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Old 07-16-2012, 08:07 AM   #1

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Forex Tips

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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Old 07-21-2012, 08:39 AM   #2

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Re: Forex Tips

Thanks samuel23 to share some useful trading tips with us. These are more helpful for new traders.
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Old 07-21-2012, 09:41 AM   #3

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Re: Forex Tips

Quote:
Originally Posted by samuel23 »
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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Old 07-23-2012, 05:55 AM   #4

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Re: Forex Tips

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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Old 07-24-2012, 09:14 AM   #5

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Re: Forex Tips

I would like to add one more important thing; never get motioned from other traderís 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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Old 07-24-2012, 09:35 AM   #6

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Re: Forex Tips

Quote:
Originally Posted by Obsidian »
I would like to add one more important thing; never get motioned from other traderís 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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Old 07-24-2012, 02:07 PM   #7

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Re: Forex Tips

Quote:
Originally Posted by samuel23 »
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:qu estion:

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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Old 07-24-2012, 04:35 PM   #8

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Re: Forex Tips

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

Not always, or you are no longer with a trend.
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