Page 188 – XTrade

Learn Forex Basics and More for Better Trading

All serious people who want to learn forex basics for improved trading can do so. The information is available out there, the trick is filtering out the junk.

Learn Forex Basics for Better Trading and for Avoiding Mistakes

Many people who want to learn forex basics start with what is already available out there. The problem is that all this information contains a lot of junk and false information. Most mentors and educators teaching forex trading, focus on easy and convenient techniques, which many can learn. They also teach several false things, which make traders see markets the wrong way, and not the way they really work. Forex charts can be highly misleading, because they trigger all kinds of emotions on traders, and they lag fundamental factors in the market. The very idea that charts are accurate is actually wrong! Charts are accurate, but what they illustrate is momentum and the collective actions of the majority of traders. But that’s not the entire market! Fundamental factors can conspire in all kinds of peculiar ways. So as to allow a market to move on its own for a while, and then suddenly, out f the blue hit that market, creating all kinds of surprises. Fundamentals are so complex, that a single development or story, of fundamental nature can actually be both bullish and bearish, in a sequential way. So that the market rallies for few weeks because of this factor, and then declines in the next several months, again because of the same factor. New traders should be aware of this, and use their charts only as far as fundamental analysis would seem to suggest. And even fundamental analysis is often so ambiguous and inconclusive on market direction. At least the classic approach is so.

Learn Forex Basics and Trade More Pairs

When one sets to learn forex basics on various currency pairs, the whole market becomes much more flexible. And not a day goes by, without finding a nice trade. Generic trading techniques do not really work well in the forex market, whereas pair-specific techniques can do miracles. All a trader needs is more and more information, on as many as five different, totally different currency pairs. Five different pairs allow you to have plenty of trading choice every day and week, and still be a specialist in each one. Good trading starts with fundamentals, time zone selection, following possible patterns that the pair in question may follow and avoiding the news. All a trader needs beyond that, is to use their trading platform smart, make use of a forex calculator when necessary, and be ready to handle volatile markets. A big challenge arises when placing contingent orders, as the global forex converter mechanism creates so much and so weird volatility, that most stop losses are bound to be taken out in no time. There is no easy way around that, but to use larger and larger stops. As well as develop a suspicion for trades that are bound to become losers, and have them closed before they do. There is no one size fits all solution, to managing contingent orders. It is one of the hardest part of trading, but using larger than normal stops is a big step in the right direction. These are the habits of traders who tend to win big, and most of the time!

Getting Better Results From Forex Trading Online

Improving one’s forex trading online is always possible. Every trader has room for improvement and for taking new advice. All wise traders keep on learning.

There is More to Forex Trading Online than You Think

When traders carry out forex trading online, they usually follow on the footsteps of their mentors. But they all devise small or big new techniques, for improving upon what they learned in the past. The forex market allows for making such bold steps towards innovation and change. All you have to do as a forex trader is depend more on yourself, and less on your mentors and trading friends. Lack of initiative is bad in trading, and is often disguised and taught as discipline! But being very disciplined is actually a bad thing, as it prevents traders from thinking originally. This illusion comes from the belief that older traders are always wiser, and they know better. That is not necessarily true. Older traders may or may not know better, but they hardly ever give out their best secrets. In fact, those who are very profitable never give out secrets. The only advice they will share with you is some good but generic advice, which applies here and there. Forex trading online can improve dramatically only when traders start to think for themselves, and doubt other traders’ actions. Just because some experienced and profitable trader uses Fibonacci analysis to place their trades, it doesn’t do any justice to Fibonacci theory. It still is a nonsensical theory which doesn’t really work. Traders have to be logical and cautious, as to what advice to take from older traders and what advice to reject.

Taking Forex Trading Online to the Next Higher Level

Forex trading online can improve dramatically, by looking at what is different, unusual, and put it to the test. Are moving averages a good indicator? Are oscillator and chart patterns reliable enough, and if so on what time frame? These are the question an innovative trader will ask, and they will want to test out new things, in their own trading, and without telling anybody else. Some believe that in order to learn how to trade forex they will have to work as part of a team, always. While sharing and discussing techniques is a good thing, and may provide guidance, team work is not going to provide you with that unique trading edge. All profitable traders dedicate time to research the markets well, and they do this alone. For some hours at least, the trader has to think on their own, and in an original way. This is not compatible with team work at all. Because when we work as part of a team, we all look for nice ways for dealing with others, so as to make our answers fit expectations. But discovery is about fact, not tact. And when real research is going on, people tend to argue a lot, in a productive way. Sooner or later they all start to disagree, and end up working in isolation again. And people’s most creative moments actually come when working alone, in a quiet and stress free environment, usually at night. All the world’s really successful traders learned early in their career to think alone on their own, and to assess various trading techniques. While other people’s advice and feedback are always welcome, at the end of the day, it is a single mind that can figure things out.

