Trading Techniques

 Tit Bits for successful Trading

Trading currencies can better be simplified if you decide to obey the simple rules that has to do with emotional control. For instance, currency pairs retrace after moving for a while in either a bullish or bearish run. In either case, it will move five steps forward and three steps back. The three steps back is simply a retracing or price correction. Wise traders, most often close their profitable trades at the end of the five forward steps, then they wait for the price correction to complete before getting back into the trade. 

Based on this Elliot Wave model, I have added two more trading tools that preview all the currency pairs showing the trending and non-trending pairs. With one of the online tool, you place 5 trades and close all in profit mode or at least 80% profit. How about that? The truth is that it takes time to develop a successful full proof currency trading system.
Learn to trade first, then develop your own trading system that enables you to identify the correct entry and exit points. So you  got to know when the run time of a currency pair is coming to an end,  then close out the trade and take your profit.

Trading Mistakes that Rob Traders of their Profit

You never really become a successful Forex Trader until you make your profit, keep it and perhaps withdraw at a desired time. Many traders make profits, but simultaneously keep making trading mistakes that rob them of the profit. Learning to keep your profit is as important as learning to trade. So what are the things, sometimes little things, we traders do, perhaps as mistakes that rob us of the benefit of Forex Trading like profit taking, keeping our profit and withdrawing the money when we so desire.

       

 Here are the few but not all the kinds of mistakes that keep robbing traders of their hard earned profits.

1. Placing trade entries indiscriminately or at the slightest sign of an entry signal without confirming with other indicators. 
2. Not understanding the characteristics of a currency pair you trade on as each behaves differently 
3. Not setting a stop loss order at all or placing it too wide to incur a big loss when stopped out 
4. Not understanding the Support - Resistance technique that often indicates correct entry signal and gives maximum profit when successful. 
5. Placing trades when the market is closing down for the day, thereby leading to inconclusive trading or unfilled orders. 
6. Refusing to close out wrongly placed trades or reverse trades early enough, but rather expecting a return-to-continue miracle.

               7. Being too greedy when trading by choosing to trade high leverage on a risky gambling experiment.

Remember that  your live trading account should not be used as a gambling account. Do your calculation properly before placing trades as money lost cannot easily be recovered

How to choose the Best Forex Broker

As a Forex Trader especially a newbie, your ability to choose a dependable Forex Broker is the first and most important trading technique to learn. Knowing how to choose the best Forex Broker is as important as learning and trading successfully in the currency market. Many traders have had horrible experiences and some gone through untold hardship because they lost their money to scam Forex Brokers. Many more can easily be deceived by beautiful websites of some bucket shop Forex Brokers. You must as a fact, know how to choose a genuine Forex Broker among the numerous brokers online to secure your investment.

If you ask most Forex traders to suggest the best way to discover the right Forex Broker, most will concede to doing a Google search as the best option for identifying the better Forex brokers among the plethora. This suggestion is good for the purpose it is supposed to serve, but may not provide adequate background information about a broker because while some traders have learned to do thorough search to avoid choosing a bucket shop Forex broker, some unscrupulous brokers have learned to cover their tracks of bad or deceitful records to avoid being identified as possible scams.

What are the Signs that a Forex Broker could be a Scam?

There are no clear-cut ways of identifying scam Forex brokers, but there are few things that should sound some warning notes to a careful Forex trader:

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1.       1. Setting Time Limit to Your Demo Trading Experience

There are some Forex Brokers that insist on setting time limit for you while demo trading on their platform. This negates the fact that you can never learn enough skills to trade successfully without losing a dime. A trader once had an experience in his early days of learning to trade as the broker mounted pressure on him to open a live account after one month of demo trading. The broker had sent messages and insisted that unless he opened a live account, his demo account will soon be closed down. The idea behind the message  was that he had done enough practice, therefore, to get the best learning experience he had to open a live account fast. Well, he simply ignored the message because he was not ready for live trading. The result was the freezing of his demo account. It was not as if he was no longer trading daily whereby the system will refer to his account as dormant, he was still actively trading. This was way back in 2007.

2. Demo Trading with Virtual Fund

Some Forex Brokers will suggest to you not to learn through demo trading, which provides virtual fund for practicing online Forex trading, but rather to deposit money and learn through live trading. This they say will provide the real psychological experience you need to become a successful Forex Trader. They will not mention the fact that you will definitely lose all your deposit if you follow their instruction

3.       Test the time it takes to complete a withdrawal Process

If you have successfully made some profit in your Forex Trading, test the withdrawal process of the platform to see how long it will take to receive your money.  Some brokers may have very fast process for depositing money into your trading account but when you want to withdraw, it becomes a never-ending process.

Why Has Forex Trading Become Almost Everybody’s Business?

The fact that online currency trading business is strictly not regulated as such  but is known as one of the most profitable businesses today has made Forex Trading almost everybody’s business. This is not only for traders who labor day and night, risking their fortune, but also for some brokers who set up their business with the sole intention of defrauding unsuspecting traders of their deposits. These unscrupulous brokers ordinarily should have no business operating in the Forex Market but due to the unregulated nature of online currency trading they are making their way in through one way or the other. While regulatory authorities have since stepped up their effort at flushing them out to sanitize the Forex trading business, these bucket shop Forex brokers move away to safe haven places with weak or limited regulatory control to set up their businesses. Why has Forex Trading become almost everybody’s business? The answer is simple, most people think it is the fastest money-making business online. However, an honest trader will tell you that it is the riskiest business ever done online today.  

How to Avoid Falling Victim To Fraudulent Forex brokers

One simple way a Forex Trader can avoid falling victim to fraudulent brokers is not being deceived by Forex Brokers professionally designed websites. Every Forex Trader must also join a reputable Forex forum and read the comments made in relevant discussion threads about the Forex services and activities of brokers. Participate and read all the comments made by other traders carefully to understand the Forex Trading rough terrain. If you have had any unsatisfying experience with a broker or brokers, share your opinion and experiences about the companies within the traders’ community. Having said this, it is important to note that some bad comments about a broker could be misplaced or wrongly directed. It is a fact that when some inexperienced traders sustain losses due to no fault of the broker, they do misplace their anger.  Baring my last statement, the only way Forex Traders can separate the scams from genuine and honest Forex Brokers is not to be so gullible to fall for a broker’s site packaging as well as promises of various bonuses if you open a live account.

What To Do If You Become A Victim Of Forex Scam

If you become the victim of a Forex Scam, there are websites and forums where the administrators may do everything possible to help you to get your money refunded all absolutely free. They will do all these sometimes to help traders for the simple reason that they are aware of the fact that anonymity provided by the internet shields the brokers from direct contact with the traders. These are people who would ordinarily storm their offices, to ask for a refund (for when they refuse to pay) were the brokers’ offices located within the same city as the trader. You must register to become a contributing member to the forum discussions. You can do Google search on this and you will get a lot  of  valuable information.