16 Forex Trading Experts Share Their Most Effective Tips for Success
Paula Rodriguez
Forex trading is a challenging yet rewarding career that stimulates self-assurance and smart strategizing. In the long run, the profits that come with the trade can only be realized through significant experience in the forex market. With the help of veteran traders, newcomers can be guided with the right outlook and a stronger strategy.The road to consistently profitable trades can be challenging in a volatile forex market. With years of experience and knowledge in forex trading, these influential traders share their most valuable tips for success.
What is the most effective trading tip you can giveto build a successful career in forex trading?
Aayush Jindal for Titan FX
During my long Forex career, I realized that no strategy is perfect. We just need to learn from every mistake and adapt according to the market behaviour and price action. There is no definite success mantra, but we can use these simple tips to avoid disasters while trading:
Never ever trade with money you cannot afford to lose.
In addition with a forex strategy, try to keep a track of price action.
Be patient – never chase the market. It can easily surprise you anytime.
Accept losses as a learning lesson, and profits with grace.
Keep a check on fundamentals. Economics and technical analysis go hand in hand.
The most effective tip for better trading that I have never received myself was not only to keep a trading journal, but also to read and act on it. Most traders do not even keep a log of their trades (that is a big mistake!), but those who do (after reading about how useful it is) often forget why do they do it in the first place. By going through the list of trades, analyzing your own reasoning for the trade actions, and interpreting the resulting outcomes, you are able to discern inefficiencies quickly in your strategy and to put more emphasis on the actions that have brought the most profit. The end of the year is the best time to go through such a routine.
Austin Netzley, #1 Best Selling Author of Make Money, Live Wealthy
The best thing you can do to build a successful trading career is to journal. At the end of every day or every week, take some time to reflect on what worked, what didn’t, what you did well, what errors you made, and what you’re committed to changing in the future. This frequent reflection will have you learn more in a year than most do in a decade. With trading there are lots of lessons to learn and countless errors to make; reflecting and writing things down will have you more quickly get through the rough early stages of trading and soon into expert status.
Know what you’re doing by getting proper and adequate training. There’s more to being a trader than following a system and focusing on discipline. So many traders begin active trading knowing only “enough to be dangerous”, then wonder why they get killed financially.
Treat this as the real business that it is, the same as you would any other business. Prepare a proper business plan using realistic numbers and educate yourself on running a business. If you’ve never started and run a business before, this is your tougher learning curve.
Invest in a good back testing software. It will save you hours of time and countless dollars if you are able to back test your strategy first and see if it is actually profitable in the long run. Put a complete strategy together and test it over as much data as possible and on different currency pairs. Doing this early on in a trading career will cut down a newbie traders learning curve by at least half.
Best tip I can give Forex traders is to be careful with leverage. A correct call can quickly turn into a big loss if you use too much leverage, and get closed out of your position before it goes in the right direction. And, make sure your account is with a properly regulated broker.
When trading forex, the number one tip to remember is capital preservation! In order to preserve capital, a trader must be familiar with risk management principles and use these in his or her trading. Risk management principles include the setting of stop loss orders at sensible price levels (i.e. levels supported by technical analysis), as well as effective position sizing to suit the value of your account. Surprisingly, fewer than 10% of all traders employ risk management tools in their trading. Set yourself apart by managing your trade risk from the beginning, as it is essential for long term success!
If you are not consistently profitable yet, then you need to reduce the number of things that you are focusing on. First, pick one timeframe that suits your personality and lifestyle. People who have a day job should focus on Swing Trading, or day trading on a set schedule. Notice if you do better on shorter timeframes or longer timeframes by trading in a demo account. Pick one timeframe. Next, notice if you are better at trend trading, countertrend trading, or breakout trading. Try out different strategies from these three categories in a demo account. Pick one category to focus on. Finally, based on this information, choose trading strategies and education that fit into these categories. Start with one currency pair and backtest and forward test one strategy on one timeframe. Keep a trading journal and a scratchpad journal to see how your trading is going and to keep an eye on trades that you are missing. Let's make 2017 your best trading year ever!
