Online Forex Trading

Forex Trading Is In The Mind

How you think is how you trade.

Trades are won and lost in our heads, not on our laptops. The psychology of the market, trader emotions and mental discipline are, along with money management  the key to Forex success. It’s about developing the trader mindset, and then applying that to an excellent methodology. After all, learning to trade Forex is a new life skill. Read More »

Fear and Greed in Forex Trading

Trades are won and lost in our heads, not on our laptops. The psychology of the market, individual psychology and mental discipline are paramount. It is about developing the trader mindset, and then applying that to an excellent methodology. Learning to trade Forex is a new life skill. We have to change our psychological makeup in order to succeed in Forex trading. Read More »

Forex Broker in Trouble Again. NFA Takes Emergency Action

Forex trading is a hard enough profession without having to worry about the criminal activities of your broker, and even the biggest Forex brokers can have problem with the law!

Recently the National Futures Association brought an “emergency enforcement” against one of the largest brokers in the US, FXDD. You can find more information in this news release from the NFA itself… Read More »

Luck, Gambling and Chance in Forex Trading

This is a quote I read today from author Amy Tan… “How can you say luck and chance are the same thing? Chance is the first step you take, luck is what comes afterwards.”

I think this applies nicely to Forex trading. You should have an edge when you enter the market. Your chances of success should be greater than 50%, but once you’re in the market anything can happen and you can do nothing to control the market.

We put chance on our side by sticking to our trading plan.  Of course we need a good Forex trading method within that plan.  Successful Forex traders are constantly managing their risk. They are disciplined and they follow a strict routine, they know they are in the business of trading and they treat it as a business. This puts luck and chance on their side.

Is Forex trading gambling? Well it is gambling when you treat the Forex market like a huge jackpot machine or roulette table where the hope of winning is dependent on nothing else but pure luck.

The problem with casino gambling is that the odds are stacked heavily against the gamblers. It is not gambling when you treat the Forex market like any other business or profession, where opportunities can be seized and risks can be mitigated, and when you have a trading method that you know has a high-probability trading edge and good money management.

The difference between the casino and the Forex market is that most casino games are games of chance, versus a contest of strategy and discipline for Forex trading.

Unlike a game of chance, the Forex trader can rely on price action and analysis to decide on the opening or closing a position with a probability of winning in his or her favor.

Do we get lucky in trading? – For sure! But by putting chance on our side we can get lucky more often than not!

What are the Qualities of a Good Forex Broker?

Below are what qualities I look for in a Forex broker. These are not in any particular order:

• Check their spread against other brokers. It goes without saying a lower spread is better because it costs you less to trade (all other factors being equal).

• Are they regulated? Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) if they’re based in the US. If the broker is based in the UK, check with the Financial Service Authority (FSA). If the broker isn’t registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them.

• What is the minimum lot size, and do that allow fractional lots to be traded? Believe it or not a lot of brokers won’t let you trade under 1 lot, and many won’t let you trade hundredths of a lot, only tenths.  Stay away from these guys!  You need complete control of your money management,  and if you want to trade, for example, 1.34 lots you should be able to do it!

• How easy to use is their trading platform? This is where you place trades, change trades, check account balances, get reports and get in and out of positions. You need to be able to do this quickly and accurately so a user–friendly trading platform is important. In my opinion one-click execution is also useful especially for scalping.

• How good is their customer service? Can you place and exit trades over the phone (what if your electricity is out and you need to exit a trade on your cell phone)? How quickly do they respond to emails? How sympathetic are they to complaints? What hours are they open?

• How quickly do they process withdrawals out of your account and do they charge you for this service?

The above is a pretty comprehensive list of what to look for in a broker. For what it’s worth, the broker I like best is Oanda because of their very low spreads (0.8 EUR/USD and 1.8 GBP/USD) and reliability.

What Are The Traits of The Most Profitable Forex Traders?

Trading for a living can be the most profitable career in the world but it can also be the most expensive if you don’t do it properly.  I’ve written a list below of some of the main traits of successful Forex traders.

I think one of the keys to trading success can be summed up with one of Einstein’s famous quotes. “Make things as simple as possible, but no simpler.” You should be able to explain your trading methodology to a ten-year-old, and have them fully understand it.

The list below comprises a number of different observations of myself and others through experience working with traders of all shapes and sizes, and is equally relevant to all.

