10 STEPS TO BECOME A TRADER

10 STEPS TO BECOME A TRADER

Here is a SYSTEMATIC WAY to become a trader:

1. Decide what kind of trader you want to be

Do you want to be a day trader or a swing trader? Do you want to trade stocks, futures, forex or options? Do you want to use fundamental analysis or technical analysis? Do you like to rely on chart patters or on indicators? - There's no "right" or "wrong" way to trade. Every trader is different. For some traders day trading is easy. Other traders don't like making quick decisions and rather take time to analyze the charts in the evening.
Note: THIS is probably the most important step! - So make sure you know what trader you want to be.

2. Find a strategy that suite YOU.

There are thousands of profitable trading strategies out there. But you have to find one that works for you. As an example, if you like a high winning percentage, you should consider a scalping strategy like "The Seahawk Strategy". If you are looking for a trading strategy that takes advantage of trends with a smaller stop loss than profit target, then you need a trend-following strategy like "The Simple Strategy". Make sure that the trading strategy fits YOU, otherwise you'll never have the discipline to follow the rules of the strategy.

3. Get a charting software and a trading platform

Once you completed the first two steps, you can now select a charting software and a trading platform that supports YOUR trading style and YOUR trading strategy. Don't do it the other way around! I've heard from many traders who FIRST select their charting software and then wonder why you can't display the indicators or time frames that your trading strategy demands.

4. Practice the trading strategy

Never ever trust ANY performance statistic unless it's your own! You need to practice the trading strategy that you selected for 3 reasons:

Make sure that you understand the rules and can EXECUTE the strategy.
Make sure you're comfortable with the strategy.
Make sure that the strategy is actually making money

5. Learn chart reading to improve the performance of your strategy

A trading strategy is either trend-following or trend-fading. To date I haven't seen a "hybrid" strategy. A trend-following strategy performs well in trending markets, but has more losing trades in sideways markets. Therefore it's important that you practice your chart reading skills to easily identify whether the market is going up, down or sideways. Trade a trend-following strategy like "The Simple Strategy" in trending markets, and use a trend-fading strategy like "The Ping Pong Strategy" in sideways markets.

6. Understand money management

It is a proven fact that without proper money management you can lose money despite having a profitable trading strategy. You MUST understand money management if you want to become a professional trader. You might have heard of Larry Williams, who turned $10,000 into $1,000,000 in only 12 months. I asked him about his secret, and he said he couldn't have done it without flawless money management.

7. Create your trading plan

There's a huge difference between a trading strategy and a trading plan (check out my other blog post for more detailed information).

8. Execute your plan on a simulated account

Yes, a simulated account is not the same as trading with real money. But if you can't make money on a simulator, chances are slim that you will make money on a real account! Take your time and practice your plan. Make sure that you make consistent money on the simulator before committing real money to trading.

9. Execute your plan with real money

Start small - grow big! Even if you already traded larger size on a simulated account, start with the smallest number of contracts or shares possible when trading real money. Keep in mind that trading real money is different than trading on a simulator. Fills will be different, and you might experience some emotional pressure. Make sure that you still make money on a real account before increasing your position size.

10.Use money management to grow your account

You can't trade small lots forever! If you want to become a trader and make a living trading, then you need to increase your position size. But as I said earlier: Without proper money management you could lose money despite having a profitable trading strategy, so make sure to apply solid money management to grow your account.

note :
Trading is a business. It's a profession. And like any other business it needs planning. STRATEGIC PLANNING.

 

 Tags: Forex, How to trade forex, Forex Strategies, Best Strategy, Forex trader, How to be a good forex trader, Forex Trading

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Major Currency Pairs in Forex Trading

Major currency Pairs In Forex Trading

As you know, each State has its own currency in the international market given each currency special symbol Symbol know him to facilitate the interaction between traffickers without errors occur for example, may resemble several countries in the name of the currency with which the dollar is the name of U.S. currency and the currency of Australia and the currency of Canada and many other countries Even talking errors when buying and selling was internationally agreed that each country's currency is given its own code symbol known in different parts of the world.

For example, the U.S. dollar is the code USD short US dollar

The Canadian dollar symbol is a CAD short for Canadian dollar

The symbol of the Australian dollar is AUD short for Australian dollar

Thus each currency tracking any special symbol state symbol know.