It's difficult to control how much money you make in trading, but the one thing you can definitely control is how much money you lose. If you understand how to control risk you will be a successful trader. There are countless good successful techniques you can use to make money, there's only one way to lose it. Understand the risk and you'll be successful.
Jarratt Davis, 2nd best performing Forex trader in the world by the Barclays Hedge currency trading index
Becoming truly successful while trading the foreign exchange market is easier and more difficult than it’s ever been before. As technology develops, retails traders are leveling the playing field making it possible to compete with Hedge Funds. However, there is so much misinformation available the vast majority will fail.Here are two tips to help you on your journey:
Learn how to trade correctly by focusing more on fundamentals, sentiment and risk management than you do on technical analysis.
Learn from like-minded traders only if they have a verified track record of success.
Trading markets successfully is an exceptionally challenging endeavour that requires the highest degree of discipline and commitment. There is no simple way around this. But if I were to offer my most effective tips for success they would be the following two tips which have been the foundation for my own success as a trader:
Positions should never be so large as to compromise a good night’s sleep.
Only take positions that you love, as this will serve as an excellent filter that eliminates overtrading.
Having a simple and repeatable trade plan that completely removes the trader's subjectivity is the cornerstone for becoming a consistently successful trader. It may sound cliche, but I believe keeping it simple is key. I recommend a trade plan with no more than three to five duplicatable steps to eliminate confusion, hesitation, decision fatigue and anxiety.
The most important tip I can give anyone, whether they are starting out or have been trading for a long period of time, is to build patience. One of my favourite trading quotes comes from Jesse Livermore - he says "It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!". It has taken me an incredible amount of time to learn this lesson. Action never pays in the long run. Developing the patience to plan and execute a good trade and then letting that trade work for you is by far the more consistent path to success.
Thanks for the question. More than three decades that I deal with the Forex, what I always recommend is that being a trader is to think like a trader and first learn to manage the risks then take them, never do the opposite. The right behavioural approach to the market will take time to understand how to control and not be controlled. Be constant in profits is the second way to becoming a trader. In other words we must learn to be text, at the beginning even 10 or 15 pips profit. Also remember that if the market moves the side and there is nothing to do, you do nothing.
My rule of thumb: Never risk more than 2% of your account in one trade. For newcomers to forex trading, keeping your leverage low and avoiding big trades is the key to long-term success. New traders have a greater chance to make mistakes, and we do not want these mistakes to be costly. Getting the margin call early on can end the career of the trader swiftly. By maintaining the 2% rule, there is more to make mistakes. Maintaining this type of low risk is also relevant in the case of early success. The euphoria that a new trader can experience by winning a big trade early on can lead to over-confidence. And later on, this can lead to blowing up an even bigger account.
Learn from the veterans!
Like in any industry, there is much to learn from the experts. In fast a paced market, all input from experienced traders are highly beneficial for success. These skilled traders have gained valuable experience and knowledge that can boost your own strategies during the earlier part of your career. You may even reach out to these traders for more advice. Whether you are new or old to trading, you will find that profit is possible with the right perspective and a helpful community. Based on your current forex trading strategy, learn from these forex trading experts and make sure to apply their tried-and-tested tips for success.
During my long Forex career, I realized that no strategy is perfect. We just need to learn from every mistake and adapt according to the market behaviour and price action. There is no definite success mantra, but we can use these simple tips to avoid disasters while trading:
The most effective tip for better trading that I have never received myself was not only to keep a trading journal, but also to read and act on it. Most traders do not even keep a log of their trades (that is a big mistake!), but those who do (after reading about how useful it is) often forget why do they do it in the first place. By going through the list of trades, analyzing your own reasoning for the trade actions, and interpreting the resulting outcomes, you are able to discern inefficiencies quickly in your strategy and to put more emphasis on the actions that have brought the most profit. The end of the year is the best time to go through such a routine.
The best thing you can do to build a successful trading career is to journal. At the end of every day or every week, take some time to reflect on what worked, what didn’t, what you did well, what errors you made, and what you’re committed to changing in the future. This frequent reflection will have you learn more in a year than most do in a decade. With trading there are lots of lessons to learn and countless errors to make; reflecting and writing things down will have you more quickly get through the rough early stages of trading and soon into expert status.
