Here is a great article that was published today by Dailyfx.com. Every trader needs to discover and then consistently implement an approach that fits well with their ‘trading personality’. Then use a solid money management strategy and that is how you win in the currency exchange markets. The three simple approaches I have been relying on for over 2 years now can be learned here. I think if I hadn’t started implementing this type of breakout trading and swing trading strategies, I probably would have quit forex within a few months of starting. As always, trade on a demo account until you really get a feel for the strategy. - Ann P.
The full article and it’s original source link is now below:
—————————————————————————-
A Consistent Approach Leads to Consistent Results
Written by T. Long at dailyfx.com
—————————————————————————–
Too many new traders spend time developing an approach to trading based on historical data and then when they use it live for the first time and lose, they throw it away thinking that it doesn’t work.
The fact may be that the approach is solid, but it is their expectations that are not realistic. We shouldn’t expect to win every trade. Some of the best traders in the world win on less than half of their trades. But they also know that after a series of trades, because of sound money management, they can expect to be profitable. This is because they are consistent in their approach, so they expect some consistency in their results.
When developing a new strategy, you have to judge it’s effectiveness through different market conditions. This means that you have to see how it works when the market is trending up, trending down, in a range bound situation and also when the market seems confused and directionless. This may mean running through 100 practice trades to get a good feel for the strengths and weaknesses of the approach. Just because that approach loses three trades in a row does not mean it doesn’t work. If you and I were flipping a coin where I won on heads and you won on tails, we know that we would each win on about half of the flips. But if tails came up three times in a row, that does not mean that there is something wrong with the coin, it is just chance. We would still know that after a series of 100 flips, we would each still have won and lost about half of the flips. Think of this as you are working on ways to trade the market. Don’t be too quick to judge that approach on a small number of trades. Think long-term when judging and then if the results are acceptable, be consistent in taking the trades and your trading results will also start to show some consistency.
Original Source: DailyFX - A Consistent Approach Leads to Consistent Results
June 1st, 2010 at 5:29 am
I used a Signal Provider for a while and made some pips that way while I learned to make pips on my own.
June 7th, 2010 at 9:28 pm
Get a reliable broker. This is a very important step to take before you begin trading with real money. First choice you must make is whether to go with an ECN broker who does not interfere with your trades or to go with a non-ECN broker who do have the ability to interfere with your trades. The main advantage of using an ECN is that they will not manipulate your trades. Not all non-ECN brokers do manipulate your trades but they do have the potential to cause slippage, execution problems and to change the spread to suite them. However non-ECN brokers require smaller initial deposits and offer higher leverage. If you are looking to purchase a Forex Robot it should clearly state whether it is broker dependant and advise you on suitable brokers.
June 16th, 2010 at 1:52 pm
Sometimes i feel like my skullis going to explode–data overload, but this time i enjoyed studying, in fact, earning money with forex is not to difficult if you stick to one exchanging mode and suitable robots