It’s well known that 94% of all people trading the Forex at home fail. Sometimes this can often be the result of not having a good trading psychology or developing the right mindset for success. What if that was the only thing stopping you making consistent profits for a very long time – wouldn’t you want to make sure you get this right?

Here are 5 things you can do now.

1. Use the ’3 strikes and your out’ rule. If you have 3 bad trades, take time to stop and reasses what you are doing. Go back to your trading plan and make sure you are sticking to it. It may well be that the market isn’t giving you the trades it normally does. In this case wait until it does!

2. Learn from your mistakes and don’t talk to yourself using negative language.

3. Set your trading hours and then enjoy your time away from the markets. Forex trading is pretty intense and you can run the risk of burning yourself out. Have a balance.

4. Don’t try to pre-determine the market. Yes have a strategy to deal with all eventualities but make sure you aren’t trying to control the market. It will do what it wants. You can, however, control your emotions and reactions to the market. The market will move in 1 of 3 ways – up, down or sideways and you should have a strategy to deal with them all.

5. I can’t stress enough the importance of taking your trading step by step. You won’t make consistent money over night. You may very well make a good living out of Forex trading if you learn how to do it and practise over time. Once you are consistent and confident with your strategy, you will have set yourself up with a good source of income for a long time to come.

Are there any tricks or strategies you have used successfully in your trading to control the psychology of trading? Add your thoughts and comments below!

Thanks for reading. To Your Success!

Annabel

Yes you really can listen to MP3 files from this web site to give you interviews on trading related topics. There lots of information on a wide variety of subjects including the link below to the post and broadcast called ‘What Makes A Consistent Trader’.

Check the link below

www.traderradio.net

Let me know how your trading is going – to your success!

Best wishes

Annabel

Having the right mindset for trading the Forex market – trading psychology if you like, is essential to success. This sometimes over-looked area of Forex trading is detailed below in a video interview from the recent Virtual Money Show event. In case you missed it here it is again – some great advice.

Here are some tips if you are looking to make your Forex trading more profitable on a consistent basis.

• Recommended: keep your Forex trading strategy as simple as possible!

You have heard of the KISS strategy right? Keep It Simple and Straight-forward, well this definitely applies to Forex trading.

Forex trading requires good, fast decision making by acting upon your trading strategy. This is so much harder to do if you have many indicators, Moving Averages, oscillators etc to check. To make fast decisions you need to have a clear head to think. By limiting the amount of information you have to process before placing a trade will make this a whole lot easier!

• Are you keeping a note book or journal of all your trades?

If you write everything down, you will be able to analysis your Forex trading plan. Sometimes you will need to go back to the note book and fine tune your strategy to weed out the indicators, Moving Average settings which may not be working for you.

The only way to be consistent is to trade in the same way, at the same time of day over a period of time. Make sure you find out when to expect the results of Fundamental and economic announcements. This will mean you do not get whipsawed out of the market and your trades lost due to bad timing.

Great! So we have a good Forex trading strategy with minimal techniques to help identify the trade, now what?

• Well, another point about Forex trading consistency is keeping your emotions in check.

If you trade differently every time you open a position then you will be inconsistent with your winning trades. Build confidence in your trading plan. The best way to do this is over time through paper trading first, followed by using a demo account from a reputable Forex broker. Once you have your strategy nailed down, this will give you the confidence to trade with a minimum lot size while you gain experience with the risk factor of trading a live account.

Something which works for me is to think of each trade in pip or point value. So, instead of thinking of how much money you will gain or lose, look at it in a different way. How many pips will you gain or risk with your stop loss.

Consequently, money is taken out of the equation together with the associated emotions.

So, in order to be a consistently profitable Forex trader you need to have a simple yet effective strategy with every trade recorded in your Forex trading note book. Make sure you know when to look out for economic and fundamental results which may move the market in an unexpected way.

You have done a great job to get this far…so have confidence in your strategy!

If you are trading a live account, then you would have come a long way in developing your Forex trading strategy and you will be able to benefit from your hard work. Keeping your emotions in check will allow you a clear mind to take those trades and make your profit trading Forex.

To Your Success!

With best wishes

Annabel

Forex or currency day trading has only been accessible to trade for retail traders over the last few years.

Take advantage of currency day trading now – just imagine how developed this area will be in a few years time!

OK so let me explain…

The Forex market is in constant motion – apart from closing during the weekend (Saturday and Sunday). Consequently there are many different strategies you can develop which can fit into your existing lifestyle. Currency day trading is one of those strategies. Typically a trader will open and close a trade or position during the course of the same day.

So you how can you profit from ‘reading’ a bunch of lines on a chart and day trading the currency market? To some this can sound technical but honestly, the simpler you make your trading, the easier it will be AND the more profitable you will be!

Some things to consider…

The trader observes the price and time movement on a chart. These include bars, lines, point and figure, and Japanese candle sticks – the most favoured method. Candlestick charts originated from Japan in the rice trade during the 1700s. The method is still used today, together with further influence from ancient Japanese ways and traditions.

The candlestick chart will be used in currency day trading as well as currency intra-day trading, scalping methods and other forms of trading. There’s not enough time to expand on the details of candelestick charts in this post but will be covered later as it is important to understand the formations of this type of chart.

We can clearly see the demand, supply, market sentimant, volatility and volumne of buying or selling evolving in front of us due to live data feed charts. To make the most of this information in order to help our currency day trading, we analyise this data in several ways (detailed below). The goal is to trade with minimum risk for consistent and profitable gains – easy to say but a little harder to do! Consider identifying Channels, Trend Lines, Support, Resistance, Bollinger Bands and RSI to your currency charts when day trading.

Check new posts for how to add these indicators to your charts and how to interpret price action according to your readings and analysis foe success at currency day trading.

To Your Success!

But Forex trading is about reading charts, placing a trade and making money – right? Well it’s not quite as easy as that.

In the trading environment, when you lose a trade, what is the first idea that pops up in your mind? It would probably be, “There must be something wrong with my system”, or “I knew it, I shouldn’t have taken this trade” (even when your system signaled it) “If only I did…”.

So how do you deal with the consequences of trading? This is called the Psychology Of Trading or your trading mindset.

You are not alone by any means – take a look at this…

When it comes to trading the Forex market as well as other markets, only 5% of traders achieve the ultimate goal: to be consistent in profits and the only difference is they have understood the Psychology Of trading. What is interesting though is that there is just a tiny difference between this 5% of traders and the rest of them. The top 5% grow from mistakes; mistakes are a learning experience, they learn an invaluable lesson on every single mistake made.

Deep in their minds, a mistake is one more chance to do better the next time. Success as a Forex Trader depends on a few core elements and your Psychology Of Trading is certianly one of these.

And at the end of the day, this tiny difference becomes THE big difference.

You can learn to over come any obstacles including becoming good at understanding and developing your Psychology Of Trading. I have included a chapter in my book about this subject and have a whole list of techniques which will help. I can mail them across if you want. Just add your details below so I know where to send everything and get FREE chapter of my book.

Just so you know I will never share your details as I respect your privacy.

You can also ask any questions about this topic or any other Forex related area by heading over to my web site at www.tradeforexfromhome.com and go to the Q&A section.

Great – looking forward to hearing from you.

Good trading

Annabel