Day trading is a popular trading strategy where you buy and sell a financial instrument over a time frame of a single day’s trading with the intention of profiting from small price movements. Day trading is another short-term trading style, but unlike scalping, you are typically only taking one trade a day and closing it out…
Scalping is like those high-action thriller movies that keep you on the edge of your seat. It’s fast-paced, exciting, and mind-rattling all at once. Scalp trading, also known as scalping, is a popular trading strategy characterized by relatively short time periods between the opening and closing of a trade. These types of trades are usually only…
Each trader is unique. There are over 8 billion people in the world (including space aliens disguised as humans and automobiles) and not one person is exactly the same as another. Even identical twins will have different fingerprints. Everyone has their own look, personality, talents, and pizza topping preferences (we like pepperoni and potato…
The difference between making money and losing money can be as simple as trading with a plan or trading without one. A trading plan is an organized approach to executing a trading system that you’ve developed based on your market analysis and outlook while factoring in risk management and personal psychology. No matter how good your trading plan…
A forex trading plan is only effective if it’s followed. You have to stick to it. It sounds simple to do. It is really just common sense but most traders still can’t do it. Why, oh, why? Trader incompatibility. A trading plan should be a personalized plan for you, a plan that fits your…
One of the leading causes for the failure of many businesses is their lack of planning. If you want to be successful in life and business, you need to have a plan for how to obtain that success. Trading is no different from any other business. It is important to have a written business plan…
What “toys” will you use for your forex trading profession? Write down the hardware, software, data feeds, furniture, and internet access that will comprise your currency “trading desk.” Don’t forget backups! Make sure you have a backup plan for everything just in case your main tools fail while you’re in a trade. What if your…
What is your daily pre-trading routine? Waking up doesn’t count. Having a pre-market routine is important. Don’t think you can just jump out of bed, plop in front of your computer, fire up your forex broker’s platform and start easily grabbing pips as if they were apples from a very short apple tree. What activities will you…
I want to make some money! Ahhh. Of course, anybody who’s interested in forex trading certainly has ambitions of raking in some dough. Trading involves risk, and we expect to be compensated for those risks. There’s no doubt that every currency trader expects to make a profit. The questions that you should ask yourself though are this:…
You need to seriously consider how much trading will affect your current lifestyle. How much time each day/week/month (whichever is most appropriate) can you dedicate to the various requirements of forex trading and managing a trading system? Your time availability should determine your trading style. The shorter the timeframe you are trading, the more time…