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Great Psychological Tips for Forex Traders

Forex trading is as much a “head” game as it is a “numbers” game. Trading psychology is just as important as a solid grasp of trading practice because things like your temperament, fears, and confidence can turn rational decisions into emotional ones and maybe mess up your trades. So, let’s look at a little psychology and see how it can turn you into a better trader.

There’s probably nothing more important than the mental state you sit down to trade with every day. A bad night or a stressful morning can affect your mental balance, which is the most important tool in your trading kit, so don’t let emotional swings affect your ability to execute.

Stick to the plan

Your trading plan is something that you create from study, learning, and poring over charts. But even though you come to the game technically prepared, you can derail yourself by not being emotionally prepared. When you’re new (or maybe when you’re experienced but not feeling great about life that day) successes can feel wonderful, almost dizzying. They can lift you and make you feel invincible. But you’re not. Stick to the plan, don’t become overconfident. Don’t be the guy who loses his house on the roulette wheel after one lucky win. Stick to the cold, boring, statistically driven and rational plan. And when you do lose a trade, as you inevitably will, don’t take that as a sign that all is lost. It isn’t. It was only that trade that went sour, not your whole system, and not your whole life. There isn’t any need to change your setup yet. Trading psychology shows us that long-term growth requires a long-term commitment. Instant gratification is fleeting, however nice it might feel. Focus on the big picture and stick to the plan!

Take a widescreen view

Don’t focus on individual trades. It’s important to pull back and look at the overall picture. Look at your equity curve before you start getting into the details of single trades because you’re more interested in understanding whether the system is working.

Eliminate distraction

The internet gives us unlimited opportunities to be distracted and social media was designed to be addictive. It’s tempting to follow the gurus we find there, but doing so means we never see a plan through to the end. It’s best just to switch them off.

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Accept risk

Losing $10 does not feel exactly as bad as finding $50 feels good. It feels much worse. We hate to lose things,
and money especially. You might think you don’t mind losing money and you might say that you always place your stop, but when you place your stop far away from your entry price and don’t see the trade progressing as you thought it would, you move your stop up. And of course, the stop triggers just before the market moves in the direction you thought it would start with, which means you were right, to begin with, your analysis was correct, but fear of losing money made you change your approach. You must be truly comfortable with accepting the risk of losing to be truly successful.

Think like a winner

Confidence is the key to most things in life. Every time you take a trade, you need to seriously believe in yourself, be proud of your successes and treat every loss as a learning opportunity, an essential step on your journey to success.

Even though you can do your due diligence to make sure you’re trading correctly, it’s important to remember that market volatility can flip the script on your trades, which is why it’s always important to practice good risk management. Do not stress if trends are not moving the way you wanted. Keep in mind that high profits trades involving some risk.

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3 Proven Long-Term Forex Trading Strategies for Beginners

You’d be surprised how many people you know are earning money trading foreign exchange (forex) online. And the good news is – you can too. In this article, we will explore 3 tried and true forex trading strategies that can reward you with up to $15,000 per month – even if you’ve never traded before.

Long-term forex trading is not as hard as you may think. All it involves is identifying a trend (uptrend or downtrend) and following it for a duration of time. It’s an easy practice you can run with for years.

Some traders track the same trend for over 10 years, changing direction only when the profits get lower.

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When you apply long-term forex trading methods, you simply BUY on market expectations and SELL based on financial facts (the best example is George Soros’ greatest currency trades in history against the GBP).

Now that you’ve decided to commit to a stable long-term forex trading portfolio, let’s start with the basics:

What is Long-term Forex Trading?

Long-term forex trading (or any long-term trading for that matter) is a trading style first adopted by the banking industry. Today, ordinary people can detect a long-lasting trend and capitalize on this unique method of trading – all that’s needed is an internet connection.

The methodology is straightforward: You hold the position longer, raking in profits, and enduring small losses. Once the profits and the losses are almost equal – you close the position. Long-term trading is popular because it’s a touch-and-go approach that allows you to seize lucrative opportunities monthly, and even weekly.

Now, let’s go over the most popular (and lucrative) long-term forex trading strategies our PROs use themselves. Pick a plan, commit to it, and the cash gains will follow.

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Strategy #1: Ride the Trend

The best advice all professional long-term forex traders agree in is: Nothing is more important than detecting the trends.

You can’t foresee the future, right? So don’t waste your time trying to predict where the price will go next. Instead, focus on spotting the trends. Look for a new high or low (a price increase or decrease of at least 3 pips). Mark it – you just detected a new trend. This is exactly where you open a position.

