How to learn forex trading

You should learn forex trading before you ever participate in this market. Learning how to trade forex is not a hard nor easy task. You can learn online entirely on your own as there are many resources providing forex education for free now. There are forex websites offering offer all kinds of training which you will find valuable. From these websites you will learn all the basics of forex trading like how the market works and its tendencies, the currencies most traded, understand the meaning of forex terms pips, leverage, margins, etc., and how they are used in actual trading.

Learn Forex Trading guide

Learn Forex Guide: There are a lot of free e-books that you can get about forex trading on the internet. There are also some great tutorial guides available online for a very modest fee.  These tend to be complete trading manuals including strategies and trading tactics.

Technical Analysis: When you start to learn Forex trading you need a methodology – and the best place to start is with Forex charts – and a system based on technical analysis. Technical analysis works because human nature is constant – and chart patterns repeat themselves. This means we can trade the patterns for profit.

Using forex signals: Forex trade is conducted through the forex signals that are sent by major financial institutions and global banks. To access the forex signals, forex traders need to subscribe to the alerts. These forex signals are sent to the forex trader via email or directly to their phones. These are short text messages that tell the forex trader whether to buy sell or hold the currency. These signals are valid only for a short span of time

Online Forex Demo Account: An online forex demo account allows you to gain knowledge of actual forex trading in a live environment, but without risking any actual money. Any new trader should consider a demo account an obligatory step in their Forex trading education. Once you set up a forex demo account you can take a crack at applying your recently gained knowledge to the real world of forex trading without any risk.

Learn Forex Trading Trends and Disciplines

Follow Trends: One thing you’ll notice in your practice forex account is that the forex market is expansive, unstable, and ever changing. Your best course to success is not predicting where the market will go, but acting on changes which have already occurred effectively. Trends are your best friends in this market follow them and act accordingly.

Discipline and Profits: Many Forex traders lack patience and discipline, and trade too often. They can’t follow a big trend – they get excited when they make a decent profit. In their excitement, they can’t resist taking their profit too soon – or move their stop to quickly. This leads to marginal profits – when they could have made a much bigger profit.

After you are successful in demo account by following your own strategy open a real account and start trading. Forex Trading is very exciting. About 3 trillion dollars are being traded on the market daily, always ready to be placed into someone’s account. In order to be part of the 3% of Forex Traders who succeed in this forex business, you have to put the time, money and effort into learning forex trading from a forex successful trader.

Begin your path to financial independence by generating reliable income when you learn forex trading.

When looking for companies, or brokers, it is best to be able to look for those who have an international reach and have business hours covering the different time zones.

Forex Trading Hours

In general the trading day can be divided into three sessions (all times GMT). These correspond to the normal business hours in each country. The busiest trading in these markets is between the “Start” and “End” hours of each session, as you can see in the following table.

Forex Trading Hours – 24 Hrs a day

This is why Forex trading is a round the clock, 24-hours-a-day industry. Of course, it really doesn’t matter what the Forex trading hours are, once you’re inside the system, the currency can go up and down at any given time.

Forex Trading Hours for Earning Great Money

Forex trading hours are necessary to be known by the forex traders because this online business goes on continuously throughout the day. If you are interested in forex trading and know forex trading hours, you can earn millions of dollars easily.

It is essential to have information and knowledge of forex trading before acquiring this profession. The best thing is to know about the Forex trading hours in order to attain greater benefits and money.

Best Forex Trading Platform must be

• User Friendly
• 24 hr uptime and accuracy
• Affordable Charges
• Security and Support
• Dynamic Visualization

Advantage of Best Forex Trading platform:

Best forex trading platform will give you the current forex market trends, fundamental analysis, and the latest current dealings that will blow the value of the currencies you invest in or may invest in real time. It is a prevailing tool for maximizing your potential in the forex market.

Another characteristic aspect of the best forex trading platform is that even beginners would be able to use the platform with ease, after practicing for a few times. Most of the top forex trading platforms are easy to work. The user-interface would be easy to understand and the platform should be able to allow you whatever manipulations you like to do with your forex trading, plainly at the click of a button.

