Forex Trading Psychology – 3 Easy Tips

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It is not too hard to understand why a lot of Forex traders do not succeed and lose a lot of money. This is especially true among those who are practically new in the business and find difficulty, understandably so, in even trying to get started. This can be highly stressful for anyone and obviously, stress can be the root cause of making the wrong decisions and well, losing money. The Forex trading psychology of being able to handle the stress of trading is definitely a way to deal with it, something you might find very useful.

 

Develop a trading scheme that works for you

What works for one may not work for another. One person may be very happy with his own trading method and getting the results he wants, and yet you find yourself doing exactly the same thing and get nothing. Find your own plan of action instead. Remember that a lot of the anxiety you may be experiencing could be caused by not having a dependable trading method that you have studied carefully. Once you have found it, stick with it, but don’t expect that you will always get the very best results as that would be unrealistic. Be happy with a strategy that can produce at least 65% success and work on it until it gets better.

 

Try your best to stand by your plan

I have a friend who has been in the trading business for some time now and he swears that he owes a lot of his success to staying consistent with his particular trading method. It is something that you just need to do. Not being able to get the biggest percentages you want is no reason to jump from one scheme to another. This practice is a sure way to get to nowhere. This means that if your plan works several times and fails a few, it does not follow that it is the wrong method altogether. Being patient is without a doubt, a virtue you must practice with Forex trading if you are really looking to succeed.

 

Avoid putting in money that you simply cannot afford losing

I don’t know why but I am reminded about gambling at this point. When a person gambles for fun, he only plays with money that he is not afraid of losing. Certainly, we all hope desperately to win but undue stress is caused by our own irresponsibility. I feel that this is no different with trading. It carries with it certain risks, just like any other business, and it would be to your benefit if you played it safe. Invest your money wisely.

 

Before getting into the business of Forex trading, it would be a very wise move to study it well. There is so much to learn before stepping into the risks that go with the business. It is not the same as any other market, and being wise means studying your options very carefully and asking yourself if you are prepared for it.

I’ve always been an advocate on sticking to the process and not the outcome. I write and teach people how to search people using various engines and one of the main things I’ve learned while doing that is that focusing on the process, not the outcome brings the best outcome, ironically.

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Four Reasons to Try Forex Trading

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The international Forex trading market has never been so popular, and many stock market professionals are turning away from the more traditional trading methods in favour of Forex. What is it exactly that makes the Forex market so attractive… and is it possible for a beginner to break into the Forex market with a sustainable level of success? If you’re considering starting up a Forex trading account of your own, here are four good reasons why you should go ahead and take the plunge:

1. The requirements for entering the Forex market are far less stringent than those for entering financial markets like stock trading or futures trading. Most Forex brokers MT4 will have a much lower requirement for minimum account size, and your broker will tell you just how quick and simple it is to get started – you can start trading on the very same day you open your Forex account.

2. With Forex, you can participate in foreign currency trades at any time of the day or night. The trading market is open 5 and a half days a week for 24 hours a day. This means that if Forex is an after-hours hobby, you can still find Forex trading opportunities online outside of your normal working hours. You’ll also find Forex trading offers a high level of convenience – you can trade from anywhere in the world provided you have an Internet connection.

3. Unlike futures and stock trading brokers, Forex dealers offer market analysis and news to traders for free. These companies essentially provide aspiring traders with a wealth of valuable Forex information and useful trading tools at no extra cost.

4. Most Forex brokers also offer free demo accounts; with a Metatrader 4 demo, you can gain valuable trading experience without risking your money.

Of course, it is wise to consider the potential drawbacks of the Forex trading market as well; there is no central marketplace and not much regulation, which makes it easy for unscrupulous dealers to take advantage of Forex traders. For safe trading, it is best to choose a reputable and well-known Forex dealer. It also pays to be aware of fluctuating interest rates and exchange rates when trading Forex, as these could work to your benefit or disadvantage, and may be subject to unexpected changes. These potential risks can be easily managed and should by no means deter you from trying your hand at Forex trading!

