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How Frequently Do Successful Forex Traders Really Trade? If you were to look at the trading account history of most unsuccessful Forex traders the first thing you would probably notice is a large amount of trade executions. Conversely, if you look at the trading history of most consistently successful Forex traders you will probably notice significantly fewer trades were executed over the same period of time than their unsuccessful counterparts. The “snow-ball” effect of over-trading If you’ve been around the markets for any length of time you’ve probably experienced the snow-ball effect of over-trading. What I mean is this; you enter one trade that you know you should not enter, but for some reason you do anyways, or perhaps you risk too much on one trade because you think it looks like it “can’t lose”. Next, you lose on the trade that you entered on a whim or that you loaded up on. Once this happens it’s nearly impossible for most traders to leave their computers and not trade again. What usually ends up happening is that the trader commits a “revenge trade” and tries to make back the money they just lost because they know they traded for a stupid reason or risked too much. However, this revenge trade almost always leads to more emotional trading, and this pattern will typically fuel itself until the trader has lost so much money they are forced to stop trading. The point is that it’s a very slippery slope once you start over-trading, and one emotional trade can literally become an avalanche of over-trading if you are not careful. This is why it’s extremely important to always trade in a disciplined and calm manner; every time you enter a trade you should ask yourself if it meets your trading plan criteria or if you are acting emotionally. Not trading is a profitable position Another thing you are likely to notice if you look at any consistently successful trader’s trading history, is that they likely have longer periods of time than you might expect without entering any trades. This is because successful traders know that not being in the market can be a very profitable position and is more often than not the BEST position to be in. Consider this point, if you lose money because you over-traded, your trading account now has significantly less money than it did before you over –traded. Thus, if you consider point A your trading account value before over-trading, and point B your trading account value after over-trading, you have more money in your account at point A, thus by simply NOT being in the market you are further ahead than if you had over-traded. So, the point is that not trading can actually be a very lucrative thing to do if it means you are avoiding frivolous trades. Successful Forex traders know exactly what they are looking for in the markets When you know exactly what you are looking for in the markets you are far less likely to over-trade. This is because when you know precisely what you want the market to look like before you enter you will have only yourself to blame if you enter the market at any other time. Many unsuccessful traders do not have an effective trading strategy mastered and as a result of this they end up trading what they think instead of what they see. You can stare at a price chart and add indicators to it and make up a nearly unlimited number of reasons for why you could jump in the market at any given time. However, just because you CAN trade at any time certainly does not mean that you SHOULD. The most successful Forex traders trade simple trading strategies that can easily be explained to other people who know nothing about the markets. These successful traders then combine their simple yet effective trading strategies with intense discipline to follow their trading plan, manage risk, and track all of their trades. If you are currently losing money in the markets, try this… If you are currently losing more money than you are making in the markets you will probably find that if you just trade less frequently you will do much better. My suggestion is to focus on the daily charts because they provide a clearer and more pertinent view of the market action than the lower time frames do. You should find a simple and effective trading strategy like price action and really learn to master it on the daily charts first. This will do two things; first, it will allow you to figure out EXACTLY what you are looking for in the markets so that you don’t “make up” trading signals that aren’t truly a high-probability edge. Next, by focusing on the daily charts first you will naturally reduce your trading frequency because you will be analyzing less data, but keep in mind the data that you are analyzing carries much more weight. So, in effect, you reduce the quantity of trades that you take but you increase the quality of them by trading the daily charts. In the world of Forex trading, any time we can reduce confusion and emotion we put ourselves in a very good position to make money consistently Nial Fuller is a Price Action Forex Trader and Coach , His Website is Learn To Trade Forex

Today We share Some rules that A trader must Follow to in order to become a successful trader: RULE # 1:USE MONEY YOU CAN AFFORD TO LOSE If you are trading With funds 1) You need for some family projects, you are doomed to failure.this is because you wont be able to enjoy the mental freedom to make sound trading decisions. 2)your trading funds should be viewed as money you are willing to lose. your position should be careful analysed so you don't jeopardize other funds or assets. 3)one of the keys to successful trading is mental independance. 4)you have got to trade outside influencing factors and that means your trading freedom must not be influenced by the fear of losing money you really have earmarked for a specific need. RULE # 2: KNOW YOURSELF 1)you need an objective temperament, an ability to control emotions and carry a position without losing sleep. Although trading discipline can be developed, the successful traders are unemotional about their positions. 2)there are many exciting things happening in the market everyday so it takes a hard nosed type of attitude and an ability to stand above short term circumstances.If you do not have this attitude you will be changing your mind and your positions every few minutes. RULE # 3: START SMALL 1)Test your trading ability by making paper trades. then begin to trade small.start with mini account. 