The best forex trading platform available today is so advanced that you can even program them to place trades in a specific manner you wanted. This means that the package will be implementing your forex trading strategy, while you are away concentrating on the core areas of your business. With huge advances on offer, it is not surprising that forex trading platforms are being widely sought after by aspiring forex traders.

The process of finding the best forex trading platform should be well planned if success is to be achieved. With the best forex platform, it will make your life a whole lot easier. Test out a couple of systems today and when you find the best trading platform for you, you’ll be on your way to an unparalleled financial future!

Trading Online

Trading online the foreign exchange is a lot cheaper than intraday stock trading regarding commission. FOREX brokers apply spreads to the currency pair exchange prices while stock brokers apply commission on each trading order.

Every forex trader aims to make their Forex trading profitable which is their biggest goal. For profitable forex trading, traders are willing to spend hours in front of the charts, read news, surf forums endlessly, and buy every course they can find.

Forex has massive earning potential, well beyond what most jobs offer. However, no money in the world can buy back time so if you want your Forex experience to be profitable you need to make sure you’re not turning into a slave of the forex market.

In order to make Forex trading profitable, you have to make sure you have full control over your emotions and you don’t allow them to influence your trading decisions.

Forex Strategies:

1. Spend a limited time on the forex market every day.
2. Avoid following the open trades. Use Take Profit and Stop Loss prices and let the trades play themselves out without your active supervision.
3. Don’t allow yourself to be exposed to a lot of risk. Feeling like you may lose too much takes all the concentration out of trading. Only trade money you can afford to lose, and only risk a small part of that money on any single trade.

Just a measure of predictability and ability to stick to the rules will definitely make you a successful forex trader. Trading with a profitable forex plan is the best thing that will ever happen to a forex trader when next you get on the trading platform.

Make sure that you understand how forex trading works and once you get the hang of it; you will be making lump sum money.

There are many people now trade on the forex market from the comfort of their homes on a full time basis. For those people they have obviously found a way for it to be profitable on a regular basis, so the answer to the question “is forex trading profitable?” Yes it is, with the right training and attitude.

Forex trading

Learning and Understanding Forex Trading:

it may seem intricate at first because of forex principles underlying in the day to day currency variations every now and then. It is difficult to figure out but that doesn’t mean that understanding forex trading needs to be difficult. Here are some of the Forex trading basics that will help you get to grips with trading foreign currencies.

Major Forex trading currency pairs:

There are always two currencies involved in a trade. They are quoted by 3 letters that stand. Following are the Major Currency Pairs

• EUR/USD: Euro
• GBP/USD: Pound
• USD/CAD: Canadian dollar
• USD/JPY: Yen
• USD/CHF: Swiss franc
• AUD/USD: Aussie

These major currency pairs generate up to 85% of the overall volume generated in the Forex trading market.

Bid/Ask Spread

All currency pairs are commonly quoted with a bid and ask price. The bid price is the price your broker is willing to buy at, thus the trader should sell at this price. The ask price is the price your broker is willing to sell at, thus the trader should buy at this price.

What is a Pip?

A pip is the minimum incremental move a currency pair can make. A pip stands for price interest point. Most currency pairs are quoted to 4 decimal points. The exception to the 4 points rule is the Japanese Yen which is only quoted to 2 decimal places but the pip spread still works by using the difference of the last decimal place quoted, so a USDJPY bid of 61.10 and an ask of 61.12 would have a pip spread.

Factors that affects the Currency Pairs:

Currency prices are affected by a variety of economic and political conditions, most significantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention.

Best Forex Trading Platform:

One thing that will help you choose the best forex trading platform would be some research before you zero in on a choice. These platforms, which are actually software packages that connect you seamlessly with experienced forex brokers, who will offer their services for you, are widely available. Reliability is the hall mark of the best platforms. Top forex trading platforms usually offer a host of forex trading tools that will make the trading process very simple. For example, they usually offer online forex charts. You can also find updated news from around the world which could impact the market trends on your monitor.