And you, in principle, you can buy and sell currency of any country of the world. But trading the currency market is concentrated mainly buying and selling four currencies:

Euro: a single European currency symbol EUR.

Japanese Yen: which is the currency of Japan and Symbol JPY short for Japanese yen.

Sterling: It is Britain's currency symbol GBP short for Great Britain pound.

The Swiss franc: which is the currency of Switzerland and Symbol CHF short for Confidralic Helevitica Franc.

In the currency market is 80% of the trading in the sale and purchase of the previous four currencies.

But compared to what?

When you want to buy the euro, what would pay interview? When you want to sell the euro so what you'll get?

And when you want to buy the yen, what would pay interview? When you want to sell the yen so what you'll get?

On the U.S. dollar

Dealing buying and selling predecessor currencies, it will all be against the U.S. dollar.

Remember we said that currency trading is in the form of pairs pairs When you buy a currency must sell - pay - against which other currency, and vice versa. The currency that you get is the currency you are buying and paid by the currency is the currency in which it sells.

In the currency market when you buy euro interview will sell the U.S. dollar, and when you sell the euro will buy interview the U.S. dollar.

When you buy the yen interview will sell the dollar, and when you sell the yen will buy interview dollar.

Thus of the pound sterling and the Swiss franc.

You may wonder: Why are most of the transactions in these currencies in particular? Can not buy and sell other currencies?

Answer: Did you ever think that you go to the ATM and requests buy Thai Baht?!!

If you try to find it difficult to find the ATM sell you Thai Baht

Why?

Because few people they can use the Thai currency in your country.

But if I went to the cashier to buy or sell the U.S. dollar or the pound sterling example Vstgdama easily because there are a lot of people are dealing with these two currencies acceptable understanding not only in the United States and Britain, but from various countries around the world that demand for them is high.

And because the euro, the yen and the pound sterling and the U.S. dollar are the currencies of countries with the largest economy in the world, and because most dealings between states and individuals are one of these currencies is why is 80% of the trading in such currencies.

The Swiss franc doubt that the Swiss economy on the strength of ايقارن economy the previous four states only that the global custom made Swiss economy and its currency is the safe haven franc at major international calamities, but I doubt you know that most of the world's richest men keep their money in Swiss banks ..!!

Because the U.S. dollar is the most important of these currencies at all.

Is the main currency for all of the previous four currencies.

When you buy the euro dollar you pay when you sell you get dollars.

When you buy the Swiss franc dollar you pay when you sell you get dollars.

As well as for the yen and the pound sterling.

The dollar is the common currency against all currencies where they are treated every other currency unit against the dollar:

Euro against the dollar EUR / USD

GbpUsd GBP / USD

UsdJpy USD / JPY

Dollar against the Swiss franc USD / CHF

This currency is called the four when they bought and sold against major currencies dollar Majors.

Other currencies

In addition to dealing in the previous four currencies against the dollar, you can also buy and sell currencies of other countries in the currency market was also higher against the dollar, such as:

U.S. dollar against the Canadian dollar USD / CAD.

Australian dollar against the U.S. dollar AUD / USD.

When you buy the Canadian dollar would sell - will pay - the U.S. dollar, and when you sell the Canadian dollar will buy the U.S. dollar.

The same thing applies to the Australian dollar.

Of course, you can buy any currency against the dollar, for example, you can buy the Saudi riyal and sell the dollar as you do when you go to a money exchange.

But in the international currency market, the majority of currency speculators do not exceed that we have mentioned is concentrated 80% of the deal on the four major currencies against the dollar.

This gives the advantage of focusing the stores to the forex market from other traders to other markets.

Currency hybrid Croses

You may be wondering what if I wanted to buy the currency without pay U.S. dollar, but I have to pay - for sale - another currency?

What if I wanted to buy the euro and sell sterling interview? Is this possible?

Answer: Yes possible we have said that you can buy and sell any currency against any other currency.

You can buy the euro and sell interview sterling EUR / GBP.

You can buy the franc and pay interview Japanese Yen CHF / JPY.

So you can buy any currency against any other currency without the need of the U.S. dollar.

Called currency to be bought or sold against currencies other than the U.S. dollar denominated hybrid CROSES.

