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Trading Psychology

The effects of trading psychology are an often underrated risk for beginning forex traders. The transition from a demo account to a live account can be more difficult than most traders expect. Learn about basic trading psychology pressures.

Forex Trading Spotlight10

Did the March FOMC Mark the Bottom For The US Dollar?

Monday March 24, 2014

Many Forex traders were shocked by the March FOMC meeting when Janet Yellen said that the Fed could raise the Fed Funds rates as soon as early 2015. This move allowed the US Dollar to have it's best day since Fall of 2013.  Many traders have found themselves asking the same question,  was Wednesday, March 19th, the bottom for the USD.

Today's article breaks down what happened in different markets that could shed light on what's to come for the USD. What's also helpful, you will see the preferred set-ups should the USD begin to strengthen. It's often helpful to find the low hanging fruit and not just blindly buying the USD against whatever's convenient.

How Long You Should Hold An FX Trade?

Sunday March 23, 2014

Today's article helps you to answer a key question of your trading strategy.  The questions is, how long will you typically hold your Forex trade? The answer to this question will inadvertedly reveal a lot about your personality and how comfortable you are holding risk over a period of time.

The three common designations based on how long you hold a trade are day trading, swing trading, and position holding. Each type has it's own benefits and draw backs.  Whichever method you decide on, I have one key piece of advise for you: hold on to your winners longer than you do your losers and that can make all the difference.

Part 3 of 4: Managing Your Risk Like a Pro

Thursday March 20, 2014

Traders must know how to manage risk.  One trader who I respect very much, taught me a great lesson that every trader will learn some way along their path. The lesson was that managing risk is your only edge against the person on the other side of your trade. This lesson was as liberating as it was true because there will always be a firm willing to pay more for researching the other side of my trade than I am but if I can manage risk, then I'm still in the game with a positive edge.

This article discusses two key aspects about risk. First, you will learn how to appropriately think about risk and a key mental bias that if not fixed, will ruin your trading career before it starts. Secondly, you'll learn how to manage your risk by doing the opposite of what many losing traders do.

FX Strategy Development Part 2 of 4: Objective Entry Rules

Thursday March 20, 2014

When FX traders around the world ask me to help them with their trading strategy, one common flaw unfortunately shows its head.  That flaw is a non-rigid approach to entering the market. Of course, a rigid approach doesn't guarantee success but if you do not have objective rules to help you enter into the trade, you'll have a hard time narrowing down what part of your process needs help.

Today's article will make sure you have at least two objective rules to help you enter a trade.  Of course, you can add more rules before entering a trade if you wish but I don't recommend you get too complex as that can open up a range of pitfalls on its own.

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