Useful Forex Trading Tips for Beginners

Forex trading tips for beginners range from simple ones, to more complicated ones, depending on the strategy used. Beginner traders can put these to the test.

Good Forex Trading Tips for Beginners Don’t Have to be Too Complicated

Useful forex trading tips for beginners tend to focus on money management, risk control and making use of simple indicators. Most of these tips however are presented with inadequate information. Traders often have questions about these tips, and using them in actual trading is never straightforward. Some good forex trading tips for beginners focus on picking entry points in the market. And traders find that much more exciting that money management tips, yet they are both important. Traders who manage to learn forex trading well, and advance their techniques, tend to twist and modify all of these tips. Using any tip, in its rudimentary form alone, is not of much help in real trading. Then, there is a whole category of trading tips, which many naive beginners follow, and all of these tips are wrong. The use of tight stops for example, is a totally misleading and wrong tip. This is because this old and wrong trading tip fails to deal with probabilities of certain events occurring. Backtesting of trading tips is difficult, if not impossible. Though the one on using tight stops is an exception, it’s easy to figure out that tight stops do not really provide any meaningful protection in actual trading.

Forex Trading Tips for Beginners
New traders must develop intuition and differentiate between bad and good tips. But also examine other old, confusing tips, and see how to make the best out of them.

Some of the Best Forex Trading Tips for Beginners

Some of the best forex trading tips for beginners are the use of LSS weekly and daily pivots, and the use of the Value Area. The Value Area is more for day traders, whereas the LSS extends out to any time frame, so that even position and full swing traders can use it. Any good forex trading course will probably teach LSS pivot theory and use, to some depth. And if the entire range of forex training provided in that course is extensive enough, it will debunk many bad tips as well. Generally speaking, beginners can achieve good trading relatively fast. But they have to deal with psychological pressures, fear, and be bold enough to bend or even break established trading rules. Most of these rules and tips, are either right or wrong, depending on how they are used. The LSS pivot theory and Value Area prize zone, are two concepts whose way of using is not rigorously defined. Both of these concepts are used to figure out support and resistance levels in the market. And they can still be confusing, because even though price moves beyond a pivot level, and the support becomes resistance (or vice versa). That price breakout beyond the pivot level is a signal that will be good for a finite amount of time only. May be for as little as 30 minutes. Beginners traders need to realize that if the trading day in question is bound to be a sideways day, then all these pivots will have time-limited impact. And when a pivot is no longer relevant, it can be breached again, possibly invalidating the previous signal. Price however does move a lot between pivots, even on sideways days. So much so that traders can make good profits and good use of their trading time.

Traps of the Foreign Exchange Currency Market

Traders lacking experience, risk falling into traps in the foreign exchange currency market. Many such traps are set by false beliefs and extreme discipline.

Traps of the Foreign Exchange Currency Market and How to Avoid them

Forex mentors tend to teach too much on false, ambiguous indicators and discipline. Which the foreign exchange currency market tends to defeat. False indicators and trading methods are false because the creators lacked impartial judgment and critical thinking. Discipline on the other hand is good, as long as is not extreme. Generally, all rules have to be broken at one time or another. At least that’s what creative trading requires. And this is because the markets are not mechanical as many of these mentors make them out to be. Extreme discipline can lead into the trap of missing many good trades, because these trades don’t meet all your entry strict criteria. And if one believes too much in all trading rules, at all times, they might be afraid to take this or that trade. Online trading is not a very pleasant activity when one follows too many rigid rules. And the strategy used fails to connect to the flexible nature of the markets. Live forex rates are even more confusing than lower volatility time frames. And rigid rules may even lead you into placing the wrong trade. Rules such as to never buy below support, and to never add to a losing trade are nonsensical oversimplified rules lacking attention to detail. But because these details are way too many, and impossible to cover in a training course, teachers leave them out. So instead, they present a crude trading system which fails to match the details of the market. Trading the foreign exchange currency market successfully requires enormously great attention to detail. A set of skills which cannot really be taught overnight. It is kind of like learning to play chess, simply crude strategies are easy to teach, but will never defeat a skillful chess player. Not in a million years!

Foreign Exchange Currency Market
The mind does work on emotions and hunches, not just logic. So there is only one unbreakable rule in successful forex trading, and that is that there are no absolute rules. And that is why currencies often rally from below support levels or decline from above breached resistance levels, and over-discplined traders stay out safe, but miss great opportunities. Remember that where there is great apparent risk, there is also maximum reward.