They are realistic and experienced – Probably the most horrifying and worst lie told to anyone considering trading for a living is that you will compound millions in an extremely short amount of time. – Be realistic! The only true way to make every day profitable comes through experience, and countless hours of learning is crucial to longevity of success. Continuing education, computer screen time and practice, practice and more practice are the keys to success.

They know the damage they are capable of – The best traders I know of understand their limits, and seem to focus more on what can go wrong than what can go right. They are not easily convinced of lucrative outcomes, and have a very high sense of self-awareness. When a professional trader makes a trade he studies how much he might lose.  When an amateur makes a trade he looks at how much he might win. Amateur traders turn into professional traders when they stop looking for the “next great technical indicator or system” and start controlling their risk on each trade.

They trade to make money, not to be right – They understand the strengths and possible pitfalls of what it is they do for a living, and use that knowledge to curb their emotional output.  To be successful traders we need to release ourselves from the need to be right. The market is always right and it’s no use fighting that point. It’s crucial not to get locked into a specific opinion about the market because if you do you miss all the signs from the market that may be telling you that you are wrong. The “I’m right, the markets are wrong” philosophy will ruin you.

After all, what’s more important, being right or making money? For me, it’s making money, so don’t be stubborn, be flexible and have the ability to change your mind if the market is telling you you’re wrong.

They have an edge and know how to use it – They understand that without it they wouldn’t last long. You must have an edge that genuinely puts the odds of success in your favour. This can be any Forex trading method you want that has been tested by you and that you have complete confidence.  I may be biased, but I like my method.

They have a trading plan, and follow it religiously – Each trade is planned and opportunities are scouted before any trading takes place. They steer away from the killer of all killers: overtrading.  This trading plan is a complete set of rules that covers every aspect of a trader’s life. It contains various methods, strategies and trading rules that will give him an edge over most traders. Sticking rigidly to this plan will improve his chances of success.

They manage risk – Regardless of how much conviction they have on a trade, they will still do what they can to avoid the potential of any losses and understand the first rule of trading: anything can happen.  A successful Forex trader understands that good money management will keep him in the game when most novices are knocked out.  He sticks to his money management rules. In particular a good trader never risks more than 2% of his account on any one trade.

He always sets a stoploss as per the strategy being used. It will save him significant losses if the trade goes against him. He realizes that a stoploss is his only true friend in trading.

They work obsessively – They follow each turn, each piece of info that comes out in regards to their trade, and follow any underlying information relevant to failure or success.  Elite forex traders learn their craft. It takes hard work, persistence and much practice. There are no shortcuts to trading success.

They think about the trade, not the money behind it – Focusing on money can destroy your means to objectively assess the trade itself. Focus on the trade and applying your rules with discipline and the money will follow.

They are constantly learning – Just when you think you know it all about trading, a new curveball gets thrown your way.  Good traders constantly get retrained, learn new things, attend seminars and so on.

They have patience – They understand that the money will come, but everything needs to be in place first. Waiting for the correct setup to occur takes patience so you must sit on your hands until it happens. Forex trading is not a get rich quick scheme. The idea is to stay in the game. If you miss setups for any reason, don’t chase the trade but wait until the next setup occurs.

Once in the trade, have the patience to let the trade develop as planned rather than rush the trade and cut it off prematurely. If a setup does not occur, then don’t trade. Not trading is trading; it is making a conscious decision not to trade and that forms part of your trading plan.

Forex Trading IS a Business So Treat it Like One!

Forex trading is a business… the best kind of business!  Imagine being in a business with no staff, small overhead, no storefront, no commuting, no office politics and very little government regulation.

To succeed in this business you need a sound methodology, common sense, discipline and a rock-solid understanding that if you do not treat this as a business you have little chance of long-term success. More than 85 percent of new businesses fail even when the owners know what they are doing. Do you really think the Forex business is going to work for you after three months of practice?

Trading Forex does give you a certain amount of freedom in that you can trade virtually anywhere in the world, at almost any time, provided you have a computer and an Internet connection. You can trade part-time alongside your current job or trade full-time if you like.

Trading Forex is risky, as is any market where you have capital at risk. So you have to ask yourself, Am I really looking to cut corners, or am I looking to preserve my capital, learn a new life skill, and make my dreams come true?

