How to Change Your Online Forex Trading Strategy to a Winning One

Struggling traders persist on the same trading plan, in an effort to win back losses. But success becomes elusive through short-sighted online forex trading.

Online Forex Trading is Not a Routine Day Job

Most people have learned to be persistent through their former day jobs, where the more you work the more money you stand to make. And persistence is good, no doubt about it. But you should persist on the goals, not on the means, and the trading methods used. Online forex trading can become very successful when one has loose goals, and is persistent enough to reach these goals. The goals may change slightly, but the one thing that can change dramatically is the actual trading plan. Traders who persist on the same trading plan, especially one that has rigid, strict rules, end up losing all their money. There are strategies and methods that are more flexible, and are adjust to changing market conditions. And these are usually much more effective than the rigid approach. Above all, it’s market volatility. This keeps on changing deceptively all the time, from month to month. It just gives you a short period of deceptive success, only to prove your strategy wrong the next month. Traders need to focus on the big picture on the markets, and use flexible trading plans. In fact, the tighter a trading plan is, the more likely you are to encounter something out of the ordinary, and you will be powerless. Because you will not be used to thinking outside the box. All successful traders are free to think, and to even break classic trading rules when necessary. Even the best forex trading strategy in the world has not figured everything out in advance, and it allows for free action.

The Harsh Reality of Online Forex Trading and Misleading Beliefs

Traders are bombarded daily by all kinds of news, opinions and tips. Which at the end of the day amount to useless information. And the over-disciplined trader is at a huge disadvantage because they lack the initiative to think fast and not do things by the book. Online forex trading can very successful by breaking some of the classic rules, but while doing so within the right mindset. For example, you might think that emotional trading is bad. That is not really true. Seasoned traders do have emotions about the market, it’s just that they don’t get excited about fast moving markets. At least not when they don’t understand what’s driving all that momentum. If emotions are based on solid analysis methods, the markets will not easily fool you. Wise traders are emotional traders, because they feel the markets, and that’s what it takes to identify the uniqueness of each trading day. One has to be sensitive and emotional to figure out the real hidden forces driving the markets. Moreover, it is becoming more and more apparent that the so called disciplined, emotionless trader doesn’t really exist… Or at least they are not an impressively profitable trader. Look all around you, at all the successful people, lawyers, businessmen, scientists, they all had moments of Eureka in their careers. And they were obsessed with whatever they were doing. Well, obsession can be good in such cases and it leads to big success. And it is the product of a sensitive emotional mind. Therefore, deep down, to be a really profitable trader, you actually have to be a wise, emotional, obsessed trader, persisting on the goals.

Online Forex Trading
There is something about creative, really successful people, in all professions. First, their offices are cluttered almost as if there has been a break-in, which means they are not so disciplined. And they are also obsessed with their work, which means they are emotional about it, in a good way. That’s something to consider when it comes to serious forex trading.

The Fine Line between Being Sensitive and Over-Analyzing Markets

Profitable online forex trading comes from knowing how to be emotional and sensitive, in the right way. This will become apparent through your trading results, very soon. But it will still take you years of trading experience to make millions in the forex market. That’s just the way it is. But it will take you fewer years to get there, if you break classic trading rules and not do what everyone else is doing. Set goals, and try your bests to reach these goals. Loosen up the requirements on discipline, emotions and so called risk-reward ratios. And take trading one day at a time, while also looking at a longer time frame, as if you were an investor. You can trade forex online and really make serious money, through your own unique approach. Foreign exchange currency trading online for beginners will often mislead you into believing too much in discipline and emotions-free trading, as well as other concepts. Which have not been proven to constitute really profitable trading strategies.

Forex Trading Strategies for Maximum Profit

There are so many forex strategies that traders can choose. And it’s easy to get confused or misled as to what really works. But it’s possible to choose wisely.

Forex Strategies Which Do Work

Forex strategies which really do work, are based on simple logic, and transparent facts. On the other hand, forex strategies that don’t work well enough… These tend to rely more on urban legends and superstition. In general, it is possible to predict market price, up to a certain percentage of success. And it is possible to develop the best forex trading strategy by studying fundamentals, technicals and geopolitics. It sure involves a lot of detective work, and only a handful of clues lead to actual trading action. Most of the time, the wise forex trader does all this work, but no solid market direction is detected. And yet, this is the best way to trade the forex market. Mechanical trading systems provide many more signals. But trading itself becomes boring and lacks character. Traders who quit boring day jobs in pursuit of a trading career, look for excitement. And this excitement comes from the challenge that detective work offers. The challenge is in that every day in the markets is seen as unique. The belief is that history doesn’t quite repeat itself.

