Tag: Forex Help

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Forex Basics

Why It’s Easier to Succeed with Forex Than You Might Think

Those that decide to pursue forex trading fall into two categories: those that go on to make a profit and continue trading, and those that lose money and quit. While everyone hopes to become one of the traders that finds themselves on the path to success, many people simply don’t realize the simple factors that can make you or break you when it comes to trading in the forex market. First, you need to start by understanding the basics of forex trading. 

Those that decide to pursue forex trading fall into two categories: those that go on to make a profit and continue trading, and those that lose money and quit. While everyone hopes to become one of the traders that finds themselves on the path to success, many people simply don’t realize the simple factors that can make you or break you when it comes to trading in the forex market. First, you need to start by understanding the basics of forex trading. 

Those that decide to pursue forex trading fall into two categories: those that go on to make a profit and continue trading, and those that lose money and quit. While everyone hopes to become one of the traders that finds themselves on the path to success, many people simply don’t realize the simple factors that can make you or break you when it comes to trading in the forex market. First, you need to start by understanding the basics of forex trading. 

An Introduction to Forex Trading

The term forex refers to the foreign exchange market, which is an online global exchange market where people buy and sell different currencies. This includes regular people and professional traders, along with bigger entities like banks, hedge funds, brokers, specific companies, and other high-stakes investors. The value of the currency that people are buying and selling changes based on several different factors, including but not limited to:

  • Interest rates and inflation rates
  • The country’s current debt
  • Unemployment data
  • The housing market
  • Politics
  • Supply & demand
  • Economic factors 

As you can see, the value of each country’s currency is primarily affected by factors that are associated with money, government, and economic data. In order to make informed trading decisions, traders keep up with news events and look at economic calendars for updates that tell them a currency’s value may change. Other methods that are used to decide what currencies to trade include technical and fundamental analysis. 

What Is a Currency Pair?

A currency pair includes two different currencies that are paired against one another. For example, EUR/USD. This means that the (base currency) Euro is being traded against the (counter currency) United States Dollar. This is the most used pair in the world, but there are also several other major, minor, and exotic pairs that can be traded. 

  • Major currency pairs include EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, GBP/EUR, EUR/CHF, EUR/JPY, and the NZD/USD. 
  • Minor currency pairs don’t include the United States Dollar. The most common examples are the British Pound (GBP), the Euro (EUR), and the Yen (JPY). 
  • Exotic currency pairs are made up of one major currency, traded against a currency from a developing country. The Turkish Lira (TRY) is one example of an exotic currency. 

Traders choose which currency pairs to buy or sell based on the change in price with the goal of making a profit. It’s generally considered the safest to trade major currency pairs, while exotic currency pairs can be more volatile and riskier to traders, so be sure to choose wisely. 

Must-Follow Tips for Success

Now that we’ve covered the basics of forex trading, it’s time to dish out some of the most helpful tips that can help you reach long-term success. Simply being aware of this information can help to ensure that you get started on the right foot without falling victim to common trading mistakes. 

