Beginners Forex Education Forex Basics

Why Forex Traders Must Value Their Time

All traders at the end of the year always take stock of their own trading activity. There still exists an element that is never taken into account and therefore we tend to forget… How much value do we give to our time? Although it seems obvious, time cannot be “preserved”. It just passes. It is said that when we are born we are full of time, because we have a life ahead of us, but no one can quantify this wealth and no one can know how long a person’s life will last.

Even so, this wealth is a certainty, since time can be devoted to all things that free will allows. Bearing in mind that our choices will show us the way because at each decision we take new paths and leave others. This leads to a consequence: we spend more time on what motivates us the most. This motivation can be effective, economic, labor, sense of duty, etc. It is very interesting to know that on many occasions we use time as a currency of exchange.

Traders Exchange Time Continuously

This concept applies particularly well to a trader. He exchanges part of his time to have more availability of it, later. What does that mean? Invest money in the financial markets to get more of it and so have more time to live your life according to your desires and goals. Let me explain in detail what this phrase means.

Time and money are surely the two most important resources we have available to invest and make a profit. However, it is money that is really valued as an investment because it allows us, as a system of payment, exchange, and reference, to receive something in return.

Otherwise, when we invest our time, it is not so easy to quantify the return we will get, only in some cases will it give us a profit in the form of money. For example, in the event that we exchange our time with work to be rewarded with a salary. In others, the exchange is not tangible, for example, when we want to increase our knowledge through study.

Paradoxically, these resources have great similarities: both can be managed, lost, wasted, saved, they are not infinite, but the substantial difference is that only money can be earned. If money is lost, it can be recovered over time, but if time is lost, it can never be recovered, even by buying it.

Unconsciously, money is valued more than time, except by increasing age: older people value time more because they realize their lack. Time is available at no cost and is available at will. Moreover, it is the most equitable resource that exists: a priori, we all have it. The problem is your administration.

Different Uses of Time and Money

The same amount of money and time in the hands of different people will not match their uses, even if the source from which they come is the same. If it is easy to answer that time is the main resource we must fight for, we must be aware that money is decisive for our future. Buying new experiences or particular desires requires a significant monetary expense and an investment of time to enjoy them.

The needs of life and the time in which we live mark the future of events:

well-spent money costs little, while well-spent time is scarce and unwittingly spent

It is a good dilemma.

Time measurement precedes the creation of money and is often related to productivity. Benjamin Franklin said that “time is money” and explained that the time spent working to earn money was time well spent; otherwise, if time has been spent on other matters, the money has been lost. This reflection is correct only in its own context, outside it makes no sense because well-spent time not only generates money but also generates many benefits that go beyond money.

Both time and money are consumed even if nothing is done with them. If time passes, it is spent. If we do nothing with the money, like leaving it in a non-productive place, then inflation, over time, will despise its initial value. And this is one of the main theories of finance: while the price of money remains constant, its value fluctuates over time.

Time Must Be Devoted to Investment

In the world of investment, the results are obtained after having devoted much of our time to them. The paradox that to make money I have to invest my time and that if I have money I will have more control over my time, does not go beyond the fact that the reward of both is not proportional. Having a lot of money is not synonymous with having a lot of time.

Time is indifferent to the amount of money. Those who have obtained a significant amount of money have invested a lot of time in it and will also need a lot of time to manage it.

It is clear that everyone is happy in their own way, but those who have less money and more time to devote to themselves and their families may be happier. A study by the journal Social Psychological and Personality Science reveals that 64% of respondents prefer to have money for free time, even if the results changed when asked about happiness. In fact, it has been concluded that the amount of money accumulated is not proportional to happiness.

When a certain money limit is reached, by earning more, that additional amount is not proportional to the increase in happiness. In this sense, it is said, and rightly so, that the rich do not enjoy the same happiness as money. According to experts, this limit is at 60,000 euros per year. 60,000 euros a year? Someone will think: and how to reach them? But here an important reflection must enter.

Investing Time to Buy Time

The trader invests his time because more money improves the ability to use his time. Very true, but how do you use this time invested for this purpose? The trader must be really good at managing the time he dedicates to this profession. If the study of trading requires much of our time and dedication, it is also true that we should not launch it in a 10-hour session that brings nothing good.

Some will say it depends on how much you earn. That’s true, but only in part. If I have to destroy my psycho-physical balance to make money, there’s no point in working like this. Trading is said to be freedom, but this statement is the subtle line between good and evil.

If for the freedom we intend to spend money on totally useless luxury items or sit in front of the computer for many hours to end up repenting and burning our human contact with the outside world, happiness will never be there and this is clear to all. If instead, we refer to the possibility of having quality time, for example, staying with our loved ones or having experiences that enrich us as human beings, then everything changes.

Trading As a Process of Growth

Trading can be seen as a grand ladder: a path where we grow step by step first as people and then as operators. A continuous exchange of time and money that must have a higher quality of time available, but above all awareness of ourselves and how we want to live our lives.

Life… we know well that it is unique and we will never know the exact moment when we will leave. We must therefore be very responsible to ourselves throughout this journey. Negative emotions, the lack of objectives, and the inability to react in the difficult moments of this work must be prohibited.

Time is the most precious thing we have. Unfortunately, we rarely evaluate it consciously: it continues to diminish, inevitably tending to run towards a zero balance. Only in the future will we lose the past and this can never be recovered. Therefore, it is necessary to manage time: if you want to achieve something, the first thing is to realize it. It would be sad and illogical not to do so, it would be an act of self-denial.

Forex Forex Education

10 Quick Tips for Trading Forex With Success

When it comes to success in trading, there isn’t a simple solution, Forex is such a vast beast that you will never know everything and you will never be right 100% of the time, that does not mean however that there aren’t a number of different things that you can do that will help you to move the odds a little in your favour, little things that you can do to help yourself to become a little more successful. We are going to be looking at 10 things that you can do that will ultimately help you to become or remain a profitable and successful trader.

Set Your Goals:

Setting goals is vital if you want to be successful, when it comes to pretty much anything in life, those who have goals to strive towards often do a lot better than those that are doing something blind, the exact same thing applies to forex trading. Set your goals, but make them realistic and achievable, do not just say to be a millionaire, that is a long way off, instead look to create a series of smaller ones that you can achieve within the year, this will keep you motivated to keep going when each one is achieved.

Get A Good Broker:

The broker that you chose is going to be an important decision, there are a lot of them out there, in fact, there are thousands of them, so with so much to choose from it can be quite daunting. Look for the bigger names, they are often the most reliable, look for independent reviews, look for low costs, good support, and quick withdrawals, all of these things can make a broker worthwhile. It is of course your decision which broker you go for, just be sure that you are on the lookout for the scam brokers that pop up every now and then, just looking for your money.

Choose A Trading Platform:

The trading platform that you use is also important, if you are planning on using an EA, then there is no point in getting a cTrader account, as you won’t be able to use it. Each trading platform has different features so ensure that the one that you use has what you need. The most popular platform is currently MetaTrader 4, so that would be a good one to go for if you are not sure, simply because of its huge user base and the amount of help that is available out there.

Choose the Right Strategy:

There are a lot of strategies out there, too many to try and think about, but you will need to find the one or at least the style that best suits you. If you don’t have much time, the longer-term style may be better as it requires less time at the computer, if you have a lot of free time and not a lot of patience, then something like scalping may be best for you as it brings quick trades and allows you to be at the computer for longer Try a few different ones until you find the one that is right for you.

Use Stop Losses:

Stop losses are your protection, they are there to protect your account from large market movements and can be the difference between a small loss and a completely blown account. When you create your risk management plans you should be working out how far your stop losses should be, to only lose a potential percentage of your account with each trade, many go for one or two percent per trade which is fine, just ensure that your stop losses are in place with every single trade that you make.

Risk to Reward Ratio:

You need to have a risk to reward ratio in place, this will help you to work out things like your trade sizes, as well as take profit and stop-loss levels. The risk to reward ratio details how much you will risk with each trade and also how much you will make. If you have a good risk to ward ratio, it can mean that you technically only need to win 25% of your trades in order to be profitable, which makes being profitable so much easier, so ensure that you have this in place and that you stick to it.

Keep A Log:

A trading journal is invaluable when it comes to trading, it allows you to look at what trades you have made, what went well, and what went wrong, it also allows you to ensure that you are keeping to your trading plan and risk management plans. Being able to see what you have done wrong allows for invaluable learning opportunities, something that every single trade should be trying to do. Keep this log, it can take time and can be boring, but if you want to be successful, it is vital to have.

Speak to Others:

Trading can be lonely, but it can also be very hard if you try to do it all by yourself. Join a trading community if you can, not only will this enable you to speak to other like-minded people, giving you an outlet and making you feel more included, but it also offers a great opportunity to share your own ideas in order to get feedback, but also to find new ideas that other people are posting, they may be doing some analysis that you have not thought about, giving you additional insight and trading opportunities.

Demo Accounts:

Demo accounts allow you to trade without the risk of losing any of your money, in fact, it allows you to test out pretty much anything you want with no risk at all. If you are thinking of changing your strategy then trying the changes on a demo account will enable you to see whether it works and to get through any teething issues with it without losing any of your actual capital. Take every chance you get to use a demo account and protect your main account from being a test subject.

Take a Break:

The forex markets will be around for years to come, if you are feeling stressed, tired or emotional, then there is no harm in taking a step back, take a break, go out for a bit, clear your head and mind and then come back, the markets will still be there and you will be looking at them in a much clearer way. The last thing that you want is to allow your emotions to take over and to influence your trading.

Those are 10 tips that we have for being a successful trader, there are many other things that you can do too, but the 10 that we have listed are some of the most important things that you can do as a trader and will allow you to get a jump start on being a successful and profitable trader.

Beginners Forex Education Forex Basics

7 Horrible Mistakes You’re Making With Forex Trading

If we are going to be completely honest, we all make mistakes and when it comes to trading, we have made many, and we are sure that you have too. Some of them are not too bad, some of them though, are pretty horrible and have thrown off our trading quite a bit. If you look back, we are sure that there are some mistakes that you have made in the past, especially when just starting out that you are most likely not too proud of. We are going to be looking at some of the horrible mistakes that we have made and that other trades have made during their forex trading careers.

Spending Too Much Time Trading

One that you probably would not expect to see, but spending too much time can be just as bad as spending not enough. The majority of traders have other things in their life too, maybe a job, maybe a daily, anything else that gives you some form of responsibility. What you do not want to do is to use every minute that you have spare, or even to take away from the other things in your life. This can lead to a lot of problems, we have known traders to lose their job or to lose their families just from spending too much time on their trading. Do not let this happen to you, make sure that you divide your time up between the things that are important and don’t let trading take over.

Continuing to Trade a Losing Strategy

A lot of traders have a lot of pride, they like to think that they are correct, while it is good to be proud of what you do, it is not good to let that pride cloud your judgment. If you are trading a strategy that is losing, why would you want to continue doing it? Maybe you believe that it will eventually work, maybe you blame the markets, but one thing is for sure, these traders do not want to admit that maybe their strategy just doesn’t work at the moment. If something is not working, work out why and make changes, do not keep trying to force it to work or trading and waiting, you will only end up losing money, so you need to admit when something isn’t working and then make a change.

Trading Without Stop Losses

This one is common amongst both new traders and experienced ones and it has the same effects on the accounts of the traders and that is that they will eventually blow. Stop losses are one of the first and most simple forms of risk management that you should learn about and certainly use. The stop loss is there to protect your account, it will automatically close the trade when it reaches a certain level, yes it will lose in a negative, but it will be protecting your account. It also allows you to properly implement your risk to reward ratio. Ensure that you are using stop losses with every trade, every single trade, and your account will be a lot safer, without one, a single trade can blow even the largest of accounts.

Trading with More Than You Can Afford

One of the things that you will always be told is that you should never trade with more than you can afford to lose, what this means is that if the money that you are using is needed for something else, like bills, rent, or food, then you should not be using it. As soon as you use this money you are basically saying that you may not be able to pay the rent this month, not a situation that you want to be in. Even worse are the people who are borrowing money, getting a loan just for the purpose of trading it. This is not something that you want to do, do not put yourself into debt just to be able to trade. You should only trade what you can afford to lose, money that won’t affect your life if you lose it. Not only does it help protect your finances and life, but it also helps you to reduce the levels of stress that would come with potentially losing money that you need.

Trading It All

Emotions can have a huge effect on our trading, especially when we come across losses. When we experience those losses, we sometimes want to win it back, we do this by placing larger trades, or more trades that are not in line with our strategy for risk management. This is not something that you want to do and it is known as chasing your losses. You place larger trades in order to try and win the money back, but what happens when that trade also loses? You will end up placing an even larger one, then larger until eventually you cannot afford to make any others and you have pretty much blown your account. Avoid doing this, it is not smart and lots of people have actually gone bankrupt trying it.

Guessing the News

News events can be very lucrative, you can make a lot of money from them if you get things right, especially things like the Non-Farm Payroll announcements. The problem is that if you get it wrong, you can lose a lot of money. What some people try to do is to guess the direction that the news will make the markets move, this is never a good idea. The news can be unpredictable, the markets also do not always move in the direction that the news suggests it should. With news events the markets can jump quite a lot, so even with stop losses in place the markets can actually jump past them and you can end up losing more than you expected. Avoid trading the news unless you really know what it is that you are doing, it is far safer to avoid it than to guess at it.

Trading Without a Plan

This one is more relevant to those that are just starting out in their trading careers. Trading without a plan basically means that you are placing trades without any reason, this is the part of trading that could best be compared to simple gambling. You need to use a plan, otherwise, ask yourself why you are placing the trade that you are. If you cannot answer it properly, with analysis and things like that, or you just simply say because you think it will win, then you should not be placing it. Do not place trades without a plan, at any time in your trading career.

Those are some of the horrible mistakes that you and a lot of other people may be making. They can have a real negative effect on your trading or your life as a whole, try and avoid doing them at all costs. If you are currently doing one and can recognize that, then see what you can do to help yourself get out of doing it, you will see some huge improvements to your trading results and even possibly your personal life too.

Beginners Forex Education Forex Basic Strategies

Top 10 Ways to Improve Your Forex Trading Skills

We are always on the lookout for new ways to improve our trading and the results that we are achieving. We have probably tried a lot of things in the past that have either worked or not worked. Instead of just throwing random ideas out there, we are going to be looking at 10 of the things that have worked and have been successful in improving our overall trading. Some may be big things, others very small, but the important thing is that they have the potential to make us a better trader.

Keep a Trading Journal

One of the biggest and best things that you can do is to start a trading journal. A trading journal is basically that, a journal where you write down things that you do, your entries, exits, time trades are open, profits, losses, and more, pretty much everything that you do and the reasons for as well as the results of what you did. It sounds like a lot, but once you get used to it you can fill it out pretty quickly, and once you do it is an invaluable tool. You can use it to find out what you are doing well as well as what you are not doing well or where you are deviating from your plan, this then allows you to make adjustments and then ultimately improve on your trading.

Ask for Feedback

Feedback can be a powerful thing, especially when it comes from other traders. Often when we do something we have a sort of tunnel vision, we see what we want to see and the things that we do have a nice rosy tint on them. Getting feedback from someone else, outside of your own views will give you a new perspective and they may be able to see things that you are doing wrong or that could be improved that you could not. Sometimes it can be hard to take criticism on what you are doing, but accept it and work with it, it is a great way to improve your overall trading.


A pretty simple one, but practice does make perfect after all. Make sure that you have a demo account available for you to use, this demo account is where you can practice your new strategies or trade ideas, it lets you try things without any real risks to your capital. It is always good to use a demo account, to begin with before you try something for real, so take advantage of one whenever you can.

Budget Your Funds

The old but gold rule of only trading what you can afford to lose. This may not improve your trading directly, but it will certainly help with your mentality. If you are trading with money that you actually need then you will be putting yourself in a situation where you will feel increased levels of stress, this can then lead to bad trades being made. Instead, if we are comfortable with the money we are risking, then we have a much clearer mind and so can concentrate on our trading far better.

Watch Successful Traders

Now, we need to be clear that we are not meaning that you should simply copy other successful traders, that won’t benefit you at all. Instead, you need to look at what sort of things that they are doing. This can then give you ideas on how you can adapt your trading. The things that they are doing are clearly working, so why not try and implement some of those things into your own trading strategy? It can help give you new ideas to improve but be wary about simply blindly copying, that will only lead to losses due to you not fully understanding what it is that you are doing.

Watch the News

This does not have to be on TV or in a newspaper, there are plenty of economic calendars out there on the internet that will give you an idea of what economic news events are coming up and the effects that they could potentially have on the markets. Take a look at these each morning and it can give you an idea of what you could trade or what you could avoid. Keep it in mind when you decide which currency pairs to trade, as high volatility news events could increase the risk on certain currencies.

Try New Strategies

You have your strategy that is working which is great, but there is no harm in trying something new. The strategy that you are using is working for the current conditions, but when they change, it may not be quite as effective. Learn a new one or two, something that you can use when the markets change, not only that, but it will also give you a new view of the markets and even ways to improve your currency strategy. Just try not to go crazy and learn too much at once, this can cause you to get confused and mix them all up.

Ignore Rumors

Rumors are out there and they turn up a lot when it comes to forex and trading. People shouting about how well a currency is going to do, or that an asset is going to collapse. Yet these things very rarely happen. If you are on social media, then take absolutely everything with a pinch of salt. If you are going to look for news, then look at a reputable site, not random people over the internet or sites that are set up for clickbait. This way you can avoid making trades or not making trades based on false rumors.

Use Indicators

Indicators can take a lot of the work out of forex trading, by this we simply mean that you no longer need to do some of the analysis that you otherwise would have. They do not take it all away, you still need to read them and then work out what the data shows, but it can certainly speed up the process, it can also help to eliminate some of the human errors that we have when we read and analyze things. The data given will be more accurate and will be presented a lot quicker than if we were to do it ourselves.

Be Confident

Confidence is a great thing, you need to believe in what you are doing, if you do not believe in yourself then you will end up being reluctant to place trades, not something that will make you much money. Believe in yourself, look back at your history to see how well you have been doing, just try and ensure that you are not getting overconfident this can lead to bad trades, so just believe in yourself but be sure to keep your feet on the ground.

There are ten different ways that you can improve your trading, there will of course be a lot of other things that you can also do, each and every trader will be different with different ideas and different abilities, but there are some things that work for all traders. Try and do as many of them as you can if you aren’t already, and you should hopefully see an improvement in your trading results.


Forex Basics Forex Psychology

Weird Hobbies That’ll Make You Better at Forex

There are things that we do in our everyday lives that can actually make us better at trading. Some of them may be related, while others will have absolutely nothing to do with trading at all. Our hobbies can have the same effects, there are hobbies out there that people do that will give you the skills that you need to be a fantastic trader, in fact, they will improve aspects of your trading. We are going to be looking at some of the hobbies that people do that help to build our trading skills or develop certain aspects of us that would be beneficial to our forex trading.


This one may seem quite obvious and to be fair, it is. If you like reading then you will love Forex and trading, as there is a lot of reading to be done. Any people get bored when reading and learning, this is why there are so many video tutorials out there now, but if you actually enjoy it then you will be in a good position as there is so much information available for you to take in. There are also trading-related books out there that can be filled with relevant information and so reading those in your spare time can give you some fantastic insight into different techniques or give you ideas that you can implement into your trading. If you are not a fan of reading, there are alternatives out there, but you will find far more information in the written format than any other format when it comes to trading.

Jigsaw Puzzles

Trading can be compared to puzzles in a number of ways, the most obvious reason is the fact that when you are putting a puzzle together, you are taking lots of small things in order to make a larger overall picture. We do the exact same thing when we are trading, we are taking small bits of information from various analyses or indicators and putting it all together to give us an overall picture of what the markets may do and what we should trade. Doing puzzles helps you to take your time, to analyze each piece of information, and to have patience, afterall, some puzzles can take a long time to complete.

Playing Sports

Sport doesn’t seem like it would give you skills needed for trading, but it does. Well not exactly with your trading, but it is a fantastic way to get rid of some of the stress that can build up when trading. In fact, it gives you the perfect outlet to let off some of that steam. For anyone that sits in front of the computer for the majority of their day, it can damage your posture, can stress you out, and can ultimately make you a little bit fatter. Playing sports is a way of rectifying all three of those things. It helps you keep a good posture, it helps you to relieve stress and it can make you that little bit fitter. So even if this is not one of your current hobbies, try making it one once you start trading, especially if you are doing it full time.

Playing An Instrument

If You have learned to play an instrument in the past then you probably have a number of skills that are very desirable for a forex trader, these include things like consistent learning, patience, and being precise in your learning and implementation. It takes a lot of time and a lot of patience to learn an instrument, much in the same way that it takes time and patience to learn to trade properly. Music can also help to influence your mood or to calm you, something that is vital when it comes to trading. There are no shortcuts when it comes to trading, so being able to bring in the characteristics that were required to learn to play that instrument can be extremely beneficial to you as a forex trader.


While we don’t do much writing when it comes to trading forex apart from the little notes that we jot down in our trading journal, writing does give us a few skills that we can bring across. Firstly it teaches us to be a little more analytical, looking at what we have written in order to find and rectify any mistakes in the spelling or grammar. It also helps us to research, research is an important part of both writing and trading, so being able to do it when you are writing something means that it will be slightly easier for you to analyze different information sources when it comes to your trading.


There are a lot of things out there that you can collect, stamps, pokemon cards, marvel figurines, whatever it is, it will teach you one main skill. That skill is patience, you need to be patient when collecting, finding the right item for the right place, and not jumping in too quickly and ending up out of pocket. This same skill needs to be used when trading, you don’t want to jump into a trade too early and at the wrong place, if you do that too much then you will be making losses, so patience is vital if you are looking to become a successful trader.

Buying and Selling

Some people just love to sell things, and this helps you to understand the value of exchanging one item for money or money for items. This is exactly how trading forex works. We are exchanging one asset for another. Getting an understanding of how this works beforehand and what to look for when it comes to price fluctuations can help you out as a trader. If you do this, you are basically trading already, just in a more physical form rather than online as a retail trader.

The thing with hobbies is that it really doesn’t matter what it is, a hobby is something that you enjoy, this is a great way of destressing yourself. If you have a hobby, do not give it up just because trading is taking up a lot of your time, make time for it, not only will it help your mental health, but it will also help you to develop certain skills that can come in handy when trading, no matter the hobby that you are doing, it will have some form of benefit to your overall trading ability.

Forex Basics

How To Become a Better Forex Trader In Just 10 Minutes

We all want to be better traders. We want to be more successful and we want to be or be profitable. Being a great trader takes time, a lot of time, it can take years to be in a position where you know exactly what you are doing and are able to adapt properly to the ever-changing markets. So while learning a new skill can take a long time, there are some things that you can do in a very short amount of time, little changes to your trading that can ultimately help to make you a much better trader. So we are going to be looking at some of the things that you can do that will only take you 10 minutes in order for you to become a much better trader.

Start Using Stop Losses

For those that are making the huge mistake of not using stop losses, simply using them will make you a far better trader and will help you to better protect your account. Stop losses are there to protect your account, they work by being a sort of block that will prevent your trade from going any more negative by automatically closing it. You need to use stop losses if you are going to have a proper risk management plan as it is the stop losses that let you maintain the correct risk to reward ratio, ensuring that you do not lose more than you have planned to. If You are trading without them, be sure that you start to implement them into your trading, you will feel far less stress about any losses and it will also help you to become far more profitable than you probably are now.

Keep a Trading Journal

You have probably heard about trading journals, these are records where you jot down everything that you are doing, each trade that you open, the trades that you close, how long they were open, the profit and loss, the reason for the trade, any influencers and more. You are basically writing down everything that you are doing. A trading journal is beneficial for a number of reasons, it can be used for justification for your tradies, it can be used to find out where you may be going a bit wrong and it can be a way that you can check to see whether or not you are following your trading plan. Using it to find your weaknesses will mean that you will be able to make adjustments to your trading based on our findings, ultimately making you a much more consistent trader. We admit that creating a trading journal may take a little more than 10 minutes, however, once you are up and running, it will take mere minutes or even seconds to fill it in before and after each trade.