The Mind VS the Foreign Exchange Currency Market

The mind can learn to face and embrace the risk of the foreign exchange currency market. And I so doing it adapts, and it becomes possible for traders to figure out the next move. It becomes possible to avoid losing trade traps, because this skill becomes an effortless second nature. Good traders have notes and do a lot of analysis, but when they trade they don’t have a checklist of strict conditions and rules. It’s all second nature to them. Remember that the very reason why Forex Robots fail to trade profitably after a while, it’s exactly because they don’t have a mind to think, and just follow sets of rules. No matter how much detail goes into these sets of rules, or how dynamic the strategy is. Forex robots end up failing miserably after a while, and cannot even come close to beating humans at trading. They say emotions are bad in trading, that’s not quite true. Emotions are bad when caused by obvious trading signals. Which tend to be false more often than not. But good traders still have hunches and emotions. It’s just that they have to do with much less obvious trading signals. And these signals are checked against serious analysis. Some forex brokers have as many as 40% of their clients actually winning money trading the markets. All of them are to some extend suspicious, emotional traders. But because they use their hunches and emotions originally, and check their trades against in-depth analysis, they end up winning. Now what kind of ultra disciplined trading could possibly allow them to have such hunches and emotions? None! So emotions in trading are not necessarily a bad thing. Moreover, these emotions are not caused by money. Not by winning trades nor by losing trades.

Trading Online CFD Concepts and Ideas

New trading online CFD ideas are found in many curious traders’ journals. Some of these traders take experimentation to extreme levels. In order to reduce risk.

Trading Online CFD Powerful Concepts

Trading online CFD concepts range from simple day trading forex strategies to advanced hedging and dynamic hedging strategies. All implemented in order to somehow reduce exposure to risk, while keeping exposure to profit at appropriate levels. The wise CFD trader trades at multiple speeds, as the circumstances require each and every time. Dynamic hedging is all about varying the size of the hedging trade, depending on what the market is doing. The simplest method of such dynamic hedging is based on the idea of using LSS daily and weekly pivots. So if market price moves beyond one pivot level, small hedging size is used. And if price move even further in the undesired direction, beyond a secondary pivot, much larger hedging is used. LSS pivots define possible price reaction levels, and hint possible breakouts and market momentum. Traders who know what is CFD trading and the benefits it has, do use CFD in these strategies. CFD are linear and straightforward to trade, thereby enabling both the intended trade and the hedging trade to follow market price closely. And accurate pricing is the only way to make a strategy as this one, yield the expected results. Futures for example cannot be used for accurate hedging, because their pricing includes factors such as risk, and expected events. And can deviate dramatically from spot market price. It’s no wonder that many Futures and even Option traders use CFDs to hedge losing trades, or even recover losses on previously naked trades. The opposite is not easy to do, you cannot use Futures to accurately hedge any investment, especially short term ones. And using Options is possible, but their complexity makes it much easier for things to go wrong, than right. The slightest oversight in Option pricing parameters can turn a profitable trade into a ridiculously small profitable trade, or even into a loser. CFDs are simple and straightforward, but traders still have two variable to experiment with, and these are trade size, and LSS pivot levels.

Trading Online CFD
Volatility is bound to hit the markets on news days. But it cannot change a solid daily trend. The intraday moves can be captured wisely, efficiently and linearly ONLY through CFD trading. For trading up to $100 per pip, no other financial instrument can match CFDs!

Trading Online CFD Ideas for Forex News Traders

Forex news traders have developed some trading online CFD ideas, for using around news release times. The global forex currency converter trading platform makes it possible to trade the news in terms of volatility and breakouts. In simple words, traders cannot predict how the market will move after volatility dies down, following a news or economic report. But they know that the daily trend is unlikely to change. They also know the weekly and daily LSS pivots. So through critical thinking and logic they expect that market price will become very volatile right after the news or report release. And this volatility will make price sweep up and down, so as to cover all possible pricing scenarios. From worst to best. By figuring out this trading range, they plan their day trades accordingly on such days. Trading efficiency and liquidity are assured through CFD trading. And the only variables they will change are entry and exit points, and of course trading size. Stops can be very large, and outside the expected daily trading range. Even if that range is found to be 400 pips wide, they are willing to hold a 400 pip losing trade until volatility dies down. Tight stops won’t work. Such large range trades can be of smaller size, so as to reduce risk, and to make it easier to hedge them if necessary. But that’s the way it is, only these bold day traders make serious money in the forex market. You simply need to bear in mind, that a single day’s events cannot change the daily trend, not unless big and obvious conditions are in place. No matter what the news or report story is. And that market price will attempt to intimidate you into surrendering your open losing trades. Traders lacking this critical thinking use small stops, or panic in the volatility. They will close that losing trade at -150 pips, and as soon as they do that the market goes 300 pips the other way. Successful day trading online CFD ideas are based on such critical thinking, requiring to do things that defy belief. And they are extremely profitable, their success defies belief too.

The Holly Grail of Foreign Exchange Currency Trading

Traders searching for the elusive holly grail of foreign exchange currency trading always fail to find it. However they do find partially profitable trading.