  • Choose the Right Broker: There are a lot of choices out there, but you’ll need to do some research to make sure you’re working with a reputable broker. It’s also important to compare account types, fees, funding methods, and other important aspects before you open a trading account. Know that choosing a broker with fewer fees means that more of your profits will wind up in your pocket. 
  • Develop a good trading strategy: There are a lot of different strategies out there that appeal to all kinds of different traders. You’ll need to choose one that fits with your schedule and determine the reasons why you will enter trades, how much money you’re willing to risk, etc.
  • Don’t open an account until you’re ready: You shouldn’t rush to open a trading account until you understand the market and you’ve developed a solid trading plan. Some brokers will even charge you for inactivity if you deposit funds but choose to hold off on trading until you feel ready. Instead, open a demo account for practice. 
  • Try to limit distractions in the place where you plan to trade. Background noise, music, television, conversation, and other noises can cause you to lose your focus. Also, try turning off your phone or at least put it on silent if social media keeps pulling you away from your work.
  • Never risk more than you can afford to lose: Don’t get caught up using extremely high leverage options or risking large amounts on your trades in an effort to make a large profit quickly. It’s better to be safe than sorry when it comes to forex, especially if you’re a beginner. 
  • Don’t enter a trade if there isn’t a good reason to do so: Even if you haven’t entered any trades for the entire day, don’t enter one for the sake of doing it just because you’re bored or feeling unproductive. It’s better to choose not to trade at all with no money lost than it is to enter a trade and lose money you could have spared with patience. 
  • Never stop learning: Even once you have a good understanding of the forex market and strategies, there’s always more to know. Be sure to spend time reading about psychology-related trading material, checking out tips and tricks from other traders, watching educational videos, or anything else that helps to expand on your knowledge as a forex trader.  
  • Keep a trading journal: Trust us, you’re going to refer back to your trading journal more than once, so don’t take the lazy way out on this one. Be sure to log specific details about the trades you take and check on your progress from time to time. 
  • Don’t give up: If you start to lose money, don’t panic and start risking more to make up for it. The best way to handle this is to take a step back and look at your trading journal to see if you can figure out what’s going wrong. If you think your strategy is to blame, try making changes and testing on a demo account before you go back to your live account. Staying calm and figuring out the problem is what separates successful traders from the large percentage of those that give up.
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Beginners Forex Education Forex Basics

How Long Does It Take To Learn To Trade Forex?

It’s an interesting question, how long does it take to learn to trade? The fact of the matter is that there is not a set amount of time. You could technically learn to trade within the time it takes you to sign up with a broker, download the trading platform, log in, and push the […]

It’s an interesting question, how long does it take to learn to trade? The fact of the matter is that there is not a set amount of time. You could technically learn to trade within the time it takes you to sign up with a broker, download the trading platform, log in, and push the […]

It’s an interesting question, how long does it take to learn to trade? The fact of the matter is that there is not a set amount of time. You could technically learn to trade within the time it takes you to sign up with a broker, download the trading platform, log in, and push the trade button. Having said that, it is far easier to simply put on a trade than it is to actually know what it is that you are doing and why you are putting on that trade. So that is what we are going to be looking at today, how long it can take for you to become efficient and to have the knowledge required to trade properly. Of course, it will be different for everyone, so take it with a pinch of salt, but this is our idea of how long it will take to learn to trade.

For many, picking up the basics, things like how to actually place the trade within the trading platform, gaining the knowledge needed to look at the charts, and work out at least the basics of what is going on can happen pretty quickly. The basics are there all over the internet, simply reading about forex will mean you probably gained enough knowledge for a basic understanding of what is going on and why things are moving the way that they are. What isn’t so simple, is actually trying to master what it is that you know, gaining the experience to really understand how things work and how you can use what you know to improve on your own trading skills.

There is one main aspect that we need to think about when it comes to learning to trade, and that is simply how much time it can take. There is not one person when it comes to trading who knows everything that there is to know, nor will there ever be. No one person will be able to tell you exactly how long it will take for you to learn or how long it will take for you to become profitable. There are a few different questions that you are able to ask yourself though, which may give you a little idea as to how long it may take you and whether or not you are up to the challenge.

How much time and work are you willing to put in?

We are going to throw this out there straight away, there is a lot of work ahead of you, and when we say a lot, we mean A LOT. Forex and trading as a whole is an exercise that you will never fully master, there will always be things to learn and things to improve on. Due to this, you will be required to put in a lot of effort and a lot of time, you need to consider what some of your other commitments are. If you are working full time, then you may well find that you struggle to find enough time to effectively learn and develop yourself as a trader. 

When you are just starting out, you will be coming into it excited and eager to learn. However, you will need to limit the amount of time that you are putting into it. This sounds counterproductive and goes against what we stated above, but if you put all of your time into it, you will be attempting to learn things a little too fast which will lead to missed information, it could also cause you to simply burnout. Doing something every minute of every day will make anything see and feel a little boring, so you need to limit yourself a little when it comes to learning.

How much money do you have available to invest?