Many investors fool themselves that they can predict a price change. They sit and wait for the currency pair price to move back up, or come back down, beyond the previous resistance point. But by then – it’s too late.
Be smarter than them: Understand the trend, learn to spot it, and make substantial money in the forex market.

Strategy #2: Don’t Wing It – Swing It

Are you a beginner forex trader? Then swing trading is the strategy for you.

What is swing trading?

This unique forex trading strategy combines day trading with trend trading. Day traders hold a position for a shorter period (one day, tops), whereas trend traders examine the long-term fundamental trends of a currency pair and hold the position longer (months)

Swing traders hold each position for at least two or three weeks, basing their trading decisions on the intra-week or intra-month performance of the exchange.
You must define a particular area of resistance and support and then watch carefully for the momentum to shift. It’s the best forex trading strategy for beginners because it doesn’t require the discipline trend-spotting involves.
Swing trading works so well because it takes advantage of short-term price spikes caused by emotional trading.

You ride the highs and lows while the price corrects itself, leaving you with nice, steady profits.

Strategy #3: Set and Forget

It’s exactly how it sounds. You set up the parameters (entry, stop losses, and profit targets) before you initiate a position, and leave all of the actions automated.
If you use fundamental analysis correctly, you can rest assured your forex trade will reach its target profit.

And there you have it. Practice and master these three foolproof methods for Long-term currency trading, and in a year, you’ll enjoy a steady cash flow, almost without raising a finger.

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The Complete Guide to Finding the Best Forex Broker for 2020

Don’t waste your time sifting through the endless list of available online forex brokers. Here are our top tips for making the perfect choice.

With close to FOUR TRILLION USD traded daily, forex is, hands-down, the largest financial market in the world. That being the case, your first step as a new foreign exchange trader must be

choosing a top-notch forex broker. Take it from us – not all forex brokers are created equal.

But before you start browsing through an endless list of websites, you must be focused on what to look for in a forex broker. Your decision should be informed and also be one you feel comfortable with.

We went ahead and saved you time.

These are the crucial questions to ask yourself when choosing which online forex broker to trade with:

Question #1: Is It Safe?

Before anything else, you want to make sure your funds are safe.
Your broker of choice must operate honestly, keeping your deposit protected and segregated. Fortunately, this aspect is fairly uncomplicated to figure out: A reputable forex broker is overseen by a major regulatory organization like NFA or CFTC in the U.S, FCA in the UK, CySec in Europe, etc. Look for their logos on the broker’s homepage and in the “About Us” section.

Question #2: Are They Charging Fees?

Trading costs can really dig into your chance for profitability.
But! Forex brokers usually build their commission into the ‘spread’ (the difference between the ask and the bid prices of a currency pair). You’ll be surprised to know that going for a broker with the lowest spreads is not necessarily the best strategy. The reason is simple – the average spread doesn’t necessarily apply to the type of orders you chose.

A respected forex broker usually provides a number of trading accounts with different spread, commission fees, and leverage sizes. Make sure the spreads and fees are not much higher than the market average and choose the one that fits your budget.
Check out the broker’s specific account funding withdrawal policies and whether a fee is charged for either service.

Question #3: Is the Forex Platform User-Friendly?

Our golden tip: Open a demo account (it’s free) and get acquainted with the broker’s trading platform. Ensure that the interface is intuitive, customizable, and offers a variety of analytical tools, and opening a position is easy and clear. It’s also essential to track the slippage and disconnections situation.
Also, you want to have deposit funds and withdraw earnings conveniently, through a speedy and smooth process.

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Question #4: What Do Other People Say?

Yes, reading online forex broker reviews and professional forums must be a part of your background research. It’s important to read reviews from multiple sources and exercise good judgment.
Make sure the reviews come from a credible source and filter out reviews that are clearly fake (both positive and negative) or blame the broker for losing money (everyone loses money from time to time).

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Question #5: Will Your Forex Broker Have Your Back?

Your broker should be available to you when problems arise and to actually solve them. The best way to put it to the test is to run a pilot:

  1. Open a free demo account with a few potential brokers
  2. Start sending them emails and chat messages and see how quickly they respond
  3. Make sure they can solve various problems (technical issues, withdrawal requests, operational guidance, etc.)

It’s vital to trade with a broker that’s available and helpful both during the account opening process and ongoing support.

Go Ahead and Find the Perfect Forex Broker for You

You are now ready to get out there and find the best forex broker to trade with.
At the end of the day, your broker of choice should be greater than the sum of its parts: Confidence is key here, as well as the right balance between competitive pricing and quality service.

With just a little bit of homework, you’re on the fast track to finding the right match and increasing your money-making chances.