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samuel23

Forex Tips

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1. Learn the basics of Forex trading. It's amazing how many people simply don't know what they're doing. In order to compete at the highest level in the trading business and be one of the few truly successful participants you must be well-educated about what you are doing. This does not mean having a degree from a well-respected university - the market doesn't care where you were educated.

2. Forex trading is a zero sum game. For every long there is also a short. If 80% of the traders are on the long side, then the remaining 20% are on the short side. This means further that the shorts must be well capitalized and are considered to be strong hands. The 80%, who are holding much smaller positions per trader, are considered to be weaker hands who will be forced to liquidate those longs on any sudden turn in prices.

3. Nobody is bigger than the market.

4. The challenge is not to be the market, but to read the market. Riding the wave is much more rewarding than being hit by it.

5. Trade with the trends, rather than trying to pick tops and bottoms.

6. Trying to pick tops and bottoms is another common fx trading mistake. If you're going to trade tops and bottoms, at least wait until the price action actually confirms that a top or a bottom has been formed before you take a position in the market. Trying to pin-point tops and bottoms in the foreign exchange market is very risky, but exercising a little patience and waiting for a proven top or bottom to form can increase your odds of profiting and somewhat reduce your risk.

7. There are at least three types of markets: up trending, range bound, and down. Have different trading strategies for each.

8. Standing aside is a position.

9. In uptrends, buy the dips; in downtrends, sell bounces.

10. In a Bull market, never sell a dull market, in Bear market, never buy a dull market.

11. Up market and down market patterns are ALWAYS present, merely one is more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped out time and again. Select trades with the trend.

12. A buy signal that fails is a sell signal. A sell signal that fails is a buy signal.

13. Let profits run, cut losses short.

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  samuel23 said:
1. 6. Trying to pick tops and bottoms is another common fx trading mistake. If you're going to trade tops and bottoms, at least wait until the price action actually confirms that a top or a bottom has been formed before you take a position in the market. Trying to pin-point tops and bottoms in the foreign exchange market is very risky, but exercising a little patience and waiting for a proven top or bottom to form can increase your odds of profiting and somewhat reduce your risk.

 

Or . . . Don't try and pinpoint a bottom, don't wait for confirmation - catch it as it falls! The harder it falls, the more you catch. Markets exist to facilitate the transfer of risk - they tend to benefit those who enable this process by absorbing risk. Risk is perceived when price moves away from equilibrium - but price always reverts to a state of equilibrium. The only question you need to answer is to which particular state of equilibrium a market is returning.

 

Picking short term bottoms in long term uptrends (and visa versa) can be a great way to trade . . .

 

Just my 2 cents though!

 

BlueHorseshoe

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Thanks for sharing this with us Blue. I guess this is a very good way of trading forex. If we can master that, i am sure we will be able to earn from the market. However, i' m happy that some of you find my post regarding tips useful and i would be even more happy if the above tips is helping you to earn from Forex. If anyone of you have a question, please do ask. I will do my level best to help you ;)

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I would like to add one more important thing; never get motioned from other trader’s calls, only trade what you triggered by yourself, it is the only way to learn mastering your system and be successful.

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  Obsidian said:
I would like to add one more important thing; never get motioned from other trader’s calls, only trade what you triggered by yourself, it is the only way to learn mastering your system and be successful.

 

Obsidian, can you please elaborate on this a bit more?

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  samuel23 said:
1. Learn the basics of Forex trading. It's amazing how many people simply don't know what they're doing. In order to compete at the highest level in the trading business and be one of the few truly successful participants you must be well-educated about what you are doing. This does not mean having a degree from a well-respected university - the market doesn't care where you were educated.

2. Forex trading is a zero sum game. For every long there is also a short. If 80% of the traders are on the long side, then the remaining 20% are on the short side. This means further that the shorts must be well capitalized and are considered to be strong hands. The 80%, who are holding much smaller positions per trader, are considered to be weaker hands who will be forced to liquidate those longs on any sudden turn in prices.

3. Nobody is bigger than the market.

4. The challenge is not to be the market, but to read the market. Riding the wave is much more rewarding than being hit by it.

5. Trade with the trends, rather than trying to pick tops and bottoms.

6. Trying to pick tops and bottoms is another common fx trading mistake. If you're going to trade tops and bottoms, at least wait until the price action actually confirms that a top or a bottom has been formed before you take a position in the market. Trying to pin-point tops and bottoms in the foreign exchange market is very risky, but exercising a little patience and waiting for a proven top or bottom to form can increase your odds of profiting and somewhat reduce your risk.

7. There are at least three types of markets: up trending, range bound, and down. Have different trading strategies for each.

8. Standing aside is a position.

9. In uptrends, buy the dips; in downtrends, sell bounces.

10. In a Bull market, never sell a dull market, in Bear market, never buy a dull market.

11. Up market and down market patterns are ALWAYS present, merely one is more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped out time and again. Select trades with the trend.

12. A buy signal that fails is a sell signal. A sell signal that fails is a buy signal.

13. Let profits run, cut losses short.

 

Hi Sam

And what about the fundamentals:question::question::question:

 

For those interested...tomorrow ,early ,Britain will release GDP figures.

What do you think will happen to the pound if this figure is " minus- "?

Do any of the above 13 statements give you an answer?

No offence meant.

regards

bobc

 

PS Sell the pound

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  secondmouse said:
Obsidian, can you please elaborate on this a bit more?

 

for example right now I can tell you 10 valid reasons to buy gold and 10 valid reasons to sell gold...when you hear other people's thoughts you should be objective. once you pull the trigger it does not matter anymore. when you enter a trade, you should have your own reasons. if you are closing a position just because another trader says so, then you shouldn't be trading. each trader may have different targets, money/risk management methods etc. always remember this saying; the bulls make money, the bears make money..the pigs are slaughtered;)

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It is nice that you guys has all comment on this post. Normally i can see that not all of you share the same ideas and i would say that it is really good that you post you advice regarding this thread. I wanted to share this as it can help some of us. These are simple trading strategies and i would welcome anyone who do have more strategies, suggestion and tips so that we can learn from it. Not everyone have the same perspective and same of way of trading. :)

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  Obsidian said:
TL is a huge community, so there are various traders trading on various markets ;)

 

Yes it is a huge community and i am sure that we can find trader all over the glode trading on different market. Where there is money involved, you will surely find people from every part of the world chasing behind it :haha:. I cannot say that am not one of them in this field ;)

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  forexlady101 said:
Thanks Samuel. It's never enough to know what other people do

 

You are most welcome. I am pleased that the above Forex Tips is useful to you. Indeed we cannot imagine what other people can do but it is always nice when we share it together in a positive way so that everyone can be beneficial from it! :haha:

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