Anyone who’s spent time on Forex trading sites, blogs or forums has almost certainly come across any number of wild boasts about products for Forex trading traders. All sorts of trade products get hyped onto the marketplace – trading robots, fool-proof systems, no-lose trading products.. Predictably these promise huge returns and winning trade rates that make the whole Forex market appear to be as uncomplicated as switching on your Computer.
In a nutshell and to be as polite as I can, the boasts made about these trading products are outright snake oil. I could in all probability go one further and call these blatant scams, but I’ll stick to the courteous version for the time being.
I’ve made a pretty secure living from Forex trading for the past 5 years or so now and I’ve never traded using a robot or any other automated system. Ok, some of the trading robots on the marketplace today can make a decent job of trading SHORT TERM. In the long term though, using an automated system is a sure fire way to go through your account pretty quick.
For the dedicated Forex trading traders out there, here are my Top 5 Trading Tips:
Leave the robots to Hollywood:
Let’s be frank here. If you had created a “no-fail” robot that in fact did all it was hyped up to do, would you be selling it online for 97 dollars a pop? I know I wouldn’t. If I programmed a robot that actually worked, I’d be negotiating with one of the major Forex brokers – and it wouldn’t be for a few dollars.
There’s a saying: “Casinos adore gamblers with systems”. Well Forex market makers love traders with Robots. Robots are sold on-line by affiliates. They make a commission for every sale they make, so of course they are going to say good things about them.
Learn the Basics of the Forex trading Markets:
Like almost anything in we do in life, Forex currency trading is a skill that we can educate ourselves about. No one was born a profitable trader, but what separates the winners from the losers how much time successful forex traders put into learning the basics of the markets. Things like margins, spreads and leverage. Learning these principles will take you from losing money into the winners circle. Trading a demo Forex account is the best way to understand the fundamentals and any reliable Forex trading broker will offer you a practice account for as long as it takes.
Use this demo account to your best advantage. Trade your demo account in a variety of market conditions. Get to grips the fundamentals with your practice account, and only then should you move onto a real account. Your bank balance will thank you for it.
Your account relies upon on Your Money Management:
There is, unfortunately, a whole mass of people on-line who make a couple of winning trades then advertise themselves on-line as the next Gordon Gecko. Face it. How many guys have you met who believe they’re Gordon Gecko just because they made a couple of winning trades. What they never discuss is their losing trades. It only takes one big loss to clean out your profitable trades, so mastering your capital management is one of the basic skills in a thriving trader’s arsenal.
Never force the Trade:
Always keep in mind – this is Your money at risk here, so make profit your byline – not the amount of trades you make. Never set out to make a particular number of trades just for the sake of trading. Pick the right time to trade the right market conditions. It’s about making a profit at the end of the day, so one big loss can wipe out a whole bunch of small winners. On the other side of the coin though, one decent winner can make up for a whole load of losing trades.
Trade when the conditions look best and your winning trades will soon out pace the losers.
Lose the Ego:
During my years as a trader, one of the most common mistakes I’ve seen is people trading their Ego. You get into a trade, the markets start to move the opposite way but your Ego has you sure you’re correct and everybody else is wrong so you stay in the trade and finish up with a major beating. Leave your Ego out of it, trade the markets when they look to be at their very best and be prepared to close a losing trade. Cut your losers and let your profit run.
Forex Trading can be a seriously pleasurable and fulfilling method to aid your income or even turn into a full-time career. There aren’t any magic formulas or secret system. It all comes down to learning the basics of the forex market and the best times to trade, not the newest and greatest trading robot