Continue to Learn

Take 10 minutes a day to focus on learning a little more about forex and trading. You will be learning for the rest of your career, but this does not mean that you need to focus on your learning 5 or 6 hours a day. Instead, break it down into more bitesize chunks, this will make the information that you are taking in a lot easier to absorb and to understand. That 10 minutes a day will mean that you are constantly learning, but you’re also avoiding the possibility of burnout from too much info. Learning is great, but too much learning is not, break it down, learn one thing at a time in small chunks in order to ensure that you are taking it all in.

Take Breaks

Taking breaks can really benefit your trading. Trading can be a stressful thing to do, it has its ups and downs which can cause stress and even anxiety. No matter your experience levels, when you do it for a long time, you will start to feel tired or stressed, so we need to do something about that. Take a 10-minute break, it can be as simple as that. Stepping away from the trading terminal in order to clear your mind or to think about something else will mean that you are able to help your mind and body to destress. A small break can bring you back with a much clearer mind which will make your trading a lot better, with less stress you will be able to better follow your trading plan and ensure that the trades that you are placing are in line with your trading plan.

Review Your Goals

When you started trading you most likely would have set out some goals, some of these would have been long-term goals and others more short-term. It is important that you continue to review these goals throughout your trading career, you need to be able to look at what you are aiming for and to adjust it based on your own ability. This may seem quite trivial, but if your goals aren’t quite set right, it can affect not just your trading but your own motivation too. If you are achieving your goals and targets on a regular basis, it can help you to motivate yourself to put in more effort or to work a little harder to keep going and improving. If you have set them wrong and are not achieving anything, it can demotivate you as you may feel that you are not good enough and not being profitable. So ensure that you review them to keep them in line with your current ability in order to help yourself motivate yourself to continue trading.

Watch the News

The news and economic events can have a huge effect on the forex markets. In fact, any news event has the potential to change the direction or to cause a small jump in the markets so it is important that you are aware of what is coming up. There are a number of different economic calendars out there which detail different economic news events that are coming up. Take just 1 minute a day to look at one before you start your trading, it will give you an idea of how volatile the markets could be at those stages of the day, so it may even tell you to avoid trading a certain currency pair when those events are coming up, which could save you from some potential losses. It does not take long to do this and it should be something that you are doing at the start of every trading or analysis session that you are doing.

Speak With Others

Trading communities can be great, they can give you an outlet to vent some of your own frustrations, to give, and to receive some new trading ideas. Being part of a community can give you that social life when stuck in front of the computer. They are great places to get new ideas and to speak to like-minded people. These communities also give you a place to vent your frustrations which can help to reduce your stress levels, getting new ideas can give you new trades and potential new profits. It doesn’t take long to look through these forums or to place a post, so try and do it, when you have some downtime instead of sitting blankly in front of the charts, utilize your time, even if it is just 10 minutes.

Those are some of the things that you can do in just 10 minutes, it doesn’t have to take a long time to make changes to your trading or to work out what you may be doing wrong. Take a little time each day or week to look at your trading, there are always things that you can do to help improve yourself and your trading, it doesn’t have to take a long time, one small change at a time and you will ultimately become a much better and more successful trader.

Forex Basics

How to Trade Forex the RIGHT Way

There is no actual right or wrong way to trade forex, there are however certain things that you can do that can make things a little easier or a little safer, these are the things that people would consider the right way to trade forex. Each individual trader will have their own ideas as to what it is that they need to do in order to trade things the right way. We are going to be looking at a few of the things that are widely considered as the right things to do when we trade. Some may be relevant to you and some may not be, but they are simply what many consider the right things to do.

The first thing comes down to your education, there is such a thing as too little information, but also too much information. There are three types of traders, those that learn the very basics and then jump in, those that try to learn everything before they touch their trading account, and those that learn as they go along. We would say that there is no right way to do it, but there are certainly wrong ways. Firstly, those that simply jump in with very little information, are setting themselves up to fail, you cannot trade with very little info, you won’t know how to manage your risks, or what certain events or patterns mean.

Then there are those that try to read too much, this can simply confuse you, there is a lot of contradictory information out there, info that makes it hard to work out what is right and what is wrong if there is a right and wrong. But if you try to learn everything, you will end up never trading, there is just too much information out there. You need to find a common ground, you need experience, such as a demo account, but you also need to read and learn a little about trading before going live. So try and find a balance of practical and theoretical learning.

You need to learn about risk management, this is how you will protect your account from losses and from the markets moving against you because they certainly will move against you at one point and on a regular basis. Your risk management plan should contain things like your risk to reward ratio, it should also contain details of where you stop loss and take profit levels are to be set. Your trade sizes should also be noted here, this will mean that you know exactly what size trades you will be making. All of these things combined work together to help protect your account, they enable you to trade in a much safer way. This sort of risk management is what can separate a successful trader from a trader that has just blown their account. So if you want to trade things the right way, you need to ensure that you have your risk management in place for the very start.

Learn one strategy at a time and learn one currency pair at a time. This goes along with the education that we mentioned but it is important that you concentrate on a single strategy to begin with. This will enable you to learn it completely and to properly understand it. If you start trying to learn multiple different strategies at once then it can cause you a lot of confusion. In fact, it can make you completely mess up the strategies when trying to implement them. We have seen this countless times in the past.

The same goes for learning different currency pairs, each one behaves differently, as if they have their own personalities, some of them you can interchange, but others you cannot use the same strategies on one as you can the other. You need to get to know the way they move and the way they react to different news events. Once you have grips of your first strategy and your first currency pair, you can then begin to try and branch out into additional ones.

Set your goals and expectations, many people come into trading with the idea that they will make ridiculous amounts of money very quickly, of course, is not the case and is not realistic. You need to set your goals at an appropriate level, think about things like your current capital and account balance, the strategy you are using, and other risk management things that you have in place. You should combine all of these to make more realistic goals. If you see them too high, then you will be risking too much with each trade, not something that anyone would recommend, so set your expectations at the right level and it will keep you grounded and will help to keep you consistent with your trading and risks.

Keep a trading journal, something you have probably been told before and also one of the things that a lot of people hate doing, simply because it takes a bit of time to do with each trade. You need to write down what you are trading, why you are trading it, and different things like the profit and loss, trade times, and more. Jot down as much information as you can to ensure that you have that information available. You can then use this journal to analyse your trades, to work out what you are doing well and what you need to improve on. It also helps you to work out whether you are sticking to your trading plan or putting on trades outside of it. You won’t know any of this if you don’t have a trading journal, so ensure that you have one, most successful traders have one, so there is no reason why you should not have one either.

The things that we have listed above are simply the basics, here are of course a lot of other things that you can be doing to trade in what you would perceive as the proper way, but this is all relative to the person that is trading. Ensure that you do at least some of them and you will be on the right track to becoming a profitable and successful trader.

Forex Basic Strategies

Signs You Need Help With Your Forex Strategy

We all need help with things in life, the problem is that it can often be quite hard for us to realise that we need the help, we need someone on the outside to point it out for us. This is no different when it comes to trading and forex, often we think we are doing fine, only to have someone else come along and tell us that we are doing things wrong or to point out the fact that we aren’t actually profitable at the moment.

When we are told we are wrong or we aren’t doing well, it can make us feel pretty down but it is also the first step to improving and the first step towards being a better trader. So if someone tells you or points out something that needs improving, take it on board and put it into action. We are going to be looking at some of the signs that may be there that could be telling you that you need to make changes and that you may need a little help with your forex trading.

You Aren’t Profitable

Sometimes when we are in the driving seat, we don’t actually realise whether we are profitable or not, we are concentrating so much on our actual trading that we are no longer looking at or recording the results that we are taking. We could be months in, with hundreds of trades under our belt, but until someone comes along and looks at those results, we won’t realise that we aren’t actually making any money.

There is an easy solution to this, you need to keep a trading journal. This will allow you to write down pretty much anything that you are doing, and by doing this, you are setting yourself up for success. Simply down to the fact that you will be able to look back at your previous trades and see exactly what you did and the results of that trade. This way you will be able to see exactly what your profits and losses are, and allow you to work out whether what you are doing is effective when it comes to being profitable.

It’s Too Stressful

Many people find trading stressful, that is one of the many natural emotions and reactions that you will get to trading, the problem comes when people find it a little too stressful. Some find it so stressful that they simply need to stop or they just cannot think of anything else, or even function properly afterward. If stress is starting to take over whenever you are trading you most likely need help, but first, you need to look at how you are trading.

Firstly, the money that you are using to trade with, do you need it? Will losing it negatively affect your life when it comes to things like food or rent? If the answer is yes, that is why it is so stressful and that is why you should not be trading with that money, never trade with money that you cannot afford to lose, it will always be a stressful situation. The second thing to look at is whether or not you’re using the correct trade sizes. If you are using trades too big then you will be putting too much of your account in danger, and seeing the trades go into the red can be stressful when the trade sizes are too large. So limit your trade sizes and only trade with money that you can afford to lose, those will instantly reduce your stress levels while trading. There are also a  number of different support groups out there, even just talking to someone, friends, or family works well, can help to reduce your stress levels but getting help from professionals about your stress levels could be an option if it is really getting the most of you.

You Don’t Have Time

Trading can take a lot of time, it also can not take a lot at all, it all depends on you and the strategies that you are using. For many, at the start it can take a long time, there is a lot of learning to do even before you place your first trade, and this can be boring for many who simply want to skip it and start trading, but you need to take the tie to learn. The other thing is that certain strategies take a long time to trade with, there can be a lot of analysis, there can be a lot of trade preparation, and then once you place placed your trades, you need to sit there and monitor them, this is especially true for scalping, where you need to be at the computer during the times of your trading.

If you are someone that does not have a lot of time, then there is not really much point in you trading a strategy that requires you to spend a lot of time in front of your trading terminal. Instead, you should be choosing one that only needs you to place the trade and then the rest will be done for you, these longer-term trading styles are perfect for people who do not have a lot of free time each day to trade. So if you are finding that you don’t quite have enough time, think about switching things up and seeing if you are able to trade more effectively.

Not Knowing What To Do

This is something that is far more common than you may think, yet a lot of people simply do not want to admit it. There will however be situations and times where you simply do not know what it is that you are meant to be doing or how to analyse certain information. Try and get involved in some trading groups and communities. They can really help you out, if you are stuck, ask the question and people will always be happy to help, or even just browsing the community can mean that you find out some information that ultimately helps you to improve and get past your blockage. The moral is to simply ask for help if you are in a situation where you are not sure what to do.

There will of course be other signs that you may need help, if you find yourself in a situation where you are stuck, not understanding something, or cannot see any way to improve, it is important that you talk to people, join an online trading community and talk to people, it is the best way to get around things and people are always willing to help. So if you need help, simply ask for it, it’s the best thing that you can do.

Forex Basics

These Mistakes Will Keep You From Succeeding at Forex

Mistakes happen, we all do them and we make mistakes when we do pretty much anything in life, even things that we have been doing for years and years. So it is obvious that we will also make mistakes when it comes to our trading, that is always going to happen, what is important though is how we earn from them and how we develop after making those mistakes. Some are pretty minor and don’t have a huge effect, some may even benefit us if we are lucky, but some mistakes will hold us back, they will prevent us from being successful and profitable and if we continue to make them, we will consistently lose out and won’t be able to become a successful trader. It is those mistakes that we will be looking at in this article, mistakes that many traders do that can hold their forex trading success back.

Taking Shortcuts

It can be very easy to fall into the trap of taking shortcuts, when we say shortcuts we are referring to the rules and the methods that you use to place trades, your trading plan will have some rules on it, these rules will dictate how and when you place your trades. These can be pretty small shortcuts, like not waiting for additional confirmation, or they can be pretty significant ones like trying to speed up the process by not placing a stop loss with a trade. While they may not seem big, those little things like not placing a stop loss could potentially end up causing some quite considerable losses which will, in turn, put your overall trading results back quite a bit. It is important that you try to avoid these shortcuts, some may work, but when they don’t they can have big effects. Ensure that you stick to your rules and that you do them fully, not doing just half and hoping things are ok, that extra minute that you save is not worth the additional risks involved.

Not Following A Plan

The plan is there for a reason, it is called a plan because it is what you are meant to be following. Yet we see so many people look at their plan and then only follow a few of the things on it. Trading plans should be pretty diverse, they will include the rules for placing trades as well as the risk management plans that are there to help protect our account. Due to this, it is important that you follow them, as soon as you deviate you are placing bad trades and you are reducing the effectiveness and the consistency of your trading. If you have a plan you need to stick to it. The more that you go against it, the more losses and larger effects those losses will have on your account. Stick to your plan at all times.

Increasing Risks

A lot of people don’t seem to stick to their risk management plans, at least not entirely. Your plan will have your risk to reward ratio which will dictate things like your stop loss distance. It will also include things like the trade sizes that you should be using as well as the frequency of your trades. Yet so many go against this, the normal reasons for going against it and increasing things like trade sizes and frequency are a recent loss that they want to win back or overconfidence, things are going very well and so they believe that they can predict the markets. If you ever feel like this, then take a step back, take a break and then come back when these sorts of emotions are not with you. Stick to your risk management plan, you set it up for a reason, it works, so every time you break it you are risking money and potentially your entire account.

Trading Tired

Something that we are all probably guilty of, we love to trade, but sometimes it is better not to and when you are tired, that can be one of those reasons. When we are tired we do not have the same concentration levels, we are far more easily distracted and we are far more likely to make mistakes. Yet we love trading so much or feel that we need to trade that sometimes it doesn’t matter how tired we are, we will still trade. This is where a lot of mistakes will be made, things missed out and potential losses gained. If you’re feeling tired, or that you cannot concentrate fully, then you should try and avoid trading as a whole, including analysing the markets and especially placing any trade.

Being Distracted

Distractions are horrible things when it comes to trading, pretty much anything can be a distraction. When you set up your trading officer room, you should have ensured that a lot of the things that could cause you distractions were removed. Things like a TV, games consoles, things like hats, things that can take your attention away from your trading. Ensure that others know that you are trading and that you do not wish to be disturbed. Distractions can very easily cause you to miss things or to place trades incorrectly, so it is vital that you eliminate as many as you can.

Trading With Emotions

Emotions are wonderful things, they can make us feel amazing but at the same time, they can make us feel pretty rotten. One thing that we want to avoid is trading while our emotions are pretty high. They can cause us to want to do things that go against our trading strategy, things like greed and overconfidence can make us trade large or more often, while things like anxiety and fear can make us not want to trade at all. When we have our emotions high or you can feel something building up then it is important that you take a break, step away, clear your mind and come back when those emotions have died down.

Those are just some of the mistakes that people make when they are trading, some of them may seem pretty small but the consequences that they can have can be pretty big. If you are in any situation, then take a step back and see what you can do to try and rectify things. It’s not the end of the world but what is important is that you are able to recognise them and then do what you can to rectify them.

Beginners Forex Education Forex Basics

The Best Advice Forex Trading Advice You’ll Ever Receive

We all like a little bit of advice, don’t we? The entire point of advice is that it allows us to get better, as other people can see the things that we are doing and point out what we need to improve. Of course, not all advice is actually helpful. Some of it will not impact our trading but it is still good to hear. Today we are going to be looking at some of the better advice that you could use to help improve your trading. You may already be doing a lot of these things, or you may not be. If you aren’t, try implementing this information into your trading plans to see if they make an improvement.

Use a Demo Account

First off, we must stress how important it is to test your strategies and any changes that you make. This is something that a lot of traders, especially newer ones, simply do not do. They just chuck the changes into their main trades and hope for the best. Those that do test may still do this on a live account. While the trades are smaller, you are still risking your own money on something that you have no idea whether it works or not. So instead, what you need to do is to trade and test any changes that you make, no matter how big or small, on a demo account. This way you are not risking any of your own money on the changes, and if the change makes things a lot worse, you have not lost anything. As soon as you can see that the change is working consistently, only then should you try and implement that change on your live account where your actual money is.

Have a Risk Management Plan

One of the main elements of any trading plan or strategy is the risk management that comes with it. You can set this up before placing a single trade and you should, it will then be used for every trade that you place. The thing is though, that a risk management plan that works at one point, won’t always, and so you will need to be making constant changes and constantly reviewing the plan. Different market conditions may require you to change the locations of your stop losses and take profit levels. It may even cause you to change your risk to reward ratio. That is fine if you need to, just be sure that you are constantly monitoring the levels they are at and what risk management techniques you are using. You never know when they need to change, just remember our first point, test them on a demo account. Never accept your risk management plan as final.

Do Not Blindly Follow Others

A lot of traders will come into forex and simply follow what others are doing or what they say. While it is perfectly fine to get ideas from others or to trade the same as someone else, (some people make a lot of money by doing that) what is not right is to simply follow their trades blind. This means that you do not know why the trade is being put on or what to do if things go wrong. Each trader that you are following will have a reason as to why they have placed the take that they have, you need to know this too. As soon as you trade without knowing, you are risking your money on a blind gamble, and what will you do if things go the wrong way? That trader may not be there to tell you what to do, you will need to work it out, so if you follow blindly, you won’t be able to. Always work out why someone is placing a trade and what the requirements of that trade are before you place it. If you do not know any of these things, then do not place the trade.

Never Trade With Bill Money

The golden rule of anything to do with trading or investing, do not take any more than you can afford to lose. The best way of doing this is to consider any money that you deposit into your broker’s account as lost money, it is lost to you until you withdraw it back to your account. You also need to consider whether you need that money. We have seen countless traders trade with money they cannot afford to lose, money that they needed for food or for rent. They lost it and so cannot afford their rent that month, or even worse, traders that borrow, get into debt for trading and then lose it, leaving them with the debt to pay. If the money you are using will negatively affect your life if you lost it, then you should not be using it to trade at all.


This leads on from the previous point, you need to research everything, and we mean everything. If you are looking for a broker, research them. Find the one that has the right features that you need, and that has a good reputation of honoring what they are meant to be doing. If you are looking at signals, research them. Look at how they have done previously, the people behind it, everything. Creating a new strategy? You know the drill, you need to research everything that you can about it, the risk management that comes with it, the best trading conditions for it, your own requirements such as time required. Anything you do in trading, you need to research, this is how you get to know what it is that you are doing and why and it is the best way to ensure that the way you are going to do is correct. Do not do anything blind in forex or trading, that will only lead to losses and potential blown accounts.

That is some of the advice that you will hear quite a lot over the internet. It is all fantastic advice that can really help you to become a profitable and successful trader to at least save you some potential headaches down the road, not to mention some of your capital. Whether you already do them or not, take them into consideration next time you plan on trading and think about what you could potentially be doing differently which could help to improve your overall trading.

Beginners Forex Education Forex Basics

Forex Pros Do These Things (And You Should Too!)

We forex traders like to look up to those that have come before us and been successful. We do this for a number of reasons. These individuals have been successful, so they clearly know what they are doing. This means that they are great people to learn from. They also have the experience to know what is a good thing to do and what is a not so good thing to do. They are the people that we wish to copy, to learn from, and to be just like. So we are going to be looking at some of the things that professional traders do in order to be successful, and why you should be doing the same things.

Sticking to the Plan

One of the things that any professional or even successful trader will tell you is that you need to stick to the plan. There is no point in having a trading plan in place if you are not going to be following it. Even breaking the plan in a tiny way is basically meaning that you are placing bad trades. They will tell you that you need to stick to it and you need to stay disciplined. That is one of the most important steps to becoming a successful trader.

Don’t Be Afraid to Take Risks

Contrary to the above, a lot of traders will tell you that if you want to be successful then you will need to take risks. This does not, however, mean that you should be placing more trades or placing larger trades. Those are bad risks and will put your account in danger each time you do it. Instead, the sort of risks that they are referring to are things like taking trades on an asset that you do not usually trade. So if you are an avid EURUSD trader but a great trade opportunity comes up on the GBPUSD pair, then there is no harm in trading that pair, as long as the entry requirements and all other aspects of your trading plan are still being met. Do not limit yourself to that one pair.

Remove Your Limits

We mentioned this briefly in the above point, but you need to be able to remove or at least expand your limits. Sticking to a single currency pair or asset will greatly limit your opportunities to trade and to be profitable. It is, of course, not a good idea to expand too much. Going from one pair to 100 will put your account in danger as you cannot monitor or fully understand all 100 currencies. Instead, expand slowly, moving from one to two, then two to three, and so forth. You are still expanding your limits, giving yourself more opportunities, but you are doing it in a controlled manner which is exactly what you need to be doing.

Get Into the Right Mindset

Being in the right mindset is vital. In fact, it can make or break a trader. If you believe that you can trade, if you are able to control your emotions, if you know when to take breaks then you can keep your mind in the right place and remain free from the distractions that are around you. If you have the right attitude towards your trading then things like sticking to your trading plan and staying disciplined will be a lot more straightforward and easier to maintain. Those that are not in it with the right attitude will soon find themselves making bad trades or making losses, so it is important that you get the right mindset and then try to remain there.

Know When to Take Breaks

A good trader will not spend all day everyday in front of the monitor. If they did, they would simply burn out and start to make losses. A good trader will know when they need to take breaks. This can be a break when your emotions are starting to build up, or you are simply getting a little tired. There is no wrong time to take a break. Getting out and clearing your mind is paramount to being a successful trader. If you don’t take breaks you will burnout and make losses. So learn when to take them, and even set designated times for breaks if you need to.

Risk Control

Risk control is the foundation of any forex trading strategy. If you do not have a risk management plan in place then you’re setting yourself up for failure. You need to create a risk management plan that has a number of different elements to it. These will include your risk to reward ratio, your stop loss size, take profit sizes, trade sizes and more. These are the foundation of your trading plan, you need to have them in place before you make a trade. Any professional trader will simply laugh at you if you are trading without a plan in place.

Not Always Trading

You do not always need to trade. You do not need to trade every minute or even every day. In fact, some professional traders will go a whole week without putting on a trade. This is often due to the fact that the markets are not in the right condition for the strategy that they wish to trade. They will only trade when the conditions are right and this is something that you should be doing. Do not trade just for the sake of trading. Trade when the setup is actually there. If you trade outside of your strategy it is considered a bad trade, so having patience is key to sticking to this rule. Have patience and wait for the right trade to come and certainly don’t try to force it.

Not Focusing on Wins and Losses

Advertised all over the internet are those strategies that are promising you a 99% win rate. These are just not realistic and are playing on the strings of those that are there to simply make money, yet do not fully understand how forex or the markets actually work. Professional traders do not care about how many they win or how many they lose. They are simply interested in the returns. With a proper risk to reward ratio in place, you can be profitable with a 25% win rate. This is what the professionals focus on, being profitable no matter whether they win or lose. Due to this, they do not focus on whether their last time won or lost, and neither should you. Trust your strategy, trust your risk management and you will have a far less stressful time.

Professional forex traders are people that we look up to, yet they do not do anything different to what we should be doing. If we want to be successful traders then we need to mimic some of the things that the professionals are doing. It is easy to do, as they aren’t doing anything magical. There really isn’t an excuse that we can use that will make it acceptable to avoid following them. Stick to some of the actions that we have mentioned above and you will be on your own path to becoming a professional trader at some point in your career.

Beginners Forex Education Forex Basics

The Truth About Why You’re Failing at Forex

There are a lot of traders out there. A lot of them are experienced and a lot of them are completely new. The one thing that the majority of them have with forex is that they are simply losing. Yes, they are losing money. You have probably seen the warning signs from pretty much any forex related site, stating that the majority of people that trade forex or any sort of CFD will lose money. So why do we still trade? It is because of the potential, but in order to achieve that potential, we are going to need to work out why it is that so many traders are failing when it comes to forex trading.

Some reasons are based on the individual, some through inexperienced and some through simply making mistakes, common mistakes that a lot of people make. We are going to be looking at some of the main reasons why people fail at forex trading.

