In the previous post I’ve mentioned online forex trading as a great way how to make money from home. I’d like to give you ten rules that you need to follow if you want to be a successful and profitable forex trader:
1- Trend Following
One of the most valuable trading strategies is trend following, which means that you identify a market that’s moving in one direction and follow that direction for as long as possible.
This is one of the easiest ways to trade as long as you always trade with a stop loss. Following the herd can be profitable but just don’t follow the herd off a cliff.
2- Don’t trade for the sake of trading
Forex trading is a game of strategy and patience. If you find yourself sitting in front of your computer every day looking at the forex markets but you don’t get a trade setup that you’re happy with, you may be tempted to just start trading for the sake of trading.
This can be a very costly mistake because you’ll enter markets at levels you normally wouldn’t. Don’t trade for the sake of trading, trade only when a setup occurs that matches your trading plan or strategy.
3- Not every hint is a good hint.
It’s good to listen to what other traders are talking about or what they are interested in but never blindly follow someone’s recommendation. Always do your own research and verify for yourself that what they are saying is in fact something of merit and that you could profit from.
Take responsibility for your own trades, don’t think that you can just blame someone else because they recommended a trade that lost you money.
4- Be A Contrarian
Sometimes it can really pay off to not follow the herd and take a contrary position against the markets. As I mentioned earlier, the herd has the direction right for a long time, but at some point in time, the herd always falls off the cliff. If you can identify when the herd is about to go off the cliff, you can position yourself in such a way that you profit from the herd going off the cliff.
5- Trade High-Liquidity Markets
It serves your best interests to trade markets with high liquidity (meaning many participants at all times) so that you can be assured of regular fluctuations and regular price executions. If you trade in markets with low liquidity you can experience irregular spikes or price movements that could hit your stop-loss and then continue in a direction that would have given you profit were you not stopped out.
6- Always Use A Stop-Loss
A stop-loss is an automatic order that limits the risk you have on a certain position. This allows you to determine the risk of every trade you make (I recommend risking no more than 5% of your account balance) and it will protect you from market fluctuations that are beyond your control (news items or global events like terrorism). Without a stop loss you’re very likely to go broke, sooner rather than later.
7- Emotions Are Enemies
As a trader you cannot make decisions based on emotions. You need to have fixed trading rules, a trading strategy and the discipline to stick to that strategy at all times.
If you allow fear or greed to be a deciding factor in the trades you make, you’re going to end up losing money if not end up being a losing trader overall.
8- Learn, Practice, and Trade
Nobody is born a profitable forex trader. It’s something that takes time and experience to become.
As a forex trader, make sure that you’ve read multiple books about the markets, technical analysis and the theory of trading. Always keep an open mind and be willing to learn from everybody who has sound advice.
You can only learn a certain amount from books, so you need to get practical experience trading the forex markets. You don’t even need to deposit real money for this, you can simply open a forex account with virtual money and learn how to trade before trading with your own money.
You can get valuable information on trading here.
If you need some practice in trading click here:
9- Have A Trading Plan
If you fail to plan, you plan to fail. This is especially true with the forex markets. You need to have a plan of exactly when you will trade, how often you will trade and where you take profits and losses.
Without a trading plan you’re unlikely to ever be a profitable forex trader. Trading without a plan is quite simply gambling, and gambling is based on luck, and when luck runs out… well, you know what happens.
Always have a trading plan and stick to it religiously.
10- Give Back
When you become a successful forex trader, give back to others in the way of helping them become better traders. It’s like karma, help others and you’ll have others help you.
If you are ready to trade live click here.
These rules were brought for you by HY Markets; the Winner of the Best Global Broker Award 2011 and Winner of Best Forex Broker Award M.E. 2011.
Head office: London, United Kingdom.
Minimum deposit: $50
Maximum leverage: 1:300
What is the spread on EUR/USD: 2 pips
Deposit and withdrawal methods:
The deposit methods are Credit Card, PayPal, Wire Transfer and ePayment. If you choose to withdraw from your account, the withdrawal amount will go to the deposit source.
HY Markets Introduction
“HY Markets has its global headquarters in London and is authorized and regulated by the Financial Services Authority of the United Kingdom. The Group has over 30 years of operational history and is the trading platform of choice for investors seeking fast and direct access to the world’s capital markets.
This long-standing expertise has enabled us to develop our revolutionary web-based Internet trading platform, which enables clients to invest in all major capital markets from one integrated account in an easy-to-use interface.
HY Markets is a division of the Henyep Group, a global diversified conglomerate with business in financial services, property, education, and charity spanning 3 continents and 20 countries worldwide. The Henyep Group of companies are registered and authorized in world-leading jurisdictions including London, United Arab Emirates, and Hong Kong. This provides clients with the comfort and security of a global institution.
HY Markets provides investors with efficient and direct access to all their trading needs. Start trading with the security of an FSA regulated company”.
~HY Markets website
The top benefits trading with HY Markets:
HY Markets is authorized and regulated by FSA of the United Kingdom. HY Markets offers transparency and security of the world’s leading financial centers. Moreover, HY Markets has a long history, more than 25 years.
HY Markets offers easy account opening procedure. You can start trading with just $50 in few minutes and fund account with credit card. HY Markets offers Multiple Trading Platforms: revolutionary web-based trading platform – does not require program downloading and can be used from anywhere with Internet connection. In addition, award-winning download platform with advanced charting and technical analysis tools. Lately, HY Markets introduced HY Markets MT Mobile. It is integrated with MT4 account, works on iPhone, iPad, BlackBerry and Android. You can experience live prices, trade execution, charts, online account monitoring and more.
HY Markets introduces complete product offering. You can trade Forex, oil/gas, metals, commodities, indices and stocks with up to 400:1 leverage.
HY Markets offers personalized customer support. 24 hours support by phone, email and chat, experienced support desk in local languages, personal VIP services.
Any trader can find a suitable account type. HY Markets has MINI account where you can start trading with $50 or more; up to 300:1 leverage; 1/50 premium contract; 4 pips spread.
Standard account: start trading with $750 and up; up to 300:1 leverage; 1/10 premium contract; 3 pips spread.
Premium account: start trading with $2,500 and up; up to 300:1 leverage; regular contract size; 2 pips spread.
HY Markets offers customized accounts and Islamic accounts to meet the demanding needs of all investors. Such service includes tailor-made accounts customized to individuals’ needs, personal dealers, and dedicated account executives.
HY markets provide investing education. You will learn about all the products (Forex, oil/gas, metals, commodities, indices and stocks). Moreover, you will learn all about trading basics: margin trading, order types and account information. Furthermore, you can learn how to use charts and statistics to make investment decisions.
You may also receive daily updates on all major capital markets to stay on the top of the investment decision.
At HY Markets you can learn the ability to forecast Forex movements by analyzing: economic data, announcements, news and macroeconomic factors.