Category: Forex Basics
Trade Responsibly Chapter 7: Pacing
In order to improve your trading, the frequency of your trading deserves special attention. In order to have better control over your account, it is advisable to pace yourself. Some traders have a winning streak and they extend the times in which they trade. Eventually, their nose is attached to the screen for too many
Trade Responsibly Chapter 6: Account Size Does Matter
After choosing a forex broker, and testing the platform with a demo account, you now feel ready to deposit funds and play the real game. How much should you deposit? Certainly not more than you can afford to lose. Yet a bigger sum has quite a few advantages that can make a difference between a
Scaling Up in Forex Trading
You are trading for several months now, and things are going well. You win some, lose some, but the overall outcome is successful: you win more money than you lose, by using sensible risk/reward ratios and rules of money management. This is not the “beginners’ luck” sensational win. So, you feel confident with your trading
Trade Responsibly Chapter 5: Execution is Everything
Carefully choosing a forex broker isn’t an easy task. There are lots of brokers out there and each one has a well designed sign up page with “exciting” features. Assuming you took the advice in the previous chapter and decided to trade only with a registered broker, the options are still wide. So what should you
Forex Trading After Thanksgiving
The Western world grinds to a halt before Christmas and re-awakens after New Year’s Eve and trading volume is very thin. This is well known and many people are on vacation anyway. Yet volume begins to drop well beforehand. The US holiday of Thanksgiving marks the beginning of the shopping season in the US and
Trade Responsibly Chapter 4: Trade With a Registered Broker
There are a lot of forex brokers out there. The forex industry is quite spread out: there are many players in different countries. Competition is great and some small forex brokers compete with the big boys is blessed. Many industries are controlled by a few powerful entities, and it is great that forex isn’t one
Trade Responsibly Chapter 3: Use Higher Time Frames
As hinted in the previous chapter, you need to see the big picture. Seeing the big picture will help you identify the general trend, but may not be enough. Is your system based on using 1 hour charts? That’s not too bad. But how about testing it on a wider timeframe of 2 hour charts?
Trade Responsibly Chapter 2: Trade With the Trend
You’ve probably heard the expression: “Make the trend your friend”. For many, this basic idea has already been forgotten and regarded as yet another cliché. Nevertheless, it is still very relevant. If your system involves looking at 1 hour charts, check out the 4 hours charts and the daily charts to get the bigger picture.
Trade Responsibly Chapter 1: Money Management
Isn’t money management a nice buzzword? Many forex brokers flash around this nice phrase. I’m sure you’ve heard it many times. How can you turn this buzzword into practical, actionable advice? As with any type of investment, there is risk. The idea is to control your risk and be aware of it. This will save you
4 Pitfalls of Demo Accounts
A forex demo account is a very important tool for assessing a broker’s platform, testing your technical analysis skills and lots more. Using a demo account is highly recommended. Yet it doesn’t fully prepare you for the real thing. Here are 4 pitfalls for demo accounts, and solutions for part of them. Demo trading doesn’t