We will of course give the usual warning, do not invest anything that you cannot afford to lose. If you want to be truly successful in trading, then you do not actually need a lot of money, you do however need a lot of time. The more money you have to begin with the less time it will potentially take for you to reach your target. Having a higher capital within your account will offer you a lot of additional options when it comes to available assets to trade and the risk management plans that you are able to put in place, it also helps to increase your profit potential. Having some extra money also gives you access to trading courses and education that those without a lot of money may need to miss out on, giving you another avenue for some more education and learning.

We must point out again though do not invest anything you cannot afford to lose, we have seen a lot of people put all their savings into their accounts or to even borrow money in order to trade and to pay for courses. Don’t be one of these people.

For many traders or wannabe traders, they do not want to put in years of effort before becoming profitable, some don’t even put in a week. If you want to truly experience trading and to know whether or not it will be for you, then you need to give it at least a month, that is the absolute minimum, the longer you give it the better. Going through the basics, getting an understanding of styles, strategies, and risk management will probably take you that initial month, then you have to practice on a demo account and finally actually attempt liv trading. So it will take time, you need to give it time. It will differ from person to person. We all learn at different paces and we all manage to get past our natural habits at different paces. So if you see someone doing better than you, just remember that they are different, you may be doing things at a slower pace, but this does not mean that you are doing them any worse.

So it takes time to become an expert trader, or even just a profitable one (unless you are one of the few that get incredibly lucky early on), but it takes more than just that and there are also other aspects that will make things take a little longer or a little less time. We briefly spoke about the dedication that you will need to put in, the time you need to set aside to learn and to do it consistently, if you take regular long breaks, as in days at a time, then it will take you far longer than someone who has set aside an hour or two each day, doing irregularly helps to keep the info fresh and allows you to retain a lot more of it. If you are easily distracted, then this can again make things take a little longer, make sure that your trading environment is free from distractions, and that it is an environment where you will be able to focus and keep focus during your time of learning and trading.

There are also the psychological aspects of trading, being able to remain calm in stressful situations, and being able to control your emotions, especially ones like greed and overconfidence can keep you on the right track. As soon as you let one of those emotions take over then it can set you back quite a considerable period of time, especially if it leads to a lesser two. Learn to control your emotions, do not allow them to influence your analysis or trade taking thoughts and processes, they will only hinder you.

Risk management is another thing that if you get it wrong, it will set you back a long way and even has the potential to make you want to quit. You need to be able to protect your capital if you are thinking of becoming a successful trade, a single loss without a proper risk management plan in place will have the potential to completely blow your account. It does not take long to learn or to develop your own trading risk management plan. You will need to get this in place before you start trading on a live account, so take the time (it won’t be a long time) to create one and do not be afraid of making alterations to it as you go, that is what a good trader does.

Ultimately, trading will take you a long time to get good at, it is easy to trade but certainly not easy to trade well. You will need to be prepared to put in a  lot of effort, to be able to put certain other aspects of your life aside if you want to learn it quickly, otherwise, be prepared for a long process. There is no set time as to how long it will take you to learn to trade profitably, it will be different for everyone, so do not try to compare yourself, simply focus on your own career, if you are enjoying it then it won’t matter how long it takes, the time will fly by and you will be enjoying yourself doing it. So we cannot give you an exact answer as to how long it will take to learn to trade, but we can say that you should simply not expect it to be a quick process.

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Beginners Forex Education Forex Basics

Tips for Improving Your Forex Trading Skills

More often than not, when someone begins trading they are looking at a single aspect of it, they are setting their strategy up to work with what they are comfortable and for a lot, this is what they will be sticking with for the majority of your trading career. While it is certainly not a bad thing if you have something that works, in fact, that is what a lot of traders are aiming for. It can however potentially stifle your potential, it can hold you back from doing other things that could be just as profitable if not more.

More often than not, when someone begins trading they are looking at a single aspect of it, they are setting their strategy up to work with what they are comfortable and for a lot, this is what they will be sticking with for the majority of your trading career. While it is certainly not a bad thing if you have something that works, in fact, that is what a lot of traders are aiming for. It can however potentially stifle your potential, it can hold you back from doing other things that could be just as profitable if not more.