The best forex trading secret you can uncover is the importance of understanding forex trading technical analysis.

What is candlestick trading?

Candlesticks are graphical representations of market price movements within a specified time period. A candlestick may represent price movement that occurred in the last 5 minutes; 15 minutes; 30 minutes; 1 hour; 4 hours; 1 day; 1 week; or 1 month for example.

Basic Candlestick Trading Pattern

This is what a candlestick looks like. The thick portion is known as the real body, and the thin parts are known as the shadow.
Got it? Now let’s now see what the real body and shadow can tell us about how market prices have moved.

Remember that each candlestick represents a specific time period?

Let’s assume the the candlestick to the right represents price movement in a 1 hour period.

The ‘open’ would be the market price at the beginning of the 1 hour. The ‘close’ is the market price at the end of the 1 hour. The ‘high’ and ‘low’ are the highest and lowest prices that were traded within that 1 hour, respectively.

You may have wondered at this point why the candlestick is green in colour. Most trading platforms today will allow you the option to change the colour of the candlesticks that you see on your charts, so it doesn’t really matter.

For the rest of this report, let’s use green to represent a bullish candlestick, and red to represent a bearish candlestick.

Bullish/Bearish Candlestick Trading Pattern

A bullish candlestick represents market prices that are moving up. If you look back at the 1 hour candlestick (in the previous page), you’ll see that the ‘close’ (end) price is higher than the ‘open’ (beginning) price. This means that in that 1 hour, the market has moved from the ‘open’ price, up to the ‘close’ price. And now here’s a bearish candlestick:

Notice that a bearish candlestick is the opposite of a bullish candlestick: it shows how prices have moved down within the time frame that the candlestick represents. Bearish candlesticks are usually represented by the colour red.

Special Candlestick Trading

Occasionally, you’ll come across candlesticks that have no shadows, or have no real body. These are very special candlesticks that can provide you with crucial information about here market price may be headed. I will discuss more about these special candlestick trading techniques next.

The Power of Momentum

This is potentially the most important concept in Forex chart analysis. If there’s only one thing you can learn from candlestick analysis, I recommend that you learn about how to read momentum.

So what is momentum?
Momentum is essentially a measure of how strong price movement is.

Try to answer this question:
Which of these candlesticks show a stronger upward price movement?

Using what you’ve just learned about how to read candlesticks, take a moment to think about your answer.

Did you guess candlestick 2? If you did, good job!
So why does candlestick 2 show a stronger upward momentum?

Although both candlesticks have the same high-low price range, candlestick 2 shows no hesitation in upward price movement. Also, candlestick 2 shows a higher closing price.

Here’s an example of how prices moved:

Can you see how candlestick 2 shows the price moving straight up? This is an indication of a strong upward momentum.
Candlestick 2 is often called a bullish shaven candle. The opposite of a bullish shaven candle is called a bearish shaven candle. (duh)
But how does understanding price momentum help you make money in trading?
Let’s now look at an example of how shaven candles can help…

Here, we see a bearish shaven candle that is soon followed by a further drop in prices. If you sold the market after seeing this bearish shaven candle, you would have made money!
Now, if you open up your trading charts and take a look, you’ll be able to find many similar instances where a bearish (or bullish) shaven candle is usually followed by a subsequent drop (or rise) in prices.
Go ahead and check out your trading charts now. It’s important that you’re convinced of the strong influence of shaven candlesticks on future price direction.

#2 BE DISCIPLINED EVERY DAY, IN EVERY TRADE, AND THE MARKET WILL REWARD YOU. BUT DON’T CLAIM TO BE DISCIPLINED IF YOU ARE NOT 100 PERCENT OF THE TIME.

Being disciplined is of the utmost importance, but its not a sometimes thing, like claiming you quit a bad habit, such as smoking. If you claim to quit smoking but you sneak a cigarette every once in a while, then you clearly have not quit smoking. If you trade with discipline nine out of ten trades, then you can’t claim to be a disciplined trader. It is the one undisciplined trade that will really hurt your overall performance for the day. Discipline must be practiced on every trade.