The most famous hybrid currencies which are traded in the currency market are:

EURGBP EUR / GBP.

EurJpy EUR / JPY.

EURCHF EUR / CHF.

British pound against the Japanese yen GBP / JPY.

British pound against the Swiss franc GBP / CHF.

But as we mentioned earlier, the vast majority of traders are focusing on the sale and purchase of four major currencies mainly, and there are those who prefer to deal in trading some hybrid currencies.

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Golden Rules About Forex

10 golden rules about Forex

The truth about Forex is that it can be an intense and stressful undertaking that requires a strong control over your emotions. Forex is not a "get rich quick" scheme. Learning to trade Forex takes patience – it will take you time before you master the basics. Those who lack discipline or make decisions that are not carefully thought through will quickly find themselves in a negative investment position. Those who do not adhere to sound investment principles, or who allow emotion to govern their thinking, will quickly find themselves losing a grip on their investments. However, those who follow sound investment principles will reap the benefits of one of the world's most liquid and influential markets.

A 100% return on investment within a couple of days wouldn't surprise anyone, and in fact 1000% wouldn't surprise an experienced trader. Because of this, Forex has become one of the most sought after and talked about investment opportunities. As in any industry, Forex has its own nature and golden rules. Learn Forex, understand the keys to success, and make your investment decisions wisely. This short book will introduce you to the 10 golden rules of Forex trading that every person entering this exciting market should follow in order to become successful.

1. The market is always changing and it may be hard to understand and keep up with these changes unless you invest in a good Forex trading education.

2. There are many beginners who make trades in any direction. While there is a possibility to make profits both on the upside and downside of a trade, trading in the direction of the trend will give you the best chances for success.

3. Make a demo account, and use it to learn and understand Forex trading. While using a demo account you will be able to test your trading strategies and mentally prepare yourself for real trading. However, keep in mind that you should be realistic and treat your demo funds as real money; otherwise, there is no way you can learn from demo trades.

4. While there are a lot of companies who are earning money by selling software which aims to predict future trends, the reality is that if this software really worked, these companies would not be giving the secret away.

5. Trading is stressful work, and there will be a lot of setbacks on your way to the peak. Emotional trading may force you to open a trade too early and eventually lead to a loss due to a wrong entry point. Control your emotions by staying cool and calm, and focus on your long-term goals.

6. Just because the Forex market is online twenty-four hours a day does not mean that you have to trade all that time. If you are doubtful, do not trade at all. Instead, analyze the market and use the knowledge you get to make more profitable trades in the future.

7. Because trading is always full of emotions, you must have a trading strategy which includes a set of rules you stick to, this will help protect you from yourself.

8. Avoid trading strategies which are too complex to understand and which use a lot of different techniques. They can distort your judgment and you will miss a lot of good trading opportunities.

9. Leverage - Forex trading has large potential rewards, but also involves large potential risks. As a novice, don’t risk more than 1–2% of your margin account on any given trade. Over the long run, this will give you a chance to make a profit while reducing the probability of taking a loss.

10. Develop a habit of reviewing and analyzing your good and bad trades. Then, you will have a much better sense of what will work best in your future trades.

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Why Forex Trading is So Important?

Why Forex Trading is So Important?

Forex trading has been around for over 30 years but until the rise of the internet it was almost entirely in the hands of banks and other institutions with large investment funds. These days ordinary people can get involved although the financial institutions are still the major players. When I tell you that around US $4 trillion changes hands every day on the currency trading markets you will understand that only a small part of this belongs to ordinary people like you and me.

To get started you will need a high speed internet connection, a good system or the time to learn and develop your own system, and some money to invest.

You do not necessarily need a lot of money. Brokers now offer mini forex trading accounts and even micro Forex trading accounts which you can open with just a couple hundred dollars. However, it is better to have more, even if you do not put it all into the account in the beginning. Forex trading is risky and if you only have a couple hundred dollars, you probably should be doing something safer with it.

But assuming that you have the funds and you have decided that you want to make money with some kind of financial trading, let's take a look at why this could be a better option for you than stock or commodity trading.