More often than not, when someone begins trading they are looking at a single aspect of it, they are setting their strategy up to work with what they are comfortable and for a lot, this is what they will be sticking with for the majority of your trading career. While it is certainly not a bad thing if you have something that works, in fact, that is what a lot of traders are aiming for. It can however potentially stifle your potential, it can hold you back from doing other things that could be just as profitable if not more.

Being able to expand on your trading abilities and skills is vital if you want to be able to adapt to the changing markets and you want to be able to use new skills in order to take advantage of other parts of the markets. So let’s take a quick look at some of the things that you can do that will help you to expand your list of trading skills and that can ultimately lead you to better results.

Trading Other Pairs

This one sounds pretty obvious but you would be surprised how many people simply stick to a single currency pair or asset when they trade, they stick with it because they understand how it works, they are able to be profitable when trading it. The problem is, when you get stuck on a single pair or asset, you will struggle to adapt should that pair change, or should you need to use a new one. Different pairs and assets all act differently to one another, yes, they do have some similarities, they are all affected by similar things, but the reactions that they give can be very different.

It is important that you expand your arsenal to new currency pairs and assets, not only due to the fact that this gives you another avenue and a new way to make a bit of money, it also helps you to develop new skills, a new understanding of how things work and what affects what within the markets. Having a good understanding of a number of different assets allows you to adapt to the changing markets a lot better, it can also help you improve your understanding and trading of the pairs that you are already using as it can give you another view on them. Of course, it is important that you do not try to trade as many as possible, this won’t allow you to actually gain an understanding of them, so begin to expand at a slower pace, chose a single new currency pair or asset to learn, once that is done, chose another, this is a fantastic way of increasing your overall knowledge and ability to adapt.

Use Different Timeframes

A lot of strategies that you read about out there are based around a single timeframe, scalping strategies stick to the lower ones while swing trading strategies often stick to the higher time frames. While your strategy may be linked to the 5-minute timeframe, there is no hard time looking at some others. In fact, it should actually be encouraged. If you are trading a lower time frame, start looking at the higher time frames. You could even incorporate this into your own strategies. You can use the higher time frames to check out the larger trends and general directions of the markets, this can then be used to help give you a new way of looking at your current strategy and could even help you to make it more successful. So yes, while the majority of strategies are created to be used with a specific timeframe, there is no harm in looking at others and learning how others work in order to give yourself an advantage and even some additional confirmations before making a trade.

Look Into Other Strategies

We get it, you have a strategy that works, so there is no reason for you to learn another one right? Wrong. It is important that you expand your understanding of how other strategies work. Let’s make it clear, the markets will not remain the same for a long period of time. In fact, they can change on a regular basis, trends move and economic events take place, each one can cause the markets to rapidly change., Most strategies are designed to work in certain conditions, they can be adapted to match the markets when they change, but how are you going to be able to do that if your strategy is the only one that you know?

Learning about new and different strategies will allow you to use what you have learned to help adapt your own strategy when things start to turn, it will allow you to adapt yours using aspects from other strategies. You will always have your preferred strategy and that is fine and encouraged, but having a good understanding of other strategies will simply allow you to be more productive and potentially profitable during times when your current strategy may not be entirely effective.

Talk to Other Traders

The simple act of talking to other people can be a fantastic way to learn about new skills, you could also learn them outright should that person be willing to help teach you. Talking to people, even if they use a completely different strategy to you can give you further ideas on how you can trade and how you can adapt your strategies. No one trader will be exactly the same, even people using the same strategy will be doing things differently, talking to them will allow you to understand this and you may well learn something new that you are able to use with your strategy to ultimately improve it. Who knows talking to others about your own strategy and teaching people how it works can allow you to develop some confidence and also may well show that you have a knack for teaching and could move into some form of mentorship, of course, you will need a consistently profitable strategy for a while before thinking about doing that.

Watch the News, Read Economic Articles

This is one that you need to be a little wary of as if it is done the wrong way it can actually be detrimental to your trading. Getting a good understanding of what is going on in the world, reading the news or economic articles can give you a wider knowledge of what is going on and this can be used to your advantage. If you are trading blind but a huge event is coming up, if you are not on top of the new and the current affairs then things could potentially go wrong, very quickly. If you have been reading and have an understanding of what is coming up, you can prevent disaster by changing your trading to suit the events coming up, if EURUSD could jump up or down, avoid trading it, this is a way of protecting your account and is an important skill to have.