When I state that the market will reward you, typically it is in recognizing less of a loss on a losing trade than if you were stubborn and held on too long to a bad trade. Thus, if I lose $200 on a trade, but I would have lost $1,000 if I had remained in that losing trade, I can claim that I saved. myself $800 in additional losses by exiting the bad trade with haste.

#3 ALWAYS LOWER YOUR TRADE SIZE WHEN YOU’RE TRADING POORLY.

All good traders follow this rule. Why continue to lose on five lots (contracts) per trade when you could save yourself a lot of money by lowering your trade size down to a one lot on your next trade? If I have two losing trades in a row, I always lower my trade size down to a one lot.

If my next two trades are profitable, then I move my trade size back up to my original lot size. It’s like a batter in baseball who has struck out his last two times at bat.The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two or even scratch the trade and then raise your trade size after two consecutive winning trades.

#4 NEVER TURN A WINNER INTO A LOSER.

We have all violated this rule.However, it should be our goal to try harder not to violate it in the future. What we are really talking about here is the greed factor.

The market has rewarded you by moving in the direction of your position, however, you are not satisfied with a small winner. Thus you hold onto the trade in the hopes of a larger gain, only to watch the  market turn and move against you. Of course, inevitably you now hesitate and the trade further deteriorate into a substantial loss. There’s no need to be greedy. It’s only one trade. You’ll make many more trades throughout the session and many more throughout the next trading sessions. Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your performance for the day. Don’t be greedy.

#5 YOUR BIGGEST LOSER CAN’T EXCEED YOUR BIGGEST WINNER.

Keep a trade log of all your trades throughout the session. If, for example, you know that, so far,your biggest winner on the day is five e-Mini S&P points, then do not allow a losing trade to exceed those five points. If you do allow a loss to exceed your biggest gain then,effectively, what you have when you net out the biggest winner and biggest loss is a net loss on the two trades. Not good.

#6 DEVELOP A METHODOLOGY AND STICK WITH IT. DON’T CHANGE METHODOLOGIES FROM DAY TO DAY.

I write down the specific market prerequisites (setups) that must take place in order for them to make a trade. I don’t necessarily care what the methodology is, but I do want them to make sure that they have a set of rules, market setups or price action that must appear in order for them to take the trade.

You must have a game plan.If you have a proven methodology but it doesn’t seem to be working in a given trading session, don’t go home that night and try to devise another one. If your methodology works more than one-half of the trading sessions, then stick with it.

#7 BE YOURSELF.DON’T TRY TO BE SOMEONE ELSE.

In all of my years as a trader I never traded more than a 50 lot on any individual trade. Sure, I would have liked to be able to trade like colleagues in the pit who were regularly trading 100 or 200 lots per trade.

However, I didn’t possess the emotional or psychological skill set necessary to trade such big size. That’s OK. I knew that my comfort zone was somewhere between 10 and 20 lots per trade. Typically, if I traded more than 20 lots, I would butcher the trade. Emotionally I could not handle that size. The trade would inevitably turn into a loser because I could not trade with the same talent level that I possessed with a 10 lot. Learn to accept your comfort zone as it relates to trade size. You are who you are.

#8 YOU ALWAYS WANT TO BE ABLE TO COME BACK AND PLAY THE NEXT DAY.

Never put yourself in the precarious position of losing more money than you can afford. The worst  feeling in the world is wanting to trade and not being able to do so because the equity in your account is too low and your brokerage firm will not allow you to continue unless you submit more funds.

I require my students to place daily downside limits on their performance.For example, your daily loss limit can never exceed $500. Once you reach the $500 loss limit, you must turn your PC off and call it a day. You can always come back tomorrow.

#9 EARN THE RIGHT TO TRADE BIGGER.

Too many new traders think that because they have $25,000 equity in their trading account that they somehow have the right to trade five or ten e-Mini S&P contracts. This cannot be further from the truth. If you can’t trade a one lot successfully, what makes you think that you have the right to trade a 10 lot?