Sally Roberts is an enthusiastic writer keen to share news and opinions with others.

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Some Key Facts about Forex

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When businesses buy and sell products from countries other than their own, they have an issue of currency to deal with.  For example, the US currency is the dollar, while Japan uses the yen. However, this doesn’t have to be a problem, as the foreign exchange, commonly known as Forex, was designed to provide a solution in these situations. They also allow you to invest in the country itself, buying and selling their currency as values fluctuate, similar to stocks, but at a much bigger level. It also helps with speculation of currencies for both changes in value and changes in interest rates. Most transactions are simple, and begin when one party buys a particular quantity of one currency by paying a quantity of another currency. Following the previous example, an American company would buy a large quantity of yen from the exchange by paying US dollars. They could also buy these sums of yen and sell them back at a later date when the value of the yen inflates.

This market is unique from other markets in many ways:

  • due to its large trading volume alone, it represents the largest asset class in the world, and it has high liquidity;
  • geographically, it represents an enormous majority of the world;
  • it runs on a 24 hours schedule, minus weekends; and
  • it works around all the various factors that tend to affect the exchange rates, and it does this at a fast pace, creating high liquidity.

The forex market allows investors exclusive and lucrative opportunities for investing, such as commission-free trading and many communication methods allowing for easy accessibility. Compared to other investment options, more consumers have chosen this method of investing due to these great features.

Foreign exchange does business for countries and large corporations around the world, but also encompasses small currency exchanges, say if you travel to Europe and need Euros while on vacation. You would have to go to a kiosk and exchange your currency. The expansion of globalization has caused the numbers of these transactions to multiply. This global market is without a doubt the largest financial market in the world, and sees volumes up to billions of dollars circulating through it on a daily basis.

One huge factor that causes this market to stand apart from the stock market is its decentralization, as well as its deregulation, which allows individual buyers to choose their lenders themselves, finding the dealer with the best price that they want to do business with and cutting out the middle man. Usually, larger dealers have better access to lower pricing at the biggest banks worldwide, and will share those deals with their consumers, allowing for a cheaper exchange rate.

If you are one who is thinking of investing for your future, and know little about the topic, but do not want to pay a middle man to do it for you, this is an easy choice. With its large market, easy accessibility, and fast return rates, this is might be the option for you.

 

Article by Debbie who frequently writes about personal finance, foreign markets and currency exchange.

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Timing Your Currency Trades to Match the Market

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Because the currency markets are open for trading 24 hours a day one could trade at anytime. That doesn’t mean that every time is the best for trading though. Undoubtedly the best time to trade currencies is when the most traders are actively buying and selling. The larger volume of trades makes the market more dynamic and gives a better opportunity for prices to rise or fall rapidly, thus giving fast profits. When the markets are slow you might as well forget about trading for the day, close out of your Ironfx account, and go do something else.

Because London is the center of the forex world it is during the London market hours that trading increases the most. New York is also very active and because there is just a 5 hour time difference between the two there is some overlap during the day when both markets are active and this is the ideal time to trade in forex, if you are focusing on USD or and of the European currencies.

Trading in the forex market actually begins with the open of the Tokyo market at 8:00pm until 4:00am EST. London trading kicks off at 3:00am EST and are done trading at 11:00am EST. And finally, the New York traders are active between the hours of 8:00am and 4:00pm EST.

By far the most volume occurs with the USD, EUR and GBP and so it make sense to trade when the markets for these currencies overlap. This is between the hours of 8:00am and 11:00am EST when both the London and New York markets are still open and active.

If you are looking to get the best advantage in your forex trading you would do well to focus on these 3 hours of the day for your trading in EUR/USD and USD/GBP. Because you’ll find the greatest volume of trading during this time you will also find the greatest price movements and the greatest chance to profit from these movements. When looking for a time based advantage keep in mind too that Mondays and Fridays are often poor choices for days of the week.

The reasons behind this are quite logical. Monday is the start of the trading week and frequently the market is trying to decide whether to continue the previous weeks trend based on weekend news and events. This can lead to either slow or congested trading. Fridays are typically a poor choice due to the large volume of trades being closed in anticipation of the weekend.

