Learning a lot about FOREX trading are we? Well, here we are at part SIX already! If you haven’t read part one, two, three, four or five yet, well you have plenty to catch up on! Please note that these forex trading tips are just my opinion based from my experience from trading forex. If you have other views on how to trade successfully – fine – if they work for you, congratulations, you’re one of the 5% of forex traders who are winners. For the other people… while reading my notes on my forex trading tips, keep an open mind, and if you are already trading, make sure you reflect on your trades
Rehashing part 5, we went through three main points. Forex trading, or in fact, any trading at all is not about picking tops and bottoms, it is about extracting small amounts of consistent profits. Others may disagree (usually the new inexperienced traders), but with a little time, you too will find out that the best way to trade is to have a consistent system of trading that does not have the aim of picking tops and bottoms. Another point I brought up is that most forex traders trade with technicals, so you should too – unless you want to go against the grain. But for retail traders it is the best way, as it is often said that the news is inbuilt into the charts (as the professional institutional traders all have their Bloomberg boxes on their desks updating their news up to the second.) Another point related to the technical side of trading is to know your time horizon. Sometimes this “time horizon” will be your time stop. (compared to a dollar stop as in stop loss) Your time stop will consider latest technical resistance and support lines. Finally we covered emotional trading and about how fear and greed are just about the worst culprits for traders failing to lose out in the markets.
In the last part, I was beginning to discuss systems – with people trying to rack off different systems of trading to inexperienced traders. Now, I’m not saying none of them work – but sometimes its hard to tell whether these smooth salesmen are real traders making a profit or whether they are losers in the market. All I know is that they can be excellent presenters and marketers. It’s hard to tell whether they are telling the truth, or pulling a scam and it is even harder to verify their trading figures. I mean, the numbers they present of 100% to even 1000% return in a certain time span is always possible but the question is, did they complete the trades after they happened and fudged the books, or did they truthfully executed those trades as they claim? It’s tough, but in most developed countries, governments have imposed certain rules for these financial services, so be wary of the disclaimers they put out as well as their accreditation. Have a read of XXX to read more about forex scams.
Is there going to be a part seven? I’m afraid to say there will be. You know, the information I’m imparting to you is priceless – so don’t forget to thank me and the team at forextradinghq.com once you are successful and on your jolly way of making a living out of forex trading.
George Polizogopoulos is a staff writer for ForexTradingHQ.com, the information hub for forex (foreign exchange) traders. More information about learning forex is available on our forex trading website.
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