I demand that my students show me a trading profit over the course of ten consecutive trading days trading a one lot only. When they have achieved a profitable ten-day period, in my eyes, they have earned the right to trade a two lot for the next ten trading sessions.

Remember: if you are trading poorly with two lots you must lower your trade size down to a one lot.

#10 GET OUT OF YOUR LOSERS.

You are not a loser because you have a losing trade on. You are, however, a loser if you do not get out of the losing trade once you recognize that the trade is no good. Its amazing to me how accurate your gut is as a market indicator. If, in your gut, you have the idea that the trade is no good then it’s probably no good. Time to exit.

Every trader has losing trades throughout the session. A typical trade day for me consists of 33 percent losing trades, 33 percent scratches and 33 percent winners. I exit my losers very quickly. They don’t cost me much. So, although I have either lost or scratched over two-thirds of my trades for the day, I still go home a winner.

#11 THE FIRST LOSS IS THE BEST LOSS.

Once you come to the realization that your trade is no good its best to exit immediately. Its never a loser until you get out and Not to worry, it’ll come back are often said tongue in cheek, by traders in the pit. Once the phrase is stated, it is an affirmation that the trader realizes that the trade is no good, it is not coming back and it is time to exit.

#12 DON’T HOPE AND PRAY. IF YOU DO, YOU WILL LOSE.

When I was a new and undisciplined trader, I can’t tell you how many times that I prayed to the Bond god. My prayers were a plea to help me out of a less-than-pleasant trade position. I would pray for some sort of divine intervention that, by the way, never materialized. I soon realized that praying to the Bond god or any other futures god was a wasted exercise. Just get out!

#13 DON’T WORRY ABOUT NEWS. IT’S HISTORY.

I have never understood why so many electronic traders listen to or watch CNBC, MSNBC, Bloomberg News or FNN all day long. The talking heads on these programs know very little about market dynamics and market price action. Very few, if any, have ever even traded a one lot in any pit on any exchange. Yet they claim to be experts on everything.

Before becoming a trading and markets expert, the guy on CNBC reporting hourly from the Bond Pit, was a phone clerk on the trading floor. Obviously this qualifies him to be an expert! He, and others, can provide no utility to you. Treat it for what it really is?. entertainment.

The fact is: The reporting that you hear on the business programs is old news. The story has already been dissected and consumed by the professional market participants long before the news has been disseminated. Do not trade off of the reporting. Its too late.

#14 DON’T SPECULATE. IF YOU DO,YOU WILL LOSE.

In all of the years that I have been a trader and associated with traders, I have never met a successful speculator. It is impossible to speculate and consistently print large winners. Don’t be a speculator. Be a trader. Short-term scalping of the markets is the answer. The probability of a winning day or week is greatly increased if you trade short term: small winners and even smaller losses.

#15 LOVE TO LOSE MONEY.

This rule is the one that I get the most questions and feedback on by traders from all over the world. Traders ask,What do you mean, love to lose money. Are you crazy?

No, I’m not crazy. What I mean is to accept the fact that you are going to have losing trades throughout the trading session. Get out of your losers quickly. Love to get out of your losers quickly. It will save you a lot of trading capital and will make you a much better trader.

#16 IF YOUR TRADE IS NOT GOING ANYWHERE IN A GIVEN TIMEFRAME, IT’S TIME TO EXIT.

This rule relates to the theory of capital flow. It is trading capital that pushes a market one way or another. An oversupply or imbalance of buy orders will push the market up. An oversupply of sell orders will push the market lower.

When price stagnation is present (as typically happens many times throughout the trading session), the market and its participants are telling us that, at the present time, they are happy or satisfied with the prevailing bid and offer.

You don’t want to be in the market at these times. The market is not going anywhere. It is a waste of time, capital and emotional energy. Its much better to wait for the market to heat up a little and then place your trade.

#17 NEVER TAKE A BIG LOSS. ONLY A BIG LOSS CAN HURT YOU.

Please review rules #5, #8,#10, #11 and #15. If you follow any one of these rules you will never violate rule #17.

