Secrets of Forex trading

I am going to give you some very simple but powerful secrets of Forex trading. The first one is don't trade with just small time frames. This market is huge and looking at just a small piece of the puzzle will only get you in trouble. I'm referring to trading with just a one minute chart or even a tick chart, if you only look at these time frames you will get a lot of false signals. Take a bigger overview of the market. Have a look at the daily charts this will help you get on the right side of the market.

Secret two, Crowd mentality.

Try not to let anyone influence your decisions, it's easy to get caught up in the latest headlines or news flashes on your favorite financial show. I call these the talking heads, these people are being told what to say to you. You must have an objective point of view. Remember the crowd is usually wrong or too late, stay true to yourself.

Secret three, Let your winners soar.

If you have analyzed the market and have traded in the direction of the trend you should feel at ease. Try to stay in the trade as long as possible if it has a very strong trend behind it. These are the days profits are easy to make. If you have made an accurate entry point and are in a profitable position relax. When you are up to 30 to 40 pips set your trade to break even and don't set a target for your profits. You now have a free trade with no risk and unlimited upside potential. Get out of the trade when you see the price bars way above their average. Recommended for experienced traders and only for trending days. Don't try to break the bank, and make sure you take the profits.

Secret three, Paper trading

This is very overlooked, because everyone wants to start making money before they're ready. This is so important, you must paper trade until you are 70 percent right. Treat this very serious, set your stops and target and let them play out for better or worse. Keep a log of all your paper trades, and when you have 70 out of 100 trades right, start off trading with a mini account.

Secrets of Forex trading number four, Have a trading plan.

You must have a plan of attack in order to win, you can't just guess. You should be able to identify where support and resistance levels are in all time frames. Don't change your plan in order to get in the market earlier. This will likely wreck your profits for that day. You can't make the market do what you want, so wait for the entry trigger.

Secret five, Have fun trading.

Keep yours spirits up and remain positive, the reason your trading is so you can be in charge of your financial destiny. Be realistic and enjoy the opportunity.

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