Web1/6/ · 9 Secrets to Successful Forex Trading 1. Preliminary Self Knowledge. This pretty much applies to any endeavor you take upon yourself in life, especially one 2. WebTo help you take that next step and blow the door wide open on the forex market, we explain five secrets of forex trading that almost everyone misses. Secret No. 1: Create WebUnfortunately, I have to tell you a truth that you might not like – Trading Forex is difficult. I mean if it wasn’t, maybe the world would have a few more gold plated cars! I understand ... read more
The beginning point in any investment strategy is determining what type of analysis will be used to help guide enter and exit decisions.
Investors who use fundamental analysis look at a nation's interest rates and other economic indicators when deciding to enter or exit a position.
Fundamental investors tend to trade based upon news releases and economic data from the nations involved in the currency pair. Briefly, technical analysis involves the interpretation of price performance and chart patterns-all historical data. Some technical indicators used in this type of analysis include:. Technical traders do not believe that the past necessarily predicts the future-but that long- and short-term trends can be identified and exploited to help guide current decisions on entry and exit points on positions.
Technical traders try to identify current trends in the Forex market to determine entry and exit points.
If they are correct, they can ride a trend in either direction for a profit until an exit point is reached when the trend is ending.
The most successful traders on the Forex tend to look for long-term trends and favor technical analysis. Fundamental traders have to enter and exit positions very quickly in order to capitalize in price fluctuations caused by news events interest rate changes, release of economic data, etc.
and are therefore more vulnerable due to excessive trading. If there truly was "a secret" to trading success on the Forex, the top investors all tend to agree on the following:. If there really is a secret to trading success on the Forex it has to be patience. There will be times when any strategy fails and stop points are reached before profits are realized. Continuous back testing, remaining patient, and setting stops are the true secrets of Forex success.
This article was submitted by UBCFX. Select additional content:. GMT Both technical and fundamental traders spend considerable amounts of time examining charts. Despite their diversity, most of these visuals depict the same thing with different visual effects. On the other hand, some forex trading charts are very specific. One of the biggest forex trading secrets is related to the available time frames. For instance, if you spot what you think is a buying opportunity on a weekly chart, you should look for confirmation on another chart with a shorter time frame — hourly or daily:.
Forex trade secrets will also help you review performance. Look at how much you gained and lost over a certain period regularly. Refer back to your history and see how many winning trades versus losing trades you have had. Once this is done, identify the amount of the former versus the latter. It is a good idea to evaluate the last 10 trades. This advice is also suitable for those without currency trading history:.
The right mindset is one of the primary trading secrets. Individual investors need to learn to accept small losses, as these are inevitable. In this regard, forex may be viewed as your vacation money. When it is gone, you gain some useful experience. Do not assume forex trading experts never fail — the risk of losing money is always present.
No matter how polished your skills are, prices may always move against you. Mistakes should help you learn and improve your trading strategies to achieve better results. Leverage is also crucial. Leverage is double-edged. It maximizes losses as well as profits. Confidence and mental resilience are trading secrets, too.
They underlie lasting success, as confident traders stick to their strategies despite minor losses. They can keep their emotions under control. Insecurity is bound to cause failure. Writing everything down is the best way to stay objective about your decision making. Yes, keeping a diary is also one of the most powerful secrets of forex trading. When considering a position, create a chart, listing reasons for opening it, both technical and fundamental.
Why do you think it will be a good trade? Then, list any reasons against the same move. Note down your entry and exit points, emotional state, and level of optimism.
These forex trading secrets will help you work mindfully. Forex is an art that requires discipline, practice, and talent. There are quite a few trading secrets helping beginners shape consistent and viable strategies. Of course, you can never eliminate risk. Learn to calculate it. Apply our forex trading secrets to become a more objective trader.
Improve your performance in the largest financial market worldwide. The more of these tips you follow, the faster you will achieve success. About the author Kelly Adamson. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Share 0. Tweet 0. Pin 0. This post is also available in: Indonesia Português Forex stars follow different trading strategies — sadly, there are no universal recipes for success.
Trade Forex on Sundays The forex trading market is open five full days a week. Your trade must be open until either condition is met: the gap is filled or the chart shows that the gap will continue widening. Know Thyself to Achieve Profit Self-awareness is one of the biggest secrets of forex.
Finding a Reliable Broker is Half the Battle It could be one of the most significant decisions in your forex trading career. Choose a Method and Apply It There are two ways to look at price dynamics.
Consistency is king and one of the vital forex trading secrets: In technical analysis, nothing is random. Its followers base their trading strategies on the premise that the market sees recurring patterns.
A trend is viewed as a friend. If the market moves in one direction today, it is likely to continue moving in the same direction tomorrow. Traders who follow trends use different types of charts and time frames to zoom in on specific trajectories.
They need dozens of indicators and levels to achieve their goal. Fundamental traders have their own forex tricks. They believe that market movements are connected to financial news coming from a particular country. They do not consider trends on price charts as a sign of likely move. Instead, their priority in forex trading is media information. Confidence and mental resilience are part of the forex secret strategy, too.
