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Regulated by the FSA Financial Services Authority. Regulatory Number SD Back to Blog The 5 Secrets of Forex Trading that Everyone Misses. June 6, By Graeme Watkins. Secret No. Conclusion The journey to becoming a profitable forex trader can be pretty painful , as there are bumps in the road at every turn. Disclaimer: The information provided herein is for general informational and educational purposes only.

This post was written by Graeme Watkins CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations.

Graeme has help significant roles for both brokerages and technology platforms. Read more articles by Graeme Watkins. Valutrades Blog Stay up to date with the latest insights in forex trading. Subscribe For Blog Updates. Popular Posts. Topics Competition 4 COVID 1 Cryptocurrency 1 Economic News Events 7 EURUSD 2 Forex Affiliate Programs 1 Forex Indices and Commodities 4 GBPUSD 1 HK50 1 indexes 1 Indicators 4 November Monthly Review 1 NZD 1 NZDUSD 2 Seminar 1 Sentiment Analysis 1 Trading Accounts 3 Trading Strategy 7 Trading Videos 6 UKOil 1 US30 1 USDCAD 1 USDJPY 1 WTI 2 XAUUSD 3.

Having said that, there are some charts that are very different and must be viewed accordingly. You must pay close attention to the time frame of the chart you are using. If for example, you are viewing a weekly chart and based on your analysis, it is showing you a great buy opportunity, make sure to open a chart with a lower time frame, such as daily or hourly, and make sure they are telling you the same thing.

If not, sit back and wait till all your charts are in sync with each other. A solid rule to guide you is to use a longer time frame for direction analysis where the market is going and a shorter time frame to decide entry or exit into the market. Expectancy Calculation Until now, we were discussing choosing an effective trading method and taking precautions before trading.

But, when and how do you know if you made the right decisions? For this, you need to calculate your gains and losses from time to time. You should go back into your trading history and count the number of winning trades vs. losing trades. Once you have done this, calculate the amount traded in all your winning trades vs your losing ones. A good number of trades to analyze is your last If, however, you are still learning and have not actually traded yet, you can do this calculation as well.

Simply go back and look at all the instances in which your system indicated to you that now would be a good time to open a position. Then check if you would have profited or lost from that transaction. Do this for 10 instances and WRITE IT ALL DOWN! This is a good indication of whether you are on the right track or not. Money Management A good idea is to think of your Forex trading money as vacation money.

You are using this money to trade and there is a good chance it will be gone tomorrow But don't be fooled: Forex trading is no vacation! This might seem obvious to some, but it is not as simple as it seems.

It is all about your philosophy and the way you view the money with which you are trading. A good idea is to think of your Forex trading money as vacation money. You are using this money to trade and there is a good chance it will be gone tomorrow, but at least you came away with something; important and useful experience.

However, this comparison is only good for this specific area, it should not fool you: Forex trading is no vacation! Thinking of it as such will enable you to psychologically accept small losses, which will in turn assist you in becoming a better trader. Another useful tip when it comes to money management is knowing how to use the leverage you are offered. We have said this many times and it is important to understand that as great as the potential for gain using leverage, so is the danger of devastating loss in the Forex market.

Test out your technical skills now! OPEN A FREE DEMO ACCOUNT. Hillel Fuld. Hillel Fuld, a pre-eminent technology blogger and strategic advisor to dozens of tech startups, got his humble beginnings as the Content Manager at DailyForex. In this role, Hillel published hundreds of articles for new traders about how to better understand the Forex markets and how to trade intelligently.

Upon leaving DailyForex, Hillel continued writing and eventually began his own technology blog. Sign Up Enter your email. Did you like what you read? Let us know what you think! Becoming a consistently profitable trader is not about discovering the most exciting and fastest trading system out there. Becoming comfortable with boredom while also being able to maintain the focus on it is perhaps the toughest part of all this.

Here is an article about from forex4noobs on Dealing with Boredom in Forex. In forex trading, the market typically cycles through four phases. As traders, particularly as reversal traders, it is important to understand what these four stages mean to us.

Since these 4 stages warn you that the market conditions will change-allowing you to plan your trading decisions in advance. Related — Reversal Trading: The Definitive Guide.

There are lots of sides you need a master in orders achieves trading success. There is no doubt about it, lots of traders have unrealistic expectations, that is why failure rate of so high in trading. Therefore when you ready to trade in the live market, you must set realistic expectations in the right way and throw away all the unrealistic expectations which are beyond your ability to achieve as a trader. Not only these type of goals are realistic, but also gives you more breathing room to achieve.

Not much, right? Have look at the compound interest calculator below. We use money chimp compound interest calculator here. See, this is where the magic happened? See that is why setting realistic expectation is such an important in trading.