Essential Forex Basics for All Traders

Essential forex basics are simple tips that all traders find useful in live trading. As independent thinkers, traders rely on facts, not public poll opinions.

Essential Forex Basics for Serious Traders

The main essential forex basics are about understanding reality and avoiding major mistakes in trading. Some of these include tips on not trading on the news, and not relying on economic report release times for day trading. Forex charts illustrate this point very clearly, as it becomes apparent that news and economic reports are impossible to figure out. And they are not 50-50 binary outcomes as urban legend has it. The entire forex industry is too focused on these news, for all kinds of reasons. And as a result many analysts write such daily analysis reports. But actually trading live, in these circumstances, it’s nearly impossible. N the other hand, day to day traders, and especially those willing to hold overnight trades, end up making most of the profits. Another basic tips on the forex market, is that market charts tend to work on momentum more than anything else. And there is a casual lagging phase between price action and fundamentals, ultimately, as a result of this weird phenomenon, the market is not always right, as urban legend once again puts it. If the market was right all the time, it would know everything that is going on, all possible information, and there would be no volatility involved. But charts clearly show all this volatility, and how sharply markets move when they catch up with fundamentals.

Forex Basics for Traders Willing to Do Better than Average

Some forex basics focus on the concept of using market indicators on interrupted mode, rather than the usual expected continuous way. The belief is that momentum and the developing trend are your friend, only in the beginning. But as soon as the trend matures, you will have to question all the momentum you see in the market, and look for counter, kind of trend-fading trade opportunities. Most profit opportunity occurs at reversals, and not when following an established trend. Veteran traders use time zones and candlestick analysis methods, for identifying the most likely reversal points. Time zones help identify the actual time where the market is most likely to move. EURUSD for example will likely move most during the New York session. So a move that EURUSD makes during the Asian session will likely fail and reverse. Candlestick analysis can help enhance such trading strategies by looking at 30 minutes charts, where several days worth of trading can be seen in a single chart. The global forex converter mechanism has revealed some patterns, which can help enhance trading. These patterns include the formation of highs and lows, and the duration of breakouts. But they do not include any fundamental insights. Fundamentals are more complex, and region and time specific for each currency. Fundamentals are what determine the real support and resistance levels, in terms of price zones, not thin trendlines. And they do work very well for determining how high or how low a currency can go. While most traders focus too much on charts and on their forex calculator, their support and resistance findings will be wrong. Only fundamental analysis can offer insight beyond momentum and into the real pivotal price levels.

How To Learn Trading Relying More on Yourself

It is possible to learn trading by developing the skills to doubt market conditions. Instead of being a passive, momentum-following trader, lagging the market.

How to learn Trading the Hard… But Right Way

In order to learn trading the right way, you should get rid of all momentum based indicators, and only use them to confirm trends early enough in their development. Once a market trend has matured enough, all these momentum indicators become useless and misleading. All profitable trades who are really making profits from currency trading, without giving back much of the gains, rely on leading and peculiar indicators. Some momentum traders are actually profitable, but their currency trading is a tyranny. Because thy have to watch their trades every minute, thereby spending hours and hours at their desks, and incurring a lot of stress. Something which doesn’t seem very appealing when it comes to choosing a career. But even leading indicators are not like those prepackaged, easy to use indicators found on charting software. Leading indicators are complex, they follow the economic cycle, and their readings tend to have different meaning from one phase of the economic cycle to the next. Traders who made millions in the markets and who knew how to trade forex each and every day, were not day traders. In fact, they do not define themselves as being any kind of trader, swing trader, day trader etc. They focused on quarterly analysis first, then narrowed down their trading to each specific week.

Why You Cannot Learn Trading Based on Momentum

You cannot learn trading the forex market profitably on momentum, because momentum lags the driving forces that move markets. And you will be a step behind these forces, around 70% of the time. Momentum trading techniques are boring and lack the excitement of discovering new things. Momentum cannot predict reversals, and that’s where most big losing trades occur. Momentum is the result of the combined trading actions of many traders, it does impact markets in the near term, but the fundamentals always catch up sooner or later. In fact market momentum is so often wrong, that it creates all these false breakouts seen on the charts. This is the same as saying that following the trend is wrong, and most of the time it is! Trend faders on the other hand use a different logic, which is based on clues and leading indicators that the rest of the market participants are totally oblivious to. CFD commodity traders are among the most momentum fading traders, they do follow general trends, but only if the data is good. A CFD sugar trader or example, is happy to see sugar price plummeting, on momentum, and they feel happy buying a new low. Because the market fell on unforeseen circumstances, but the demand for sugar will not go away at that stage. Moreover their CFD trading platforms allow them to linearly hedge such trades, even for the brief period where they will have to keep open losing trades.

