Know what you know … You know? If you want to know six tips for Forex trading success, read on!
There are a lot of things we can’t know in this speculative industry, but this blog post is to remind you that you can either stay focused on what you don’t know, or turn your attention to what you do.
So, what do you know?
Here are some Forex trading tips I know.
- All price action boils down to trends and ranges. Know how they work and you have expectations about market behavior as well as good points for entries and exits.
- At any given time, price will do one of only two things, which means if the market is not doing one thing, there is only one other thing it can do. That makes it simple! We aren’t always going to get it right, but the more you practice identifying the repeatable patterns, the better you are seeing what the market is doing and planning your trades accordingly.
- Every time the market takes off, it’s aiming for a target. It’s never random. No exceptions. You may not know what all the targets are, but when you look for them, you will find a lot of them!
- Trends require drive and agreement, whereas ranges can happen without anything driving the market at all. This is obvious when the range is very narrow, but it’s just as true when the range covers hundreds of pips /ticks. If there’s nothing driving the trend forward, get ready to range trade.
- The market can and will go farther than you think, so never let a losing position run. It’s easier to put back a small loss with a better placed second entry, than to hold on for dear life to a loser that is racing towards margin call. You can get back in if the market comes back with better timing. Know it!
- There is only one way to make a profit, and that is to close your trade. Taking profit is never wrong! Ever! Some people will tell you you’re “wrong” if you don’t let your winners run. Here’s something better: you’re never wrong when you take profit. Take profit, take profit, take profit! Small profits build your account balance faster than large losses.
If this makes sense to you, cheers! Keep it fun so you can stay focused on what you know, which now includes these Forex trading tips! If it does not make sense to you yet, I’m here to help.