $2,645. If the trader sticks to the plan as follows:

• Make 15% returns every month.
• Add this to the old capital to get new capital for the month.
• Use the new capital with the same percentage market exposure (which translates into a slightly higher amount though, but the same percentage) to make the new equivalent of 15%.
• If this is done over three years, with the same rate of success, then the trader will eventually walk away with $306,300. If the trader can push it into the fourth year, then we are looking at $1.6 million!

Some traders may feel more comfortable using a 10% return rate. Some may be able to get their capital up to $5,000 and use it as a start off point, thus reducing the time that it will take to produce the desired profit target, or ramp up the amount of money that would accrue after four years of consistent results.

Going Forward

It is a very essential component of this strategy to make sure that you select the right broker for this project. Any such broker chosen to be the harbinger of all traded funds must be located in a jurisdiction where regulation is very tight. Such a broker must be shown to be in good financial state. While it may not be necessary to get an ECN broker because slippage and other factors seen with market makers will not be an issue as a result of the ultra-conservative nature of our trades, you need to be sure that the broker will not suddenly come up with all manner of reasons not to pay you your money when it must have achieved the million dollar status.

Take all necessary precautions to protect yourself so that all your efforts would not have been in vain at the final analysis.

Being a trader might be a little bit difficult, including when you play forex. Perhaps you have tried the day trading method and have not got huge profit. Instead of giving up and forget your dream, it is better for you to try the other forex approaches. Here, you can win the battle with Forex scalping. This method is really effective and also fun to do. It enables you to train your intuition and brave.

What is Forex Scalping?

Scalping is a term to describe the skimming of small profits on the market by going in and out of positions several times a day. Scalpers play the game by seeking small profits multiple times in a session. Particularly in Forex scalping, the scalpers search and catch the high-velocity moves which occur on the release of economic data and the other important news. Usually, scalpers try and scalp between five and ten pips from each trade. Furthermore, they repeat the process multiple times throughout the day.

Still confuse about Forex scalping? Here, there is an example for you. Say, a scalper gets five pips on one standard lot, in which the average value of a pip is about $10. Thus, for every five pips of the profit made, a scalper is able to earn $50 at a time. Multiple it ten times a day, then the scalper gets $500. Imagine when the scalper has more sources.

More Information about Forex Scalping

Even though it is not difficult to do Forex scalping, you have to put in your mind that the style is quite different. At first, you are required to have the extra patience. Why? It is because a scalper needs to sit in front of a computer for the entire session. You have to concentrate for every movement and even check the small details.

It needs intense concentration to scalp. In addition, having a great reflex is a must. A scalper must react very quickly. Do not ever let your guard down and do not over-analyzed. When you get the timing, just take it without thinking anymore. Cut the best position and get your profit. Do not ever hesitate or you will lose your moment.

When you want to start Forex scalping, make sure that you have a very reliable access to the market makers. Choose a platform that enables you to do the fast buying or selling. Remember, every second is really precious for the scalper. Usually, the platform has a buy button and a sell button for each currency pairs. The traders only have to hit the right button for entering or exiting a position.

Next, it is important for you to know the direction. Follow the trend is vital in Forex scalping, especially when you are a beginner. You are able to know the trend by setting up a weekly and a daily time chart plus insert the trend lines, Fibonacci levels and the moving averages. The following step is preparing ten minute and one minute chart. The ten-minute chart is functioned to show you the direction of the current market situation while the one-minute chart to enter and exit the trades.

New Ideas Into Forex Scalping Strategies Never Before Revealed

Essentially, scalping is a way of making a lot of trades in the span of a day using only smaller timeframes to earn modest profits just a few pips. Although similar, scalping isn’t the exact same as day trading. Hence, it’s not advised to attempt forex scalping. Forex scalping can be viewed in two trading styles. Forex Scalping may also be known as a quick trading. Forex scalping is just one of the most important small business units for all of the big day-trading financial institutions as Forex scalping strategies spread the financial risk over the full trading portfolio and minimizes the odds of locating an entire loss. Forex 1 Minute Scalping is the most fundamental and the most resourceful trading strategy, as with it you should spend tons of time before your PC.

Completely change your trading and receive an expert ECN account is my advice if you want to use scalping as one of your strategies. To make sure that you gain from your trading, make sure your trading style meets all the demands of the broker and it’s up to you whether you create a swing investor or a cool-cool trader with his cool Forex scalping strategies. Your true trading might cause losses as no trading process is guaranteed.

Whether you’re considered a trader or not, it ought to be pointed that this sort of information is well worth knowing. Thus the trader should do proper analysis on the crucial support and resistance levels before purchasing any opportunity that appears. To be successful with this sort of price action scalping technique it is quite essential that the trader is knowledgeable about the many candlestick patterns. Most traders fail since they lack discipline.

You merely wish to be trading whenever the marketplace is active and has liquidity. Scalping the forex market has turned into a favorite means of trading among traders. Regardless of what anyone says, playing on the Forex market isn’t a way to create easy money.

The Hidden Truth About Forex Scalping Strategies

There are lots of trading strategies you may employ. This way you can be in a position to decide on the strategy which best suits you as a trading individual. There are several trading strategies that can qualify for a scalping process.

When a strategy doesn’t appear to lie in your very best interest, then it isn’t the perfect one for you. Since you may see, this strategy can be helpful and has an excellent potential. The strategies may also be automated or manual. These strategies need constant Forex market analysis and the trader also have to place many trades simultaneously. There are many strategies out there which can be employed by Forex traders.