You can actually trade forex online better than most other traders, and better than your mentor. Because real success lies in being original and more creative.
Just Decided to Trade Forex Online? Act Differently
If you just decided to trade forex online, be careful not to follow generic trading tips. Many educators and forex gurus give generic tips and advice. Which finally leads to confusion and failure. Educators have to do this to make it easier on the average student to trade. Through greater comfort and tolerance of risk. But there’s no need to settle for average education and nonsensical tips. Because these, even when applied in exact detail, still fail. They have inherent ambiguities and limitations, which ultimately limit how profitable your trading can be. You can learn forex trading through critical thinking, and not through total faith in your mentor. The good news is that you will able to outperform many so called disciplined traders, because those are held back by their faith in perfect order. In their minds, it’s as if someone else has done all the work for them, and they simply execute a proven trading plan. Except there is a problem, there’s no such thing as proven in trading. Unless it’s well tested over 3 or more years. And it’s unlikely that the course in question lasts this long. By learning to be critical and to doubt established opinion, you will more often than not, beat the market. And this requires breaking some of the rules of classic trading. That is the real way to developing the best forex trading strategy.
How to Trade Forex Online and Be Profitable from Day One
You could trade forex online and be profitable right away, or at least not have big losers. This could be done through reason and sharp judgment. First you have to avoid chasing the news and expecting to figure out market direction through the news. Second, you should trade only during very active, and least active trading hours. Utilizing a different method in each case. Be willing to hedge losing trades for a while, rather than trying to decide there and then what to do. Judging an open losing trade under time pressure simply doesn’t work. Open trades can be evaluated with remarkable accuracy, over several hours. Simply lock the open loss through a hedging CFD trade, and take all the time you like to make your decision. Some probability concepts will come in handy here, and make you judge more clearly. This means, that you might actually have a possible winning open trade in your hands, even though it is currently losing. Or you may have a doomed trade, about to become a loser, even though it is currently profitable. And this means, you will have to add to losing trades accordingly. Thereby breaking the naive classic trading rule, which defines good and bad trades based on market noise and nonsense. You will learn how to trade forex so much better than those naive new traders. And you will never have regrets about it.
Why Generic Strategies Don’t Work
The global forex currency converter mechanism simply doesn’t obey the naive approach of classic trading. Contrary to what you will hear here and there, it is actually much better to hold open trades overnight, and to actually trade foreign currencies at night. In fact, there’s no much difference between night and day. If one exchange is opening in Asia, another is closing in New York, trading never stops. And the risk is not defined by day and night. You can be successful in active hours trading, just like you can be successful in quiet trading hours. Only the strategy differs.