1.   No commissions and no fees.

If you have experience of the stock market you will know how your profits can be eaten away by brokers, exchange and even government fees. The global nature of the Forex market means that you do not have to pay any of these. Brokers make their money through the spread, which is the difference between the bid and ask prices of a currency. All you have to do is be sure that the price will go your way far enough to cover this.

2.   No fixed lot size.

In commodity futures markets, the size of a lot or contract is set by the exchange and you cannot buy or sell less than one lot. But in spot forex trading you can theoretically set your own lot size. Most brokers have their own standard sizes but you can shop around and look for a broker who offers small or fractional lots.

3.   A 24 hour market, five days a week.

For the whole of the global business week, the forex market never sleeps. This is great if you need to trade outside of normal business hours. You can work at your day job from 9 to 5 and trade currencies in the evenings. Or you can start whenever you get up in the morning, even if it is 5 a.m.

4.   High leverage.

Forex brokers may offer up to 200 times your margin deposit in leverage, although 100 times is more common. This means that you have the chance to make a lot of money from only a small deposited fund. You would only need $100 or even $50 to control $10,000 dollars in a trade. As long as you have good risk management and remember that high leverage also means high risk, this can open up the possibility of a high return on your investment.

5.   A massive market with high liquidity.

The forex market is so huge that even the banks, big as they are, each have limited influence. Insider trading is not an issue. And high liquidity means plenty of money in the markets so that you are never stuck unable to close a trade. You can even set software to close your position for you at a certain level of loss or profit.

6.   Free tools and information from your broker.

Brokers are in strong competition with each other to attract retail traders so they are offering more and more features. We will look at how to choose your broker in a later section. They will offer you a demo account where you can practice your trading, sharpen your skills and try out or even develop your own system before you start to use real money. They will also provide the charts that you need to identify trends, and give you access to breaking forex news, all for free.

7.   Low start up costs.

A good modern computer with a high speed internet connection is all that is needed to begin trading currencies. If you want to use a robot for your trading you can find one for $100 to $200. Plenty of information on trading currencies including advice on systems is available for free online.

8.   You are in control.

As a Forex trader you will be in full control of your investment. You can access your account through your broker’s software platform and make the trades in real time yourself.


You also have control over the currencies that you buy and sell. You are not limited to dealing in your own country's currency. This means that if your national economy is in a very unpredictable state you can switch to trading two other currencies that are more stable.

So there are 8 good reasons to choose Forex over other forms of financial trading. Now let’s move on to the basic information that you need to be familiar with so that you can start trading.Happy piping......

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How can we earn money from Forex trading ????

The values of the currencies are change in every millisecond in the forex market so the profit and loss of a forex trader is totally dependent on changes in the value of currencies. And the margin of the buying and selling rate is call profit.  

United States Dollars ($) and Euro (€) are the hottest and favorite currencies in the Forex market. These are like martini for the James Bonds of Forex market. The other most popular currencies are the Canadian Dollar (CAD), the Australian dollar (AUD), the New Zealand Dollar (NZD) and the Japanese Yen (¥). There are many examples of people in the market who has changed there fortunes by Forex trading. Warren Buffet, the world's richest man has invested his more than 20 billion dollars in Forex market.

With the change in technology Forex market has changed its mode of trading also. Earlier forex trading was done through telephone only. Now many companies are providing user friendly online trading panel in the forex market.

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What is Forex market ????

What is Forex market ????

Forex market is the world’s biggest currency exchanging market that bye and sell money between countries and nations. It can make many people richer and prosperous. But what is Forex? What is the meaning of Forex market?

Forex is the combination of starting words of two letters that are Foreign and exchange. Where the place that exchange money (buy and sell) and make profit is called as Forex Market.

In forex trading, currencies are exchanged to earn profit. The most important feature of this trading is that it is done on global level means people around the world can place trades and earn profits. It is estimated that more than trillion US dollars trading is done in a day. Forex trading like share market works for 5 days starting from Monday and ends at Friday making it 24/7 business. The big guns of forex trades are large banks, International corporations and large financial institutions.

The theme of forex trade is "free floating currencies". "Free floating currencies" are used for those currencies which are not supported by any specific product like diamond, gold, silver, oil etc.

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What is this Forex Trading?????

