Over Trading the Forex Market

One of the "forex deadly sins" we must all be aware of is overtrading. Overtrading can afflict the seasoned currency trader, as well as the "newbie" trader fresh from their first forex education course. We are all guiltyof this sin at sometime in our forex trading career.

In addition to trading the forex market I also have a passion for playing golf. It seems that I continuously work through the same 4 mistakes, so much that I have long since been able to recognize by my ball flight which of these mistakes is creeping up on me again and apply a tested remedy.

I have taken this approach to my forex trading. One of my forex affliction is that I tend to overtrade the market.

To combat this need to be in the market all the time I have developed 2 key strategies:

#1 Take a break from trading when I had a big win or loss.

#2. Set rules for evaluating the market and entering trades.

Here is a sampling of my forex market evaluation rules:

Look at the current price behavior. Determine if the market is oversold or overbought.

Access overall forex market conditions. Look at long term and short term views. Is the market trending or range bound? Is the market trending short term within a long term range.

Determine where your currency price target is located for the respective ranges and time frames.

Determine your criterial for stopping the forex trade on both the profit and loss side.

Determine how much capital your are going to risk.

I have found that one of the most valuable tools is to be a member of a local trading group. This allows you to verbalize your trading actions and will confirm your trading decisions.

If you are evaluating currency trades alone then talk it though out loud.

Yeah, you may sound like a nut to those around you, but you will be a more profitable nut none the less!

For more insight into forex education and trading visit FX Trade Central.

Happy Trading!

Failure is NOT an Option

I heard an amazing stat the other day…

90% of novice Forex traders fail!

That means that my chosen pursuit has a 10% success rate!

Wow! This was like a punch in the gut. I long suspected a high failure rate, but not THAT high! For those that know me, statistics like these get me thinking and asking that proverbial question … why?

It has got to be the common thread of success I see across the entrepreneurial world … education! I also surmise that people here about the opportunities in the forex market and get pretty excited.

After all those advantages are the reason I chose forex as one of my wealth vehicles!

Without forex knowledge the uneducated get seduced by greed, eventually are overrun by fear and destined to exit the forex trading all together with their tails between their legs.

By the way, these are the same people that will preach the risk of forex trading from the roof top and spout out about what a rip off the entire forex trading industry is for investors.

That is why I focus on forex education and personal self-mastery (discipline)!

The cornerstone of my website and FX newsletter is our Roadmap to Successful Forex Trading which places premium value on forex education and trading discipline. Visit FX Trade Central to learn more.

Happy Trading!

The Complete Forex Trader

If you have been reading my posting you have recognized that I am an active forex trader, but my posting do not center too much on forex strategy and the like. This is true. Those blogs and sites are a dime a dozen. I like writing about those topics that have made me a well rounded trader. I like to explore topics like critical thinking, forex education and mental focus. These are the intangibles, the little things that can make or break success.

Focusing on the forex educational roadmap will bring together all the aspects of successful forex trading. This approach can be adapted to equity trading, real estate investment and pretty much any entrepreneurial activity you would like to take on!

Also, take a look at my required reading list. These books have been carefully selected to address all of the elements of the forex education roadmap. They are a mixture of classics and new material. FX Trade Central and FX Trainer are your portals to successful currency trading!

Continuous education is the cornerstone of any endeavor!

Keep the comments coming!

Happy Trading!