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Have You Ever Thought About Trading Forex or Stock?

Well, if you are thinking about jumping into Forex or Stock trading, you must of course ask yourself weather you have the necessary knowledge and skills on the subject.

I have been following the stock market for years and as you all know, there is a big chance of making lots of money when you know what you are doing or completely loosing it if you are just a gambler.

Why just a Gambler? According to Forex Tips - Gamblers go to Casinos. All Unproven, Spontaneous Actions in Forex or Stock Trading are just like Pure Gambling. Any attempt to trade without analysis and studying the market is exactly like a game. Games are fun except when you are losing real money. 

So my recommendation here is that before you think about trading Stock or Forex, you must know the following tips.

• Open a FOREX or Stock trading account. You will usually have the option to trade with free or real money. Learn to trade with the demo/practice account, before you start using real money.
   
• Never Invest Money into a Real Forex or Stock Account Until you Practice on a Demo Account. Allow at least 2 months for demo trading. Consider this: 90% of beginners fail in the real money market only because of lack of knowledge, practice, and discipline. Those remaining 10% had been sharpening and shaping their skills on demo accounts for years before entering the real market.
   
• Don’t feel discouraged because you performed poorly with the demo account. It is very difficult to create a realistic situation when you are using demo money. The way you think and analyze will change when you start trading with your real money.
   
• Go with the Trend. Trend is your friend. Trade with the trend and you will maximize your chances to succeed. Trading against the trend won’t ‘kill’ a trader, but will definitely require more attention, nerves, and sharp skills to reach trading goals.
   
• Learn the basics of Forex or Stock trading. Keep an eye on OIL, GOLD, STOCK Market prices, these are some of the few factors in currency fluctuation.
   
• Stick to just one pair. The most commonly traded pairs are EUR/USD, GPB/USD, USD/CHF and USD/JPY. If it’s good enough for the banks, it’s good enough for you.
   
• Learn money management! This is the most important thing you can do. Learning what amount should be used on a specific trade can save you from losing your bankroll.
   
• Always Pay Attention to the Time Frame Higher than the One in which You’ve Chosen to Trade. This gives the bigger picture of market movements and thereby helps clearly define the trend. For example, when trading in a 15 minute time frame, pay attention to the 1 hour chart. When trading on an hourly basis, you should pay attention to the daily and weekly price movements.
   
• Never Risk More than 2-3% of your Total Forex Trading Account and not more than 20% in Stock. One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow away his entire account after 5-10 consecutive unprofitable trades.
   
• Please note, trading currency is different from trading stocks. For example, if you bought $1000 worth of stocks and if the stock prices become $0, you will lose your $1000. In Forex, you can lose more than your investment so make sure you use only a portion of your cash to invest and keep about 80% of cash to cover the down side.
   
• If your currency pair goes against you and you don’t have enough money to cover the duration, you will be automatically canceled out of your order. Make sure you don’t make this mistake.
   
• Limit your losses, but don’t be too conservative, let’s say that you invested $200 in EUR/USD, and today, your total losses are $50. If you limit your losses to less than $50, you would have lost money. This is why it is important to use only about 20% of your funds, since you can set the stop loss to more than your investment which can be $200-$300, however much you are willing to risk. Having enough capital to cover the downside will allow you to keep your position open and see profits. Please note: Losses aren’t losses unless your position is closed. If your position is still open, your losses will only count if you choose to close the order and take the losses.
   
• It will only be a matter of time until you get your money back and start seeing profit. Be patient and don’t get too emotional about what happens to the prices. They are out of your control and the only thing you can do is to research and predict the direction of the market.
   
• There are softwares to help you analyze the risks and losses which will help your trading experience be a lot more consistent and profitable.
   
• No indicator is right all the time and you don’t have to be right all the time. Just be right a higher percentage of the time than wrong. Choose some reliable indicators and stick to them. Don’t follow some indicators for a while and switch to some others if they fail. Don’t be a technician in the first half of the year and a fundamentalist the next half. Be consistent and disciplined in your approach. Don’t abandon a good indicator because you think this time everything is different.
   
• Be smart with your money and don’t create a casino environment. You can be successful if you keep track of the financial news and control your losses.
   
• Look for useful tools and analytical reports online regarding the economy, etc and use helpful softwares to control your risks.
   
• Remember that trading with Forex is highly risky, you may lose your hard earned cash, therefore never use money you can’t afford to lose.

If you would like to learn more about Forex or Stock Trading, just follow the links we have provided on this page. 

One of the sites I would highly recommend is Penny Stock Prophet. For those fluent in Spanish, don’t forget to check Number1StockPick.

And the other amazing tool I would like to recommend is the sRs Trend Rider by Vladimir.

You’ve never Seen Anything like this…The World’s First and Most Profitable Forex Hybrid – SRS Trend Rider.

"The sRs Trend Rider with its Built-In Artificial Intelligence Can Turn Even a Newbie into a Forex Trading Wizard in 24 Hours With A Simple Push of a Button".