Currency trading is the trading of foreign currencies on the currency market. This is exchange where a States currency is traded for currencies from all over the world. Collaborating in Foreign exchange trading suggests that you are taking part in an international market in which a large number of currency fluctuations occur due to lots of different factors. Profits generated in this market are generally in the trillions of bucks each day and millions of folk from many backgrounds engage in it across the world.


Forex trading is the trading of foreign currencies on the currency market. This is exchange where a States currency is traded for currencies from across the world. Participating in Currency exchange trading suggests that you are collaborating in a global market in which a huge number of currency fluctuations happen due to several different factors. Profits generated in this market are usually in the trillions of greenbacks each day and millions of folks from many backgrounds engage in it across the world.

Many people make this their first way of making a living, whilst for others, it as an only a further source of earnings. There are folks who have gained great profits very quickly and at the same time there are those that have lost their fortunes in this market. As with anything, you want to try and look after many things in first, for example a total experience of the foreign exchange market, enough money to trade with, a consistent gage on the tick of the market, as well as expert information.

Foreign exchange trading is an example of the largest, most liquid and most well-liked methods of earning bonafide money online that operates round the clock. One estimate has Foreign exchange trading generating exchanges in the range of three trillion greenbacks each day and still growing. So , it implies a large amount of money is concerned in it, so if you're able to take right calls at the right time you can earn a massive amount of cash. And, the brilliant thing is, anyone can take part in this market virtually from anywhere on the planet.

Another most remarkable feature of Foreign exchange trading is that up to a great extent it is different from a market as it is split into assorted levels of access. At lowest level you may find little investors, whilst at the top level you will find inter-bank market that has huge investment banking firms and establishments that deal in billions of bucks every day. But that shouldn’t daunt little stockholders who have a couple of hundred to few thousands of bucks to cope with. In reality, re number of participators, they've a clear majority.

Just like every other business venture, you want to supply yourself with the right knowledge, have a total understanding, and have to have patience and endurance. Watch out about falling into the trap for those service suppliers or corporations that guarantee to make you large profits straight away. Rather than accepting short term gains, always look for strategies that will help you invest for the long haul. In selecting a company or service supplier, always look for their past track record and consumer feedback. Unless you have complete data about the foreign exchange market, its trading elements, and its fluctuations, no-one will help you make money in this market. Find your own trading style coupled with the expert knowledge and tips and start investing slowly and steadily.

Hear the professionals but when it comes to making a call, ask, as you are investing your money. When you develop your own methods based on your own feelings and guidance from pros and technical researchers, you need to become an expert financier. The absence of guidance and you'll be aimlessly throwing your money away rather than getting paid from Foreign exchange trading.

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Introduction to Forex Trading

Introduction to Forex Trading

Forex trading is all about buying and selling and it is the most tempting methods to get profits. Also, it can be very easy to lose as much or even more. You will need a lot of patience to master the art of Forex trading. You have to get some good forex trading guide to get yourselves started in the right track.

Forex market is one of the largest trading markets ever. Due to the high volatility, all trades can be filled in real-time and the market is very fast moving. The most challenging about trading forex can probably be tackling at the right price and closing the position at a right time for the good profit.

Initially for forex trading, only large banks are allowed to perform trades. For now, due to the advance technology of internet trading and margin accounts, almost any individual can do forex trading. This in turn has added to the liquidity of the forex market. Due to the popularity of forex, there are many forex trading guide floating around online.

With this, do you think it is easy to make money through trading forex? Let’s consider some few facts here.

From the research done by Forex brokers, 90 percent of the traders has ended losing their money to the market in the long run. The other 5 percent can only break even. Only the reminding 5 percent can profit a steady income. This makes trading forex sounds not as simple as it seems.

Although it can be hard, you can still make money by learning from these 5 percent who are making consistent income from forex. These forex trading guide can help you increase your odds in winning the game

Learn Yourself

You have to understand and educate your self to every single details of Forex trading. The successful traders know every trade that they made and the odds of winning. On every trade, it is a possibility to learn new things too.

The Trading System

Successful traders have their profitable trading system and strategy. On top of that, they have the discipline to stick to their systems without distractions. It is because they know that their systems will work well and have confidence in it.

Even with these simple forex trading guide, success will not happen overnight. A lot of patience and discipline need to be follow in order to accomplish success.

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