Keep Charts in Sync Both technical and fundamental traders spend considerable amounts of time examining charts. For instance, if you spot what you think is a buying opportunity on a weekly chart, you should look for confirmation on another chart with a shorter time frame — hourly or daily: Both should be pointing in the same direction. If these are in disagreement, delay forex trading until they are in sync. The longer time frame provides direction analysis, while the shorter one shows whether to enter or exit the market.
Learn to Calculate Expectancy Forex trade secrets will also help you review performance. This advice is also suitable for those without currency trading history: Consider all the instances in which their trading system indicated a good time for a short or a long position. See if you would have profited if you had followed the cue. Repeat this 10 times and do this in writing.
This will show whether you are on the right track.
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Dev Anand. Continue Reading Download Free PDF. How I Trade Profitably Every Single Month without Fail First of all, let me take some time to introduce myself to you. I am Kelvin and I am a full time currency trader. I have a passion for trading and this drives me to create a forex blog that gathers a community of traders together.
Due to constant request from my blog readers asking me to share my trading strategies with them, I took a total of 13 months to create a course that teaches you all the strategies that I have been using all these years without reserve.
Now that you have subscribed to my newsletter, you will be receiving forex tutorials from me every month as well as trading videos that I have specially created to help you in your trading.
In this book, you will be taught the 3 secrets to successful trading. Do note that these 3 secrets are all based on my own experience and therefore will be useful for you in your trading. This is a reward for those of you who really took action as it shows your determination in learning this skill. Most new traders tend to ignore the importance of support and resistance because they do not know that the wave like movement of the market is actually the creation of support and resistance.
When the price hits a major resistance for the first time, it will most probably moves down first due to the repulsion of that level. It will then attempt to break this resistance level again and once it manages to break through it, the old resistance level will now turns into a new support level.
You will find that the price will always comes back to test that new support level before it moves further up. Such action contributes to the formation of waves in your trading chart. Therefore as a trader, you must be able to identify where the major supports and resistances are. With these level identified, you will then be able to know where to enter a trade, where to place your stop loss and where to place your target profit.
In this section of the book, I will teach you a few ways to identify strong level of support and resistance. Fibonacci Indicator The Fibonacci indicator is one that is commonly used by institutional traders and therefore the level of support and resistance created by this indicator is more significant. The Fibonacci indicator consists of retracement and extension. All you need to do is to drag the indicator from the top to the bottom of the wave and you will be able to select which retracement and extension level you want to show.
From my trading experience, retracement level like the 0. As for the extension, it depends on the retracement. If the price hits the 0. However if you are able to find level of multiple Fibonacci, that specific level will be where you are going to enter a trade.
Pivot Points Besides the Fibonacci indicator, the Pivot point is another indicator that is used by institutional traders. Similar to the Fibonacci indicator, the support and resistance level created by the Pivot points serve as a strong level of support and resistance. For the Pivot levels, you can plot the daily pivot, weekly pivot and monthly pivot on the same chart. Do note that the power of the monthly pivot is larger than the weekly pivot and the power of the weekly pivot is also larger than the daily pivot.
Swings Swings are V-shaped Swing Low and N-shaped Swing High patterns. When you see a swing high, the top level will then formed the resistance level. When you see a swing low, the bottom level will then formed the support level.
However not all swing highs and lows are of equal importance, those swings that have more depth are considered stronger level of support and resistance than those with lesser depth. Below are some pictures for your comparison. The above are 3 ways you can identify strong level of support and resistance.
Therefore spend some time to practice them on your chart today to have a better understanding of their trading nature. Secret 2: Power of Indicators The next secret to successful trading lies in the indicators that you are using as well as how you use them.
Most traders do not know the nature of the indicators that they are using and therefore finds them useless to their trading. My suggestion to you is to learn the various ways to use an indicator as well as learning how to fine tune them to suits your trading plan. Below are some of my favourite indicators and the way you can use them in your trading. So spend some time to go through them now. MACD Indicator Before I start to tell you the power of MACD, I must spend sometime to do a introduction on what is MACD and who invented it.
MACD is a forex indicator that is developed by Gerald Appel who has written 12 books on investment strategies. MACD is in fact one of the simplest and reliable forex indicators I have used so far. As it is actually analyzing and displaying chart for past data, it is often know as a lagging indicator.
However there are times where you can use MACD as a leading indicator to help you predict the next movement of the price. What this means is 26 days and 12 days Exponential Moving Averages. The 26 EMA is a slower setting for MACD which will produce a slower indicator that is less prone to whipsaws. As for the 12 EMA, it is usually a faster setting for MACD. In the MACD indicator, there will usually be a 9 days EMA that will represent the trigger line while the histogram represents the difference between MACD line and its trigger line.
i Bullish Crossover: Bullish crossover usually indicates a upward movement in the market and the way you can identify a bullish crossover is through the two line in the indicator namely; MACD line and its trigger line.