Forex Strategies
Forex traders need to focus on a time frame which is longer than the one they are trading, this will remove a lot of the market risk right away. And also on the uniqueness of each trading day. It’s quite a challenge, but once you develop sharp analytical skills, judging the trading day will be easy, it will be second nature to you and it will come effortlessly, without much numerical analysis on the charts.

Forex Strategies for More Profit

Forex strategies can offer more profit, when trading itself is no longer a routine job. But rather an active job, where every day is unique. Through practice and skill development you will able to see fundamentals, technicals and geopolitics. And you will be able to see which factor is more relevant at that time. Fundamentals are more tricky because a fundamental factor can actually have a double conflicting impact on a currency. Such as a short term positive impact, and a longer term negative impact. So understanding the timing makes all the difference. And even though you are not a longer term investor. You need to look at currencies as if you were an investor, and look at politics, stability and interest rates. These factors will determine whether the next buy signal on the daily chart will be for real, or a false one. Traders lose money in forex trading because they focus too much on their time frame of interest, ignoring investor mindset and central bank policy. You can first learn forex basics, and then extend to these 3 fields of analysis.

Dealing with Short Term Risk

Remember that all trades start out as losing trades! There is no need to hesitate to take action, such as adding to a losing trade. Or even giving a seemingly losing trade a second chance. But because the stress of seeing a losing trade growing larger and larger is too much to handle. You can actually hedge that open losing trade, temporarily, until it stops growing. By locking the open loss, you will be free to think objectively, without stress clouding your judgment. You should focus more on dealing with these losing trades. And also focus on improving winning trades that took too long to become profitable. Winning trades that became profitable after far too much time, hint that could easily have been losing ones. And that entry criteria need to change. Such forex trading strategies can dramatically improve profitability, all through limiting short term risk.

How the Gold Price Affects Your Online Forex Trading Strategy

Commodity prices are important in online forex trading, due to correlated currency pairs. Gold price for example directly impacts all Australian dollar crosses.

Gold and Online Forex Trading

Gold impacts all Australian dollar crosses, and traders have to watch major trends in gold price. Minor movements in the price of gold may not have an impact at all. But major movements certainly will. Online forex trading in such cases becomes easier through the clarity that gold price provides. Entire forex strategies are based on commodity analysis, and gold is a very popular commodity. Traders are able to avoid much of the market noise and risk. Simply by looking at a commodity’s finite supply and minimum demand. After all, the suppliers of that commodity cannot just print more of it, as is the case with non physical assets. Online forex trading of AUDUSD and more pairs, relating to the Australian dollar are a very good choice. When gold sets a solid trend, then AUDUSD will generally move in the same direction. Because Australia is a very big gold exporter. Moreover, gold is unique, irreplaceable, and has many industrial uses. It is in fact more unique than even crude oil. Because gold cannot be made synthetically, whereas crude oil can be made through various artificial methods. The price trends of gold therefore carry a lot of weight, and can provide very solid medium term trades.

Online Forex Trading
Gold is not indefinitely recycled, every year gold is lost here and there, in the form of burried coins on earth, in lost mobile phones… and in space satellites. As much as 20kg of gold is needed to make a modern satellite, and after 15-20 years the satellite is left in space for ever. Therefore the industry will need 20 more kg of gold. No other material offers resistance to corrosion, wide temperature tolerance and high electrical conductivity all at the same time. This ensures a minimum industrial demand for gold, and a minimum price level for AUDUSD. Below which they cannot stay for long…

Online Forex Trading of AUDUSD for Best Results

AUDUSD is an ideal pair for gold traders and analysts. Since it trades almost like gold itself, and it is easy to figure out the impact of the US dollar. As well as minor day to day moves, which may not constitute a solid market move. In general, the same methods can be used on crude oil and other commodities. But in the long run gold is unlikely to be replaced by anything else, as it is a unique commodity. Online forex trading can be further enhanced by looking at market risk, and how traders see precious metals at any particular time. Gold however is not immune from excessive demand and parabolic rallies. Which always eventually result in steep downward corrections. These trends are longer term and much more difficult to predict. In a nutshell, traders should stop buying gold when the trend seems to have gone parabolic. That is a chart steeper than 45 degrees.

