The simple forex strategy

Discussion in 'Forex Education' started by james_wong, Sep 7, 2012.

  1. james_wong

    james_wong Trader

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    Many are still asking me this forex strategy, through YM. In fact, in my blog I have a lot of posts about it. But no matter, for the extra would not hurt if I remind you to continue to study and reflect on my past strategies you practice in your trading.

    1. Do not jump in trading forex for granted. You have to look at forex trading as something special, learn and work harder than most specialized professions. You need a lot of effort and time to get a good trade.

    2. You should be aware of financial risks in forex trading. You should know that you can win and lose money in forex trading. Then you have to use smart money management skills.

    3. You have to educate yourself first and build knowledge together with any profession, considering all it takes work. You respect and abide by all rules set earlier by the previous successful trader. You must understand the trade trends and why risky to trade against the trend.

    4. You have to have patience and understand that it takes time to be successful. You do not see it as a get rich quick scheme. You should set up the mindset that invest a small amount first and build wealth.

    5. You should know the importance of having a mentor like any profession. You must understand your own shortcomings as a novice and always seeking knowledge of experienced traders, you should also diligently read and read this blog (because a lot of knowledge and strategies profit) for you.

    6. You need a proven trading strategy and trading only one currency (if you are a beginner). You do not jump from one strategy to another. You do not try to trade in many currencies at one time. The guarantee minus all the stress that :)

    7. You simply set aside the capital you are able and ready to lose. With the money you can lose, you do not feel any pressure while in the trade. You just follow a trading plan to execute your trades.

    8. You record your trades. You review the winning and losing trades to understand your mistakes and how you can improve their trading results.

    These figures are that 95% of traders will end up a loss, because they simply fail to plan and will not use the above traits. Make sure that you get the appropriate level of education and knowledge.

    good luck :)
     
  2. ddewg

    ddewg Trader

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    good one .. appreciate ur advices....
     
  3. optionking

    optionking Trader

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    good advices :) It always does the trick.
     
  4. SFox

    SFox Trader

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    Respect.Im absolutely new and dont know how to do my first steps in all these diagrams.Pls any advice.Thanks
     
  5. angelnish

    angelnish Banned

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    Very valuable and interesting post James.
    Thanks for sharing.
     
  6. dustinplaas

    dustinplaas Trader

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    positive attitude is main principle in my opinion!
     
  7. wow!!
    It's nice studies post james_wong..

    Thanks a lot!!!
     
  8. Rob Taylor

    Rob Taylor Active Trader

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    I agree with most of what you say apart from this.

    7. You simply set aside the capital you are able and ready to lose. With the money you can lose, you do not feel any pressure while in the trade.

    You should not be trading if you are expecting to lose. Losing trades happen i agree, but you should not be having the mindset that it is OK to lose money, its not.

    You can get into trouble with this mindset. For example if you set aside say £100 per week that you are prepared to lose, what happens when you lose that? Do you stop trading until next week?

    You need to take high probability trades based on a strategy or method that works. Forex is not a game, and you should not be gambling, even if it is with money you are prepared to lose. :)
     
  9. Andru

    Andru Trader

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    I agree with most of what you say apart from this.

    7. You simply set aside the capital you are able and ready to lose. With the money you can lose, you do not feel any pressure while in the trade.

    I agree with it. you don't need expect to lose, but you should have another variant to be more confident.
     
  10. inggo

    inggo Master Trader

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    very good pointers, new traders should read this, even i find it refreshing :)
     
  11. fxlogic

    fxlogic Trader

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    Thanks for this nice advice. i definitely try it out.
     
  12. ezekiel chew

    ezekiel chew Trader

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    Always trade with cash that you can spare. Do not borrow or take a loan to trade as it will gives you pressure which will affect your trade. Don't and NEVER let your emotions control your trading. Always exercise stop loss.
     
  13. Emibluz

    Emibluz Banned

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    I quite agree with you. The best trading strategies are more of mental attitude than analytic strategies. For me the simplest yet very effective is due diligence. Before you go for a trade, be prepared to pay the sacrifice: meditate on your charts, be strong on your stop hunt (though sometimes your broker can trigger your limit order), this is why you need to be vigilant, don't relax because your broker is licensed; else you license him to scam you. Do your homework well and be innovative; even if you find a suitable broker (even offshore) after your research with transparent user operation, trustworthiness,large and healthy leverages, GO FOR IT! Always try to stand out from the crowd, this way you could stand out from popular losses!
     
  14. bablogfx

    bablogfx Confirmed HotForex Representative

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    Thanks for your advices. They are really helpful, especiall when you don't know where to start off with trading.
     
  15. sharon black

    sharon black Trader

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    im still so confused about all of this......
    there is so much to learn is there a beginners book for dummies ??
     
  16. dalat

    dalat Trader

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    the great tips guys . thanks for share this tip
     
  17. Aby123

    Aby123 Active Trader

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    read, learn and apply =) Thank you for the advises.
     
  18. Ary Barroso

    Ary Barroso Active Trader

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    I see, you have provided here basic directions; by the way it’s not easy to make a profitable trading strategy! In my 1st year of demo there were more than 50 trading systems but no ultimate result! Whatever, now I am doing my trading with a combo skill of technical & fundamental trading knowledge.
     
  19. Lesiro

    Lesiro Trader

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    Point no 6 is quite unique and important. Yes, as a beginner, it would be nice to focus on one pair rather than diffusing your efforts on several trades.
     

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