I think you got the idea here. Related Reading: How to Find More Balance in Your Life as a Trader — 10 Simple Ways. Also, price action is the key predictor of all else. If you use some other indicators, such as stochastic, EMAs and RSI, note that they all follow the price action and not the other way around. Unfortunately, though, a lot of beginner forex traders are working on complicated trading strategies or systems with a belief in complexity that is going to rock the market and ended up not having the results they expected.

But successful forex traders know that simplicity is much more effective than complexity, particularly when it comes to trading on the forex market, and almost every successful trader that is consistent on the forex market uses at least some kind of price action strategies to improve their trading efficiency.

Since the price action reflects the actions of other market players Bank, Hedge Fund and retail traders and thus filters out the whipsaw price movements in lower timeframes, and allows you to make straightforward, objective and efficient trading decisions.

Related — Forex Price Action Trading Strategy — Price Action Entry Technique With Trade Example. Have you learned any new trading secrets or strategy to upgrade your trading career to the next level?

Thank you for your comment; I sent you an email with an Excel Trading Journal attached. Please check your inbox. The truth is not very attractive. But reality helps us to reach our destination. Thanks Dude. Your email address will not be published.

Save my name, email, and website in this browser for the next time I comment. We Are… Trade Revenue Pro. We specialize in reverse trading. More Over Our Trading Technique Enable Everyone, Even Novice Forex Traders to Recognize and Ride the Trend Reversals with Higher Risk to Reward Ratio. Trade Article. This is what everyone is looking for…👇 THE SECRET TO FOREX TRADING, Right? Well, this is a common thing among beginner traders. The First Forex Trading Secret is there is NO Such a Things Called Trading Secrets.

Are you guilty of this? But how? There is No Secret to Success. It is the Result of Preparation, Hard work, and Learning from Failure. In reality strategy is actually very straightforward. You pick a general direction and implement like hell. Win, loss whatever emerges in the short-term, place and manage your next trades untouched, unattached… always keeping your eyes on the long-term picture.

Trading effectively is about assessing probabilities, not certainties. When you genuinely accept the risks, you will be at peace with any outcome. Money is just something you need in case you do not die tomorrow. Let this is a reminder for you not to obsess over profits and losses. In whatever you do, strive for enjoyment, focus, contentment, humility, openness… Paradoxically and as an unintended consequence your trading performance will improve significantly.

Even a poor trading system could make money with good money management. Take the Control of Your Trading, Not the Market. The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money.

The Middle Path is the way to wisdom. A man without a goal is like a ship without a rudder. Good investing is boring. The Market Speak its own language, That language is Price Action. Thanks for this. Could you please help me creating a trading journal. Leave a Reply Cancel reply Your email address will not be published. About Us. Recent Posts. Buying Bitcoins Without KYS — Is It Possible? Read More ». pionex bot trading Read More ».

Preliminary Self Knowledge 2. Compatible Forex Broker 3. Methodology Selection and Application 4. Chart Synchronization 5. Expectancy Calculation 6. Money Management 7. Confidence Build Up 8.

Weekend Homework 9. Record Everything What are Your Chances of Forex Success? Home Forex Articles 9 Secrets to Successful Forex Trading. on June 01, Preliminary Self Knowledge. Compatible Forex Broker. Methodology Selection and Application. Chart Synchronization. Expectancy Calculation. Money Management. Confidence Build Up. Weekend Homework. Record Everything. What are Your Chances of Forex Success?

There are many different outlooks on trading Forex, some will swear by fundamental analysis, while others will deem it pointless and tell you to focus all your energy on reading technical charts. Some experts will tell you to take advantage of the Forex leverage you are given in the FX market, while others will tell you to stay far away, as the higher the leverage, the greater the risk. Here are some universal pieces of advice for the Forex trader.

They can all be summed up by one crucial element of trading psychology - objectivity. You do not have to follow each one of these Forex secrets to the letter of the law, but rather take them as an indication of the type of philosophy you have toward Forex trading.

Some of these might not be right for all traders, but they are general tips, which are meant to lead you down the path to Forex success. Preliminary Self Knowledge This pretty much applies to any endeavor you take upon yourself in life, especially one that comes with such high risk.

Before you trade even one pip on the Forex market, it is imperative that you know yourself. What does this mean? There are endless methods of trading, so before you begin this journey, choose your method. However, do not choose it randomly. Define your short and long term goals, determine how you intend on reaching those goals, and decide on your trading method based on your personality.

Each trading method has its advantages and disadvantages, and its own risk profile, so when choosing one, choose it based on the kind of person you are. For example, only you can know if you are capable of going to sleep with open Forex positions with the hope that they will bring you profits in the long term. If you are not this type of person, it will lead to a raise in your anxiety levels which will inevitably lead to future failures. Compatible Forex Broker Once you determined the type of Forex trading that suits you, you need to find the Forex broker that suits your method.

