Here we are going to give you some currency basics and this involves 10 essential tips you must do and 10 tips on common mistakes which you must avoid to enjoy long term currency trading success.
Let’s start with 10 common errors you just avoid.
1. Don’t Day Trade
It doesn’t work as all short term volatility is random and prices can and do anywhere in a day and you have the odds firmly against you and will lose longer term.
Ever seen a day trader with a long term track record of success? No neither have I avoid it and trade longer term trends where you can get the odds on your side.
2. Don’t Try and Predict
Predicting is simply hoping and guessing and won’t get you far – trade the reality of price change. No one knows the future and your predictions will end up as accurate as your horoscope!
3. Don’t use Science
Don’t believe anyone who tells you markets move to a scientific formula they don’t – if they did we would all know the price in advance and their would be no market.
Trading is a game of odds – not certainties but you can win if you know and trade the odds. You won’t win every trade but over the longer term you can pile up huge FX profits.
4. Don’t Trade Scared Money
If you can’t afford to lose stay away, forex markets are extremely risky and if you are worried about losing your discipline will break down and you will lose
5. Don’t follow a guru blindly
To follow a forex trading system you must have confidence in it and know how it works or you won’t be able to follow it with discipline – if you can’t follow it with discipline you have no system at all.
6. Don’t believe experts
News stories are convincing – but that’s all they are stories from journalists and there normally dead wrong about every major market turning point. Don’t believe everything you read!
7. Don’t buy low and sell high
Great theory – doesn’t work, it means you must predict again where highs or lows will form.
The fact is most major market moves start from new market highs NOT market lows. Learn to buy these breaks as the odds are in your favor and you normally see huge trends develop if, the breakout is from a valid resistance level.
8. Complicate your trading system
Simple systems work best, as they are more robust in the face of brutal market conditions – over complicate your forex trading system and it will have to many inputs – which will break.
9. Acquire Knowledge for the sake of it
You will often here people say the more knowledge you have the better – but in forex trading you need just the right knowledge.
You don’t get paid for work rate you get paid for being right and that’s it.
10. Don’t overtrade
Most novice traders simply over trade and lose.
They think the more often they trade with their forex trading system, the more chance they have of winning or if their in the market their bound to catch a major move – dead wrong.
You don’t get a reward for trading often so don’t – only trade high odds set ups and be patient and wait for them.
If you want to learn forex trading correctly and get the right forex education to enjoy forex success these are all errors to avoid. When developing your forex trading strategy keep the above points firmly in mind their currency trading basic errors that must be avoided if you want to get on the road to regular profits.