Whenever MACD cut through its trigger line in the upward direction, it usually indicates an uptrend or an upward movement. ii Bearish Crossover: Bearish crossover usually indicates a downward movement of the price and the way you can identify a bearish crossover is when the MACD cut through its trigger line in the downward direction. iii MACD Divergence: This is the best signal any trader can get from MACD: Divergence. First of all, let me explain to you what is MACD divergence all about. When we say that there is a divergence in MACD, we are referring to the scenario where MACD and the price are not in the same direction movement pattern.
Example: When the highs of a currency pair is getting higher and higher, MACD highs are getting lower and lower. From my experience, you will usually see a downside movement after a negative divergence is formed. When the lows of a currency pair is getting lower and lower, MACD lows are getting higher and higher.
Whenever you see positive divergence, you will usually see a upside movement in price. You will have a more robust forex strategy if you are able to combine these two signals above to constitute your buy sell signals.
MACD is a good indicator when it comes to buy sell signal as it always allow the trader to validate a trend line break or a breakout in price. With this function, MACD can help the trader to identify fake outs in trading. ADX Indicator Riding the trend is one of the most profitable trading strategies you can have as it is a good way of producing high risk reward ratio trade and the best way to find out the status of the trend is to make use of the forex adx indicator.
So Why ADX Indicator? If you have been reading my blog, you will know that I have written an article to help you identify the trend of the market using various forex trend indicators like the moving averages. The moving averages are still a good way to tell the trend but they are unable to give you a value for the trend and this is where the ADX indicator comes into play. What Is ADX Indicator? It is an indicator that is made up of a single line with value ranging from 0 to You may think that it looks like an oscillator but it is uni-directional.
If you take a close look at the picture below, you will find that the adx will point up when you are in a good uptrend as well as a downtrend. How to Use the ADX Indicator? I personally use it to tell whether the market is trending or ranging. As stated in the earlier part of this post, the ADX has a range value from 0 to When it is moving below the 25 level, it is telling you that the strength of the market is very weak.
What usually happens at this time is that the market is in consolidation and will most probably be moving in a range. When the indicator moves above the 25 level, it is telling you that the trend is strengthening and the larger the value, the stronger will be the trend.
However to have a better understanding of the trend you are in, you need to combine the direction of the indicator together with its value. Sign of a Strong Trend: You are in a strong uptrend or downtrend when the ADX indicator is pointing up and moving above the 25 level.
Sign of a Weak Trend: You are not in a strong trend when the indicator is pointing down and moving below the 25 level. Other Uses of ADX Indicator 1 Divergence: Besides using the ADX indicator for telling the strength of the trend, you can also use the divergence of this indicator to warn you of possible retracement or reversal.
If you have entered a LONG trade and you see the ADX making lower highs while the price make higher highs, this is a good time to exit your trade as a retracement or a reversal is going to occur. The problem with most breakout traders is fake out which is the false movement of the market leading most inexperienced traders to enter a trade and then stopped them out by reversing the movement. With the ADX indicator, you will now be able to check if a breakout is valid or not. When you see the price breaking out of a pattern or trend line, you can immediately check your indicator to see if it is pointing up and moving above the 25 level.
A valid breakout will be formed when the ADX indicator is pointing up and moving above the 25 level and an invalid breakout will be the opposite. I hope that you find this indicator useful for your trade and eventually integrate it into your trading plan. If you have other uses for the ADX, do share with us by commenting below. I hope that this blog will eventually become the place where traders share their knowledge and everyone can learn from one another.
WebUnfortunately, I have to tell you a truth that you might not like – Trading Forex is difficult. I mean if it wasn’t, maybe the world would have a few more gold plated cars! I understand Web1/6/ · 9 Secrets to Successful Forex Trading 1. Preliminary Self Knowledge. This pretty much applies to any endeavor you take upon yourself in life, especially one 2. WebTo help you take that next step and blow the door wide open on the forex market, we explain five secrets of forex trading that almost everyone misses. Secret No. 1: Create ... read more
However, this comparison is only good for this specific area, it should not fool you: Forex trading is no vacation! That's liberating. You need to find it within you…to stop doing the wrong things in forex trading. Through storing trade data in this way, you can easily review your past trades without putting a lot of Hussle into it. Despite their diversity, most of these visuals depict the same thing with different visual effects. SYDExpectancy Calculation Until now, we were discussing choosing an effective trading method and taking precautions before trading. So instead of following trading signals from others, Be engage with the market and get experience, and through that be an expert in manage your trade precisely. However when you see the CCI moving below the level, you are in a strong downtrend period and you can enter a SHORT trade. a market can only do 3 things: go up, go down, or go sideways. And, secrets of successful forex trading, on the other hand, after one or two trades have been secrets of successful forex trading, the majority of traders are worrying and have begun to overthink that particular trade — this results in revenge trading and over-trading, which eventually leads to bigger and needless drawdowns. Now that you know the usage of these indicators, you can better select them in your trading.