Of course, we mentioned that doing it wrong could damage your strategy or account, this is basically when you do just too much reading or you base your entire strategy around these news events. This is not something that you want to do, trading the news can be dangerous and many people have blown their accounts trying to do it, so we would suggest not basing your trades on what may happen in the news. Stick to your strategy, do not let the news completely change it, it’s working for a reason, simply use the news as a tool to understand what is coming up, not to dictate your trading habits.

Seminars and Online Courses

This is something that you need to be a little more cautious about, not all seminars and online courses are worth it. In fact, the majority of them are not. There are a lot of people out there that just want your money and maybe hosting these courses with very little knowledge. Having said that, if you are able to find a legitimate one, they can be a very valuable source of information. Not only are you getting the knowledge and experience for the person hosting these events, but you are also able to meet and talk to other traders who have a similar mindset and may be at a similar level to you. Use this as a chance to find out what others are doing, gain knowledge and understanding of things that you do not currently know, and don’t be afraid to leave some of your own understandings with others. These places can be very valuable, but once again, it is important that you take care and ensure that the one you are paying for is in fact a real one and not a form of scam.

Demo Account

The final way to develop and learn new skills is to simply use a demo account, this is something that you should have been doing when you first started out and it will be an invaluable tool throughout your entire trading career. In fact, it will probably be the thing that you revert back to the most. Any changes that you make to your strategy should be tested on a demo account first, any new strategies that you are trying to understand should be tested on a demo account first and so forth. The demo account is there for you to experiment, through that experimentation you will be developing your trading skills, your chart reading skills, and pretty much all other aspects of trading. Use it as much as you can, use it when you are not sure of something and use it to ultimately become a profitable trader, they are there to be used, so use them.

So those are a few of the things that you can do to help find new skills or to simply develop the skills that you already have, it is vital for traders that they keep on looking to improve, there needs to be a constant progression and improvement of skills and understanding if you want to remain profitable and to be successful. The markets are always changing, so you need to do the same in order to keep up with them.

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Beginners Forex Education Forex Basics

14 Ways You May Be Hurting Your Trading

There are some things that we all do, either consciously or without us even knowing that will have a negative effect on our trades and overall trading strategies, so what are these things and are you guilty of any one them? Getting out of trades too early: I am sure we have all done this, […]

There are some things that we all do, either consciously or without us even knowing that will have a negative effect on our trades and overall trading strategies, so what are these things and are you guilty of any one them? Getting out of trades too early: I am sure we have all done this, […]

There are some things that we all do, either consciously or without us even knowing that will have a negative effect on our trades and overall trading strategies, so what are these things and are you guilty of any one them?

Getting out of trades too early: I am sure we have all done this, you are watching the trade move in the right direction, it is moving up and up but then it falters a little bit, our strategy dictates that we should wait, but in the back of your mind you think it could reverse here and so you get out, the trade then continues up and would have hit your take profit level. Getting out early just cost you a little bit of extra profit.

Fear of taking a loss: We all hate to lose, some more than others, especially if you haven’t already calculated losses into your strategy, or maybe you are a very risk-averse person. When we see a trade going in the wrong direction it is only natural that there is a little bit of anxiety that goes along with it. The difficult part though is to leave the trade, a lot of newer traders get this anxiety and will then c,.lose the trade, normally just before there is a turn in the market, you have now made a loss whereas if you followed the strategy, it would have ended up in profit. Your strategy made that trade for a reason, let it work its magic.

Adding to losing positions: This is often referred to as a grid system or Martingale, a trade is going the wrong way but you either do not want to accept the loss or you have a certainty (whether justified or not) that the markets will turn. You add an extra trade going in the same direction as your first, this is common, it can also be classed as loss chasing and is why a lot of gamblers get into so much debt. If the markets do not change, then you are far deeper into the red than you would have been without the additional trades.