Big losses prevent you from having a winning day. They wipe out too many small winners that you have worked so hard to achieve. Big losses also kill you from a psychological and emotional standpoint. It takes a long time to get your confidence back after taking a big loss on a trade.

#18 MAKE A LITTLE BIT EVERYDAY. DIG YOUR DITCHES. DON’T FILL THEM IN.

When I was a young bond trader,my goal every day was to make 10 bond tics. A tic is $31.25, so if I made 10 tics on the day, I would be up $312.50.

It may not sound like a lot of money to you, but it surely was to me. My mentor, David Goldberg, told me that if I could make 10 bond tics every trading day of the year, at the end of the year I would be up $72,500 in my trading account. Not bad for a 23-year old kid in 1982.

It is amazing how quickly your trading account will build up over time just by making a little bit every day. If you are a new e-Mini S&P trader try to make just 5 or 6 points per day. If you can do that you’ll have that $72,000 at the end of the year.

#19 HIT SINGLES NOT HOME RUNS.

Just as I don’t know of any successful speculators, I don’t know of any trader who goes into a trade expecting to hit a home run and then actually having it happen. You should never approach a trade with the idea that it’s going to be a huge winner. Sometimes they turn out that way, but the times that I have a hit a home run on a position is most definitely luck, not skill.

My intent on the trade was to produce a small winner but, because I had the trade on, and at the same time (as luck would have it), the Fed unexpectedly entered the market, I unwittingly had a huge winner. This probably has happened to me less than five times in 20 years.

#20 CONSISTENCY BUILDS CONFIDENCE AND CONTROL.

How nice is it to be able to turn on your PC in the morning knowing that if you play by the Rules, trade with discipline and stick to your methodology, the probability of a successful day is high.

I’ve had years where I could count on one hand the number of losing days that I had. Don’t you think that this consistency allowed me to be extremely confident? I knew that I was going to make money on any given day. Why would I think otherwise? Making a little bit everyday (Rules #18 and #19) will allow you to trade throughout the trading session with confidence and control.

Remember Rule #9: If you make a little bit every day, then you have earned the right to trade bigger.

Thus, by following the Rules of Discipline, your little bit can soon turn into much more profitable days.

#21 LEARN TO SWEAT OUT (SCALE OUT) YOUR WINNERS.

The net effect of scaling out of your winners will be an increased average win per trade while keeping your losses to your pre-defined risk parameters.

You should never scale out of your losers. If your trade size is more than a one lot and your trade is a loser, you must exit the entire position en masse. If your trade size is more than a one lot and your trade is a winner, it is best to exit one-half of your position at your first price target.

If you trade with protective stop-loss orders, you should amend the order to reflect the change in trade size (remember you have exited onehalf of your position) and raise or lower the stop price, depending on whether it’s a long or short position, to your original initiating trade entry price. You now are essentially playing with the houses money. You can’t lose on the remaining position, and that’s obviously a fantastic position in which to put yourself. Place a limit order a few tics above or below the market, depending on your position, sit back and relax.

#22 MAKE THE SAME TYPE OF TRADES OVER AND OVER AGAIN – BE A BRICKLAYER.

A bricklayer shows up for work every day of his working life and executes with the same methodology – brick by brick by brick.

The same consistency applies to traders, as well. Please review Rules #6 and #20. I have not changed my trading methodology and execution strategy in 20 years. I guess I’m the bricklayer.

#23 DON’T OVER-ANALYZE. DON’T PROCRASTINATE. DON’T HESITATE. IF YOU DO,YOU WILL LOSE.

I can’t tell you how many times traders have come into my office terribly depressed because they knew the market was going one way or another; however, they failed to put a position on. When I ask them why they did not put the trade on, their responses are always the same: they did not want to chase the market. They were waiting to be filled at the absolute best possible price (and never got filled), or only two out of three of their market indicators were present and they were waiting for the third.

The net result of all this procrastination and hesitation is the trader was correct in deducing market direction but his profit on the trade was zero. We don’t get paid in this business unless we put the trade on. Don’t overanalyze the trade. Place the trade and then manage it. If you’re wrong, get out. But you’ll never be right unless you actually make the trade.