Trading in the financial markets doesn’t come naturally. It isn’t taught at school, college or university. It isn’t part of your upbringing, and many people come to it late in life. Yet trading, because of advances in technology, becomes available to more and more people… and that spells danger for the untrained.

Simply purchasing trading robots and indicators isn’t the key to your success as a trader. Too many aspiring traders have tried that and failed. They bought the crap, but it didn’t give them the knowledge they needed to succeed. In a perfect world, everyone would win and be profitable; there would be no losers or frustrated traders. Unfortunately, this is not how the “real” world (or the market) works. Before you put your hard-earned money at risk in the competitive world of Forex trading, make sure you know what you’re doing and learn how markets really work. A good education is the key, in addition to lots and lots of practice.

It is important to remember that the person taking the other side of your trade might be a professional. Are you ready for this contest? Let’s take an analogy -– boxing. You work out in the gym, hitting the pear ball and punch bag for a few months and then you get in the ring with a pro. The theory of the gym is suddenly going to seem a long way away, isn’t it?

Start Your Forex Trading Career Now!

If you’ve been sitting on the sidelines watching the recent volatility, wondering if now is a good time to start your forex trading, the answer is that the time has never been better!  Volatility and movement are necessary to successful Forex traders.

Let me ask you this; In times of job cuts, government austerity measures and all-around global economic uncertainties how would you rather be earning your living?  Let’s look at a few examples…

1. Working for a large corporation wondering if your job is the next one to go.  There is no such thing as job security anymore.

2. Investing in the stock market funds as a “buy and hold” investor.  Look how that’s turned out over the last few years. Honestly is anyone still selling that strategy as a way to make a living?  It is possible of course to succeed with this strategy over the very long term, but that doesn’t put bread on the table today does it?

3. Starting your own conventional business, or perhaps already owning one. You’re wondering where the next order is coming from or when your bills will be paid. Your overhead includes staff, rent, raw materials, insurance, legal fees and much more before a profit can be made.

4. Working as a Forex trader.  This is a business with a difference. Imagine being in a business with no staff, no overhead, no storefront, no commuting, no office politics and very little government regulation.

I hope you chose point 4.

To succeed in this business you need a sound methodology, common sense, discipline and a rock-solid understanding that if you do not treat this as a business, you have little chance of long-term success. More than 85 percent of new businesses fail even when the owners know what they are doing. Do you really think the Forex business is going to work for you after three months of practice?

Volatility can be good for forex trading provided you have good money management.  Don’t be afraid of it.

Yes it is a good time to start your forex trading business.  But start properly – get good education!  I can provide that for you. Click the link below.

Smart Money Forex Trading Method

Forex Trading Requires a Considerable Time Commitment

Trading Forex doesn’t come naturally.  It isn’t taught at school or university. It isn’t part of your upbringing and many people come to it late in life. Yet as Forex trading, because of advances in technology, becomes available to more and more people, there’s a proliferation of eBooks  seminars, courses and mentors… most of which are at best worthless and at worst dangerous.

Forex is new to many people, and lots come to it after a sometimes unhappy experience trading stocks, futures, commodities and options. Many are lured by the marketing wizardry –  no commission, high leverage and 24 hour trading. Everyone comes with expectations, hopes, and fears. You’d better have a good plan or this venture is doomed to fail for you as it is for many others.

Traders come into the Forex market for one reason and one reason only – to make money. You have to treat Forex trading like a business. It’s not a hobby so don’t treat it like one, unless of course you like to lose money. Don’t trade for excitement. Many losing traders want to trade for excitement. They trade for the “buzz,” the adrenaline rush and that’s one reason why they lose. But these people are not traders, they’re gamblers. They might as well put their hard-earned money on a racehorse or go to Las Vegas and try the slot machines. At least in Vegas they’ll get some free drinks! If you want excitement, try skydiving, but trade Forex to make money.


People’s misconceptions about what Forex trading is about is often shown by how few of them give credence to the notion that in order to be successful they are going to have to practice for a considerable period of time. The all too common attitude is that I am going to retire after a couple of years because the forty dollar e-book I bought said I would turn my five hundred dollar capital into a fortune within that time. It ain’t gonna happen.

Learning to trade Forex takes time.  It took me about 2000 hours of practice to become a profitable Forex trader.