Lack of Risk Management

Something that should have been cemented into your mind when you read any sort of trading course or help site is that you need to have a risk management plan in place. Yet it is something that a lot of traders still fail to do, and when you fail to do this, you are failing to trade properly. The risk management plan outlines a number of different things including trade sizes, stop loss distances, your risk to reward ratio, and more. It is paramount that this is in place, its sole purpose is to protect your account and to help you prevent yourself from making large losses. So we really don’t understand why people trade without one, either through lack of understanding or simply being too lazy to follow one. Get a risk management plan and stick to it, you simply cannot be successful without one and will fail if you don’t use it.

Not Using Stop Losses

Part of the risk management plan that we mentioned above is your stop losses. These are basically automatic stops that you can place on your trades. When the price of the markets move up or down and hit these levels then your account will automatically close. They are there to help protect you from bigger losses than you planned for, yet so many people refuse to use them. Again, this may be through simply not understanding their use, but for many. It is simply the fact that they do not want to and for this reason, they often lose their accounts. You need to have them set, every single trade needs to have one, no matter what your strategy is. If you are the sort of person that doesn’t set them and instead wants to manually watch your trades then we would suggest you rethink, these are hard stops, they protect you, use them. Otherwise, a single trade could be enough to blow an account, and it has happened many times in the past.

Trade Sizes Too Large

The size of the trade that you place relies on a number of things. It is decided based on your strategy as well as your current account size. If you place trades that are too large, then you are placing your account under an increased amount of risk, not something that you want to be doing. If you have an account size of $1,000 and place a trade size of 0.01 lots then you have a lot of room for movement. However, if you use your leverage to place a 1 lot trade, then it won’t take much movement in the markets to simply blow your account. You need to place your trade sizes responsibly, yes the larger the trade size the larger the potential profits, but the losses are also potentially larger. Stick to appropriate trade sizes and do not try to push them too far.

Overleveraging Your Account

Leverage is a wonderful thing. The brokers are basically lending you money to place trades larger than your account would otherwise be able to place. It is something that you should take advantage of, but unfortunately, a lot of people do not understand the darker side of leverage, the side that can cause you to simply blow your account. When you leverage your account, you will be placing larger trade sizes, and these give more profit potential but also more loss potential. We see $100 accounts with a leverage of 2000:1 placing 1 lot trade sizes. The markets only need to move a few points before the account will blow. You need to use your leverage appropriately, even with a leverage of 2000:1, you do not need to use it all with every single trade. Remember to follow your strategy and do not place trades too large just because you have the leverage to do it.

Quitting Too Early

People don’t like to lose, and that is understandable, but people also should not quit at the first hurdle. Many people from many walks of life have tried things, but do you think that any of the successful ones have quit after their first lesson or two? When you leave after your loss, you are basically accepting that you have lost that money and have walked away. It should be that you were never serious about trading and never serious about wanting to make the money that you are upset that you lost. You cannot quit too early, losses are a part of trading, just because you experienced one does not mean you are a failure or that you should give up. You need to keep going, even the best forex traders fail, but they are the best because they did not quit, and neither should you.

Being Distracted

Let’s be honest, it is easy to be distracted, and far easier in these modern days than it was before with all the different devices that we have to entertain us. Yet when we trade, we need to try and get rid of everything that we do not consider essential. Get rid of the TV in your trading room, get rid of your phone, get rid of anything that can distract you. We have made losses through distractions in the past, we are sure that the majority of traders have, but it is something that we can very easily deal with. Distractions will take your mind off your trading, placing wrong stop losses or take profits, trades too large, and so forth. You need to be focused when you trade, if not, mistakes will happen and you could ultimately fail if you experience too many of those mistakes.

Those are some of the reasons why people fail. If you make a loss to begin with, do not panic, that is pretty much expected of all new traders. In fact, if you are profitable in your first few months, either you are amazing or simply lucky. However each time you make a loss, take a look at the trade, try and work out why you lose, some you will be able to make adjustments, others may have just been unlucky, but use it as a learning experience. Doing this with each trade will enable you to be better, and the better you are, the less likely you are to fail.

Beginners Forex Education Forex Basics

How Can I Ensure Long-Term Success in Trading?

As a Forex trader, you will need to pay attention to important points in charts, adjust specific settings, manage your risk, and maximize your returns as a result. The intention here is to show how you can practice long-term sustainable and profitable trading regardless of your market of choice. We truly want you to have the best opportunity no matter how and when you started to trade for the first time, which is why we are delighted to close this topic with special tips that you can apply today. You will probably want to prepare your notebook and take notes so as not to forget any suggestions or ideas you may have.

What is the worst attitude for long-term success?

I need that money now, many people say. Unfortunately, with this degree of dependency on the result of your trading (i.e. the need to succeed now), you are limiting your vision quite a bit. With this point of view, you do not give yourself the chance to learn steadily and the learning curve is unrealistically steep. Since there is a need to debunk this myth of instant wealth, what you can do instead is set the grounds for trading in the way you will be thankful for in the future.

What is the right mindset for sustainable growth? 

You should find a way to always preserve a portion of your return and reinvest it so that this system starts running on its own. We call this buy and hold strategy that helps traders take steps that will always put the money back into their accounts. This is the one way you can feel secure about your finances down the line.

What if I don’t feel like allocating part of my earnings?

Changing perceptions and creating a new routine is a tough thing to do. Most people are afraid of changes, but the control you may think you have over your life and your finances now is false. If you just trade, you do not have a plan B. Even if you have a regular job and do trading on the side, don’t you feel like you can do more? We want you to do more and to succeed in an easy way, but this will require you to change your views about how money should be managed.

How do I reduce anxiety about making changes in how I perceive trading?

First of all, start playing offense and defense at the same time by not spending all the money you earn. What you never want to do is work hard for a few months and spend it in a matter of a few days or weeks. Reinvesting your money will help you relieve yourself and alleviate that sense of anxiety. If your worries come from the place of wanting to secure your finances in the long term, this is the way to go. The thing is, with this approach, you will never need to worry about individual trades because, even if something falls through, you will always have security. Whenever you enter the market, it is absolutely never too late if you have a buy and hold mentality.

What if I need the money now?

Well, first ask yourself the question of what is the sum that would make you happy. When you will take this money off your account is yours to decide, but you do need to have a clear idea of how much you need to make. If you generally just want to be rich, you are much better off applying the buy and hold strategy.

What are the essential trading rules?

Perfect your system first and then do everything to stop yourself from sabotaging it. This may sound easy, but it is actually one of the greatest hurdles in trading.

How do I start buying and holding?

You first need to have a plan that you will write down. Whatever situation you find yourself in, do not make any changes to it regardless of what is going on in the market. This means that you will not tweak the settings or change the take-profit point as you please even if it gets tough. The best part about this approach is that you will always have more opportunities to earn money trading and any losses will be opportunities for you to improve your system.

What is the best strategy for buying and holding?

In one of the previous articles, we talked about scaling out if you use a swing trading strategy. This is your best money management solution and a secure way to amass a fortune over time. As long as you don’t react impulsively, get suddenly triggered by some external factor, or make decisions based on your emotions, the money you take off the table and reinvest using the scaling out strategies will provide you with the things you need.

How do I differ from the rest?

You will be different if you design a thorough plan first. Then you will choose if you will be in the buyer’s or seller’s market and whether you will go long or short. Shorting may be more difficult in the stock market than with trading ETFs, gold, or commodities for example. You will strive to pick things that can have a limited downside and can hardly go down to zero, such as gold and oil or healthcare and energy stocks and ETFs. Forex traders should test their algorithms to perfection (backtesting, forward testing, and real money application as well) because this will help you outperform most investors and financial advisors. Opt for the monthly or the weekly chart for a more aggressive approach, rather than the daily one. While these are easy to apply, understand that just by scaling out and buying and holding, you are already way ahead of the majority

What are the two biggest pieces of advice you can give me?

Firstly, never let yourself be susceptible to the fear of missing out (FOMO) because there is an abundance of opportunities in every market, be it stocks or gold. You can push yourself sporadically in the investment scene, but must never let your emotions guide you while trading. Secondly, always and with whatever amount of money you have, start trading and investing as soon as possible. Make your plan and you will have that bright future of which you keep dreaming.

What is the best order of actions I could use to succeed as a trader?

Since this is the last article on the best position you have, we would like to share a form of a checklist you can return to any time you like.

Thank you for sharing this journey with us. Ensuring the best trading position is a really broad topic, but we strived to be as clear and to the point as possible. Consider reading additional articles on the topics that may be of interest to you because the more you know, the sooner you can apply and test. Finally, please also remember that the sooner you start buying and holding long-term, the better. And, once the shorter-term machine starts running, the world is yours

Good luck!


Beginners Forex Education Forex Basics

Six Key Mistakes New Traders Make (and How to Avoid Them)

Within the last few decades, trading in the financial markets has seen a sharp increase in popularity, which has led to a boom in the number of newbie traders signing up for trading accounts all over the world. While trading can be a great way to make money from home or even as a full-time job, many of these beginners start out with no real idea of what they should be doing.

After losing a little bit of money (or blowing their account balance), they feel discouraged and give up. In reality, most of these failed trading attempts can be contributed to common trading mistakes that could have easily been avoided if the novice traders were aware of them. If you don’t want to suffer the same fate, we have good news, as you’ll simply need to read this article so you’ll be aware of these mistakes.  

Mistake #1: Trading Without a Strategy

Ask yourself these questions:

  • “What instruments do I plan to trade?” For example, you might answer something like “Major currency pairs, minors, and some CFD options.” 
  • “What evidence will I look for to tell me to enter a trade?” Some traders might answer that they are looking at fundamental data, while others are looking at technical data or a combination of the two. 
  • “How much am I willing to risk on each trade?” This answer varies based on personal preference; however, a smart choice would be around 1% of your total account balance. 

Your answers might look a lot different than our suggestions, but the point is that you should have some type of answer to these types of questions. If you do, then you’ve been doing your homework and likely have an idea of a trading plan and strategy. If you couldn’t come up with an answer, then you’ll need to develop a plan so that you can start well-prepared. One of the beautiful things about the forex market is that while nothing is guaranteed, traders do have the chance to significantly improve their chances of making money by educating themselves and sticking to their trading plan. One of the biggest mistakes beginners make is opening a trading account with no real plan, which is essentially the same as just gambling. A bit of preparation will go a long way if you simply invest time into your plan and follow it. 

All you’ll need to do is develop a solid trading plan and choose a strategy that will work for you. This will take some research and work, but it is one of the most crucial steps to trading success from the very beginning. 

Mistake #2: Not Testing Your Plan

Once your trading plan and strategy is in place, you may be feeling very eager to jump in and get started trading. Unfortunately, there may be some problems that you didn’t oversee. This can be very costly if you’re trading on a live account and it could even drain your account balance altogether. Many traders reach this point, feel discouraged, and decide to give up before their trading career ever even got a chance to take off. Keep in mind that your plan may sound great on paper, but you still need to test it in a real setting to make sure that it lives up to expectations. 

The good news is that you can avoid this problem by signing up for a free demo account through your broker. You may already know about demo accounts, but if you don’t, you simply need to know that these simulation accounts allow you to practice trading in a live environment while using virtual funds. Since there is no financial risk, you can test your plan to your heart’s content until you’re confident that your strategy is profitable beforehand. 

Mistake #3: Lacking Discipline

If you’ve ever read about trading psychology, you probably have some idea of the ways that emotions can affect our trading decisions. Sadly, some traders skip over this category completely when they’re learning about trading, which leaves them unprepared in the event that their emotions do start to cause problems. Every trader needs to know that feelings of greed, resentment, overconfidence, anxiety, and other emotions can cause you to make avoidable mistakes like risking too much money, deviating from your trading plan, overtrading, and more. If you don’t know this, then it can catch you off guard.

You’ll likely feel some type of emotion at some point, but the best way to avoid this problem is to stay disciplined and remember to always stick to your trading plan. Reading about trading psychology so that you can identify and remedy any related problems is another important step. If you’re ever feeling overly emotional and you can’t calm down, the best thing to do is to take a short break from trading until you feel more level-headed in order to avoid making emotion-driven mistakes. 

Mistake #4: Having Unrealistic Expectations

Whenever someone opens their first trading account, they have some kind of picture in their mind about how things will go. Many beginners start with unrealistic expectations about how much money they’ll make. Oftentimes, this is because those traders have heard about the success of others, possibly even people they know, and they assume that they can reach the same level of profitability from the beginning. In reality, you may be working with a much smaller deposit and you won’t have the experience those investors possess at the beginning, which can lead to disappointment. 

From the beginning, you’ll need to set more realistic goals that focus on positive notes like improving yourself as trading, losing less money each month, sticking to your trading plan, and so on. It isn’t a good idea to set exact monetary goals, as it can be difficult to predict how much money you’ll make due to the market’s unpredictability, especially from the beginning. 

Mistake #5: Not Understanding the Market

All traders need to understand the market and what causes prices to change in order to make smart trading decisions. There’s a lot to learn on the subject, as microeconomics and certain events like elections or pandemics can really shake up the market. Many beginners are in a rush to get started and may briefly glance over this topic before moving on, only to realize that they don’t really know what’s going on once they get started. 

Before you open a trading account, you should spend an ample amount of time researching these topics so that you’ll be more aware of the factors that affect the market. If you’ve already opened an account and you’re confused, consider taking some time off to brush up on your knowledge of these subjects. Some of this knowledge will also be gained through experience as you make trades and live through certain events. 

Mistake #6: Overusing Leverage

Leverage can be both good and bad for traders, as it can help you to make large profits, or it can help you to wipe your account clean when used incorrectly. Many beginners don’t entirely understand leverage and might think that it is best to use the maximum leverage cap offered by their broker to make the most profits. You might make a lot of money doing this, but you’ll likely be risking a lot more money than you’re willing to lose in doing so. 

Start by ensuring that you understand what leverage is and how it works, then you can incorporate leverage limits into your trading plan. Don’t assume that you should use the highest leverage available, especially if it is more than 1:100. As you gain practice over time, you can adjust your plan and trade with higher leverage with a better chance of using it correctly.

Beginners Forex Education Forex Basics

What Does a FX Trader Really Need to Focus On to Trade Successfully?

What factors do you assume to be the most impactful in the world of forex trading? Should traders focus on the technical tools more intensely than on their traits? Does one’s personality have a determining role in the development of a trading account? How do we measure our growth and what attitude is necessary to facilitate progress in the forex market? Along with these questions, today we will be discussing all areas traders need to focus on to be able to trade successfully.

The Right Approach

The right approach to trading does not necessarily imply a fixed set of actions that each trader must take but a direction in which one needs to move so as to grow and reap the rewards from trading in any market. Whether you are a beginner or a more advanced trader, you probably already know how maintaining a proper attitude is a necessary continent of successful trading. If you truly want to be good in this field, you must learn how to maintain a degree of curiosity in each developmental stage and in every possible sense.

At the very beginning, curiosity is required in looking for credible sources where you can learn about the key terminology and tools to use later on. Education, however, also entails the aspiration towards understanding different currencies, their respective countries, and central banks along with related events that may affect the market at some point. You will need to polish up your research skills and practice discernment to know exactly which item of knowledge is best suited for your vision. In order to create a purposeful course of movement, naturally, you will need to minimize any reliance on luck and set short-term and long-term objectives through thorough planning.

Ask yourself some vital questions and look for answers in selected sources and in your own attempt to apply theory in practice. Strive to understand what your reasons for entering this market are and how your expectation might affect your trading. Set realistic goals and use analytical and critical thinking so as not to stain facts with your personal projections (e.g. I will get a 20% return in the first go). Finally, prepare yourself to continually show commitment and dedication without expecting to see immediate results. Learning about forex and growing as a trader is a process, which requires both patience and persistence.

Key concepts: curiosity, commitment, dedication, dedication, persistence

Example questions: How do I build an algorithm? Why is this currency pair considered to be risky?

Functional System

The basis of every trader’s experience with forex is the system that is comprised of various tools, strategies, and techniques specifically selected to produce the best possible result and protect one’s trading account. To be able to set up an algorithm that will function to your advantage, you will not only need to set a good foundation in terms of knowledge but also invest a considerable amount of time in testing. Opening a demo account and applying the theoretical knowledge acquired up to this point will allow you to assess how prepared you are from both the technical and psychological perspective. You will keep looking for areas where your approach lags and track your progress through journaling. Reflecting on one’s wins, losses, and important numerical data allows traders to measure trading in terms of quality and quantity in every respect and have an active role in its further development. Having an efficient algorithm also obliges traders to consider the risk-reward ratio and consciously understand when and why they wish to enter or exit trades.

Remain open to making changes in your system by using different strategies for example and allow to be molded by your experience. If you happen to come up with two viable options, always turn to your records and compare how the two systems compare to one another, picking your top-performing algorithm as a consequence. Lastly, at this stage, you should aim to nurture independence and sense what it feels like to be dependent only on your system and your logical thinking. Your system will only need to reflect your personality and goals regardless of how similar it may seem to what you have read about before, which is why you need to play an active part in every step of its creation.  

Key concepts: demo account, testing, journal, improvement

Example questions: What leverage is acceptable to me? Where do I put my stop-losses?

Personal Growth

Forex trading is known to be able to test each individual’s boundaries, awakening people’s greatest fears, and bringing to light their deepest desires and urges. To facilitate your learning and development as a trader, you will have to invest in personal growth. Investing wisely necessitates that every forex market participant understands their triggers and compulsive behaviors or those situations and conditions that provoke emotional responses and reactions we may not be able to keep under control. Experts always advise traders to take a personality test where they can learn about their personality type and how it can potentially impact their trading.

People generally try to erase traces of whatever they deem negative, but if you learn how to trust your system and you make a habit of communicating with parts of your personality that seem to need more attention, you will soon be on top of your weaknesses. Personal development also includes the skills of balancing trading and other life responsibilities, whether you are learning how to allocate time to obtaining education or how to let go of the stress you face on a daily basis. Working with your personality additionally entails deliberate action to improve whatever you discover you may be lacking, be it diligence, discipline, or any other skill or ability. The best part about the effort that you will be investing in this area, no matter how scary it may seem, is the fact that your overall living conditions will change for the better and you will see benefits in different areas of life.

Last but not least, personal growth also involves thinking about future progress, which is why you are advised to think about how you can use the skills and knowledge you have acquired so far down the line. Will you expand to other markets we trade or possibly decide to present your trading achievements to a prop firm and sign a contract for bigger yearly returns? Wherever your path takes you, remember that your personality traits will always have a varying impact on your trading but that the effort to improve your personality will impact your entire life positively.

Key concepts: personality test, triggers, emotions, control, discipline, balance, benefit

Example questions: How does my personality affect trading negatively? How can I improve myself?

We can now say that your position sizing is equally important as your reactions to failure. Your skills in managing high risk may be exceptional, but if you fear to invest more when you can, your account will not grow as much as it can. The examples of these correlations and contrasts are many, but at the same time, traders must focus on the process rather than on their desired profit. Goals are amazing because they make us create plans, but if we are unwilling to adapt and adjust to changing circumstances, our objectives will only be farther and farther away. Generated layer by layer, excellence is a product of hard work and continual faith in oneself. Trading is a multi-faceted skill and, as such, it encompasses several key areas where your focus is mandatory. Like a singer who needs to overcome stage fright, practice singing techniques, and considers different styles of singing, a trader also needs to adopt and test specific knowledge and skills while ensuring the right mindset to secure success.

Forex Basics

Push Past These Common Forex Problems to Find Success

Forex trading is a field where your success depends largely on your own actions – with little practice and unrealistic goals, you are likely to fail, while hard work and determination can put you on the fast track to success. Still, reported numbers of those that give up on trading fall somewhere in the 70% – 90% percentile. This might make trading sound difficult, but the truth is that many of the reasons why others quit can be avoided quite easily. 

Reason #1: It’s Too Hard

Some people make trading sound easy. For those that have been doing it for a long time, it feels more natural and it’s easier to make the right split-second decisions. Beginners need to realize that starting out can be difficult, however, no matter how easy your colleagues or advertisements online make it seem. This doesn’t mean that you have to be very intelligent to trade, only that it takes a large investment of time to learn everything you need to know. From there, you also need to keep up with the news and continue to do research from time to time.

Some people give up once they realize how much they need to learn because they are looking for an easy way to make money. Don’t make the mistake of thinking that you can sign up for a trading account and make money quickly if you don’t feel like putting in the effort. Trading is a real way that you can make money from home, but it is not a way to get rich quickly without effort. 

Reason #2: Unrealistic Expectations

Maybe someone quit their job under the notion that trading would become their new source of income. Or you might need to make a certain amount of money within a given timeframe. Whatever the reason, some people start out with high expectations or make the mistake of setting the exact monetary goals they want to reach by a certain date. This can set you up for failure because it’s difficult to predict exactly how much you could make while trading thanks to all of the different factors that affect the market.

Your money goals also need to keep your initial deposit in mind – if you’re hoping to make a living trading, you’ll need to deposit at least a few thousand dollars. You can’t come in expecting to make a living off of a $100 deposit. When people set these goals and can’t meet them, they tend to become discouraged and move on to the next thing. Remember that setting goals is important, but you should focus on the short-term as well and think about improving yourself as a trader in the beginning. These healthy goals will make a better impact on your profits and your brain will thank you for the dopamine reward when you manage to reach your realistic goals. 

Reason #3: Their Balance Hits Zero

We all enter the field of trading to make money, but things don’t always go as planned. Beginners are more likely to make avoidable mistakes, like risking too much on each trade, setting their leverage too high, forgetting to exit a trade, or being oblivious to trading psychology. If these things lead to a blown account, it can be difficult to bring themselves to invest more money because their new mindset tells them that they just aren’t good at trading or that it isn’t profitable. If this happens to you, don’t give up. It’s just a sign that you need to spend more time researching and practicing before you try again. Try opening a demo account if you haven’t already or taking trading quizzes to really test your knowledge if you’re apprehensive about making a second deposit. 

Beginners Forex Education Forex Basics

Reasons Why Forex Traders Quit Trading (And How You Can Avoid the Same Fate!)

If you’ve ever looked at statistics about forex trading, you’ve likely noticed that the results seem bleak. If you haven’t, check out a couple of the current statistics we’ve listed below:

  • 80% of all day traders quit within the first 2 years.
  • 90% of traders lose money.

These statistics might shatter the delusion that forex trading is the answer, but this doesn’t mean you shouldn’t trade! You might be wondering what the point is if only 10% of traders never lose money. Well, most traders do lose at some point – maybe only a few dollars, or more, but this is expected. What matters is that you have more winning trades than losing ones. Still, you might be wondering why so many traders quit if forex trading is so great. Below, we will try to explain some of the main reasons why traders give up so that you can avoid falling victim to these common problems.

Reason #1: They Start with Unrealistic Expectations

Some people start trading for the wrong reasons. These traders hear about another person’s success and decide that they want a piece of the pie. Others think of trading as an avenue to get rich quick. Trading is profitable, but it takes a lot of hard work and determination. Plus, it takes time. How much time depends on the size of your initial investment, your strategy, and a whole host of other factors but the lesson here is still the same. You should only start trading if you’re willing to put the time into learning with an understanding that it could take a while to see a lot of profits, especially with a small investment.

Reason #2: They Use too Much Leverage

Leverage is attractive because it allows traders to increase their buying power. Unfortunately, overleveraging your trades can backfire. Many beginners turn to leverage without being fully aware of the risks. This often includes those that don’t have a large starting investment. Once these traders wipe out their accounts, they are usually scarred from the loss and never fund their accounts again, thus ending their trading career. The best thing to do is stick with a lower leverage option until you are more familiar with trading and well-aware of the risks. Even then, many professionals recommend using a leverage of 1:100 or lower.

Reason #3: They Risk too Much

Risk-management is essential for success if you decide to trade forex. No matter how skilled one is at trading, failing to use risk-management precautions is one of the biggest mistakes you can make. Setting a stop loss and reasonable lot sizes are some good examples of ways that you can limit your losses. Many professionals recommend only risking 1% of your account balance on any single trade. If you risk too much or you don’t have loss limiting precautions in place, then you’ll likely blow your account as many others have done.