Wishing things change: Sometimes, taking no action is the worst thing you can do, especially if you have not placed proper risk management, if you see things going in the opposite directions, don’t just sit there hoping and wishing that it will change, make a decision, can your balance sustain the loss or are you going to risk things, indecision can lead to further and greater losses.

Being too compulsive: The markets can be exciting, we know, but there are times when there are no trades to take. Just because you want to trade does not mean that you should, do not trade just for the sake of trading. These sorts of trades won’t be part of your strategy, you may not have even done any analysis, you just want to trade because you feel like it or want a bit of fun. Don’t do this, it will only lead you down a more gambling route and could lead to a lot of losses.

The joy of winning: Winning is a great feeling, both the fact that you were right and the monetary value that you gain. However for some, this feeling can be a bit overwhelming, in fact, it can be an addiction, if you feel this way, take a step back, allowing this to take over will result in you making additional trades that you should not be doing, these sorts of trades are not analysed, they are impulsive and will only end up in losses, gamblers often have this feeling when they win and it is why they keep gambling, so step back and have a break if you are getting a little too pumped up.

Self-doubt: The strange thing about self-doubt is that it often comes when we are doing the best that we have. A few wins in a row and you may begin to wonder why you are doing so well, it must just be luck, it won’t continue, these sorts of thoughts are more common than you may think. The problem with these thoughts is that they will take away all of your motivation to continue, it will make you want to stop as you are ahead and you won’t be able to continue. If you are following a strategy, just remember that you made that strategy, you are doing well and you certainly do deserve it.

Not following your strategy: You have created a strategy, it is your strategy for a reason, so why would you think about deviating from it? Your strategy has its risk management built-in, so as soon as you deviate from the rules you have created, the riskier our trading becomes which could ultimately lead to losses that you have no justification for. Sometime sit can be boring trading with the same strategy all the time, but when it is, that is the time you should take a break, move away from the markets for a bit until you are ready to follow the strategy again.

Overthinking: Some trades are time-sensitive, they need to get taken at a certain time, but is it the right trade? Am I risking the right amount? Am I sure it is the right trade? These are all things that we ask ourselves and answering them takes up time, by the time you have answered them all, the trade opportunity has passed. So while it is good to question and analyse, sometimes you can overthink things and miss out on potentially profitable trading opportunities.

Excessive trading: Greed, it’s a common trait amongst some traders, especially the newer ones, you have a few wins under your belt and now you want more. So how do you do that? But putting on more trades, or putting larger trades, larger and more than your risk management can handle. Your strategy is built around a certain number of trades or a certain trade size, changing this up and creating larger or more trades can put your account at risk, stick to what is working and do not get greedy.

Afraid to trade: This is particularly prevalent for people who are risk-averse, people who do not like risks may find it hard to make that initial trade, especially if there is a doubt in their mind that they do not know what they are doing or if their trading strategy is not fully complete, so while those last ones would be valid reasons not to make the trade, having the doubts even with a fully fleshed-out strategy can prevent some people from making the trades. Your strategy should cover all possible scenarios, so trust in it.

You are irritable or tired: The vast majority of traders do not trade full time, they trade in their spare time after work or on their day off, unfortunately coming home from a hard day’s work can leave us tired and irritable, this is not the right time to start trading. If you are in a bad mood, making decisions is often not your strong points, it could make you rash and not follow your strategy properly, causing you to make trades that you would not have originally made. If you are feeling irritable or tired, take a rest, the markets will still be there once you have recovered.

Trading more than you have: This is a cardinal sin of trading, you will see warning all over the place, do not trade more than you can afford to lose and it is key. This will lead to other things like greed, emotional trading, lack of discipline, and more in the hope to either make more or get back anything that has been lost. The last thing you want to do is get yourself into some financial issues. If you think you would miss the money if you lose, then it is not money you should be trading with.

So those are some of the major ways that we can limit and damage our trading, some are far easier to avoid than others, but through hard work and discipline, looking after your self and your account can become a lot easier to do. These things normally centre on the fact that you are quite new to trading or the human nature of wanting more, once you have traded for a longer period of time a lot of them would not really affect you anymore, but when you are starting out, be sure to try and recognise any of the signs and stamp it out before it manages to take hold.