Do not rush into this. This might be one of the biggest decisions you will make when it comes to trading Forex. You can be sure the Forex broker you choose will have the biggest effect on your success or failure as a Forex trader.

Choose a broker as if you are choosing a car. No one just goes into the first car dealership and buys the first car they see. You need to read up on the various brokers, each one's advantages and disadvantages.

You need to do an extensive comparison of the large number of available brokers. Once you have narrowed down your selection to a few brokers, you should compare their platforms based on the method you chose in step 1.

If you believe you are more of a short term trader for example, make sure the broker you choose offers comprehensive tools to support this method as part of their platform. Make sure the broker you choose meets your every need from their customer service all the way to their headquarters location.

Methodology Selection and Application As we mentioned above, there are two primary schools of thought when it comes to analyzing the market and predicting future trends. They basic assumption is that the market has some sort of consistency and logic in its movements. If it moved in this direction today, there is no reason it wont move the same direction tomorrow.

There are various types of Forex charts to help you analyze the market and its trends, as well as indicators, and levels. Then there is the fundamental analysis school of thought that what really gets the market moving is the news of a specific country.

This method will tell you to focus less on what was yesterday in the charts and more on what was yesterday on the news. Like many things in life, neither method is perfect, and a good trader makes use of both. However, before trading, you must decide which methodology is going to be your primary one, and be consistent with it. If you think fundamentals play a bigger role than trends, focus your preparation and analysis watching the news and not analyzing the charts.

Consistency is the name of the game. Chart Synchronization Irrelevant of the methodology you choose in step 3, you will spend a significant percentage of your time looking at charts of the Forex market. As we explained, there are many different types of charts, however, most of them are simply showing you the same thing with a different visual effect. Having said that, there are some charts that are very different and must be viewed accordingly.

You must pay close attention to the time frame of the chart you are using. If for example, you are viewing a weekly chart and based on your analysis, it is showing you a great buy opportunity, make sure to open a chart with a lower time frame, such as daily or hourly, and make sure they are telling you the same thing.

If not, sit back and wait till all your charts are in sync with each other. A solid rule to guide you is to use a longer time frame for direction analysis where the market is going and a shorter time frame to decide entry or exit into the market.

Expectancy Calculation Until now, we were discussing choosing an effective trading method and taking precautions before trading. But, when and how do you know if you made the right decisions? For this, you need to calculate your gains and losses from time to time. You should go back into your trading history and count the number of winning trades vs. losing trades. Once you have done this, calculate the amount traded in all your winning trades vs your losing ones.

A good number of trades to analyze is your last If, however, you are still learning and have not actually traded yet, you can do this calculation as well.

Simply go back and look at all the instances in which your system indicated to you that now would be a good time to open a position. Then check if you would have profited or lost from that transaction. Do this for 10 instances and WRITE IT ALL DOWN! This is a good indication of whether you are on the right track or not. Money Management A good idea is to think of your Forex trading money as vacation money.

You are using this money to trade and there is a good chance it will be gone tomorrow But don't be fooled: Forex trading is no vacation! This might seem obvious to some, but it is not as simple as it seems. It is all about your philosophy and the way you view the money with which you are trading. A good idea is to think of your Forex trading money as vacation money. You are using this money to trade and there is a good chance it will be gone tomorrow, but at least you came away with something; important and useful experience.

However, this comparison is only good for this specific area, it should not fool you: Forex trading is no vacation! Thinking of it as such will enable you to psychologically accept small losses, which will in turn assist you in becoming a better trader. Another useful tip when it comes to money management is knowing how to use the leverage you are offered. We have said this many times and it is important to understand that as great as the potential for gain using leverage, so is the danger of devastating loss in the Forex market.

Test out your technical skills now! OPEN A FREE DEMO ACCOUNT. Hillel Fuld. Hillel Fuld, a pre-eminent technology blogger and strategic advisor to dozens of tech startups, got his humble beginnings as the Content Manager at DailyForex. In this role, Hillel published hundreds of articles for new traders about how to better understand the Forex markets and how to trade intelligently.

Upon leaving DailyForex, Hillel continued writing and eventually began his own technology blog. Sign Up Enter your email. Did you like what you read? Let us know what you think! Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted.

Comments including inappropriate will also be removed.

To help you take that next step and blow the door wide open on the forex market, we explain five secrets of forex trading that almost everyone misses. I like these tips! There is No Secret to Success. At the end of the day, the Buddha understood that both indulgence and deprivation were similarly futile, even counterproductive to his objective of awakening. There you have it, this 5 step approach is one that any trader can apply to the most trading situation that causes trouble. So, do you have a trading journal?

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