Reason #4: They Let Emotion Guide Them

Emotion plays a bigger role in trading decisions than many realize. Anxiety can cause analysis paralysis, which results in the lack of ability to make any decision altogether or making delayed decisions when one needed to act quickly. Emotions like greed or excitement can cause the opposite, where one fails to stop trading when they should, and they risk too much. Traders that don’t recognize these emotions and their effects often fall victim to their downfalls. If you want to avoid these, research trading psychology to be more aware of the problem and work on self-discipline.

Reason #5: They Don’t Have a Trading Plan

It’s impossible to predict what the market is going to do, but a trading plan can help one to make more informed moves. Your trading plan or strategy needs to consider the best times to enter and exit trades, risk management, and other factors. An example of one common strategy called scalping revolves around making many trades quickly and profiting from small price changes. Day traders open several trades throughout the day and close them out before the end of the trading day. Swing traders do the opposite by allowing their trades to stay open for days or even weeks. Traders that don’t have a game-plan rarely fare well in live conditions. This is another way that traders wipe out their account balance early on and give up.

Reason #6: They Give Up Too Soon

Some traders get off to an unlucky start. Maybe they failed to get a proper education before opening a trading account, they didn’t have a good plan to follow, they used too high of a leverage, or some other reason. This doesn’t mean that person is a bad trader, only that they need to figure out where the problem is stemming from. Keeping a trading journal is one way to log this, but many traders don’t get that far because they become discouraged and convince themselves that they just aren’t any good at trading. If this happens to you, take a step back and look at the bigger picture. It may be discouraging to lose your initial investment but think of it as a lesson rather than a sign to give up trading for good.

In Summary

Statistics about the number of forex traders that quit might seem unpromising, but there are several reasons why traders quit that can be avoided. Here’s a quick summary of the most common reasons why forex traders quit:

-They don’t have realistic expectations and aren’t satisfied with making a small profit, so they quit trading entirely as it seems like too much work.

-They use too high of a leverage, which can quickly backfire and blow one’s account, especially if that person doesn’t have much experience. After losing their initial investment, they feel defeated and walk away.

-They risk too much on their trades, which is another quick way to blow through a trading account’s balance.

-They fail to see the ways that emotions might be interfering with their decisions. Some may be too anxious to make quick decisions and fold under pressure.

-Others may become too excited and risk too much.

-They don’t have a good trading plan to follow. This results in trading decisions that aren’t properly planned and lead to financial misfortune.

-They get off to a bad start and give up before they have a chance to improve.

If you follow our tips, then your trading career should get off to a smooth start. It’s discouraging to see disclaimers about the percentage of traders that actually make money or how many quit, but potential traders need to realize how many of those people weren’t prepared. If you give it a half-hearted go, then of course you are likely to fail. Those that put the effort into securing an education, choosing a good broker, and devising a good trading plan should go on to have a productive trading career.

Forex Education Forex Risk Management

Are You Taking On Too Much Risk While Trading?

One of the phrases that you have probably heard the most since starting out with trading is risk management, but what does that actually mean, and do you do it? To put it into simple terms, risk management is about reducing the potential risks to your account and protecting your account from dangers and large losses. This sounds simple enough and quite an obvious thing, but you will be surprised at how many people throw it out of the window on their quest for bigger profits.

Risk a Set Amount

One way that people reduce the amount of risk that they have on each trade is to limit the potential losses of each trade, they do this by setting stop losses on each trade that they make. A number that we see a lot of 2%, people seem willing to risk 2% of their overall account on each trade that they make, this would mean that the account would be able to survive up to 50 losing trades on a row without any wins, something that is very unlikely if a proper strategy is being implemented properly. It is important that if you set yourself a maximum loss per trade that you stick with it or if you deviate, only to deviate lower, going higher will put your strategy out of sync and could potentially damage your account equity quite a bit.

Adding to Trades

Something that a lot of people do is to add positions to an already winning trade. This basically means that when a trade is going the right way, you add in an additional trade to make the overall trade size a little larger. While this may work for some, a lot of strategies have not taken this into account so you should be careful when considering it. When you do add an additional trade, you need to bear in mind that your overall risk is increasing, do you stick to a maximum 2% loss on that trade, or do you increase or reduce it? Unless your strategy has already taken these additional trades into consideration we would advise against adding to existing trades as it could mean you can lose more than you had anticipated on that trade.

The Right Trade Size

How are you working out your trade sizes? Is it based on your account size or your strategy? Whichever method of working it out that you use, you need to stick with it. More often than not, your trade size would be based on the percentage of the account you are willing to risk with each trade. There are trade size calculators available all over the web that can help you to work out the exact size of each trade that you should be using based on the pair being traded and the percentage of the account that you are willing to risk. It is important to stick to regular and similar trade sizes for each trade, as suddenly adding larger trades could completely throw your risk management out the window and could be endangering more of your account equity than you would normally be willing to risk.

Taking Profits

Something that people often don’t associate with risks is taking profits, knowing when to come out of trades is just as important to protect your account as restricting your losses. To put this into perspective, a trade has gone into profits, you feel that it may reverse but it is in profit so you will let it run to see if it goes any higher, it suddenly reverses and you are now back to a break-even level or even in the negatives. In order to protect your account, it should have been taken in profit, many people use take profit levels, others have a certain percentage where they move the stop loss levels into profits to guarantee the profits. The importance of doing this is that you will have wins and losses, but it is important that you are able to take those wins as they are there to help cancel out the losses, having them also become losses will put your account in danger.

So those are a few things to think about when looking at the risks you have to your account, there are of course many other things to think about, but those are some of the bigger ones. Think about whether you do these things, if you do, think about how you can improve on your own risk management for the future to help protect your account.

Forex Basic Strategies

Is Buy Low/Sell High Truly the Most Effective Strategy in Forex?

The concept of buying low and selling high is an interesting one for many reasons, it has been the essence of trade and making money since the beginning of man, back before money was even invented, the concept of buying low and selling high existed. Farmers trading livestock at the market, corn for pots, these trades were all based around the perceived values to those who have them in their possession, you will always want to trade what you have for something that you believe is of more value.

The Essence of Trade

This is exactly how the world works now, buying something for a certain price and then trying to sell it for a higher value. Of course, we already know that this is the essence of forex trading too, we are purchasing one currency with another hoping for the price to change when we can then sell it back to have a little more of the base currency than we started with. The concept of buying at a low price and selling at a higher one is certainly true when it comes to forex trading, the problem is that it is just a little bit more complicated than that and we are going to be looking at exactly why this is and why it can be profitable, but not something to solely rely on when trading.

Determining the Lowest Values

The first and most important thing that you need to consider when using this sort of strategy is where the low is, looking at the chart, you would think that this is the lowest point on the chart, form that timeframe this would be correct, but what about other time frames? Turn it up from the 5-minute chart up to the 1-week chart and the markets will look very different and the low that you were previously looking at could potentially be quite near the top of the weekly chart, this is why it is so hard to judge where the low actually is. In fact, it is almost impossible to judge it completely, there are some things we can do to help but to actually guess the exact low and turning point is pretty difficult to do.

Looking at the charts, we have seen the lowest point on our chart so we decide that this is low and where we should buy, we do so but then the markets move down a bit further, creating a new low. We buy again as this is the ow, but then it drops further, you can see the point that we are making. Just because the price is currently at the bottom of the current chart, it does not mean that this is the bottom and it does not mean that this is the right place to put in your buy order. The markets can continue to decrease without any reason creating new lows as it continues, so we need to use a number of different things to help us to work out exactly where the lows could be, of course, there are no guarantees that even if you use 100 indicators, it won’t still continue lower, but we can move the probabilities into our favor in order to get a better understanding of where the low in the market actually is.

If you are a short-term trader then you can use things like the support and resistance levels to work out where the markets may be moving and turning. These are for short term traders such as scalpers wh only need little movements in the markets, so the price jumping between the support and resistance levels gives the good opportunity to buy when the price is low at the support and levels and then to sell when the price is higher at the resistance levels. This is the very essence of buying low and selling high. There are of course no guarantees and the price will eventually break either up or down, but the support and resistance levels can give a good short-term idea of where the market may be hitting their lows and reversing, at least temporarily.

Determining the Highest Values

We speak about needing to know where the lows are, but we also need to know where the highs are too, this is where you will be taking your profits on a rising market. Part of trading is being able to maximise your profits, so this means knowing when to get out too. You do not want to get out too early and you will lose a lot of unrealised profits, you also do not want to get out too late as the markets could reverse causing you to lose off the profits that you would have otherwise taken. So when you are analysing the lows, ensure that you do the same for the highs, so you can then work out exactly how much you could be making on a trade before even putting it on, a great idea for your risk management.

Speaking of buying low and selling high, the great thing about using an appropriate broker is the fact that you are also able to sell high and buy low, the exact same concept is used, just you are ceiling instead of buying. Use the exact same analysis and the exact same concept, just the reverse, so you can also make a profit when the markets are moving down and not just on their way up.

So that is the concept of buying low and selling high, does it work for forex? Technically yes it does, it is pretty much how we make money, but you cannot rely on it as a single strategy. You should be buying low and selling high or selling high and then buying low depending on the direction that the markets are traveling, but you need to ensure that you have proper analysis behind that and not simply just guessing where the lows and highs are.

Remember, that buying low and selling high is not a strategy in itself, it is simply the concept of making money with forex and trading.

Forex Basics

If You Don’t Know THIS About Forex, You’re In Big Trouble!

The forex market is known for providing traders with favorable conditions, including 24 hours of market access and high levels of liquidity that provide a great number of trading opportunities. If you want to make the most of the opportunities that the forex market provides, you’ll need to approach the market with the right level of skill and confidence, while making smart financial decisions that limit your overall risk along the way. If you want to start out off on the right foot with a competitive edge in the market, it’s important to know these three key ideas.

The Forex Market is the Best Place to Practice Your Trading Skills

Practice is one of the most important factors that will take you from a novice trader to a professional level investor. Fortunately, the forex market is filled with practice opportunities that beginners can take advantage of thanks to the high liquidity and 24-hour market access we mentioned earlier. Sure, you can get in some practice on a demo account beforehand, but it’s different when you’re practicing on a live account because real money is on the line. This introduces emotions and a sense of danger that just isn’t present when you’re trading on a demo, even if you take your results seriously.

Another plus is the chance to test your strategy using micro-sized trades, as long as this option is available through your broker. This will allow you to test more entries in a shorter amount of time, especially if you were to use a shorter 5-minute chart. You’ll also risk less money trading with micro lots versus standard lots, meaning that there is still a financial risk present, but less pressure because you won’t lose much money if your strategy doesn’t work as well as you had hoped. 

With Forex, You Can Start Small and Work Your Way Up Over Time

Contrary to what some believe, you can actually open a trading account with a small investment through most brokers. Some companies will even allow you to open an account with just $1-10. You’ll also find many different account options available through different brokers, including micro/mini, standard, VIP, and other account options. Micro accounts are one of the best options for beginners because they support low entry-level deposit barriers and allow you to trade with smaller lot sizes, thus allowing you to test your system with a scaled-down level of risk. 

Many brokers offer tier-based accounts or will allow you to upgrade your account to a standard level or better once you’re ready. This means there’s no reason why you can’t start small with an entry-level mini or micro account, gain confidence, and test your strategy with minimized risk, and then move on to better account types when you’re ready. If you take advantage of this opportunity, you’ll lose less money along the way while increasing your confidence in your trading plan. You can also keep a trading journal in order to identify and make any changes to your plan that are needed before you start to risk more of your hard-earned money. 

You Can Decide How Much to Risk on Each Trade

It’s true that forex trading carries some level of risk, however, traders have a lot of control over the amount of money that they could actually lose. If you don’t want to risk a lot of money, you don’t have to. In fact, it’s better to test new strategies with a low level of risk at first until you have the chance to see that there aren’t any flaws in your system. 

There are a few different ways that you can control your risk level, like using a smaller amount of leverage, using a stop loss, trailing stop, and take profit for each trade, and managing your position sizes. If you’re wondering just how much to risk on each trade, it’s helpful to know that many professionals recommend risking no more than 1% of your total account balance per trade. In the end, you should remember to never invest more money than you can afford to lose. If you need to, you can also adjust the amount you risk based on other factors, for example, increasing your position size if you feel confident that the trade will be a winner or risking less when you aren’t completely sure about entering a trade. 

The forex market offers an endless amount of opportunities for investors that know how to manage their money and make smart financial decisions. If you keep these three key ideas in mind, you’ll be on the right path to making money in the competitive industry of forex trading. 

Forex Basics

Using Non-Conventional Methods to Fast-Track Your Forex Education

Starting with forex trading has a few stages before the real live account trading. Forex is a specific kind of business where you need to acquaint yourself with the terminology, the tools, how to use indicators, and price action elements. It puts you as the main subject and your actions isolated from everything else, so trading is more likely to be a lonely, one on one business with forex.

Of course, trading can also be teamwork of like-minded individuals or companies but you can only be a part of them if you have experience with trading. After the first stage, you can move on to learn about the strategies, money management, and psychology, how it all fits into a trading system. At this point, beginner traders can try to demo trade and try out the endless possibilities of trading effectively. If you are asking the title question because you do not want to read or follow other professionals, you are out of luck, you will have to acquire basic knowledge the old way. Practice comes next, your demo account will be your playground after the first stage and it will stay like that for the whole trading career if you choose to step into the world of forex. Perfecting the trading system requires trying out new things, with a demo account you can try out anything without any real money losses. 

Aside from following experts and their various strategies, you have many options on how you want to take this market. You can trade using automated scripts, apply for a managed account, copy trade others, invest in the long term, stake, and so on. However, you will need to acquire knowledge. Experimenting with indicators and strategies on a demo account is definitely beneficial to your learning curve. Sometimes, having a coach might come as an idea if you struggle to advance. Some prop firms give support to their traders, but the help is mainly aimed to stabilize their mindset on a losing streak.

Traders have two options if reading is excluded. There are free but rare coaching channels and those that charge for their service. Those that charge are not necessarily of better quality than those that offer free education. Often the coach traders will stick to one or two ways of trading, their strategies may not be what you want to follow for various reasons, and that is ok. Still, try new things, what you previously disregarded might surprise you with good results. Coaches that do not charge a fee often use video streaming services, podcasts, and YouTube. Sometimes you will see ads, on the other side, some uploaders want to keep ad-free content and still be free. One such channel is created by Partick Victor, also an author of a book, by the name of “No Nonsense Forex”. His channel is mostly based on pure technical trading strategies, if you tend to learn more about price action style trading then you will have to search elsewhere.

Finding a free education may not be that hard, but finding advanced knowledge is. When you have an opportunity to take a glance at something different than what you are used to, take it. This knowledge will give you so many new ideas even though it is not directly related to your starting strategy. Inner Circle Trader is another channel where you can learn about scalping if this is your initial idea about how you will take forex trading. Both traders are experienced and have their blogs and other social media pages. If you want to take trading heavily on fundamental analysis, follow people who are independent, who are not tied or biased to some institution, asset, or groups. Additionally, identify that their opinions are backed up with sound data. Our advice is to slowly get away from the popular analysis on the news if you already follow them, use it mostly to learn the terminology. To sum it up, there are two options, listen to the podcasts and videos or hire a coach, which leads us to the next topic.

There is a difference if you are seeking more than just reading, and if you do not want to read to learn forex trading. If you fall into the second category, your chances of succeeding are slim, maybe if you only take a lucky trade or two, cash out and stop. Of course, few will walk away if they feel lucky. If you fall into the second category, this is great, you are an explorer and want to learn more. Hiring a coach has its cons. The coach might do this for additional income, but he also has to be experienced and consistently successful in trading. If your coach is not a real trader or used to be, know he failed and now he is doing what he can in this business. This kind of coach is just a hand holder, he will not give you anything special that is not already explored many times over. If you are new to trading all this might be new, but ultimately there are better and much less expensive options.

Now, if you just need someone to hold your hand during the learning process, this is a problem if you want to establish the right trader’s mindset. Asking for special treatment is a bad sign, trading forex is not really teamwork where you can share the load with others, it is all on you. Asking to depend on others might leave you empty-handed when you are alone at some point. Mentorship will get you used to relying on other opinions on advanced topics and depending on the basics. When it is decision time, you will be alone after the sessions are over. Independent critical thinking is now tested, you will likely fail and you might feel like you do not know anything, especially when things get downhill. There is no excuse to plead for help and make yourself special if you are on the same path as everybody else trying to get into forex trading.

The internet, videos, and books are all giving you a lot to learn, but to some people, this is not enough, and need a guide that is just basically reading this content out loud. When some problem, a situation, or question needs answering, these people will just ring a bell for help. It is about being independent, if you are not ready to be your own boss, do not try trading. Do yourself a favor and do not try anything if it will reduce self-reliance. Any question you cannot google you can ask for free on specialized forums. Find a forum or a portal where you think it is appropriate and ask other members. Pay attention that you first exhaust all other sources, it is very likely somebody already asked the same question and there is an answer to it. 

In addition to all this, most of the successful traders shaped their strategies and systems according to their ideas and thinking. None of them are the same, even if the same strategies are applied. The trading plan and systems are specific to them and only they can effectively use them. Some technical traders have developed strict rules based on indicators and tools, leaving the ability to be used by others. Such systems are sometimes publically shared, all with the rules when to enter and exit a trade, however, even then you might not be successful with it. This is one more reason to follow your own path to forex trading, use all material you can find and if you need more, try the free options mentioned above. Likely, you will never need a mentor at all.

Forex Basics

Top Quality Forex Education Is Essential to Success – Here’s Why…

Those that are looking for a source of primary or extra income can take advantage of the ability to buy and sell currencies online through the foreign exchange market. Through this unique opportunity, traders can place orders from any device with an internet connection thanks to electronic execution, which eliminates the need to place trades at a centralized location. The sheer accessibility offered by this electronic system has attracted more than 9 million traders from all corners of the globe. 

In order to make money by trading forex, traders attempt to profit from the differences in value between two currencies that they are buying or selling. The general idea is to buy when the price is low and to sell once the price goes up. For those that know what they’re doing, forex trading can help to make large amounts of money, and it has even produced many self-made millionaires. However, this isn’t something that can be accomplished without hard work and there are things to know beforehand if you’re considering becoming a forex trader.

First, you should know that there are risks involved with trading, just like with any other investment. You have the potential to make a lot of money, but you could also blow the money you’ve invested and wind up with less than you had in the first place. One of the best ways to avoid losing money is to secure a proper education for yourself, rather than simply jumping in feet first. Many beginners make the mistake of opening a trading account without knowing what they need to know, especially in light of the fact that it is notoriously easy to open a live account through a broker. If you’re 18 years old, have a little bit of money to invest, and you have access to a device with an internet connection, you can easily open an account within a few minutes. The sheer simplicity of this process leads many aspiring traders down the wrong path because they assume that trading will be easy since they can open an account without any hassle. 

If you want to be among the percentage of traders that achieve real success, you shouldn’t rush out and open an account after having only read a few articles. It’s important to take your trading education seriously by taking part in college-level courses that will help you excel. If you’re in the United States, you can find many of these courses offered by business schools with subjects that cover detailed information about trading in different financial markets. This training can teach you what you truly need to know to be successful and guarantees a much more thorough education that you could give yourself.

Reading charts is one of the most important topics that your courses should cover, so be sure to check that this is included with the curriculum. If you choose a highly rated business school, this shouldn’t be an issue. This skill is important because it will help you read charts to see where currency prices are going, thus aiding you in making decisions about which currencies to buy and sell. This is one of the best ways to make more accurate predictions that are founded on evidence, which increases your chances to profit significantly. 

Another thing to look for in your college courses would be a hands-on experience that helps you truly grasp the physical act of trading. Practicing on a demo or dummy account and trading with virtual currency is one way this can be accomplished, but you should also expect your school to ask you to open a real account (ideally with a small capital investment) to practice on once you advance further into the course. This practice will give you insight into which trading systems you prefer while increasing your confidence along the way. You’ll also have others to speak with if something confuses you and you will be more likely to avoid making mistakes later down the road. This is the best way for aspiring traders to be introduced to the trading world, rather than being forced to open a real account on their own after finishing their schooling. 

Those that are considering trading need to be aware that it isn’t something you can just jump into, despite how easily you can open an account. Investing in a good education will increase your chances of success in both the short-term and long-term, while failing to do so makes you more prone to mistakes and you will likely join the large percentage of traders that blow their accounts right out of the gate. It’s important to remember that forex trading is not a quick and easy way to become rich, as it requires a lot of hard work and dedication, but it does open a pathway to potential riches with the right education. 

You should take your education seriously and attend a good business school that teaches you important fundamentals like reading charts, which will help you to make smarter, more founded predictions when it comes to deciding what currencies to buy and sell. Your trading courses should also offer hands-on practice by trading on demo accounts or even on a real account to set realistic expectations and to truly prepare you for trading in the real world. At the end of the day, it’s up to you to take your forex trading education seriously and to make the right decisions that will lead you to success later down the road. 

Forex Basics

How Long Does It Take to Become a Truly Profitable Forex Trader?

Making the choice to become a forex trader can be an exciting one that causes many traders to feel eager about getting started. This is especially true if you’re feeling inspired after talking with a colleague who might have mentioned how much money they make trading, read an article that makes trading sound easy, watched a video that promotes the luxurious lifestyle trading can provide, and so on.

Unfortunately, you won’t be ready to open a trading account immediately, no matter how eager you’re feeling. Opening a trading account too soon is actually one of the top mistakes that beginners make and can lead you to lose your money altogether. This often causes traders to give up out of frustration before they really even get the chance to get off to a good start. 

So, how long does it take until you’re ready to start trading? The answer differs for everyone and will mostly depend on how fast of a learner you are, along with the amount of time you have to spend brushing up on your trading education. There’s a lot to know, including these topics and more:

  • Forex terminology (leverage, stop-loss, pip, margin, etc.)
  • Forex basics
  • Forex mechanics (navigating a trading platform, placing a trade, exiting a trade, etc.)
  • Factors that affect prices in the forex market
  • Trading psychology
  • Risk-management (setting a stop-loss, how much to risk on each trade, etc.)
  • Trading strategies (scalping, swing trading, day trading, etc.)

Each of the above topics can go into a lot more detail, for example, if you’re learning about trading psychology, you’ll want to learn about overconfidence, the way fear affects trading decisions, analysis paralysis, trading when you’re on a losing streak, and much more. You should expect to spend a great deal of time studying these topics to ensure that you completely understand everything you need to know.

If you’re in a hurry, we suggest devoting as much time as you can to learning. If you work or attend school full-time, you could try researching in the evenings and on weekends, or anytime you have a chance. This is the best way to fast-track your education, but remember not to let yourself get burnt out before you begin trading. Even if you have a large amount of money burning a hole in your pocket, you have to remind yourself that investing too soon might cause you to lose everything.

Instead, learn when you can and hold on to your money. One good way to check your progress is to test out your knowledge by taking free forex quizzes online or to try a hands-on approach by opening a demo account. Both options will allow you to see if you’re ready to begin trading or if you need to spend a little more time learning. 

In conclusion, we’re sorry to say that we can’t provide you with an exact timeline of how long it takes to become a trader, but this article should help you gain an idea of what you need to know and how to prepare yourself. Some traders might invest a lot of time into researching and be prepared in a week, while others might take longer to learn and could take a month or more to prepare. We can assure you that you won’t be ready to start trading overnight, however. Know that investing too early is a risky mistake that is likely to cause you to lose money.

If you hold onto your money or even allow it to accumulate while you learn and wait to open a trading account until you’re truly ready, then you can ensure that you’re starting out on the road to trading success.

Forex Basics

How to Successfully Trade Forex While Working a Full-Time Job

When you consider becoming a forex trader, do you find yourself thinking of a list of reasons why you just can’t realistically do it?

We could probably debunk a lot of those, but today, we will talk about time. As far as excuses NOT to trade go, the lack of time is one of the top reasons why many people never even try. Many of us are already juggling full-time jobs while struggling to keep up with our personal lives, run errands, clean our houses, raise children, and the list goes on. How could you possibly add trading into the mix when there’s so much going on already? 