With all of this in mind its easy to see that the best times to trade currencies are between 8:00am and 11:00am EST on Tuesday, Wednesday and Thursday. If you can master your trading you could make a living working just these 9 hours a week at forex trading. That should be an encouragement to any prospective forex trader!

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Top Advice for Aspiring Currency Traders

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Currency exchange is the simple act of buying and selling currencies from different countries. With the advantages of an open market, it can take place almost anywhere in the world. Forex provides a platform for a number of financial institutions and banks from virtually anywhere in the world to trade on foreign currencies. To some degree, currency exchange trade is allegorical with stock exchange. However, unlike the stock market, Forex is open 24/7 and involves a far greater amount of trade.

Currency exchange can be a good way of making money. In fact, people make money capitalizing on the ever changing relative value of the currencies. Every day the value of one currency against another currency changes as a result of the complex effect of several financial factors. If you are willing to start a business on currency exchange, you need to monitor the market for a considerable amount of time to understand the trends and factors. Advice from those experienced in this market is invaluable. A good method is to practice with virtual currencies on Forex simulation games.

Forex has no specific timetable. Online-based real time large scale programs enable Forex to be operated 24/7. In your particular region, the standard offices of Forex obviously follow a specific schedule. But while it is closed there, another Forex office is operating at full spin in some other corner of the world. In fact, Forex is the largest financial market in the world. It always offers investment opportunities for people. The exchange price of any given currency keeps altering every single day. There are a number of trading programs available on the internet that promise to make substantial amounts of cash from Forex within a short span of time. Though trading wisely definitely ensures profit from the market; it is advisable to simply watch the changes in the major currencies for a few months and to study the causes of change before embarking on your trading program.

Forex is considered to be an ideal example of perfect competition. The market is literally global and the information is not controlled by any authority. The number of buyers and sellers in this market is higher than any other market in the world. Some stock markets can be manipulated if one has a large amount of money and some influences over the authority. But manipulating the currency exchange market is near to impossible. On the one hand it is good as no one is getting any extra benefit.  However, on the other hand, it makes the market more difficult to understand.  

Investing in currency exchange is clearly a risky decision. It can bring you both profits and losses. That’s why studying the industry profoundly before putting your hard earned money on it is essential. But if you are really determined to make a fortune, trading currency exchange can be a rewarding experience.

Article by Debbie who usually writes about personal finance, foreign markets and currency exchange. 

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How To Benefit From Forex Trading Tips

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Forex trading is the buying and selling of foreign currency which is done in a stock market or through the internet. The licensed trade in foreign exchange is done through licensed traders and it is very profitable. It is done in many settings and in various currencies through different Forex markets around the world. There are many sites that teach you all you need to learn about forex trading where you can get all the training you need to be a good trader. This is very important and it will lead to huge profits in the market.

The world most traded currencies are the US dollar, Sterling pound and the Euro and the Japanese Yen. To become a good trader there are several forex tips that one should bear in mind which help to improve your trading abilities. The most important forex tip that will help to make you a good trader is practicing using a fake online Demo account which teaches all you need to know while allowing you to hone your skills before you attempt to use a real account. This fake demo accounts work just like real ones but the main difference being is that you use fake money which minimizes your chances of loss.

There are several courses available out there in the market which help you to learn about forex trading. This helps to make you a better equipped trader and allows you to be able to see and understand the movement of the markets and how to trade as a result.

These forex video courses are available as audio in the form of DVDs and CDs or in the form of books and manuals. There is something for everyone whether you would prefer to see live demonstrations or read a book.

The Forex market is highly complicated and it needs a lot of thinking, and an ability to understand and sharp skills so that you are able to trade even if the market looks volatile. These courses give you forex trading which when utilized well make the difference between a normal trader and a good trader. Studying market trends allow you to be able to recognize changes even when most people cannot tell the difference which allows you to make good profits. There are several forex tips used to improve the personal skills of traders which gives them a better understanding of the market.

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