Two things to be successful as a trader:
Invest in a good back testing software. It will save you hours of time and countless dollars if you are able to back test your strategy first and see if it is actually profitable in the long run. Put a complete strategy together and test it over as much data as possible and on different currency pairs. Doing this early on in a trading career will cut down a newbie traders learning curve by at least half.
Best tip I can give Forex traders is to be careful with leverage. A correct call can quickly turn into a big loss if you use too much leverage, and get closed out of your position before it goes in the right direction. And, make sure your account is with a properly regulated broker.
When trading forex, the number one tip to remember is capital preservation! In order to preserve capital, a trader must be familiar with risk management principles and use these in his or her trading. Risk management principles include the setting of stop loss orders at sensible price levels (i.e. levels supported by technical analysis), as well as effective position sizing to suit the value of your account. Surprisingly, fewer than 10% of all traders employ risk management tools in their trading. Set yourself apart by managing your trade risk from the beginning, as it is essential for long term success!
If you are not consistently profitable yet, then you need to reduce the number of things that you are focusing on. First, pick one timeframe that suits your personality and lifestyle. People who have a day job should focus on Swing Trading, or day trading on a set schedule. Notice if you do better on shorter timeframes or longer timeframes by trading in a demo account. Pick one timeframe. Next, notice if you are better at trend trading, countertrend trading, or breakout trading. Try out different strategies from these three categories in a demo account. Pick one category to focus on. Finally, based on this information, choose trading strategies and education that fit into these categories. Start with one currency pair and backtest and forward test one strategy on one timeframe. Keep a trading journal and a scratchpad journal to see how your trading is going and to keep an eye on trades that you are missing. Let's make 2017 your best trading year ever!
It's difficult to control how much money you make in trading, but the one thing you can definitely control is how much money you lose. If you understand how to control risk you will be a successful trader. There are countless good successful techniques you can use to make money, there's only one way to lose it. Understand the risk and you'll be successful.
Becoming truly successful while trading the foreign exchange market is easier and more difficult than it’s ever been before. As technology develops, retails traders are leveling the playing field making it possible to compete with Hedge Funds. However, there is so much misinformation available the vast majority will fail.Here are two tips to help you on your journey:
Trading markets successfully is an exceptionally challenging endeavour that requires the highest degree of discipline and commitment. There is no simple way around this. But if I were to offer my most effective tips for success they would be the following two tips which have been the foundation for my own success as a trader:
Having a simple and repeatable trade plan that completely removes the trader's subjectivity is the cornerstone for becoming a consistently successful trader. It may sound cliche, but I believe keeping it simple is key. I recommend a trade plan with no more than three to five duplicatable steps to eliminate confusion, hesitation, decision fatigue and anxiety.
The most effective trading tip that I can give to build a successful career in forex trading is to follow these 5 simple steps:
The most important tip I can give anyone, whether they are starting out or have been trading for a long period of time, is to build patience. One of my favourite trading quotes comes from Jesse Livermore - he says "It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!". It has taken me an incredible amount of time to learn this lesson. Action never pays in the long run. Developing the patience to plan and execute a good trade and then letting that trade work for you is by far the more consistent path to success.
Thanks for the question. More than three decades that I deal with the Forex, what I always recommend is that being a trader is to think like a trader and first learn to manage the risks then take them, never do the opposite. The right behavioural approach to the market will take time to understand how to control and not be controlled. Be constant in profits is the second way to becoming a trader. In other words we must learn to be text, at the beginning even 10 or 15 pips profit. Also remember that if the market moves the side and there is nothing to do, you do nothing.
My rule of thumb: Never risk more than 2% of your account in one trade. For newcomers to forex trading, keeping your leverage low and avoiding big trades is the key to long-term success. New traders have a greater chance to make mistakes, and we do not want these mistakes to be costly. Getting the margin call early on can end the career of the trader swiftly. By maintaining the 2% rule, there is more to make mistakes. Maintaining this type of low risk is also relevant in the case of early success. The euphoria that a new trader can experience by winning a big trade early on can lead to over-confidence. And later on, this can lead to blowing up an even bigger account.