Believe it or not, it’s possible to take up trading in your free time, even if you do work full-time. This might mean taking on more responsibility, but isn’t it worth it if you’re getting paid? Allow us to provide some tips that can help you with time-management so that you don’t have to miss out on all that trading has to offer: 

Study Charts in Your Free Time

A lot of people assume that traders sit around looking at charts all day long, therefore, they don’t think they have the time to study charts as they should. In reality, it’s possible to do analysis around your job’s schedule. This means nighttime analysis if you work during the day and vise versa. Research and planning can also be done in one’s spare time, including weekends and non-market hours. 

Don’t forget to do the following when you run your analysis:

  • Keep your specific strategy in mind when studying the charts. Stop for the day if you don’t see a set-up that supports your strategy.
  • Try not to perform analysis if you’re stressed out or emotional. If you often feel this way after work, try to do as much as you can on the weekends when you aren’t as burned out or get some of it done before you head to work for the day. 
  • Set a time limit for analysis and stick to it.

Avoid Trading if Necessary

We mentioned earlier that you shouldn’t analyze charts when you’re stressed out or emotional, but you’ll also want to take it a step farther and avoid trading altogether during these times. If you don’t have a clear head, you’re more likely to make mistakes, such as overlooking data, entering trades without proper evidence that you should, putting yourself down if you lose money, and so on. If you simply avoid emotional trading altogether, you’ll be less likely to make mistakes that are influenced by those strong emotions. Likewise, you aren’t doing yourself any favors by forcing trades when there isn’t any evidence to do so. Both of these issues will likely cause you to lose money when you could have kept your account balance the same by knowing to do nothing. 


You want to be sure that you can focus solely on trading when you decide to do it, so try to plan it around your schedule the best way you can and avoid distracting situations. If you can, try trading in your car while on break at work or take your laptop into another room if you have household distractions to deal with. Silence your phone and avoid background noises as well if possible. It might be difficult to find the time for distraction-free trading at first, but there are usually ways to make this possible if you’re creative enough, even if you have to tweak your daily schedule. It also helps to make yourself available during specific times, like when a certain currency pair you’d like to trade is most active. Most movements for currency pairs occur during two different timeframes:

  • From 8 a.m. to 11:00 a.m. EST
  • From 1:00 a.m. to 8:00 a.m. EST

This provides separate opportunities to trade when the market is more active, so you’ll want to take advantage of these two options. You could trade before going to work by waking up earlier, for example. 

Use the Right Strategies 

Those that are juggling trading with working a full-time job can take advantage of certain strategies that involve holding trades for shorter periods of time, like scalping or day trading. Scalping provides an advantage because traders often open and close trades quickly in order to profit from small price movements, meaning that you could accomplish some trading activity during a short break. Day trading is another potential solution where traders only open trades for a few hours at a time and close them out by the end of that trading day. You could open a few positions, check on them during your break, and close them if necessary. You’ll basically be making money in the background while you work your regular job if you can get the hang of multitasking. 

Remember that Consistency is Key

If you can develop a solid trading plan and follow it consistently, you’ll be more likely to bring home consistent profits. This means you need to set a schedule and stick to it, so it isn’t a good idea to switch strategies. Instead, traders should follow the same rules and guidelines, even if they do take a loss, and stick with their trading plan through thick and thin. This can also help you get into a good trading routine that will keep you going if you ever quit your job to become a full-time trader.

Do You Want to Become a Full-time Trader?

If you’re dreaming of quitting your desk job, know that you aren’t alone. However, there are a few things to consider first, so don’t march out without thinking things through. Here’s what you need to know:

  • Full-time trading won’t be as time-consuming once you’ve developed your strategy and gained enough practice, as many trading decisions will come to you without much thought. You’ll have a much easier time analyzing charts and information as well, which cuts back on time.
  • Think before you quit your job and remember that profits aren’t guaranteed in trading, while you know you’ll be bringing home a paycheck from your regular job. You need to be making consistent profits before you make the decision to let everything ride on trading profits. 
  • If you quit your job at the wrong time, you’re more likely to make emotional trading mistakes because of the financial burden that will be on your shoulders. This is why it’s a good idea to ensure that you’re earning enough to support yourself and to have some backup cash in the bank to ease some of that post-job stress.
  • Consider copy trading or using a trading robot if you’re still feeling pressed for time. Both can trade for you automatically, but you’ll want to be sure to choose a reliable option and keep a close eye on the results. 
Forex Basics

Master Forex Trading In Just ONE Week! Here’s How…

Learning to trade is not a quick process. In fact, it can take many years to get a proper understanding let alone to be a profitable and successful trader. Having said that, many people want to take a faster route to Forex education. If you’re interested in diving headfirst into Forex, you’ll most definitely want to read this.

There are things that you can do that can help you get a grip on at least the basics within a week. It is, however, important that you set proper expectations, after a single week of learning and trading, you will not be a success, you most likely won’t be profitable, but the important thing is that you would have put your foot in the doorway of trading and will be at the start of a fantastic journey. So let’s take a look at what you can do and learn in your first week as a trader.

The first thing that you are going to need to do is to work out exactly how much time you have available to learn, it doesn’t matter how much it is, you just need to ensure that you know and have planned times for you to sit down and learn. If you only have one hour a day to learn that is fine, if you have 12 hours to dedicate to your learning then that is great too. Your expectations need to be set against the available time, if you have an hour per day, you won’t be learning as much as someone who has 10 hours per day, but it does not mean that you won’t learn, just not quite as fast, which is perfectly fine. Once you have worked out how long you’ll have and when we can start to look at what you can actually learn and do.

Before we begin to learn, you need to ensure that you have the right environment, even if you spend the first day of your first trading week making things right, it will make a huge difference for the rest of the week and for our future trading. Get a space in your house or flat setup that will be used solely for trading, this area needs to contain all of the things that you need to trade, your trading terminal (computer), some notebooks, a calendar, and anything else that you feel that you may need.

The things that it does not need are distractions, if you can see the TV from your trading station then this needs to be changed, there needs to be nothing that will take your focus away from your trading. When you are starting out it will take away your concentration and will slow down your learning, when you are trading, things can distract from your analysis and trading which can lead to bad trades, so getting this right early can be really beneficial to you as a trader.

On your second day, you are going to need to work out how and where you want to learn. Some people learn best from reading written content, others like to learn from visuals or videos, you need to work out what is best for you. There are resources whatever your preference actually is. There are plenty of really good tutorials on YouTube, there are plenty of sites with completely dedicated learning and coaching sections. Then there are those that require more human input, there are courses and there are mentors out there that can offer a mixture of written and visual learning, as well as some personal input from the trainers. The issue with this is that it often comes with a cost, and at this stage of your learning, you may want to avoid the paid routes before actually knowing whether trading is right for you. 

Your main learning priority this week is to learn the basics, to give yourself a foundation for your trading knowledge, there is a lot to learn. In fact, no one can learn everything as it is constantly changing and there is just so much information and variations to everything when it comes to forex and trading. Think about learning what things mean, learn about what pips are, the different currency pair types, what spreads are, those sorts of things. It seems pretty basic and it is, but if you do not know what these things mean then you will never be able to be successful, so as your first learning step, learn the different terms.

At some point in this first week, you will also need to get yourself a broker, there are a lot of them, and we mean a lot of them, you will need to find the one that is right for you. Do a bit of research and talk to others that also trade, while it is important to find the right broker for you, at this point in your career you are not going to be trading any actual money, so just ensure that you find a broker that offers demo accounts that offer similar conditions to what you want as a trader. Open up that demo account as this will be the place where you will be practicing the things that you are learning.

So your demo account is open, you also know some of the basics of trading, now it is time to put those things into practice. There are hundreds of different strategies, knowing what works for you is also important within this first week, as you do not want to put time and effort into learning something that simply won’t work for you. If you are planning to sit in front of the computer for hours then there are strategies for you, if you only have 30 mins a day, then there are strategies for you, once you have worked out what you want to try, we can put something into practice. There is no harm in trying multiple just to find out what is right and what feels most comfortable for you.

As the week progresses, you will be looking more into the strategy and potential risk management techniques to go along with them. You will need to be putting your learning into practice on the demo account that you previously opened up. Take your time to learn the strategy that you are starting out with and ensure that you continue to learn the basics and what is involved in trading.

The first week of your trading career will b a little slow ad you may not feel that you have made much progress, but this is the time where you are building up your base, there is no expectation that you will be an expert trader or that you will ever be trading on a live account, that will come with time. The important thing is that you are building up your understanding of what trading is and how it can be implemented into your life, getting your equipment and environment set up. Don’t push yourself too hard, this is of course the first week of your potentially very long trading career, so don’t feel disheartened if you do not see a lot of progress, stick with it, and over the next weeks and months, you will see the programs start to pick up.

Beginners Forex Education Forex Basics

How to Trade Your Way from $10,000 to $1 Million

Forex opens and an incredible array of possibilities of how you can get your target million. Therefore, there is no single answer. More importantly, the answer you may get might not be adequate to your character, and the way you approach forex trading. Beginner traders asking this question fall into the first and probably the most dangerous trap called “getting rich quick”. This desire in young traders is overwhelming, aligning with the temperament that only spells failure in forex trading, unfortunately. Getting rich quickly in forex is plausible, forex is a game of probabilities, and is also a mechanism where higher risk brings higher reward and vice versa. However, not all risks are justified, some things are just worth trying while others border with stupidity. 

If getting rich quick is what you want to make out of forex, there are some ways of doing it that are better than having any plan at all. So, the key is having a plan. A plan that will increase your odds however abysmal they might be when you are after that $1million during a very short time. At this point, forex trading is more like buying lottery tickets worth $10.000 – scoring the jackpot probability is still way under 0.1% in most major lotteries. There has to be a better way right? Well, increasing the odds is an everlasting quest of a forex trader, do it meticulously, and finding ways to get “lucky” will be opening up in front of you. Instead of presenting how percentages and compounding works, let’s get into a few basic examples to get things into perspective, just note the following ways are not recommended. 

Assuming you are hyped and do not want to spend time learning how to trade like professionals, try to search for a good forex robot. This process might take a few weeks but it is still better than going all-in without any clue where. Try to find good reviews about the robot with a high win rate on a single, specialized asset they run best on since you will need consecutive wins over a short time. Forex robots or Expert Advisors for MetaTrader platforms are numerous, some are free. A higher price for a robot does not mean they are better, just try to find one with good ratings, results, and reviews (be aware of fake reviews). Pay attention to the leverage, how much is put into every trade, and set everything to your $1 million goal time frame. All you have to do is let it run, watch, and hope. By the way, some brokers might be hesitant to pay you out and will probably try to find anything to discredit your incredible gains, but this is another topic. 

Our second do-not-do-it example of how to get rich quick is trading high-risk forex events. Such events are global and deep, like elections or recent pandemic. The extreme moves they cause in a short period are your perfect playground to get that gain you need. Identify a trend that has started on a specific asset, for example, the S&P 500 index or the USD currency pairs where big moves are expected. Now, you need to set your position sizes and leverage to endure the drawdown you might experience as your tolerance for losses is extremely low with the way you are trading, even on an already established strong bear rally. By getting in a strong trend your odds of survival for the first candle (periods) are better than 50% and you also have a chance to win big as the trend continues for days, just know to set a trailing stop optimally. You might still need a few of these monster wins to get to that $1 million but at least you have better odds with a plan. Waiting for these opportunities might take some time, however, it still counts as getting rich quickly. 

The final example is popular and directed to another type of new-age currencies. You got it right – cryptocurrencies. There are several ways to fill your pockets in this market, but similarly to trading forex during extreme global events, you will need extreme mover assets. Splitting your $10.000 across several altcoins with a good perspective to get popular will get your portfolio skyrocketing. All you have to do is research what are good picks. This method applies diversification, meaning the likelihood of losing everything is low, especially if you pick more than 10 coins. Of course, your $1 million goal needs to wait for things to get going, yet if only one multiplies in the value we are talking about extreme gains, possibly above your targets. An example altcoin that changed investor’s lives is the Verge with a 1,581,942% peak gain, going from $0.000019 per coin to $0.300588 per coin from December 2016 to December 2017. Similar to what happened to Einsteinium and Reddcoin. So the odds are much better here than with lottery tickets, especially if you do some fundamental analysis about altcoins. Suddenly picking 100 altcoins and investing $10.000 in them does not sound like a bad idea, just know you will never know when it will happen (if it happens at all), so it may not be as quickly as you expect. 

Now, the recommended way to get rich is by devoting to the process of learning and experiencing forex trading. This path requires effort and not for getting rich quick-minded people. Professional traders sacrificed some time, a few years to get at the top of the game. They do not have extreme triple-digit returns over a year, but they are consistent. They switch high-risk returns for consistency that lasts for a lifetime. The two biggest pillars of trading are Psychology and Risk or Money Management. The analysis comes third after these most important aspects often overlooked by impatient traders. As with the above not recommended methods, start with a plan. Seek out beginner forex trading portals (such as to get the basic understanding of forex and then explore some more advanced topics such as strategies, indicators, trading systems, theories, and some forex psychology books. Improve your knowledge following financial websites and social media channels. Follow smart investors and traders on Twitter and try to find their channels on youtube or some other platform. Some of these figures are going to be appealing to you and your learning curve will get easier quickly, open your mind, and get motivated.

For some, a few years of demo trading and trying things out might be too long but reaching $1 million from $10k is what professional traders actually do consistently. Many spend decades just to try to live with $10k let alone become millionaires. What is great about forex trading is it does not force you to quit your daily, conventional jobs. It is as flexible as it is deep. You may become a purely technical trader, long term investor, crypto holder, but all successful traders have things in common, they all have a plan or system, structured risk management, and have mastered psychological trading aspects. Having a good plan is great, sticking to it is the psychology challenge most cannot overcome. However, with the internet, all the information available to you, all you have to do is dig up a bit and put that $10k to use, $1 million might be just a couple of years ahead.

Forex Basics

How NOT To Trade Forex

There are a lot of guides out there detailing different ways to trade, different strategies, the risk management to use, and all sorts of information It is all well and good knowing what to do, but they very rarely go into detail on the things that you are not meant to be doing, so that is what we are going to be looking at today.

Before we take a look at the things that we should not be doing, let’s get a very brief overview of the things that we should be doing, these are things that you will hear all over the internet, from educational websites to Twitter, things people say you should do, we will point out that we actually agree with most of them and ensuring that you do them will help you to remain profitable and successful. Things like keeping a trading journal, very important to seeing how you are trading, using proper risk management, stop losses, take profits, and proper risk to reward ratio. Having enough capital, finding the right broker for you, getting a proper education, and more, all of these things can help you to be a successful trader and they are things that you should be doing.

So now let’s take a look at some of the things that you probably shouldn’t be doing as a trader…

Using Too Much Capital

The popular saying goes that you should only use what you can afford to lose, well that is very true, so it is a little bit of a mystery as to why so many people seem to trade with money that they cannot afford. We say it’s a mystery, it’s really not, it is simple greed, the want for more. We have seen hundreds if not thousands of people posting that they have lost all their savings or that they borrowed money to trade with and are now in debt. It is far too common and those people unfortunately very rarely learn, and are often repeat offenders. If you have lost money to need, do not put more in, it’s really that simple, yet quite hard for some people to understand. So the moral of the story is a simple one, do not trade what you can’t afford to use, see, tell you that was the popular thing to say.


There is no harm in a little gamble, unless you are doing it on the forex markets, if you were to bet on football or whatever your favourite sport is then you have a finite amount that you can lose with each bet, you will only lose what you have bet. It is not quite the same with trading, a single gamble could cost you $10, or it could cost you your entire balance. Gambling and trading just do not go well together. There is no skill in it, you are not analysing the markets and working out the best probability, you are simply putting on a trade that you think or sometimes just blindly think will go one way. When it doesn’t, what do you think the next course of action will be? Well, it isn’t to walk away, nop, instead people will simply put on another trade, an even larger one, with potentially even worse results. So if you get the urge to gamble, take it to the sport betting sites and not the forex markets.

Trading to Repay Debts

When people are in debt they can do desperate things, one of those things is to trade in order to try and make enough money to pay off their debts. When money and desperation are your primary motivators for trading then you will most likely be letting greed take over you. You will make trades that you probably shouldn’t be making or trading larger trade sizes than you should be. Either way, if those are your motivations then you probably should be steering clear of trading.

Trading to Make a Living

This is actually an end goal for a lot of people which is fine, it’s a good goal to aim for, the problems that a lot of people will aim to do right from the start, this is a recipe for disaster. To be able to get rid of your job and to trade full time is a lot of effort, an incredible amount and you need to have a lot of experience in order to do it, it certainly is not something that you are able to do without a lot of education and time. Before you even think about going full time you need to be able to make more than you are making with your job, as a part-time trader. So it is a lot harder than you may think. Trading is a very up and down volatile market, you won’t always make enough to sustain your monthly expenditure, other months you will make more than enough, so ensure that you have backup funds and also make enough on average to sustain your life and to make more than you currently do with your job.

Choosing a Random Broker

All brokers are pretty much the same, they all allow you to trade on the markets, so it doesn’t really matter which one you chose right? Wrong! Each and every broker is unique, there are of course some which are simple clones of others, but these clones differ from all other brokers that are out there. Different features, trading platforms, spreads, commissions, execution methods, customer services, bonuses, and more, every single aspect of a broker can be different, not to mention that there are a lot of brokers that have been set up for the sole purpose of skimming and taking peoples money.

So instead of going for just a random one, you need to look for the one that suits your own needs. We would suggest avoiding market maker brokers, these are brokers that have their own markets and trade against their clients so they have an interest in your losing, instead, go for a commission-based one. The more money you make, the more successful you are, and they have an interest in your success. You also need to ensure that they have the assets and pairs that you want to trade, that the trading platform matches what you need, if you have an MT4 trading robot, you will of course need a broker that offers MT4 as a trading platform. Some brokers offer bonuses, but we would avoid them due to the high trading volumes needed to actually withdraw any of the bonus as money. Look for reviews from your peers, often website reviews are affiliated but if you can find independent ones then that would be a good source of information on the broker. Ultimately, look for some that suit you and do not just simply sign up for the first one that you see.

Using Your Emotions to Trade

Emotions are powerful things and they can have a powerful effect on your trading, as soon as you allow your emotions to dictate your trading you will be heading towards a disaster. Emotions like greed, overconfidence, and impatience are some of the worst emotions and feelings to have when trading. All of them lead to you making trades that go against your trading plans, your risk management, and often trades that have very little analysis behind them. If you feel these emotions coming, do not trade, instead, take a break, step away from your trading terminal, get some fresh air, and then come back with a clear mind. Just ensure that you are not trading when your emotions are running high.

So those are some of the things that you should not be doing when you trade, the sad fact is that a lot of brokers have been created for the single intent to steal peoples money, so you need to be careful, there are also a lot of different pitfalls that you can fall into, many of which are classed as bad habits, you need to learn, take your time, do some research and stay disciplined if you want to be a successful trader.

Beginners Forex Education Forex Basics

The Most Common Error of All Forex Traders

The question I’m usually asked is, “what’s the biggest mistake that Forex traders make?” The question is more complex than it seems because mistakes are usually accompanied. The usual culprits are lack of capitalization, poor analysis, poor risk management, or even a lack of a robust trading strategy. Even though all these mistakes are relevant I think the answer can be summed up in one thing: a complete lack of patience.

Patience in Trading

Patience matters more than anything in trading. I bet a lot of you were going to say that the number one error in Forex trading is an inappropriate position size. That is the de facto standard response that most analysts and forex experts give. We take it for granted that this is a crucial problem for most retailers, but even that can be reduced to a complete lack of patience. After all, think about what causes an inappropriate position size: it is the mentality of getting rich fast. That is simply a lack of patience in essence.

Lack of a Trading System

If you do not have a trading system or at least one that is reliable, it is probably due to a lack of patience as well. After all, it has not taken the time to have a system in order to position its trade. You haven’t spent time learning technical analysis or anything else on which to base your trade. Even if you did, have you tried it? , a true trading system is the one that has been tested and must have the ability to understand what is the expectation of it. If you have not done all this, you are simply trying to run before you have the ability to walk. Lack of patience will cost you money.

Breaking Their Rules

Let’s just say he’s done the right thing and has a decent trading system that is expected to make money in the long run. However, you sit at your terminal in the morning and recognize that there are many obstacles to making some strong positioning. Unfortunately, many of you will continue and trade anyway, because of a lack of patience. This will make you make bad decisions and certainly lose money as the market will somehow have no direction or at least will not respond to your strength. Remember, sometimes we get paid to do nothing and wait for an appropriate time.

Trading for Revenge

Trading for revenge is short on patience personified as well. Why? Because you got a loss and now you’re trying to get the money back frantically. Unfortunately, we’ve all been in that situation. You took a position that you thought was valid but some random event that affected the market got you out of it. It’s very complicated not to take those moments personally and certainly, the first thing you think about is getting your money back. However, doing a little trading for revenge makes you more likely to lose more money than you originally lost. By not waiting for the next appropriate moment, you are demonstrating a lack of patience, which is the worst thing that can happen when it comes to Forex trading. Keep in mind, when you lose money, that’s it. If you do continuously, you won’t have enough capital to keep progressing.

Not to Investigate

You have to keep in mind that the fundamentals of a trade never really change, there are many details you will need to pay attention to. For example, I have been trading in futures markets, shaping markets. This is something I have done before, because I come from the world of Forex, therefore the true volume of the market is something that is elusive. Although you may be able to earn money on the futures market without shaping the market, I think it helps a little. I am right now investigating it from the point of view of someone who is doing a test, showing that even after many years of trading, there is always something new to learn. Indeed this is one of the great things about this initiative: it never stops teaching you, if you feel like learning. If you don’t have them, trading isn’t for you.

Not Consulting with Yourself

A big mistake I used to make was not consulting myself. What I mean by this is paying attention to my state of mind while trading. Frankly, some days are just not good days for trading. If you have money and are not comfortable or just too agitated you will need to stay away from the markets because they will try to provoke you to the fullest. There is nothing worse than having some external problem causing you anxiety or a feeling of discomfort while you are trading making you lose money many days in a small amount of time. I’ve been there, and it’s one of the worst things you can do. Why do you do this? Because you’re not being patient. You don’t understand there’s always a tomorrow, assuming you keep your trading capital intact.

The Main Conclusion Is…

I know this sounds extraordinarily cliché, but trading is like a marathon and not a short race. In fact, I would say that one of the most valuable parts of trading is how much of the lessons will influence your daily life outside trading if you allow it. Patience is certainly one of the main rules that the market teaches me every day. Patience is easily much more relevant than any other problem the trader faces. After all, if you stand aside and just look at things in a calm and rational way you could normally find the solution. However, in the heat of a trading session is not always the easiest thing to do.

Forex Basics

I´ve Lost Everything in the Markets! (And Here’s What I’ve Learned…)

I have lost everything in stock! Who has never heard this catastrophic phrase? Everyone knows the story of someone who invested money in the stock market and lost it, or you hear on the news that the stock market has plummeted by 3%!! Almost as if the world were to end immediately because of this sudden fall, well, I will tell you the truth about all this.

For starters there are many people who have lost their money on the stock market, right, even whole pension plans and life savings that have disappeared in a few hours, but… Wait! Pension plans? Savings? This smells like a bank! Indeed, the people who lose so much money in the stock market are because they give carte blanche to their banks to play stock with their savings that have cost them so much sweat.

Let’s tell you a secret, professional traders never play more than 1% of their total capital, that is, for a $10,000 account, a professional trader will never be willing to lose more than $100 in a single trade, leaving in the worst-case scenario the account at $9,900. True, some traders get to use up to 2% of the account, but it’s not the usual thing.

