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