#24 ALL TRADERS ARE CREATED EQUAL IN THE EYES OF THE MARKET.

We all start out the day the same. We all start out at zero. Once the bell rings and trading begins, it’s how we conduct ourselves from a behavioral standpoint that will dictate whether or not we will make money on the day. If you follow the 25 Rules, you should do well. If you do not, you will do poorly.

#25 IT’S THE MARKET ITSELF THAT WIELDS THE ULTIMATE SCALE OF JUSTICE.

The market moves wherever it wants to go. It does not care about you or me. It does not play favorites. It does not discriminate. It does not intentionally harm any one individual.

The market is always right. You must learn to respect the market. The market will mercilessly punish you if you do not play by the Rules. Learn to condition yourself to play by the 25 Rules of Trading discipline and you will be rewarded.

Click here to read about Forex Trading Discipline – The Wheel Of Success

Courtesy to : Doug Zalesky is CEO of eLocal, L.L.C., www.elocaltrading.com.

The success that a trader achieves in the markets is directly correlated to one’s trading
discipline or lack thereof. Trading discipline is 90 percent of the game. The formula is
very simple:Trade with discipline and you will succeed; trade without discipline and you
will fail.

How, then, have I been able to succeed,day after day, trading the markets for more than
20 years? The answer is simple: I trade with discipline, and I respect the market. When
I’m wrong I get out immediately, and when I’m right, I don’t get too greedy. I’m content
with small winners and I’m accepting of small losers.

What Does Discipline Mean in Forex Trading?

There are three spokes that make up, what I call the Wheel of Success as it relates to trading. The first spoke is content. Content consists of all the external and internal market information that traders utilize to make their trading decisions.

All traders must purchase value-added content that provides utility in making their trading decisions.The most important type of content is internal market information (IMI). IMI simply is time and price information as disseminated by the exchanges. After all, we all make our trading decisions in the present tense based on time and price.

In order to scalp the markets effectively, we must have the most live and up-to-date time and price information seamlessly delivered to our PCs through a reliable execution platform and/or charting package. Without instantaneous time and price information, we would be trading in the dark.

The second spoke is mechanics. Mechanics is how you access the markets and the methodology that you employ to enter/exit your trades. You must master mechanics before you can enjoy any success as a trader. A simple keystroke error can result in a loss of thousands of dollars. A trader can ruin his  entire day with an inadvertent trade entry error.

Once you have mastered order execution, though, it is like riding a bike. The process of entering and exiting trades becomes seamless and mindless. Fast and efficient trade execution, especially if you are trading with a scalping methodology, will enable you to hit a bid or take an offer before your competitors do. Remember, the fastest survive.

The third and most important spoke in the Wheel of Success is discipline. You must attain discipline if you ever hope to achieve any level of trading success. Trading discipline is practiced 100 percent of the time, every trade, every day.

Forex trading

forex trading is not about the techniques and trading systems only. 90% of forex trading is related to the things that I explained above and this is what Forexoma members learn to achieve. They not only learn the techniques, but they learn to become a disciplined trader within the shortest time. I help them not to make the mistakes that 95% losing traders do, the mistakes that I also made when I started.

Click here to read about the best 25 rules for forex trading discipline

If the price of the EURUSD is 1.2974 and a few seconds later it’s gone up to 1.2975 we say it has increased by 1 pip.

Each point of change is called a “Pip”.

Bids, asks and the spread

Just like other markets, forex quotes consist of two sides, the bid and the ask:

The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency.

5 days a week (Monday-Friday), 24 hours a day. Due to the continuous trading, there are times when different world markets give their best money-making opportunities:

In general the trading day can be divided into three sessions (all times GMT).

The busiest trading in these markets is between the “Start” and “End” hours of each session, as you can see in the following table.

These correspond to the normal business hours in each country.

For example, in the Asian session, you can see the Yen, Australian Dollar and New Zealand dollar trading actively, whereas at the same time the Euro and British pound usually don’t move much.

Having said that, you must remember that they all trade 24 hours a day.