So the logical deduction we draw is this: If professional traders manage their money with such caution and banks don’t, don’t banks have professional traders in their ranks? Yes, of course, they do, but the bank does not want to grow your current account, it wants to grow its own and its stock value, therefore they will devote themselves to buying shares of their own bank, their insurance company, and other companies of their business group. If you have a stock-exchange-linked pension plan, why don’t you look at what stock you have bought? I am convinced that they will be yours and from companies where they have some power.

Now let’s imagine that the value of our bank, after going up, is about to fall, the traders of the bank see it and think: “If now I sell the shares of my dear client, you will have profits and I will be able to invest your money in the company X that looks bullish.” That would be nice, wouldn’t it? Not so, these traders think in the following way: “If the stocks of our bank are about to fall, it is because people will sell stocks, then if I sell those of my customers, the value will fall even more!” The solution of these traders, in the best of cases, is to keep your position in full decline, pray that they do not buy more shares from their own bank in full collapse to try to maintain the current price.

Do you understand now why so many people lose money in the stock market?

So how to survive in the stock market and not lose everything? As you saw the first thing is to avoid the banks, they are not very interested in your financial health (you just have to look at the crisis that we carry), so how do we do it?

First, we will decide how much money we want to invest, never put money that you will need to live and pay the bills, it is a risk that will only put pressure on us and is not worth risking so much.

Imagine that we capitalize with 1000€ to invest in the currency market (Forex), that is to say we open an account at a broker and transfer the money. About which broker to choose, their advantages, disadvantages and how they work in general we will talk at length in other posts, for now, let’s focus on imagining that we have our trading account with 1000€.

Nowadays in forex, you can play from 0.1€ per pip to hundreds of euros per pip, logically if you are new you should start betting according to your account. I explain, suppose you usually do intraday operations with a 20 pips Stop Loss and buying 1 micro lot (the least possible), then the minimum you can play is:

20pips * 0,1€/pips * 1 micro lot = 2€ from your account

These 2€ represent 0.2% of your money invested, therefore, if you have failed in your analysis you only lose this, nothing more! Now your account would have 998€ positive.

By operating in this way we make sure we survive if we make a mistake in any operation, and continue to make money if we were right, we basically have total control over our money. If this capital were used by the bank to invest, you’d never know how much you were going to earn or lose.

With this post we want you to see that in the stock market everyone controls their risk, it is literally impossible to lose everything, the Stop Loss and our risk management are in charge of avoiding it.

Forex Basics

How to Break Bad Trading Habits

Most of us have daily habits that affect our everyday life. Waking up early in the morning is an example of a good habit while biting your fingernails is a bad habit that many people try to avoid. Many habits that affect our lifestyle are obviously good or bad, for example, as anything that leads to productivity is likely a good habit, while unhealthy habits are easy to recognize. When it comes to trading, the unfortunate reality is that good and bad habits aren’t as black and white. In some cases, traders even mistake bad habits for good ones. You might not even realize that you’re practicing bad trading habits at all! Here are some examples of bad trading habits:

  • Overtrading 
  • Revenge trading
  • Breaking your trading rules
  • Setting bad stop losses
  • Not keeping a trading journal
  • Practicing confirmation bias

The first step to breaking bad trading habits is actually being able to identify the problem. For example, traders that practice overtrading often get a high from trading and don’t stop when they should, which causes them to lose money. Others might practice revenge trading after taking a loss by thinking less about the moves they are making while risking more money to win back funds that were lost. Confirmation bias involves only considering data that supports your preconceived ideas, even though contradicting information is out there. If any of these sound familiar, then you can consider yourself guilty of practicing bad trading habits. 

 You’ll also want to take your self-imposed goals seriously, as breaking your own rules is still a bad habit. We need to set rules when trading, as it is all part of our trading plan. If you find yourself often deviating from the amount you said you’d risk, making trading moves that you said you wouldn’t make, or any of the above, you need to remember the plan you implemented or revise your strategy to work with your newfound trading personality. There are also other healthy habits you start, like keeping a trading journal. 

Once you’ve identified your bad habits, it’s time to break them. Try following these simple steps to train yourself not to make the same mistakes:

  1. Identify your bad habits
  2. Ask yourself why the habit is bad. How does it affect your profits?
  3. Replace the bad habit with a good one

This may seem overly simplified, but it works. For example, say that your bad habit is the fear of losing money. You set your stop loss for every trade according to your trading strategy, however, you often find yourself tightening your stop loss because you are so afraid of losing money, even if the trade is winning. Once you identify the problem and move on to step 2, you might realize that you’re actually cutting into your profits because many of these trades would have gone on to make you even more money, had you only left them alone. All you have to do to break this habit is to leave your trade alone in the first place and you’ll begin to make more profits. Other habits might be harder to break, but you will feel more of a reward once you begin to realize that your trades are making more money. 

Forex Psychology

What is the Most Dangerous Trading Emotion?

Trading psychology is a broad topic that focuses on the ways that emotions like fear, anxiety, anger, etc. can cause us to make altered trading decisions that typically result in a loss of money. For example, a fearful trader might enter trades too late or not at all, while an angry trader might take revenge trades that aren’t well thought-out in an effort to make their money back quickly.

Often times, traders that aren’t aware of trading psychology don’t even realize that these emotions are affecting them so they never get to deal with it. While some people may disagree, most trading psychology experts will tell you that greed is actually the most dangerous trading emotion of them all. 

Greed is defined as a selfish desire for more of something than is needed, usually referencing money, although food or other materialistic items can also cause greed. Every trader wants to make more money, but the greedy trader becomes so obsessed with making money that they sabotage themselves. While an anxious trader might avoid entering trades altogether out of a fear of losing money, the greedy trader is prone to overtrading and might enter trades that they shouldn’t in an effort to get as much of it as possible. Unfortunately, entering more trades is not a surefire way to make money and it is more likely to work against you, especially if you are thinking irrationally.

With each trade you enter, you need to think of the risk to reward ratio and also ask yourself if there is evidence that supports the decision to enter the trade based on your trading plan. You also might want to take smaller position sizes on trades that you’re less sure about and vise versa. However, greedy traders aren’t as likely to consider all these details because their mind is only focusing on the money they want to make. 

On the bright side, traders that are suffering from greed can find ways to overcome this emotion in the same ways that anxiety, fear, and other negative psychological issues can be overcome. The first thing you’ll need to do is accept the fact that you can’t win every time – even the best traders are wrong sometimes. You also might need to adjust your expectations if you’ve set monetary goals that aren’t realistic. In fact, it isn’t a good idea to set goals with hard monetary limits at all because of how unpredictable trading can be.

Another way you can curb greed is by focusing on goals that improve your skills as a trader. Spending a certain amount of time each day reading trading articles or practicing on a demo account are a couple of examples of positive tasks that lead to self-improvement. If you take steps to improve yourself as a trader, rather than only focusing on how much money you’re making, you’ll actually make money in the long run.

Forex Risk Management

Ways to Keep Your FX Trade Earnings Consistent

Once you start making money as a forex trader, you’ll never want it to stop. Sadly, none of us are safe from trading fallout and you just might find yourself at the end of a string of losing trades if you aren’t careful. If you want to keep making profits consistently without falling victim to this problem, try following these tips:

Limit Your Losses

While we’re often thinking of how much money we could make on each trade, it’s more important to focus on avoiding losses. If you risk a lot on one trade, you might get lucky and profit, but you have to think of how much money you could lose as well. If you go risking 10% or more on each trade, you’re far more likely to blow your account. Think slow and steady rather than risking larger amounts as if you were gambling. When it comes to limiting these losses, different traders use different methods.

Using a stop loss is a common way to ensure that you don’t lose too much, but you’ll also want to think of your risk tolerance for each trade. You might prefer to risk a certain percentage of your account balance on each trade based on the trade’s risk to reward ratio. Everyone has their own risk tolerance, but you shouldn’t be risking large amounts of money on each trade you take. 

Know your Strategy

You can’t expect to keep consistent profits coming in if you don’t know the ins and outs of your chosen trading strategy. You’ll want to start by choosing a strategy that works for you depending on how much time you have available to trade and you’ll also need to ensure it isn’t too difficult. From there, you’ll need to figure out the strengths and weaknesses associated with your plan. 

Only Risk what you Can Afford to Lose!

You should never deposit money into your trading account that you can’t lose, so don’t even think of depositing money needed for necessities. You’re always hoping to make money, but you have to remember that there could be times when things don’t go in your favor. You’ll also want to think of how much you’re actually willing to lose on each trade, which goes hand in hand with our first tip that covers limiting your losses. 

Be Patient! 

Sometimes, you’ll just need to sit back and do nothing as a trader. Some struggle with this because they feel unproductive by doing nothing. Others are simply addicted to the rush of trading so they enter trades even when evidence doesn’t support those decisions. This can cause you to lose money and will certainly have a negative effect on your profits. 

Don’t Give Up!

The reason why most traders fail isn’t that trading is too hard, it’s because they give up too easily. One bad day, a few losses or a blown account are enough to send some traders packing for good because they decide that trading isn’t worth it or they just aren’t good at it. The truth is that the mistakes that caused those losses could have often been avoided, but many beginners just don’t put enough time into research and figuring out what they’re doing wrong. If you want to make consistent profits as a trader, you have to hang in there and work on any mistakes that are affecting your profits.

Beginners Forex Education Forex Basics

Trading-Related Resolutions that Will Improve your Results

While we usually introduce resolutions around New Years, why wait? You can start practicing these healthy trading resolutions right now (for free) if you’re looking to put more money in your pocket.

Resolution #1: Review your Past Performance

Whether you’ve only been trading for a short time or you have more experience under your belt, it’s a good idea to look back at your past performance over the last year or so, or however long you’ve been trading if it hasn’t been that long. Are you making more or less money than you were in the beginning? You can try asking yourself these questions with your results in front of you:

  • Did I follow my trading plan or drift from its guidelines?
  • What are my trading strengths and weaknesses?
  • Have I met the goals I had set? 
  • What goals do I want to achieve in the next 6 months or longer?

After answering these questions, you should have a place to start with your plan for improvement. Try addressing your weaknesses to start. When reviewing your past goals, you’ll want to think about whether they were realistic or not. To be clear, an unrealistic goal would be to make a million dollars from a small deposit, while a realistic goal could be to improve your results over a period of time. If your previous goals were unrealistic, try to model more reachable goals for the next period of time without setting harsh financial objectives. If your goals were realistic, ask yourself why you weren’t able to meet them and work on a plan to try again. Perhaps you need to devote more time to trading, revise your trading plan, spend more time researching, etc. 

Resolution #2: Embrace Positive Thinking

That little voice in your head can be negative from time to time, and some traders can be especially hard on themselves after making mistakes that cause them to lose money while trading. We hear a lot about the ways that negative emotions like anger and greed can negatively impact our trading results, but did you know that there’s a whole movement dedicated to the ways that positive thinking can improve them? If you beat yourself up over mistakes, this negative mindset is going to spill over into your results, and you might even wind up feeling more depressed and less motivated. Instead, try to be kinder to yourself by thinking positively and learning from past mistakes. Remember that even trading robots make mistakes and we’re all only human.

Resolution #3: Learn!

Once you figured out everything you felt was important about trading and devised a strategy, you might have slacked off on the extra research or even avoided it altogether. Sure, you might know the ropes and feel confident about your trading knowledge, but why not learn something new? You just might find some helpful tips, come across a new strategy that you like better, learn more about trading psychology, and so on. Putting in the time to expand on your trading knowledge will only benefit you in the long run. If you’re unsure where to start, try the following:

  • Look for a trading-related book about strategies, tips, psychology, etc. 
  • Find a blogger that has a different trading style from you.
  • Research trading tips.
  • Check out trading forums.
  • Google search beginner, intermediate, or advanced trading articles (depending on your skill level).

The more you know, the better. Never stop learning new things when it comes to trading, otherwise, you’ll be left in the dust as new advancements are made and you might miss out on some really helpful trading-related information.

Forex Education

Important Forex Lessons for Newbies

Oftentimes, new traders start out with their own preconceived idea of what trading is. Ideas can vary widely – some might assume that trading is easy and a quick way to earn a buck, while others might think of it in a more intimidating light. No matter what theory one has in the beginning, each beginner is likely to learn the lessons we’ve outlined below with time. Of course, you could always learn the hard way, risking real money as you go, or you could take a few minutes to take a look at our list below to avoid learning these lessons through trial and error.

Lesson #1: Stay True to your Plan

Before you start trading, you’ll need to create a trading plan that really considers the important aspects of the why’s and how’s of the way that you will trade. Many beginners read advice online that details the importance of actually making this plan, and they do start out with a trading plan. However, it’s common for beginners to deviate from their plan over time or simply forget they even made one. You might even decide that you don’t need a plan anymore once you start getting better results. Unfortunately, this can lead down the wrong path and you could actually lose money by forgetting about your tried and tested trading method. It’s a good idea to review your results once you implement your plan – if the statistics show that the plan is working, that’s reassurance that you should stick with it. 

Lesson #2: Manage your Risk

With gambling, you might be tempted to take bigger risks in lieu of larger rewards. Some beginners have this mindset when they start trading, but this is a quick way to drain your account. Trading decisions should be based on hard evidence that is outlined in your trading plan, but you also need to limit the risk you take on each trade because the market is never predictable. Be sure to read up on margin, leverage, and drawdowns if you haven’t, and ensure that you are also using stop losses and the correct position sizes as well. Many beginners don’t realize how important these factors are when it comes to limiting losses and wind up taking one or more large losses that leave them with a zeroed-out account balance. 

Lesson #3: Be Patient

There will be times when the best thing to do is nothing at all. If there isn’t evidence that supports making a trade based on the facts you’re looking for, you should sit back and be patient. Some beginners become addicted to the rush of trading or might even feel unproductive if they don’t do something, making them more likely to enter a trade that will go south. After all, it’s often said that the best traders do nothing 99% of the time. 

Lesson #4: Don’t Compare Results

Everyone trades at their own pace, so it isn’t fair to compare your results with others. Remember that the factors affecting your results are different, as that person likely invested a different amount of money, risks a different percentage on their trades, uses a different strategy, and so on. It’s also important to remember that you shouldn’t throw your trading plan out the window to randomly adopt a plan that seems to be making someone else more money. Otherwise, you might run into problems you didn’t expect and could wind up losing more money in the long run. 

The Bottom Line

Many of these lessons revolve around the importance of creating a solid trading plan and sticking with it over time, rather than abandoning one’s proven plan in favor of a sudden urge to try something else. You also need to avoid entering trades just to do so and only enter a trade if the evidence supports that it is a good move. Know when to do nothing if your trading plan doesn’t support entering a trade. Beginners also have a common problem that revolves around managing risk effectively, as some like to jump into things taking bigger risks when the reality is that a new forex trader should risk less money than someone that has been trading for a long time. If you keep these lessons in mind, they should help you to avoid losing money because of mistakes that could have easily been avoided.

Beginners Forex Education

Five Golden Trading Tips for Forex Beginners

3030Some of the best forex trading tips that can be found online are old, yet undeniably helpful. Whether you’ve recently started your journey as a forex trader or you’re only considering opening a trading account, you should take a look at our golden trading tips below to ensure that you aren’t missing out on any crucial trading advice.

Tip #1: Limit your Risk

Limiting your losses is one of the best ways to ensure that you don’t wind up blowing your entire account balance. While some of us might feel very uncomfortable risking a lot, others start out with the idea that risking more will lead to a larger payout. It’s true that you might win big, but a couple of losses can really depreciate your account balance. Experts recommend limiting your risk to 1-2% of your total account balance for each trade. However, other advice recommends determining how much you want to risk based on how much you’re willing to lose for each specific trade, rather than using a one size fits all plan. For example, you might be willing to risk more on a trade if there is more evidence that it is a good move, while you’d want to risk less on a trade you felt less sure about. 

Tip #2: Only Risk What you can Afford to Lose

First, you should never deposit money into your trading account that isn’t disposable. If money is meant to pay for bills or you need it to live on, then you should keep it in your pocket. When it comes to the amount that is actually in your trading account, you want to limit your position sizes and be careful with how much you risk. In this case, you actually need to think about how much you can afford to lose while keeping a steady reserve of cash available for trading. If you do wind up blowing your account, be sure you only replenish those funds with money you can afford to lose. 

Tip #3: Stick with your Strategy

Before you even begin trading, you need to spend time developing your trading strategy, which is basically a plan that outlines the reasons why you will or won’t take a trade, what time you’ll trade, how much you’ll risk, and everything else that is important about the way that you trade. Once you’ve made this plan, it’s important to stick with it for the best results. Many beginners spend time on their plan, in the beginning, only to deviate it or completely forget about it later on. Unfortunately, trading without a plan and trying out random strategies usually leads to a loss of money. 

Tip #4: Know when NOT to Trade

There will be times when the best thing to do is nothing at all. Before entering any trade, you should always make sure that evidence supports the move based on your trading plan. If there isn’t any evidence that you should enter the trade, don’t do it! Some traders feel that trading more will help them make more profits, while others can’t stand sitting back and doing nothing while their balance remains the same. The truth is that it is better to enter no trades and keep the same balance than it is to enter risky trades that will cause your balance to drop. 

Tip #5: Choose the Right Broker

You need to put a lot of effort into your broker selection, otherwise, you’ll wind up paying the price later on. Keep in mind that there are many legitimate companies to choose from, but scammers are among the offers online. You also need to compare the different fees, deposit and withdrawal methods, account types, leverage options, and other specifications offered by each broker so that you can find the best option for your needs. Don’t go with the first option you see and be sure to compare at least a few trustworthy options before making a choice.

Beginners Forex Education Forex Basics

Ask Yourself These Questions if You’re Not Profiting from Forex

All forex traders want to make money, but this is easier said than done. There are a lot of problems you could run into that can cause your profits to stall, so much so that it might be hard to figure out exactly what’s going wrong. If you’ve been finding yourself barely breaking even or even losing money, try asking yourself these questions to identify the problem.

Question #1: Are You Making Classic Trading Mistakes?

There are several common trading mistakes that can keep you from making money. Have you committed any of these trading sins?

  • Opening a trading account without a proper education: If you make this mistake, you might be feeling confused and don’t have a good understanding of how the market works and what or when to trade
  • Trading without a plan: If you don’t have a solid plan to follow, then your trades aren’t likely to be successful. 
  • Risking too Much: We’ll get into this more later, but you should be very thoughtful about how much you risk on each trade. Risking too much is a quick way to wipe out your account balance.
  • Being too Confident: You can’t start out with the idea that trading is a quick easy way to make money. If you aren’t prepared to put in the effort, then there’s no point trading at all. 
  • Using too much leverage: One of forex trading’s biggest perks is the ability to use leverage to increase your buying power. However, you should use it with caution. You don’t want to use your broker’s highest leverage option just because you can.

The good news is that there are simple fixes for the above problems that can get you back on track. For example, you could spend more time educating yourself, work on developing a good trading plan, and lower the leverage that you’re using. Or perhaps you should put more thought into your risk management strategy or set more realistic trading goals.

Question #2: How Much Are You Willing to Risk?

Suppose you have a $100 balance in your trading account. Thinking in dollar amounts, how much of that money are you willing to risk on a single trade? The safest answer would be around $1-2. If you’re risking amounts around $10, $20, or more, then this is likely causing you to take some big losses when the market moves against you. If you’re risking a lot, you should spend some time thinking about how much you’re actually willing to lose on a trade. 

Question #3: What’s your Trading Journal Telling you?

If you’re first thought is “what trading journal?” – this is likely a big part of your problem. How can you figure out exactly why you’re losing money if you aren’t logging your trades? A trading journal is the best tool for figuring out where things are going wrong because traders use it to log each trade in detail. Sometimes, the issues you’re suffering from might not pop right out at you but seeing consistent results in your journal can make it clear. Maybe you make bad decisions in the morning but improve in the afternoon. You might not be a morning person. Or you might realize that you simply forgot you opened a few trades each money and that if you hadn’t forgotten, you actually would have come out with a profit. A trading journal is ideal for pinpointing these problems and keeping up with how much money you’re winning or losing.  

Question #4: Is Forex Trading Really for You?

Many beginners start out with unrealistic expectations about forex trading. They might think that they can make a lot of money with little effort thanks to flashy ads that make it seem that way. Once you get started, however, you learn that there is a lot that goes into it and that it takes hard work to profit. If you’re willing to work hard and put in the effort, then you can really go far in the field, while those that just don’t want to spend time learning, working on their plan, and watching for important events might be better off without trading.

Beginners Forex Education Forex Basics

10 Rules and Principles for Forex Traders

In life, we all have to follow rules whether we like it or not. In the realm of Forex, there are several rules which if followed, can actually help you to become a more disciplined, profitable trader. Consider the following ten Forex related rules and core principles, as they can help you on your journey to becoming the best trader that you can possibly be.

1. You need a trading strategy: In order to be successful, you’ll need a plan that outlines how you’re going to reach your goals. As a forex trader, your strategy serves as a roadmap that will help you decide when and how you’re going to trade. There are a lot of different strategies online, so be sure to do your research to find one that works best for you. 

2. Learn to control your emotions: There’s a lot of information online about trading psychology and if you haven’t done any research on the concept, you need to. Both positive emotions like excitement and negative feelings of grief, anger, disappointment, and so on can wreak havoc on your trading decisions if you let them. A good trader understands how these emotions can affect them and know how to control them, or at least recognize when to step away if they start feeling overwhelmed. 

3. Try to learn from your mistakes: It’s easy to feel discouraged when you start losing money and you might even want to throw in the towel. The best traders use their mistakes as teaching moments and move on from them. Trust us, we’ve heard horror stories about billionaire traders losing a ton of money because of a mistake, but they didn’t give up, so neither should you.

4. Limit your risks: You don’t want to risk 20% on one trade, 15% on another, and so on, otherwise, you’ll drain your account. Slow and steady profits tend to be better and more promising than big risks when it comes to forex trading. Sure, you might win big on risk, but you could lose it all in the next moment and that sort of thing can break your career. 

5. Watch out if you experience early success: Don’t allow yourself to get a big head or become overconfident in your abilities. After all, confidence is one of the worst emotions that forex traders can face because it causes one to throw caution to the wind. Always remain humble and make informed trading decisions that don’t rely on luck.

6. Know when to trade: Trading out of boredom is never a good idea. On the contrary, some trade because they become addicted to it and can’t stop. There might be days where there isn’t a good trade to carry out and that’s fine – don’t force it or do it because you have nothing better to do or else you’ll wind up losing money.

7. Don’t fall for “magic” systems or advice: Some forex robots, brokers, or indicators come with flashy promises and claim that they can absolutely make you rich. Remember that everyone would trade forex if it were that easy to get rich. Everyone’s experience is going to differ and you won’t get the results of a billionaire trader if you can only afford to invest $100 into your account.

8. Practice first: Demo accounts are available with most forex brokers and can be opened for free. If you don’t know what a demo or simulation account is, you should know that these work just like live accounts and will allow you to trade with virtual money so that you can see how you perform in a live market setting. Being that these accounts are free, there’s no reason not to practice on one to test your strategy or just to gain general practice.

9. Be sure to choose a trustworthy broker: Know that there are scammers out there. Big-name brokerages are generally safe, but there are some lesser-known options out there that want to scam beginning traders that just don’t know what to look for. Always read the terms & conditions before selecting a broker and try looking up online reviews. You can also check for regulation status to see if a broker answers to a higher authority. 

10. Keep a trading journal: Traders that keep a trading journal write down everything about the trades they’ve made, not only technical data like entry and exit price but personal reasons why they made the trade and other factors. Over time, this can really give insight into your own personal habits and if there is anything you need to change about yourself or your strategy. For example, you might realize that your emotions are affecting your trades quite often where you wouldn’t have picked up on it without analyzing this data.

Forex Psychology

How to Approach Trading Changes Positively

Change, something that you either love or absolutely loathe. Whichever approach is relevant to you, you are going to need to embrace change in life and especially when trading forex. There isn’t a moment that goes by where your single trading strategy or plan will be 100% correct. The markets change, you need to change with them, adapting to whatever is being thrown at you. It is a challenging thing to do, but a vital skill to learn.