The Wise Commodity Forex Trader

Wise commodity currency traders establish extreme lows and highs for the price of the commodity, gold in this case. And then trade the related currencies accordingly. So turning points in AUDUSD may not be easy to spot on its charts, but fundamental analysis in gold, can tell you much more. And as always, fundamentals prevail over technicals. This is the best forex trading strategy as far as AUDUSD is concerned. Because the defined supply and demand in gold help remove a lot of market risk. Traders can also learn forex basics and extend the concept to silver, and other unique commodities. Generally, all precious metals move together with gold, in the same direction. Just be ready and willing to fade technical signals on currency charts, in favor of the fundamental signals in these commodities.

How The Elections Day Will Affect the Online CFD Trading Market

Online CFD trading is not currently available to US citizens, putting them at a severe disadvantage. Traders do not realize this until the day they trade CFDs.

The US Presidential Election Could Enhance Online CFD Trading

US citizens are currently not allowed to trade CFDs, due to regulatory restrictions. In the same way that leverage for US forex traders is limited to just 50 to 1. Leverage is not a big deal, traders can still profit from good trades, even at a 50 to 1 leverage. But not having access to CFD brokers is a severe disadvantage. Since it prevents US retail traders from accessing the best liquidity pools in the financial markets. Online CFD trading may finally become a reality for many US traders, who really need it. It all depends on the next elected government. Historical evidence hints that republican presidents are far more likely to loosen regulatory restrictions, and make derivatives trading in the US better. Many online CFD brokers are ready to offer their services to future US clients. And US traders are clever and fast enough to adapt such improvements, and seize up new trading opportunities. Some of which are really only possible through CFD trading. These traders are already contemplating some kind of CFD trading system.

How Soon Could US Traders See Online CFD Trading?

This largely depends on the securities and exchange commission, which regulates the derivatives market in the US. It is more than 50% likely that a new republican administration will make suggestions and present the benefits of the entire retail trading market. So that retail traders will be able to provide more and more liquidity to the financial markets. An action which will make markets somewhat less volatile. And less volatility means more stability for these markets. Online CFD trading can help get there faster. So it is possible to see online CFD trading available to US retail traders, in less than 2 years from now.

 Online CFD Trading
The markets work better through enhanced liquidity, and both large and retail traders benefit as a result. CFDs can enhance liquidity for many US based traders. And CFDs have a better chance of being made available to US retail traders if the republicans win the November election. So ultimately and rather ironically, the markets will become more democratic if the republicans win. US retail traders want access to CFD trading, and they are going to get it. Up to now, only European and Asian traders enjoyed the hidden benefits of CFD trading.

How Will CFD Trading Impact New US Traders

Beginner traders all over the world have a high rate of failure, which is around 70%. US traders have a slightly better chance of success. Because they have access to seminars and training materials that are not available in other countries. The advent of CFD trading will definitely allow these new traders to implement better and better strategies. It’s all a matter of personal determination, training, and the risk-control benefits that CFDs offer. US traders who are already successful, will want to switch to CFDs, and pursue trading CFD for a living. Since CFDs offer superior liquidity and therefore a better filling price. Which means that the profitability of already profitable systems will increase. If one looks at the history of stock options and commodity futures, and how they contributed to market stabilization. It will become apparent that the small retail trader benefits from reduced volatility. This doesn’t mean that volatility will go away, but that there will be fewer extreme range days in the markets. The stock market has been suffering from reduced liquidity in recent years, due to changes made. And volatility has actually increased. Unlike commodity markets which have remained stable for decades. And where price stability is of extreme importance for the entire US economy and the rest of the world as well.

Trading CFD For a Living: How to Get Started

Many traders are held back by their fear of the market. And this fear prevents them from executing many good trades, and hence from trading CFD for a living.

It’s All in the Mind – Trading CFD for a Living VS Reality

Your mind does keep you back, so as to prevent you from taking risks. But if you look back at all those losing trades, it was excessive excitement, over-reliance on others, and unrealistic goals, that made you take these trades. Trading CFD for a living is possible, for many experienced, yet struggling traders. These traders are almost making money, but are not quite there yet. Especially when considering the time committed to trading and studying the markets. In any case, it is important to take your own risks, stop relying too much on other traders, and be bolder. Trading is not the typical day job, where you have to be socially conditioned. Most working people see their day job as their identity, and not having one is like not having an identity. That’s where social conditioning comes in. But trading is very different, and requires you to be humble, and to talk in a spirit of humility about your skills.

