| Some interesting Forex Trading principles | | | | 12 Money and risk management is essential to |
| have been extracted from interviews with | | | | a long term relationship with the Forex |
| experienced successful traders and are listed | | | | Market Many methods used by successful |
| below. These are bound to surprise many | | | | traders are presented for your consideration. |
| traders and may explain why 95 succeed. | | | | I don't make recommendations or give advice |
| | | | in this area but knowing the alternatives |
| 1.You DON'T need to know the direction the | | | | enable you consider am appropriate one your |
| price is going to go to trade the Forex | | | | way of trading |
| market. The straddle trading techniques will | | | | |
| help you to have successful trades even when | | | | 13 Technical Analysis techniques have |
| you are unsure of the direction the price | | | | strengths and weaknesses. Know both. Know |
| will move. | | | | then to use Technical Analysis and when not. |
| | | | Certain indicators only work in trending |
| 2 The probability of a transaction being | | | | markets and others in trading markets. Some |
| successful is dependent on the potential | | | | trades can be done without charts. learn as |
| volatility behind the transaction. The amount | | | | much as you can about trading. |
| of PUSH behind the move is more important. | | | | |
| Most traders spend 90 on volatility. What's | | | | 14 A trading strategy contains the time frame |
| the use of getting the direction 100 of new | | | | traded, warning signals, trigger signals, |
| traders start trading a technique that they | | | | ways of managing the transaction, way of |
| have not personally tested. They go on the | | | | exiting the transaction, money management |
| trust of what they have been told. Testing a | | | | approach and risk management. It is not only |
| technique ensures that you can apply it under | | | | about the entry Find a personal trading |
| any conditions and that you understand it. It | | | | strategy that takes your personal |
| also gives you an opportunity to add | | | | circumstance into account. |
| improvements. | | | | |
| | | | 15 The trading process consists of doing an |
| 9 Keep your safety stops out of the traffic. | | | | environmental scan, identifying possible |
| In appropriate placement of stops is a mjor | | | | future transactions, entering the |
| cause of trading failure. In many cases an | | | | transaction, managing the transaction, |
| unsuccessful technique can become successful | | | | exiting the transaction, doing a post mortem |
| by just increasing the stop levels. Spend | | | | and reviewing your trading strategy. Build |
| time finding your personal comfort level in | | | | competency in all these areas. |
| this area. There are a number of techniques | | | | |
| to not use stops at all. | | | | 16 In general the longer term charts (Daily, |
| | | | 4 Hr and 1 Hr) give more reliable signals |
| 10 Successful traders find the exit of a | | | | than the shorter term ones (30min, 15 min, 5 |
| successful transaction is the most difficult | | | | min and 1 min) which are subject to noise. Be |
| part of trading. Exiting transactions | | | | aware of the many scalping (short term) and |
| optimally takes experience. | | | | position trading (longer term) strategies |
| | | | available to trade the Forex market.Knowing |
| 11 Assume that the market will trend in the | | | | the alternatives will help you develop a |
| direction that it is currently going until | | | | personal strategy. |
| you see conclusive proof of a possible | | | | |
| reversal The objective of trading is to enter | | | | These principles have been extracted for |
| a new trend and stick with it until it is | | | | information contained on the Forex blog |
| over. | | | | Forextradeoftheday which is sponsored by |
| | | | Expert-4x and submitted by Chris Doyle. |