If we take a little look at people who really excel in their field, people who do a fantastic job of getting to the top and then staying there. Let’s take a look at Taylor Swift, nothing to do with trading but bear with us. When she started out she was shy, her music was based around country themes, all about love and romance. However the generation of people who grew up with her started to get older, their taste in music began to change and so then Taylor had to change also, if she remained the same, she would have lost a lot of fans. So instead, she adapted, she changed her music, constantly, there were never more than two songs with a similar theme in a row, this enabled her to keep her fans interested and engaged in her music. She did this and it worked, she is now more popular than ever.

This same way of changing to the needs around you can be seen with many other successful people. Warren Buffett had to adjust his style when the first few investments didn’t go the right way, Michae Jordan had to change his style of play early on in his life after being dropped by his high school team. The thing that all of these people have in common is the ability to change and adapt. If you wish to become a successful trader, then you are going to need to learn how to do this yourself because lets be honest, the markets will change, they can change hour to hour, if you are not ready to change with it, then you will be making some mistakes and you will be making some losses.

One of the things that makes a lot of traders fail is either their inability to introduce some of the much-needed changes or simply that they are unwilling to do it. Traders can very easily get stuck in their own ways, they have been successful in the past so the way that they see it, is that their strategy will be successful again in the future. This is a mentality that a lot of people get, but it is also one of the most dangerous as it will only lead to losses, potentially major losses when the markets have changed.

So let’s look at things in a way that is probably more familiar to you. Let’s assume that you have a scalping strategy, your strategy relies on the markets to be going sideways, ranging up and down between particular ranges. This works fantastically when the markets are doing what you want them to do, the problems arise when the markets begin to shift, they begin to trend. You’re now trying to scalping the opposite direction to a trending market, this will lead to either a large loss or a lot of little losses, neither of which are great. If you are not able to adapt to this situation, to change your trading style, or to completely step back, then you are going to end up losing out, so we need to work out a way that you can alter your current strategy to better suit the current situation that the markets are in.

So we have an understanding that we need to make changes, that is the first step and is certainly a good step. So we make a change and of course, we test it out on a demo account. We have done that and it has worked, so we jump straight back into a live account to put the changes to practice. This unfortunately may bring in new challenges, every change that you made on the demo account will have a subsequent effect on other aspects of your trading such as your risk management plan, so simply making that single change may well have messed up the rest of your trading plan, making things a little more complicated and it may not actually improve your overall results.

It is easy to change things with your strategy, but not every change is a good change. You can very easily make a change which makes things even worse. You need to have an understanding of what changes are needed to be made and also to have both the fortitude and the discipline in order to practice with the new changes and to gain the necessary information and knowledge that comes with them in order to effectively work out whether the new results are actually positive or negative. Many people simply stop halfway through their new testing because they do not feel like it is worth the time, or they do not have the understanding that these changes take time and will often need additional tweaks to them in order for them to be fully effective.

So in order to ensure that you are able to make these changes and to make them in an environment where you are safe and more importantly your account is safe, we do this in a number of different ways. The first is of course on a demo account, every single time that you make a change to your strategy, no matter how big or small, you need to look to test it out on a demo account. This allows you to try it over an extended period of time, in an almost live environment. You need to test it out for a long period of time, not just 4 or 5 trades. Use this opportunity to tweak things. The longer you practice with it, the better your understanding of how these changes have affected your overall trading plan.

The second is to simply review charts, this does not give you the hands-on and true trading feel, but it is vitally important. By reviewing the charts, it enables you to figure out what you could have done during the day and what you could have done differently. This is invaluable as it means that the next time that a similar setup appears, you will know exactly what it is that you need to do. It’s like a sports game, they watch back over the game afterward to find out what went wrong and what could be done differently, so the next time they come up against that opposition, they will be able to deal with the threats and the team a lot better. Do not be afraid to spend some time looking for what you need to do differently, your future self will thank you for it.

So those are two methods that you can use to help implement some change. Remember that change needs to happen slowly, but the most important thing is that change needs to happen. Do not sit there hoping the markets will come back, they won’t, they will simply punish you further. So think about what you need to change, get an understanding of it, and then implement it.

Beginners Forex Education Forex Basics

The Golden Rules of Forex Trading

If we look around the internet we will see a lot of different tips and hints being thrown around, some are pretty good, while others seem like they are simply plucked out from thin air. There are however a few things that are true across the board, no matter your experience level and no matter how long you’ve been trading. There are a few little rules that you should always take into consideration. We are going to be taking a look at a few of them and why they are so important if you want to become a successful trader.

Understand When to Limit Your Losses

One of the major areas of trading is risk management, this is simply the way that you protect your account. Without it, your account is liable to be blown with pretty much every single trade that you make, so it is vital that you have a risk management plan in place. As well as this plan is the need to understand why you should be cutting your losses. This is not something gotta anyone likes but it is a very important part of trading. When you have a trade going the wrong way, what do you do? Do you hold on to it in the hope that the markets reverse or do you deceit to cut the loss and then rebuild the account from the loss position? 

There isn’t an exact right or wrong answer here because everyone is different, we all have different abilities to handle risk and stress so ultimately it is going to come down to you. A lot of your profitability will come down to your ability to get out of, losing trades before they go too far. There are a few ways of doing this, either watching the trade manually, setting stop losses, or one of our favourites, setting up trailing stop losses. These are good because they act the same as a fixed stop loss, except for the fact that they move with the market, as your trades go up, the stop loss will follow them, when things reverse the wrong way it will hit the stop loss and you will close the trade. Just ensure that you have things in place along with your risk management plan in order to get out of trades before it is too late.

Understand and Accept Your Limits

When we first start out we just want to get started, we want to start placing some trades in order to get the ball rolling, but this is not exactly the smartest thing to do right from the very beginning. Simply thinking that a trade is a good one is not enough, instead, you will need to look at each trade with a clear mind with a set amount that you are going to be risking on this trade. Doing it this way will enable you to know exactly how much you have to use and so you can limit your position to be within your own boundaries.

It is important that you then stick to these limits, there is no point in making him just to break then the next minute. You will need to be strict with yourself and to have a lot of self-discipline in order to do this, but in the end, it will certainly pay off. If you have set yourself a weekly loss limit or a monthly loss limit, if you hit that amount, then no matter what else is going on, you will need to stop trading and then use the remaining time to analyse what it is that has gone wrong and to work out ways to avoid it happening again in the future.

Develop Your Trading Style and Stick With It

Unless someone is simply copying someone else trade for trade, no two traders are exactly the same, they may take very similar trades, but this does not mean that they are using the exact same strategy, we all create our own variations of them that suit our own personalities better. You need to build up your own knowledge base and to work out exactly what it is that you enjoy about reading and what you are good at. Once you have done this you need to select a strategy and a style of trading that suits you and that you have a good understanding of. Once you have done this, you will then need to continue to learn more, but the important thing is that you stick to that same strategy.

The importance of sticking with it is that you gain a much better understanding of the ins and outs, chopping and changing is never a good thing when it comes to trading as results can only be considered over a long period of time, and not simply after one or two trades. So be sure that once you have your strategy, you stick to it and work on it.


Patience is something that a lot of people unfortunately lack, yet it is such an important trait to possess when it comes to trading, without it, you will become stressed, frustrated, and will most likely start putting on trades that you probably shouldn’t. Patience allows you to wait for the right moment to put on your trades, if the markets are not yet in the correct state or they do not line up with your entry requirements, then you need to exercise patience and hold off making any trades, if you do then it will be considered a bad trade which could lead you to lose out and having some potential losses.

Make a Plan and Follow It

This is probably one of the more important rules to remember, once you have created a plan, it is paramount that you stick to it. This is relevant for a number of different reasons, the first being that you are not able to work out whether a strategy has been successful for a longer period of time. You cannot judge a strategy unless you have been using it properly for at least one month. The other main reason why you need to stick with it is that your strategy and trading plan will also have your risk management plans built into them, as soon as you start doing things differently it is putting this out of whack. This can then result in larger losses or smaller profits, making your overall strategy far less profitable in the long run. The moral of the story is to simply stick to your trading plan and strategy once they have been created.

So those are just some of the rules that you need to be considering when you start or continue to trade. There are of course many more and most likely some that you have made up for yourself, once you have your rules, keep to them and it will make your trading journey a lot simpler and hopefully a lot more profitable.

Forex Psychology

Dealing With the Stress of Forex Trading

Stress is a powerful emotion and it is not one that will shy away from forex traders or any other traders, in fact, it can take a hold of us no matter what it is that we are doing, even something as simple as making a sandwich. You sometimes see those people who never experience it, and generally, we hate it, but what we see is not always the truth, just because we do not see them reacting to stress in the way that we expect, it does not mean that they are not experiencing it.

People can develop ways to deal with stress, so while it may not seem like they are experiencing any, they actually are, they just are able to deal with it. It is important that you are able to deal with your stress levels, if they manage to get too high it can potentially cause you to make rash and irrational decisions which could then be detrimental to your overall trading strategy and profitability. Everyone deals with stress in different ways so it is important that you work out the way that you will be able to deal with it. 

We are going to be looking at a number of different ways that people can help deal with their stress, some may work for you, some may not, but they are certainly effective for some.

The first thing that you need to be able to do is to acknowledge and accept that you are experiencing some stress, the earlier that you are able to do this the better. Admit to yourself that you are feeling stressed, anxious, or that things are just simply too much for you. Once you are able to accept that you are experiencing stress, you will then be able to begin to work on getting over it or controlling it. Think about the last time you felt stress, what did you experience? Some people have a faster heart rate, some people get headaches and some people begin to sweat. You need to understand your signs and how they manifest themselves if you are going to be able to recognise stress and then acknowledge it.

You then need to accept that you are experiencing these emotions, just because people have seen the signs, does not mean that they want to accept that they are going through it. Some people like to suggest that they do not experience stress, they never have before but that is simply not true, some people like to believe that they do not, they like to allow others to believe what they do not, but they most certainly do. Accept that you are going through it and you will be able to offer a better deal with it instead of keeping things inside and letting them grow.

If you feel that you are going through some stress or can feel in building, then it is important that you stop trading when going through these emotions can lead to some very rash decisions that could potentially put your account in danger. Stress can make you throw whatever risk management that you have out of the window and to put on larger, more risky trades, not something that anyone should be doing.

Take a step back, there is no harm in stepping away from the computer or your trading station when you are feeling these emotions. In fact, it would be recommended. Take a break, be it 5 minutes, 10 minutes, an hour, or until the next day. Go outside, go for a walk, all of these things will help you to clear your mind and to get a fresher look at the markets. Taking your mind away from the thing that is causing you the stress is the best way of reducing it, of course, then simply coming back can simply bring on the stress again, so there need to be ways for you to be able to control them and to know exactly what it is that is causing the stress.

The next and one of the most important things that you need to be able to do is to identify what it is that is causing you to stress, the sources of your stress. The sooner that you are able to work out what it is that is causing you the stress, the sooner that you will be able to avoid it or to eliminate it completely.

The problem is that it can be quite hard to actually work out what it is that is causing you the stress, due to this it is important that you take a journal. You were probably told to create a trading journal, what you need to do is add a little section to it where you can indicate your current feelings, every time that you are feeling a little stressed, write it down, you will then be able to use this to see any patterns. Maybe you are feeling it each time you have a loss, each time the markets go against you, or if a certain someone comes over to visit and distracts you from your trading.

If you are able to notice and pinpoint a trend or a reason as to why you are getting stressed, you can then look at ways to reduce or avoid it. Some things like losses cannot be avoided, but you are able to train yourself to have a better understanding of your overall strategy, losses should be a part of that and how to deal with them. If it’s a person interrupting your trading, then, ask them to not come during your trading times. There are little things that you will be able to do, and it is important that you understand what they are.

You won’t be able to remove every source of stress, that would be impossible, and some levels of stress can actually be good for you and can help you to concentrate more, but the most important thing is that you get an understanding of what the sources of your stress are, this way you can manage yourself to not allow those stresses to take over your trading. Try to avoid trading stress and you will be able to be a calmer and ultimately more successful trader.

Forex Basics

How to Rejoin the World of Forex Trading

Starting again with anything in life can be a bit of a challenge, after all, how can you start from fresh when you already have some knowledge and have most likely already built up some biases within the markets and for certain trading strategies. It can be difficult, no doubt about that, it will take a lot of work too, do you remember how much reading you needed to do, how many websites you had to visit to get the knowledge that you currently have, well we will be doing that all over again.

So why would you want to start over? There are many reasons why someone would want to, maybe you had an extended time away from trading, if you have stopped doing something for a year, when you come back you still have the knowledge of it, but a lot of things have changed, or you have forgotten certain parts of it, sometimes it can be easier to just start from scratch and start learning again rather than trying to find the little bits of information that you are missing. You could be in a situation where your current strategies just aren’t working and you don’t have the motivation to fix them, starting again can help drive more motivation into your learning and trading as you will see far more progress over time if you have started from the start again.

Learn the Markets Again

Relearning the markets from ground zero can be a little daunting and challenging at the same time, you are trying to re-learn things that you already know, or at least think you do, this is probably the most boring part of starting again. It is important that when doing this, you do not get held up on your own learning, what you knew before is now irrelevant, we want everything fresh, things may have changed from when you last learned it and so we do not want your past biases to take effect on your learning, learn everything, even if you do not think it would be relevant.

Remember Your Strengths and Weaknesses

While we are starting from scratch, one advantage that you will have over someone who is entirely new is the fact that you know your strengths and your weaknesses. You need to remember these and keep them, not only does this help you with building the first strategy of your restart, but it also helps you to focus your learning, there is no point on concentrating on the bits that you are good at, instead it allows you to focus some more of your time on your weaker parts, thus bringing your overall trading abilities up, you never know, these weaknesses could have been the parts holding you back before.

Use a Trading Journal

You have probably had people tell you to always use a trading journal, a lot of traders do, but a lot of treaders started them well into their trading journeys. This is your opportunity to start one at the beginning (of the re-start). Why would this benefit you, it will allow you to see exactly how your trading is developing, you will begin to see patterns forming, but also even the most subtle of changes will be brought up, you can then look at the figures and see where you are going right or wrong. If the changes are good, keep with them, if they are bad, you can revert back to the point where things were going right. Keep entries of everything you do and it will help guide you to far better trading in the long run.

Keep on Trading

Keep trading, the best way to learn is to do it, trade, trade, trade, of course, you want to be trading in line with your strategy. As all professionals or experienced traders would say, use a demo account to practice, this is your way of honing your skills, practice your established strategies and new strategies alike. The more that you trade the more used to trading you will become and your data you will gather in order to analyse your own trading abilities.

It is never easy starting over, you will feel like you have lost all the time you spent learning before, but this is not the case, you will still have knowledge of your strengths and weaknesses, you will still have a decent understanding of the markets and various strategies. Starting over is more of a way of refreshing your knowledge and getting a fresh view on things, especially if they have changed since the last time you traded. Practice and record everything you do and you will soon find the motivation to go much further than you did before.

Forex Psychology

Is It Important that You Actually Enjoy Forex Trading?

It’s a very simple question as to whether you enjoy trading or not, however even some of the simplest questions can be quite hard to answer if you look into things in a little more detail, with a little more depth, you can find out exactly how you feel about something, and for many, it may not actually be how it seems on the outside. There are a lot of aspects to Forex trading. Some people will enjoy some of them, like the wining, and others will find it absolutely tedious, such as all the numbers. It really comes down to your personality and your likes and dislikes as to whether you will enjoy your trading journey.

Trading is tough and trading takes a lot of deduction and discipline, if you believe that you are a free spirit, someone who cannot be held down, then trading can seem from the outside like it would be perfect for you, no boss, no set working time, however, in reality, the markets will ultimately control you and will be in charge of you. You will be forced to work certain hours, you will be punished when you do things wrong and you will unfortunately have all of that without the stability of a guaranteed monthly wage.

Trading can be incredibly exciting and incredibly rewarding, especially when you are on a roll of positive trades. Each and every win will give you a little bit of excitement and a little confirmation that you are doing something correctly. What about when things go wrong? When you make a loss, it is of course not an enjoyable situation to be in. What you need to think about is how you deal with that loss, how are you coping with losses? Do they stress you out, do they cause frustration? If they do, then you may not find trading to be very enjoyable in the long run.

There will be a lot of losses along your trading journey, if you are not able to deal with them without stress or to be able to move those loose out of your mind in order to move on then there is a good chance that you may begin to find trading stressful and not all that enjoyable once the losses begin to build up, and they most certainly will begin to build up. Being able to deal with those losses and being able to clear your mind will really help you remain positive. Just remember that those losses are coming, there will always be losses, so dealing with them is paramount. Just remember to consider your overall enjoyment when deciding to trade, if you get caught up on losses, then this may not be the hobby or career for you.

Numbers, lots of numbers, do you like numbers? If not then trading won’t be an enjoyable thing for you. The Majority of trading, the analysing, the planing, and the actual trading is all based around numbers, be it the value of a currency or the current Fibonacci levels. Numbers will be involved in everything that you do. For those that like maths and statistics, trading will be an amazing experience, it allows you to analyse all sorts of things and will keep you busy pretty much every day. However, if you are not a fan of numbers and performing mathematical sums, then trading could be a little boring and a little tedious as you begin to realise that it is pretty much all based around those pesky numbers.

How are you when being by yourself for an extended period of time? If you struggle to keep yourself company, then it can be a difficult journey. The majority of trading is not a highly social event, in fact, the majority of the time you will be sat by yourself in front of the computer, reading, trading, and keeping yourself entertained. Of course, there are times where you will take to others there are forums and other message boards available to talk to other like-minded people, but this is still all digital and many other traders do not actually come into physical contact with any other active traders.

Are you able to keep yourself occupied, do you feel lonely when alone, and do you cope well with isolation? These are pretty big questions that you need to ask yourself, there are those that are able to entertain themselves or in fact enjoy the aspect of isolation. If that is you then you could really start to enjoy trading, you are in total control, but that also means control of your moods and your interactions with others. If it starts to get too much, then you may need to look at trading in smaller chunks and using the time between to get outside and interact with others. However, if you like the isolation, like a lot of people do, then not needing to deal with other people and the issues that come with people management, then this could certainly be the career for you, it will be just you, your computer, and the markets.

Do you need direction? One thing that a lot of people hate about their job is receiving instructions on what they need to do, but it isn’t until you have left that job that you come to realise that you actually needed that direction and those instructions. Many people find it hard to prioritise and to plan their days, and without some there to help you through it can often feel a little lost. Being a trader, full time or part-time, requires a certain amount of self-direction and planning. You need to plan your day, you need to ensure that you are motivated to do it and you need to be able to evaluate your own performance on it. If you are not able to plan your days properly then you may find trading an extremely stressful experience. Those able to work well by themselves will find relief in the fact that they do not have someone above them managing them, of course, the markets will still be in charge.

How are you with self-motivation and self-discipline? If you notice that you are doing something wrong are you able to correct yourself? Being a trader means being able to motivate yourself to do the work and being able to tell yourself when you are doing something badly. In terms of your enjoyment of trading, motivation will go a lot way, if you are not motivated and not able to self motivate yourself then you will struggle to enjoy it. The most common reason for losing motivation is boredom, and that is something that you will potentially experience a lot during a solo trading career, so being able to give yourself that boost is paramount to any form of success.

The same can be said for discipline, if you are not able to discipline yourself to give yourself some honest feedback on your trading abilities and performance, then you will only continue to make mistakes These mistakes will lead to a loss in motivation and will diminish your overall enjoyment of trading. So if you are able to self reflect on your performance, you may well enjoy it, but if you are not, then it could be a difficult and demoralising journey for you.

So those are some of the things that you need to be able to think about. Trading can be very enjoyable for some, but others it can be a real mood and motivation killer. It will ultimately come down to your personality and the way that you are able to deal with boredom, stress, and all the other emotions that come along with trading.

Forex Psychology

Should You Trust Your Instincts While Trading?

Your instincts are powerful things, they can take hold of us when we are doing pretty much anything in life, out in the wild, our fight or flight reactions, playing sports and it most certainly rears its head when we are trading, in fact, everything that we do when trading has an aspect of our instincts in them, or at least in the back of our minds. We have often been taught when trading that we need to go with facts and not our instincts, but is this really the case? We are going to look into your instincts and how they can actually help with your trading.

We are going to go against that trend and state that you should indeed listen to your trading instincts, there are a few catches, we, of course, are not referring to simply ignoring all the research and then just trade whatever it is that you think is right.

We are sure that there have been times when you are trading where you have done all the analysis, it all looks right and good for a trade, but there is something at the bottom of your stomach or the back of your head that is telling you not to take that trade, but why? Everything seems to be pointing to it being a good trade, so why shouldn’t we take that trade?

More often than not, you would have read something or heard something somewhere which you did not register at the time, so are not entirely sure what it was, but you did, and now your mind and body are telling you not to take this trade due to that. Seems silly not to take the trade still, but how many times in life have you just had a bad feeling about something and so did not do something, only to then later find out that it went wrong and should you have done it, you would have been in trouble.

So in this regard, it is good to listen to your instincts when you feel that you should not enter a trade, after all, there is no harm in not taking a trade based on it, the worst that can happen is that you miss out on a profitable trade, but you can always get the next one that comes along, so in reality there is very little harm in it.

There are also times when we can look to our instinct when putting on trades too, sometimes you simply feel that something will go up and down, but this does not mean that you should then put on the trade. Instead, it should be an indication that you should then do the analysis and check on that trade, if everything you analyse and look at confirms your feelings then you should by all means put on the trade after all the analysis confirms it.

What you should not do is put on a trade simply because you think it will work without doing the subsequent work to confirm it. This is basically gambling, the same as betting on a sports team because you think they will win. Listen to your instinct but do not act on it solely by itself.

People will always tell you that your instinct has no place in trading, this is simply not true, listen to it, use it as a tool, just make sure that you are not using it to choose your trades without doing the rest of the work that is required.

Beginners Forex Education Forex Basics

Non-Trading Activities That Can Help Your Trading

Many people think that in order to improve on your trading you need to be sitting in front of your computer, reading and analyzing. While this is true to an extent, it can also be the source of stagnation and failure to actually improve any further, this can be for a number of different reasons including burning out, not having a clear mind, and being influenced by things you have previously read.

So we are now looking at a number of different things that you can do which are not related to trading but could potentially help you improve your trading for a number of different reasons.


Taking part in sports can have a number of benefits, and not just for your own body and health reasons, which we would point out are great reasons to be taking part in sport anyway. The sport also helps encourage certain attributes that help with trading, these are things like discipline, competitiveness, preparation, and patience, anyone that has taken part in sport and team games knows that these things form a big part of them.


Now you probably assume that we mean reading some trading books, however that would then be related to trading which is not what we are looking at. Reading a good novel, or even a magazine is a great way to clear your mind, it will allow you to come back to your trading with a completely clear and fresh mind. It has also been known that some of your best ideas for anything in life can be created when reading, even when they have nothing to do with the book you are reading, your brain is still subconsciously analyzing and looking at what you have done previously in the day. The imagination peak caused by reading can cause these thoughts and new ideas to come to the surface.


You have probably been told about Yoga at least 100 times in your life, but does it really help? It just looks like a bunch of people making funny poses, doesn’t it? Well, you will get out of Yoga what you want to, many use it as a way to balance their body and mind, others to simply clear their mind of thoughts. It can be a way to refresh your mind before heading back to the markets, and also as something to do while the markets are acting a little slow. It also helps you to learn patience which is vital for trading in the markets of today.

Taking a Holiday

A little more on the extreme side, but sometimes it is good to get away, to have an extended break from trading. This will completely clear your mind of it, give you some fantastic experiences and when you come back you will be completely fresh. The good thing about doing this with a holiday is that you will be far away from the computer and the markets, so your mind shouldn’t keep coming back to it even when trying to relax. Just remember not to take your laptop with you.

Talking to Others

This seems simple, and that is because it is, talking to others is a great distraction, and this is where we will break our rule, but actually talking to others about trading, including other traders is a good way to grow new ideas or to develop your own further. Trading can be a lonely experience which can cause frustration and stress to build up, so venting and talking to others is a good release for these emotions and feelings.

