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We are talking about how to reduce risk. What you should do is to look at the immediate key level of support or resistance that will dictate your stop loss or take profit targets, then calculate the number of pips it will take your trade to get from opening price to either the stop loss (risk)...

It's often important for a trader to be able to read a chart and have the right technology so that their trades get executed, but there is often a psychological component to trading that shouldn't be overlooked. Setting trading rules, building a trading plan, doing research and getting...

No list of currency trading tips is complete if it doesn't mention strategies. One of the most common mistakes beginner traders make is not creating an action plan.

Day trading appears deceptively easy in hindsight. It’s much harder on the moving right edge of the chart. You need a method that has a positive expectancy for the specific market you trade (based on backtesting) and the mental fortitude to trade it with discipline. Most traders think they have...

If you have the strategy, which you have already tested properly, you can be sure that your income will be stable. When a trader has a trading strategy, in order to improve trading results, he can confidently apply money management methods.

Bear in mind that you could be selling your stock to a market maker who is buying the stock because he has a better handle on demand than you do. This means that he knows the stock price will be going up. By being patient, you could catch the upside momentum and sell at a higher price. Of...

Cut your losses immediately when the trade doesn’t go your way. There’s nothing harder to learn and nothing better. I’ll be even more specific. The average “run of the mill” day trading advisor will tell you to enter a trade, place a stop of 2 to 4 points, place a target that’s equal to your...

Technical analysis is a well-proven method of monitoring the price action of free markets that have broad participation in order to gain insight into the future price trend. To do this, the combined opinions of all buyers and sellers is measured. These opinions tend to become stronger if they...

The best use of technical analysis might very well be to find the right sectors and the right industry groups – the ones that are outperforming the markets

An Adjustable Stops Order applies to Forex, futures, future options, options, stocks, and warrants. It was designed to limit risk and allows traders to attach one-time adjustments to stop, stop limit, trailing stop and trailing stop limit orders, which modify the stop trigger price, trailing...

Slippage and commissions make trading similar to swimming in a shark-infested lagoon. lol

Because the market continuously changes, every trader must have a proven strategy to win. If you do not have a proven method, you will jump in and out of the market with every dip and upswing.

There are sophisticated ways for brokers to squeeze money out of you in an elegant way. But even if you aren’t aware of what your broker is doing, once he begins insulting you, well, It's time to get your money and switch.

It is recommended that each trade uses no more than 2% of investable capital. This ensures that a serious of bad trades do not wipe out the capital base. Risk management is about ensuring you do not go broke. By keeping each trade to just 2% of capital, an account would need to lose 50 times...

When it comes to a demo account, it is a gift from heaven. Here you can test how well your predictions work, you can improve your strategies without risking anything in the market, and you can refine and improve the emotional side of your psyche to better suit the market itself. Just make sure...

“Trading successfully is all about decision making, although because of money and our natural instincts, many people cannot remove their emotions from their decision-making process, sufficiently.” Stuart McPhee

In regards to being successful in Forex trade, I think the single most important element is having a plan. One of the main reasons traders fail is that many traders don’t have a trading plan. Having a written trading plan provides you an edge over most market participants and in an arena where...

As a newbie, I would advise you get to know your broker. Choosing the right broker is half the battle in Forex . Take the time to check reviews and recommendations. Make sure the broker you choose is trustworthy and suits your trading personality. Remember, there are lots of fake brokers out...

And while trading fro the comfort of our home, a trader needs to be disciplined. And this means following your trading system rules strictly and precisely. Discipline is an integral part of becoming a consistently profitable trader.

A smart trader once said, "In trading, it's not what you make, profits take care of themselves; it's what you don't lose that really matters." You should also allow your profits to accumulate when you have a winning position. Traders often use trading stops for this purpose.