Forex Fortunes Guide by forex guide pdf - HTML preview

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Planning is still the key to success

If you remember your Management 101 lessons, then you should know that Planning is the first step to success. Forex trading is no exception. You need to come up with plans for your short-term and long-term goals. These plans also have to be detailed. If possible, include step-by-step guidelines for how you want your strategy to work out.

Focus on a few high-potential currency pairs.

Don't spread your resources thin. It's hard to put your plan and strategies to good use when you have a lot on your plate. Rather, it's better to take your time choosing a small number of currency pairs that you can fully focus on and nurture until the very end.

The more time you spend studying how your pair works in the market, the more chances you have of predicting its future trends. Consequently, you'll have a lesser need to rely on instincts alone when making a decision. Instinct is not a bad thing at all, but instincts powered by knowledge are even more trustworthy.

Use a timetable.

A timetable can be a more powerful tool than an ordinary calendar if you know how to make good use of it. To start with, take note of all the important events that are relevant to your trading plan and strategies. These include but are not limited to the following:

• Public holidays in both countries where your currency pairs originate

• Global and economic summits affecting your currency pairs

• Economic releases

• Scheduled key announcements from major market players

All the events above are sure to affect your currency pair in terms of demand, supply, and liquidity - just to name a few. Every time you add an event to your timetable, remember to review your plan and strategies and adjust them accordingly if it proves necessary.

Expand your network.

When it comes to any kind of trading, it's who you know, what you know, and when you know that matter. Being able to predict market trends is a great skill, but it's not one you can always rely on. However, what you can be sure to depend on at all times is your network. It's fairly easy to determine which individuals will make good sources for insider's information. The challenges lie in making those individuals a willing part of your network.

Check technical analyses.

Technical opinions must always be taken into account even if you strongly feel the opposite of what these experts have to say. At the end of the day, you need to remind yourself that technical analyses are based on verifiable facts and figures. They have to mean something.

Last but not the least, remember that your ultimate goal is to minimize your loss first and increase your profit next. Don't gamble everything on a whim.

Be man enough to admit when you're on the losing side and just start again. At least you still have something to start with unlike other traders, who have lost everything because of their inability to keep their emotions in check.