What is Forex Trading For Small Speculators

What Is Forex Trading- Examples and Tips

All new traders want to know what is forex trading all about, and adjust to the market’s requirements accordingly. Beyond big promises and ridiculous claims.

What is Forex Trading to the Average Serious Person

All new, but serious traders, usually cynical people who don’t fall for all the marketing hype and big promises, think beyond the obvious. They ask the question what is forex trading, and where it stands relative to all those big promises of easy and effortless money. They have figured out that all profitable traders really do earn their money out of trading forex. There is no easy way to trade, and they also know very well that trading is not for everyone. Trading currencies is not that different to any other kind of financial trading. It comes with risks and rewards that few people can understand and handle well. The reason why the internet is flooded with adverts promising big easy money out of trading, is because adverts are created by marketing specialists. And these specialists know people’s passions and irrational behaviour when it comes to spending money. This doesn’t mean that the actual forex industry is bad, but it simply doesn’t suit all kinds of people. Everybody needs to earn some extra money on the side, and these misleading adverts seem to have the answer for these people. But actually, profitable traders are wise people, who do control their greed. While greed is good, it has to be kept under control when trading, and not let the necessity for earning a second income, take over. Trading decisions are about buying and selling currencies online, on a global market. These decisions, when made by wise traders, are all about the market, and not about boosting their income. All traders, both winning and losing ones, are actually addicted to the market one way or another. Addiction is not necessarily a bad thing, as all professionals, in all kinds of jobs, who love their jobs, are addicted to them.

What is Forex Trading to Determined to Win Traders

To the very determined trader, forex trading is about personal vindication first, and then about money. Except that this trader wants to make serious money. And they know that if one is successful enough so as to make little money on the side, trading each month, then that trading can be safely scaled up for making serious money. So apart from knowing what is forex trading, they also know which promises are realistic and which are not. That is the difference between thinking, rational people, and those who are taken for a ride by ridiculous adverts. And then comes the part of dealing with trading methods, forex signals, and interpreting forex news. The wise trader once again deep down knows. They know that all popular methods do not really work. What does work are peculiar and non popular methods, which sometimes are based on simple currency charts and chart patterns. Finally, there is a misconception about market momentum, so that it seems logical to follow trader recommendations seen in the media. As long as that trader is working for some established investment bank. But even that is the wrong way to trade your own money, because in the long run these recommendations perform badly. The only useful information an investment bank trader can provide is fundamental analysis on the running quarter, but that’s about it. Ordinary traders can often match or exceed the trading skills of many of these investment bank traders. Just remember that trading recommendations seen in the media cannot be dependable for scaled up trading, because even these people use primitive analysis methods, that anyone knows. There is no edge, no advantage over the market.

Trade Forex Online As a Career

In order to devote heavily and with motivation to the task of learning to trade forex online in a career long mission. One has to know the odds of success.

How to Decide If You Should Trade Forex Online

To decide whether or not to trade forex online in a long career mission, one has to be a doubter of public opinion and an original thinker. The forex market is not for passive learners, rather it is meant for active learners who can think outside the box once in a while. If passive learning was the key, many brilliant students would have become first class millionaire traders. But because it isn’t, all of these brilliant students find that the forex market doesn’t care about this or that training course, and what they learned from them. Online trading requires some innovation once in a while, and making some changes in one’s plans. Factors impacting currencies are dynamic and strange, changing behavior from year to year, and creating confusion. Correlations among currencies are also dynamic and changing, so there is no sure fire way of figuring things out between two currency pairs. Trading volume also doesn’t mean much in today’s markets, and it is possible for low volume currencies to dictate direction to EURUSD. Which has one third of the entire trading volume in the forex market. So those training courses tend to focus on one thing or another, as if the world is black and white, but the world has millions of colors. This is why believing too much in one theory or technique is wrong when it comes to trading. So when one embarks on a trading mission, they have to realize that they will be dealing with uncertainty and loosely defined problems which no one has the answer to.

Determining If You Should Trade Forex Online Or Not

In order to trade forex online for many years to come, one has to test their ability to handle uncertainty and solve unexpected problems. If you are the type of person who believes that money is everything and buys everything, good mentors, books, seminars and third party knowledge, then you will fail down the learning curve. If you believe in perfect trading techniques and that perfect traders exists, then you will also fail down the learning curve. But if you believe in original ideas, and that good overlooked trading strategies exist. Then you have a realistic chance of becoming a sustainable profitable trader. If you believe that a single mind can out-think an entire team of people, and solve problems that no one solved before, then you might well succeed in trading. Traders are only connected through their common forex charts, but they all think differently more or less. It is fashionable to use popular techniques, to use that Fibonacci forex calculator, and all kinds of cool methods. But they are all products of a peer syndrome class of people, and they don’t really work. What does work, is the peculiar, the unusual, the one nobody talks about.