Trading CFD for a Living Requires Breaking Classic Trading Rules

Trading CFD for a living does require you to break some classic trading rules. Because that’s what the formula of success requires. In order to have a high probability of trading success, some rules have to be broken, period. Trading CFD online offers much more than classic trading instruments, and that’s why some rules can be broken. Stops for example can be larger than normal, and risk-reward ratios can be high. Because they have to be high, to be successful. Classic trading rules are okay, but wise traders feel that at least a quarter of these rules don’t apply to them. Some wise trader may break the risk-reward ratio rule, while another wise trader may break another rule. Today’s CFD trading platforms allow traders to handle risk in many innovative ways, but the most amazing way is that of hedging. Simply hedging a risky trade until the fog of uncertainty clears. If on the other hand you attempt to play by all the rules, this will not get you anywhere, because the classic rules themselves are not compatible with one another. They are all full of ambiguities and gray areas. The most tired and ridiculous rule is that of cut profits short and let profits run… Well the problem is, one trader’s perceived losing trade may be another trader’s winning trade, in the same market direction! Only the timing differs! These classic rules and tips fail to deal with reality, big time…

Trading CFD for a Living
Too much obedience to classic trading rules can lead to mental barriers, preventing you as a trader from reaching success. It’s easy to say cut losses short and let profits run, but defining what is a loss and what is a profit, is not so straightforward! So be bold in your trading, break some rules, and be single minded, social conditioning is not advised.

Difference of Opinion is Key

Maintaining a difference of opinion spirit, against older and wiser traders, is essential to becoming a profitable trader faster. Trading CFD for a living is all about courage and original thinking. The very act of challenging top traders, on market direction will help you get years ahead in the trading game. Even if your opinion proves wrong most of the time. You still get to sharpen your observational and judgmental skills. And this makes you a much better trader. Sooner or later you will be able to trade better than these top traders. At least in one market, or one type of trade.

How Online CFD Training Can Improve Your Trading Skills

There is more to online CFD training than just learning the basic inner workings of CFD instruments. The more one learns about the markets, the better CFDs get.

In-Depth Online CFD Training is More than Preparation

Online CFD training can cover many different aspects, not directly related to CFD trading. But these aspects of trading are directly related to specific price moves that the financial markets make. And because other instruments fail to properly capture these moves. In any volatility environment, the linear pricing of CFDs comes naturally to mind. That’s why many stock and forex trading educators use CFDs even in their examples and training materials, even though the main subject is not about CFDs. Moreover, the importance of linear pricing can be so critical at times. So that it makes all the difference between profit and loss, in a trading system. So CFDs and market moves need to be taken seriously, as well as the pricing nature of non CFD instruments.

Online CFD Training is about Being a Different and Better Trader

Many price moves in the markets are obvious and easy to spot. These can be traded through CFDs. But there are also less obvious price moves, such as in the case of enhanced forex scalping. And CFDs are the only way to trade, at least for the vast majority of traders who are retail traders. Online CFD training can help you identify your weaknesses against a confusing market. How to manage risk through hedging, and much more. Especially in scalping, hedging even a single risky trade, for just 30 minutes can prove vital. As most scalpers make a lot of money through the trading week, from Monday to Friday, only to lose 70% of these profits on the last Friday scalping trade. You only need to hedge one such risky trade per week, and that 70% loss can be avoided. Good CFD training provides the basic brainstorming ideas for developing such trading methods! You will be able to implement these methods in your CFD trading account, soon after understanding the markets and the basics of CFD instruments.

Online CFD Training
Brainstorming of new ideas is a weird thing, more often than not, we do it when we are alone, and other people’s advice and tips are used in the most unlikely way. In the case of financial trading, many good trades exist, but because they are not obvious enough, the average busy trader can’t see them. Scalping trades are just one example, they are totally invisible on daily forex charts, and yet they exist. Other kinds of trades are more obscure and cannot be detected visually at all, and yet some basic numerical analysis can reveal these trades.

Stay away from Big Promises

Courses that have fancy tittles so as to impress you, and make you believe all kinds of things, are useless. Such courses will have you believe that they are all about picking entry points in the markets, and that you don’t need to focus on CFDs and market basics. But all new ideas are born upon basic principles. Because every student has slightly different understanding. Online CFD training is not really about picking obvious entry points, or using advanced CFD trading software products. It’s about teaching you to think originally, through brainstorming ideas and principles. Even though many have seen those, only a minority of traders uses them creatively. In wise CFD training, there is no free lunch, there are no silly promises. Just the key ingredients for trading success.