2) beginning traders should learn the mechanics of trading before graduating to more volatile contracts. RULE # 4:DO NOT OVER COMMIT 1)One rule of thumb is to keep three times the money in your margin account than is needed for that particular position.Reduce your position if necessary to confirm to that rule.this rule helps you avoid trading decisions based on the amount of money in your margin account. 2) If you are under margined you may be forced to liquidate a position early at a costly loss that could have been avoided. RULE # 5: ISOLATE YOUR TRADING FROM YOUR DESIRE FOR PROFIT. 1)do not hope for a move so much that your trade is based on hope. The successful trader is able to isolate his trading from his emotion. Although hope is a great virtue in other areas of life, it can be a real hindrance to a trader. 2)When hoping that the market will turn around in their favor beginners often violate basic trading rules. RULE # 6: DO NOT FORM NEW OPINIONS DURING TRADING HOURS. PRE PLAN YOUR TRADE. 1)decide upon a basic course of action, then do not let the ups and downs during the day upset your game plan, 2)Successful traders prefer to formulate a basic opinion before the markets open. then look for the proper time to execute a decision that has been made. apart from the emotion of the current market. 3)When a trader Completely Changes his directions during the trading day it can confuse him ad may result in generating lots of commissions with little profits. RULE # 7: TAKE A TRADING BREAK: 1)trading everyday begins to dull your life and relations with your family members. 2)A trading break helps you take a detached view of market and tends to give you a fresh look at yourself and the way you want to trade for the next several weeks. So take some time off and spend it with your loved ones. 3)A break also helps you see the market factors in a better perspective. RULE # 8: DO NOT FOLLOW THE CROWD. 1)successful traders like breathing room. when everyone seems to be long, they loo for a reason to be short. 2)Historically the Public tends to be wrong. successful traders feel uncomfortable when their position is popular with the buying public, specially small traders. 3) periodic government reports on the position of traders of various size provide "overcrowding" clues. Another clue is " contrary opinion". When most of the advisory services are Long, for example, the successful trader gets ready to move to the sideline or to take a short position. 4) Some services give a reading on market sentiment determined by compiling opinions from many advisory services. If 85% of the analsts are Bullish, this indicates an overbought situation. If less than 25% are bullish, this indicates an oversold condition. RULE # 9: BLOCK OUT OTHER OPINIONS. 1)do not influenced in your trading by what someone says, or you will continually change your mind. 2)once you have formed a basic opinion in the market direction, do not allow your self to be easily influenced. 3)You can always find someone who can give you what appear to be logical reasons for reversing your positions.if you listen to these outside views,you may be tempted to change your mind only to find later that holding your opinion would have been more profitable. RULE #10:WHEN YOU ARE NOT SURE, STAND ASIDE. 1)do not feel that you have to trade everyday, or even hold a position everyday.the beginning trader is tempted to trade or hold a position everyday and this costly tendency.the successful traders develop patience and discipline to wait for an opportunity. After they have taken a position and begin to feel uncomfortable, successful traders either reduce the size of the potion or liquidate. RULE # 11: NEVER ENTER YOUR ENTIRE POSITION AT ONE PRICE. 1)If you want tio be long certain number of lots you may want to do it 4 or more installments to see if the market is moving in your direction before you become totally committed. 2)Successful traders use the fundamentals and various technical signals to guide their trading, but the most important key is market action. the successful traders tend to wait for the market to verify that the initial position was a good one before putting on their full position. RULE # 12: NEVER ADD TO LOSING POSITION 1)Regardless of how confident you feel, if you establish a position that shows a loss, do not add to it. it may mean that you are out of step with market. some traders do not agree with this rule, believing in a "Price averaging" Technique. 2)The successful traders interviewed believe this is a risky technique and a way to mentally justify adding to a position that only magnifies a mistake. RULE #13: CUT YOUR LOSSES SHORT 1)When the market moves against you, admit your mistake by liquidating your position. you can be successful if you are right on less than 50% of your trades if you keep your losses short and let your profits run. 2)Some successful traders have only three or four profitable position out of ten because through discipline or stop loss orders they get out early when they are wrong. 3)one of the most common failures of new traders is their inability to admit they're wrong. 4)it takes a great deal of discipline to overcome the temptation to hang on to a loss, hoping that the market will turn in your favor. RULE # 14: LET YOUR PROFITS RUN. 1)cutting your profits short can be the cause of unsuccessful trading.the slogan "you never go broke taking a profit" does not apply. 2)The reason, your losses will at the best cancel out or at worst outweigh your profits unless you let your profits run. 3)how do you know when to take a profit? Some technical rules on reversals and other chart formations can help. you should never take a profit just for the sake of a profit. have a reason to close out profitable position. RULE # 15: LEARN TO LIKE LOSSES. 1)this rule says just the opposite of what many traders think. Learn to like losses because they are part of the business. 2)When you gain the emotional stability to accept a loss without it hurting your pride, you are on your way to becoming a successful trader. 3)the fear of taking a loss must be removed before you become a good trader. That's it for today..happy Trading