So those are a few different things you could do, while none of them will help you to become an expert, each one has its own merits which can help to improve both your health, but also your mind when it comes to trading.

Beginners Forex Education Forex Basics

Good Habits for a New Forex Traders

Being new to Forex can be exciting, there is this whole new world out there of financial markets that you know in the back of your head can make you rich, but it’s all very complicated. We have come up with some habits that it would be good to get into as a newcomer to trading, they may not work for everyone, but even incorporating one new habit into your trading, can make a world of difference.

Finding Your Strategy

There are hundreds if not thousands of strategies out there with all sorts of strange names. If you tried to learn them all, you would either be the smartest person alive, or the information would all become a muddled mess within your head.

You need to be able to find the one strategy that suits your own style, it may take a while to get it right, some traders it can take weeks, other years, but testing out various strategies on a demo account, as soon as you find one that you seem to take a liking to, learn more about it, learn it inside and out and use that as your future baseline. Using the same strategy regularly helps you hone your skills, and also helps to prevent the mistake of getting into the market with no knowledge of the current conditions or knowing where to exit.

Use Stop Losses

This one probably seems obvious right? You would be surprised at how many traders (both new and experienced) trade without stop losses. This is technically a form of gambling rather than trading. When you are new, you most likely sit around watching your screen to see how the trade is doing, I know I did and I am sure most newer traders do too, this may lead you to believe that because you are watching the markets, you will be able to get out when you need to. 

This is a mindset that you need to grow out of, the 60 seconds that it takes you to run to the toilet, or a sudden unforeseen news event can bring your trade into losses very quickly, the human mind will always doubt itself and you may stay in the trade, seeing it move further and further into the red. Having a stop loss means you are only risking a certain percentage of your account on each trade, rather than the entire balance without a stop loss. The stop loss saves accounts, so be sure to use them.

Record Your Trading

When a trade goes well, how do you know that it did? When a trade goes wrong, what caused it? These are a thing that you should be recording, it can seem like a daunting task, people used to write down everything, each entry, exit, movements, profits, losses, and more which is a lot of work. Luckily there is now some software that can do most of the work for you, be sure to use one, seeing your full history is a fantastic way to learn from your mistakes and to ensure you know exactly what is working to improve and better replicate those results.

Set Time Each Day

Trading needs to be seen as a job, while the markets are open 24-hours a day, it does not mean that you need to be trading it at all times, no one wants to be sat up at 3 am staring at the charts hoping something happens to match your strategy. Give yourself an allotted time each day, an hour or two in the morning, a couple of hours in the evening. This was you begin to work yourself into a routine, eventually, you will work out (by using the records stated above) what times of the days work best for your strategy, working only those times will keep you fresh, give you a clear mind, and you won’t feel bored or overworked, it will also ensure that you are free from distractions and can fully focus on your trading during these times.

These are just a few of the great habits that you could look into, getting your own routine which incorporates healthier trading conditions are always a positive thing to attain.

Forex Psychology

Why Dedication is So Important For Forex Traders

If you have been looking over the internet, at the various social meiosis sites, forums, and trading communities, you would have seen some of the amazing success stories out there. Having seen them, at one point or another, you probably thought to yourself that this is something that you are able to do too. There is nothing stopping you from achieving this, apart from yourself.

One of the traits needed to become good at anything in life, including trading, sports, or even going up the career ladder, that trait is dedication. Dedication is also vital for becoming a successful trader, most people recognise this when they are starting out. However, a lot of people don’t necessarily understand exactly how much dedication is needed or how much work will need to be put in in order to actually achieve these goals.

Those people who have come into trading expecting or wanting some quick results are often the ones that fall victim to the amount of work that is needed and so then eventually gives up. There are people out there from all walks of life who will, unfortunately, decide to jump into trading with tier life savings, hoping to make it big, especially those that are used to gambling or taking larger risks in life. There is an expectation that they will be able to make it, with little other understanding of the ins and outs or the work that is actually involved in it.

Getting into trading is becoming more and more accessible, due to this the expectation from those getting into it is that it must be quite easy to achieve some targets and goals. All you need to do now is to sign up to a broker, send in your ID, deposit some money and you are ready to trade. No lessons, no knowledge needed (even though there is a lot of education and resources available out on the internet), many use it to get a headstart, however, there are those that do not and the ease of getting into trading just makes it an enticing thing to get into with very little fuss involved.

While there have been a number of different traders who have gotten into it and become successful over a very short period of time, this is certainly not the norm. Those success stories and few and far between, however, they are the ones that get the most publicity, and so this gives people the impression that it is an easy and common thing to occur, something that is far from the truth. Not everyone gets the brown success story like this, in fact, the majority of them will not, the majority will lose out. One of the major things that you can do to help improve your chances are to put in the work to learn and to keep some dedication towards your goals and learning.

If we look at the importance of dedication in some other professions, there are very few writers who manage to write a bestseller on their first attempt. In fact the majority of them, it will take many books and failed attempts before one is even looked at by a publisher. Some people also need to put themselves in the right environment. If we look at K.K. Rowling, the author of the incredibly popular Harry Potter books. When she started her writing career, she was a single mother, near bankruptcy, but she still dedicated herself to her writing, going to school, and writing novels. Through this determination to work and to write, she eventually came up with the Harry Potter books and now she has more money than she knows what to do with. If she didn’t have the determination and the dedication to writing when she had been given her first few rejection letters, she most likely would have given up and so she would not be in the situation that she is now.

What about Michae Jordan? You may well know him as one of the best basketball players to have played the game, but did you know what back in high school, he was actually dropped from the team? For many this would have been more than enough reason to give up, but did he? No, he stuck with it, worked hard, and then became one of the best.

Those are just some of the real-world examples of how powerful dedication can be, if you really want to achieve something and you are willing to put the work in to achieve it then there is no reason why you cannot achieve that goal. This works exactly the same for trading, if you really want to do it, you understand that it is a lot of work but you are still willing to put in the work then there is no reason why you won’t be able to do it and to do it well.

Forex is a long process, a really long process, many of the successful traders that you see today (not the ones that got lucky with a single big trade) have taken a long time to get to where they are today. Years at a minimum, in fact, a lot of them would have still been making a loss after their first year. That time is used to get used to how things work, to find yourself and what sort of style of trading best suits you. This is not the time to be thinking of that new car or that you will be quitting your job to do this full time. That will come, but a lot later down the road.

What we need to take from this is the fact that once we have started with something we need to stick with it. This counts for trading as a whole, but it also counts for the smaller parts within trading. If you are trying out a new strategy, you cannot simply try it for a week and then decide that it does not work. Strategies take a long time to create and also a long time to test, at least six months should be put into a strategy before it can be declared as not working (unless it completely fails with a lot of losses). If you have started something, put the work into it, stick with it, and show some dedication to making it work.

Dedication is something that comes naturally to some, they have the ability to start something and then stick with it with little effort. Others may find it harder, those with short attention spans or those that easily get bored can find things harder to stick to in the long run, however if you manage to, you will see the huge differences to your trading ability and your results. So if you are just coming into trading, be prepared for the long haul, not some quick and simple profits, which will most likely never come without having the dedication to push on.

Beginners Forex Education Forex Basics

Methods of Change: Becoming a Better Trader

It is not uncommon to talk to traders to only realise that they have been set in their eyes, they have developed a number of different habits that they are not too keen to change, or they actually do not know how to change them. Some habits can be very beneficial, especially if they are set around their trading plans and following rules, however, some can be detrimental to your trading strategy, there are also times when you just need to be able to change things up, especially when the markets are starting to change themselves.

You are often able to work out what your trading habits are, even if you are not conscious of them by simply looking at a tour trading journal. If you do not have a trading journal yet then we would suggest getting one set up, this is where you will detail the in and outs of your trading, everything that you do will be recorded, this enables you to check what you are doing and the outcomes of each action and trade. This will allow you to find your habits and is also an opportunity to see where it may benefit you to change things up a little bit.

It’s very easy to simply state that you need to make a change, anyone can do that, the issue comes from the fact that making those changes, in reality, can be hard, in fact, some people find it so hard that they do not bother, but you are looking to make a change for a reason, so it is important that you are able to battle through the difficulties in order to make that change. We are able to look into different stages of changing, these are often looked at towards addicts of certain substances, so while traders may not be addicts, the same model and techniques can be used to help synthesis change in their trading habits. So let’s take a look at different methods that can help you to change.

There is something called contemplation, this is basically where you do not know that there is a problem or simply deny that there is something that you need to change. This is often seen in addicts when they simply refuse that there is anything wrong, they have no issues with what they are doing so they do not want to change, or they simply do not realise what their addiction is doing to their life. The same thing can work for traders, there are traders out there that go against one of the golden rules of not trading what you cannot afford to lose, they are using up their savings or even borrowing money to do it, but they do not see this as an issue or they simply refuse to see it as one as they know that they are going to earn it all back.

This can also be seen with those traders who do not follow their plans or do not record what it is that they are doing, you have sustained a number of losses, but you do not know the reason why and cannot see where you went wrong. If you continue to trade like this those losses will only multiply. Often those that are in this stage will need some help from someone in order to make any changes. Someone who is in denial or does not see that there is an issue will not make changes on their one, so it is important that you always have someone there with you or someone that you talk to regularly who may be able to sport the problem signs and then step in as an intervention to help you initiate some changes.

The next stage of change is contemplation, as the name suggests this is all about knowing what you need to do in order to make or facilitate a change, but you have set up some barriers in your mind or there may, in fact, be some physical barriers preventing you from making the actual change. So what sort of barriers may there be? The main one that most people come across is within their own mind, they have a good understanding of what it is that they need to do, they know that this change needs to happen if they are going to be a successful trader but they just can’t do it. The time comes to make the change but your mind is set in two different ways, you could do it, or you could not, something is making you reconsider before you make the change, thinking of the god and bad parts of the change, moving away from what you are comfortable with is going to push you out of your comfort zone which can put a lot of people off.

There are also some physical barriers at this stage of change, things like the possibility of not having enough money in order to make the change that is needed, or if you want to trade during a certain trading session, you may not be able to wake up in time for it, especially if it is in the middle of the night. While these things are more than achievable, it can sometimes take a lot of time to make the cage due to these constraints, during that time of not changing, you will only be pushing yourself further into your hole. It is important that during this stage, you create a plan for the change, write down exactly what is needed and what stage you are currently at towards achieving it, this will give you a better idea of what you need to do next and can also help to motivate you to make that change.

The action stage is next, this is where you actually make the change, you have created your plan for it and so now is the time to do it. Depending on the problem that you needed to change, this can be a relatively small thing to do such as adding stop losses to your trades if that is something that you never used to do, it could also be a little bit bigger, such as taking out entire trading assets from your portfolio. Once you have made a change, it is so important that you stick with it, when things are not going to plan, take a step back away from the markets. This change will be for the better, but sometimes it can take time for that change to have a real effect, so stick with it. Wanting to change is not enough, you need to be able to put into action, there is no harm in tweaking things if they are not working exactly as planned.

The final stage is maintenance, this is all about after the change has been implemented or at least after part of it has. Part of this stage is about turning those new changes into new habits, once you have started to implement the changes, you should find yourself beginning to naturally make those changes without thinking about it, if not then you need to have that plan in mind for you to keep an eye on before making each trade. Some traders may need some outside support to stick with it, and that is perfectly normal, joining groups or talking to a  mentor can help you to maintain and stick with the changes that you have made. Of course, not every change will go perfectly, so you are always able to tweak things if they are no going exactly as planned, some changes can take a long time which others can be very quick to implement, what is important is that you stick with them and do not revert back to the problem behaviour.

There is another stage of change, this is often where things have gotten far too out of hand and you need an intervention, this can either be from yourself or from others, it is far easier for other people to see if you have an issue or not, this is due to behaviour that may seem normal for you will look incredibly strange or dangerous to someone else. If you are risking hundreds per trade, that is normal for you as you have been doing it for a while, but for others, it could look like madness. If someone tells you that you may have an issue, you can either accept it or deny it, it is always best to accept and listen, even if you do not actually believe, as listening may actually help you reveal the issue to yourself. In terms of intervention from yourself, this will normally involve going cold turkey, taking a complete break away from trading to look at how it has affected and changed your life. Taking that break can clear your mind and really allow you to put things into perspective and will allow you to see exactly what it is that you need to change.

Change can be hard, there is no denying that and anyone that says that it is easy has never really had a problem that they need to change for. It can be hard, and it can take time, do not feel disheartened if things are not changing or improving within the first few days of making a change, just understand that it can take a while. Being able to pinpoint the problem and work out a way to change it is the first step and is often the hardest step, the next stages are the ones where you need to remain mindful of why you made the change and then to stick with it. Keep a written note of it and this will help you from falling back into the bad habit and then keeping it at bay.

Beginners Forex Education Forex Basics

Pitfalls that New Traders Need to Avoid

We have all been a new trader at some point in our lives or at least considering becoming one. We have seen all of the amazing results that people are getting over the internet (top tip, not all the results that you see posted are real). Trading is becoming more and more accessible to pretty much anyone around the globe. With amounts as little as $1 or $10 being the minimum accepted deposits, this means that pretty much anyone with a computer or access to one can trade. 

Due to this, there has been a huge influx of new traders into the trading world, these traders are coming into the industry with an expectation that they will be able to make money, and a lot of it very quickly. This is of course a dangerous mindset, but it is what has been blasted into their minds. Due to this, many come in without the knowledge or experience required to be successful. So today we are going to be looking at some of the pitfalls around that newer traders (and some experienced ones) fall into on a regular basis. If you have been in one, do not fear, there are always ways out of them and ways to improve, if you have not yet started trading, then take them as a warning of what to avoid once you do take the plunge and start your trading career.

Spending More than You Can Afford

One of the main warning signs that you are told by pretty much all of the brokers is that you will probably lose and that you should not be using money that you cannot afford to lose. Many people come in with the hope that they will be able to make a lot of money, the really sad thing is that a lot of these people have been given the wrong information. The countless adverts and social media posts showing off wealth, showing off accounts that have seemingly made from a small deposit of $5. Their desperation has made them want to trade to make money so they have put everything that they have got into it. That is the worst case, there are others who are much better off in life who are also trading more than they have to play with. You should not be trading with anything that you would miss should you use it. Any money that you put in should be considered lost until you withdraw it back to your bank account. If you need the money for rent or food, then do not trade with it, it should be as simple as that, and please, do not borrow money to trade with, that is another course towards disaster, do not put yourself in debt for the hope of making more money.

Lack of Knowledge

When you start anything in life you are starting with it with very little knowledge, you may have heard something here and there or seen how it works, but your actual understanding of how it works is not fully there yet. Yet this does not stop people from getting involved and it does not stop people from starting straight away on a live account. Some may not know that demo accounts are sexist, some may not want to use them, but the real issue comes from those that do not want to learn first. They simply want to start making money without trying to gain the knowledge and experience needed first. There needs to be an element of learning, reading, and practicing before going live. If we tried to play chess with no knowledge of the rules, things wouldn’t go well. The same works for trading and pretty much anything in life, so ensure that you get to know what you are doing and why before you actually try to do it.

Going too Fast

This one leads on from the previous point, some people do gain some knowledge, but then they decide to move a little too fast. Simply knowing something does not mean that you will be good at it and it certainly does not mean that you will be able to be profitable. The old phrase of walk before you can run is certainly relevant here. If you have made a successful trade, that does not mean that everything is perfect, so do not jump straight to larger trades. If you have learned something new such as a new strategy, then do not simply jump straight into the live markets, try a demo account. It is important that you take things slowly, do not jump the gun and get ahead of yourself. Take things one step at a time, learn something new, then one more step, do not try and jump the gun and escalate your trading too quickly.


Getting overconfident is one of the big sins of trading, as soon as you act in a way that is above your current level you will begin to experience losses and the risk management that you have put on your account goes out the window. Overconfidence normally comes from a win or a number of wins in a row, this makes you believe that your own opinion is the best bet and so you follow it. You then begin to increase the trade sizes, the trade frequency, and more just because you think that what you know is more and better than others. This is not the case and overconfidence will only lead to losses. Remember that it is the markets that are in charge and not you.

No Emotional Control

Emotions can get the better of us, they can get the better of anyone, when you first start out you may be starting to experience certain emotions that you have not really experienced before. Things like regret, greed, overconfidence, and doubt are some of the main ones. Each one can have a different effect on your trading and overall profitability. It is important that you get familiar with them, it is also important that you work out ways that you can either avoid or get around them when they pop up, because they will. When you learn to control your emotions you will be able to concentrate once more on the trading and your strategy rather than worrying about the emotions that you are now feeling.

Going Live Straight Away

Demo, demo, demo. Those are important words, yet they are often ignored completely. If you want to be a successful trader then you need to be able to utilise demo accounts properly. When you are starting out with a new strategy, test it for an extended period of time before going live. If you have a working strategy but need to adjust it, then test it on a demo account first. If you need to change your risk management, test it on a demo account first. You should be getting the drift here. Always test everything you do on a demo account before you make changes, if you don’t add you make a change directly onto your live account, then it can lead to losses due to not knowing what effect the changes will have on your strategy.

So those are some of the pitfalls that newer traders seem to fall into the most, there are of course others and these are of course not only for new traders, experienced ones also still manage to fall into these traps. If you have an understanding of them, it will be far easier to work out how you can avoid them in the future to help better your trading.

Forex Risk Management

Why You Should Only Risk 1% Per Trade

Some of the best advice that you can be given is to do with your risk management, risk management is often seen as the key to successful trading, it can make or break a trading strategy. One of the most well-known risk management plans is known as the 1% rule. It is quite simple in principle, you will simply risk just 1% of your account with each trade. So if you have a balance of $100, that 1% will be %1, if you have a balance of $1,000 then that 1% will be equal to $10. It could not be any simpler than that, of course, this 1% will be a different value for all traders as most will of course have different account balances, so it needs to be based on your own account and not simply copying someone else. We are going to be looking more into the 1% rule and giving a few ideas as to why so many traders follow it and even live by it.

So why is it the 1% rule? It is simple really, it is because your plan is to be able to trade today, tomorrow, the day after, and so on. Successful trading is all about being able to survive long enough to become profitable, if you are making large trades and taking large risks, then there is a good chance that this might not happen. The 1% rule simply reduces the amount of risk that you are using when you trade, which is paramount should you wish to be able to last as a trader and to survive a number of losses in a row.

The centre of any good trading strategy should be its risk management, I know we have said that multiple times already and we will continue to say it as it is paramount for your trading survival. You need to remember that the aim of forex is not to make a fortune overnight (although many come into it wanting this), the goal is to make a profit over an extended period of time. Trading is not a gamble and should not be treated like it, control your risks. When you make a number of different small trades, it has reduced the risks and the odds of you being successful will have gone up, simply because there are more opportunities to make a profit. Along with that, your account will last longer, and an account that lasts longer is able to make money for longer, it also gives you more opportunities to learn new things. Not to mention that if you lose a trade and it only losses 1% of the account, it will be far easier to make that 1% back than it will to make back the 30% another trader lost.

The 1% rule is a lot more relevant to those that are trading the shorter-term trading styles, things like day trading and scalping due to the fact that they place far more trades. You need to also bear in mind that each trade will have a slightly different amount of risks, yes it remains at 1% but you need to adjust for the previous results. A win would mean that you are trading a little extra, while a loss will mean that you are trading a little less. You should also consider broker fees, many brokers especially on accounts with low spreads will add a little commission on to each trade, if you can, try to take these figures out first, so you know what you will be left to trade with.

One thing to think about is the fact that not every trade needs to follow this rule, there may be times where the opportunity presents itself where it may be better to risk either more or less than the 1% that you usually do. It should also be noted that you should not be making more trades simply because you are risking less. We have seen people put on 3 or 4 identical trades, this is pointless and you may as well have just put on one large trade instead. One other way of implementing this rule is to simply put on a top-loss at 1% below the level that the markets were entered, if they lose the trade then they will have lost just 1%, this is called an equal risk method, as the take profit is normally set approximately 1% above the price that the market was entered.

We briefly mentioned it but you also need to be able to consider your returns or the profits that you are risking this 1% to get. Part of your analysis should be looking at the potential profits, if you have the chance to make a 0.8% gain, then you probably shouldn’t be risking 1% to get it, if you can make a potential 2% then the 1% risk could be worth it and justifiable. Your risk to reward ratio will be what you need it to be, but you should probably be aiming for something around the 1:2 ration, which is 1% risk for a 2% profit, anything less than that and it may not be worth it. Some people go even higher and won’t trade anything under 1:5, but really it is up to you and the style and strategy that you are using.

So you need to consider whether using the 1% rule is right for you because it certainly won’t be right for everyone. It takes a lot of willpower and determination to stick to it as you will be putting a lot of rules and limits on what you are able to do. Having said that, you do not need to follow it exactly every single time, you can have a few variations here and there should your analysis allow it. 1% can seem a little ringing and a little strict to many, if you are finding it hard to stick with the majority of the time then it may not be the right risk plan for you. If you are the sort of person that loves seeing big profit numbers then this may not be for you, there is enough room to make some decent money, but it will come in little bits rather than a big windfall.

Deciding whether the 1% rule is right for you is something that only you can decide. Even if you do not follow it, it is important that you take some of the principles away from it, things like a proper risk to reward ratio, that you are limiting your losses and that you maintain a certain level of discipline within your trading.

Beginners Forex Education Forex Basics

How to Cope with Forex Losses

Forex trading is inherently risky. It is known for churning out billionaires while others are left with less than they started with. Watching our hard-earned money disappear is difficult, and the aftermath can leave us in an emotional state where we don’t always make the best decisions. However, letting yourself fall victim to these emotions every time you lose will put you in a position where you are more likely to make mistakes. Traders must learn to deal with losses in a positive way to avoid falling victim to common trading problems based on a negative mindset. 

First, you need to know that even experts can’t be right 100% of the time. The best traders have a lighthearted, “oh well” attitude about losses and can find the humor in them. Yes, losing money is tough, but it isn’t the end of the world. Every winning streak has to end at some point. As long as you’re making more than you’re losing, then you’re on the right track and if you aren’t, then it only means you need to work on your strategy. 

When you lose money, you should start by analyzing what happened. Did you make a solid decision based on your trading strategy, only for the market to make an unexpected move? If so, know that this is an unavoidable part of trading. On the other hand, if you made a move that wasn’t thought out or based on nothing and lost, you should take responsibility for the mistake. Learn from your mistakes and move forward, rather than becoming fixated on what you lost. 

If you don’t learn to let go of your losses, then you’re bound to fall victim to other trading problems, like revenge trading. Many traders want revenge on the market for taking their money, so they begin to make highly leveraged trades that aren’t based on anything in order to frantically win their money back. Others fall into different patterns. For example, experiencing a large loss might leave you feeling anxious or afraid, which could cause you to avoid entering trades when you normally would or to pull out of trades before you hit your stop loss. 

Once you learn to cope with losses in a healthy way, you will find that trading doesn’t have to be so stressful and you’ll be able to improve your results. Here are some helpful tips related to losing money trading forex:

  • Analyze your losses: was it caused by a dumb mistake, or was it unavoidable? 
  • Learn from your losses and move on. There’s nothing you can do to change what happened, but you’ll know what not to do next time if the problem could have been avoided.
  • If you find yourself losing often, consider keeping a trading journal. This can help you to narrow down the problem.
  • Practice relaxation techniques if you’re becoming overwhelmed. If this doesn’t work, know when to take a break so that your emotions don’t interfere with your trades. 
  • If you’ve taken several losses in a row, this would be another good time to take a break so that you can come back to trading with a better outlook. 

Everyone hates losing money, but it is an unavoidable part of forex trading. Even the richest traders in the world have lost before, but they achieved greatness because they kept going and didn’t give up. The best thing you can do is learn to manage your emotions and learn from your mistakes so that small losses don’t turn into big problems for you down the road. Once you learn to cope with your losses in a healthy way, you’ll be a better forex trader