The Legend of the Holly Grail of Foreign Exchange Currency Trading

Between fact and myth, the holly grail of foreign exchange currency trading has been synonymous with perfect market indicators. Ones that offer maximum profitability and zero long term risk. Essentially amounting to trading where one stands to make money faster than they can count it. So do such indicators really exist? We will never know for sure. People engaging in trading the forex market, have used all kinds of tools and methods for attempting to predict currency rates. Critical thinkers use logic and proven methods, whereas the less critical thinking people use astrology, numerology and all kind of metaphysical tools. Trading online is fascinating and open to many possibilities. But realistically speaking the forex market is not random, such as the lottery draw is. Randomness in the financial markets is much less than it seems. Traders need to be careful when choosing their indicators, because many popular indicators belong to the metaphysical category, and are aimed at the naive out there. Indicators such as Fibonacci numbers and astrological nonsense are sold to real traders out there. And they don’t work. Only Fibonacci theory works once in a while on some charts, and only because too many believers act alike during low volume trading hours. And this illusion of success only keeps the naive Fibonacci believers going. But it doesn’t stop there, more recent pseudoscience today, through various scam products, cites all kind of quantum phenomena. All in an effort to convince people that they can actually heal themselves through the power of their will, and yes, also predict markets. Or more accurately make them move in the desired direction. That’s how far holly grail of foreign exchange currency trading sellers will go… To this day however, risk-less slow winning trading, is the closest traders have gotten to having the Holly Grail.

Foreign Exchange Currency Trading
It seems ridiculous to believe that the Holly Grail of trading could possibly exist. Nonetheless you do need the perseverence and risk taking attitude of a daredevil archeologist, in order to really figure out profitable forex trading, or risk-less arbitrage methods (which do actually exist). And those who dare eventually win. Because such real trading secrets are burried deep.

What If You Had the Holly Grail of Foreign Exchange Currency Trading for One Day

If you did have the holly grail of foreign exchange currency trading, it would be the last trade you would ever need to place. Just one large trade using a high leverage CFD forex trading account, and you would make enough money to retire, in a single day. So it stands to reason that such traders, if they exist at all, only trade for a while, then retire. So be careful next time you choose a forex trading course, and think about what it promises. Are these promises realistic and grounded in logic? If not, then probably that course won’t have any Holly Grail qualities to it. Luckily there is good news, every serious forex trader can realistically benefit from the pursuit of the elusive Holly Grail. Just as long as the pursuit involves non metaphysical indicators. The very act of stretching your skills and efforts to new levels will ultimately make you a much better trader. Eventually, good trading skills will become second nature to you, and profitability will become stable. The very act of searching and testing and being curious, could actually be the real Holly Grail after all.

The Foreign Exchange Currency Converter System beyond Economics

The foreign exchange currency converter global system makes it possible to profit in ways that are not always obvious. Through imbalances in global trade.

Unforeseen Impacts on the Global Foreign Exchange Currency Converter System

Essentially, the foreign exchange currency converter system is part of a bigger system. That which defines the entire world economy. Surge in demand for certain raw materials, commodities and real estate creates imbalances. And these imbalances gradually disappear because the currency needed to pay for these products ends up rising. It rises as much as the market requires, so that an imbalance created by this surge in demand, no longer exists. In other words, it’s the forces of supply and demand, just like we know from fundamental analysis. Except that things don’t always work linearly and proportionately. A surge in demand may be extremely sudden and unforeseen. Such as in the case of demand for coal right after the nuclear accident at Fukushima. This created a massive demand for coal, and subsequent demand for the currencies of countries exporting coal. The thing is that the cause of the demand was an unfortunate, fast event. Whereas the demand for coal is a slower event, spanning over months and years. Especially small countries exporting important commodities are impacted the greatest. And their currencies are possible to predict through such events of high demand. Investors willing to learn forex trading based on fundamental analysis of this level, rely more on logic and less on classic economics. The foreign exchange currency converter system is mistakenly seen by many traders as being impacted by central banks, economic growth and monetary policy only. But it doesn’t work like this, and you cannot make good medium term trades based on economic models and a forex calculator tool alone.

foreign exchange currency converter
Chemistry is another powerful science which can save entire countries and economies in many ways. It has already managed to replace crude oil through sun light-based biofuels, and also make refining of crude oil itself much more efficient and cheaper than ever before. The next breakthrough could define which country will be the next energy player for many many years. And its currency will defy all economic forecasts!

Technology Breakthrough Impacts on the Foreign Exchange Currency Converter System

Economists and models of economics can have diverse opinions or even disagree on the outlook of such currencies. But logical analysis makes things much easier to figure out. One has to pay attention to technology and science news, and be watchful of latest developments. Technology plays an important role in the price of gold, crude oil, and other commodities. Because it can turn uneconomic reserves of such commodities, into economically viable ones literally overnight! A single invention or discovery can lower mining cost beyond belief, and beyond what economists would ever dream. Back in the 1950s for example, people hadn’t heard of maneuverable oil drill bits which can drill deep, then turn and drill horizontally and so on. So hard to reach reserves would have been worthless at the time. So depending on the export capacity of a small country. The technological solutions. As well as the price of such commodities at the time, the currency of that country may get a significant long term boost. That’s where forex traders choose to deal that currency, usually through online CFD trading. All of these events create circumstances, ideal for medium term currency trades. Based on long term fundamental trends. The key event comes first, few notice, and the foreign exchange currency converter system is later impacted by the event.