Forex Trading - If 95% Of Traders Lose Then To Win You Need To Do This

(by Kelly Price)

Do the opposite of what they do! This may sound obvious but most traders like to follow accepted market wisdom and trade in the direction of the crowd. If you want to win at forex trading you need to step away from the crowd – and that’s what this article is all about.

In terms of following accepted market wisdom like day trading, buying low – selling high and predicting the market, these are 3 examples of how to lose when devising a forex trading strategy and if you don’t know why read our other articles!

Here we want to focus on taking trades that the majority take and see their equity slaughtered and how you can trade in the opposite direction at the right time.

FACT:

If you buy into extreme bear markets and sell into extreme bull markets, as greed and fear blinds the participants to the reality – you will win.

Not only that - but you will trade with low risk and high reward.

It’s a fact that humans push both bull and bear markets too far and if you can spot these extremes and hit the turn you will rack up fantastic gains with low risk.

But How Do You Spot Them?

There are of course forex charts, where you can use technical analysis to look for price spikes - but this does NOT tell you how bullish or bearish the participants are - it just shows you price spikes and trends.

What you need are some sentiment indicators that show how much emotions are moving prices and when the turn is coming.

The best one of all is the CFTC Net Trader Positions and their FREE!

Not many traders use them, but this bi-weekly report is essential for all forex traders.

They show the breakdown of the futures forex markets - but these positions are just as useful when trading cash.

What do they do?

Quite simply they break the position into three main groups:

- Hedgers: These guys are the real pros and are simply hedging a cash position. There not trying to make money so are not influenced by greed or fear.

- Large Speculators: These are large funds who are mostly trend followers

- Small speculators: Everyone else

So why is the above breakdown so relevant?

Quite simply, you can look for extremes either bullish or bearish in speculative positions – with commercials holding and opposite position and moving the other way.

History shows us that the commercials are the right way around at EVERY major top or bottom and the speculators get slaughtered as the market turns.

Be careful!

You have to look for extremes. Once you see speculators heavily net long and commercials moving to the short side – a turn is coming - Prices are to far from fair value and its time to look for a position.

Watching these positions and spotting extremes in sentiment will allow you to:

Trade against the majority when everyone else thinks you are crazy!

You will have the confidence to do this, as the commercials are right about market extremes time after time and you can then look to enter your trading signals, knowing your trading with the smart money.

A Word of Caution

Net Traders positions alert you to the fact a big contrary trade is coming against the herd – but they should not be used on their own – they are not a timing indicator.

You need to use your forex charts and your normal indicators to enter a trade when price momentum turns in your favour.

Trade With the Pro’s

Want to know what the real pros are doing?

Then that’s what following the commercials via Net Trader Positions gives you.

If you want to trade with the smart money and catch the big profits from the big moves - trade with the commercials for bigger forex profits!

GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER


More on becoming a profitable trader some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html

FOREX Education - Thinking Of Buying FOREX Advice? Read This First

(by Kelly Price)

There is a huge amount of FOREX Education you can buy but before you buy it read this, as in excess of 90% of it will ensure you lose.

So you ensure you get the right FOREX Education follow the guidelines below.

1. Never buy a day trading system!

Most novice traders are enticed by the theory of making money everyday, with low risk and high rewards, but this is not the reality of day trading.

The reality of day trading is:

A quick wipe out of equity – why?

Quite simply, all short term moves are random and using support and resistance as day traders do is destined to failure.

If you don’t believe me try this simple test when buying any FOREX Education from a vendor:

Ask for the real time track record of profits and you won’t get one from a day trader.

At best you will get a hypothetical track record, but that’s done in hindsight, knowing the closing prices and if we know the closing prices its not hard to make money.

If you want to make money don’t day trade!

2. Real time profits

A real time track record is an essential requirement on ANY FOREX education you buy, not just day trading systems.

The fact however is, most FOREX education is sold by failed brokers, or people who have never traded in their lives.

If these people have not had the confidence to trade their own money on their own system why should you?

3. Understand the FOREX Education

Even if you are lucky enough to find a system that does have a track record of real FX Profits you need to be mindful of the following:

You need to fully understand the method and not follow it blindly.

If you don’t understand why a method works you won’t have confidence to follow it through inevitable periods of losses.

Not only must you understand it to follow it with discipline, you must also check it fits your trading personality.

Some traders can take big drawdowns or losses, other traders find them hard to take, so pick a system with a risk to reward you can handle emotionally.

4. The best FOREX education

There is a huge amount of FOREX education and FOREX advice free on the web, so use it.

In other articles we have shown how to build a system that makes profits from free info and it’s a lot easier to learn FOREX Trading this way than many people think.

You can also get some great FOREX education at nominal cost from your local bookstore this FOREX advice is from:

Traders who don’t just talk the talk – they have walked the walk and made money.

Great books to look at are Jack Schwager’s excellent Market Wizards and New Market Wizards – which interview some of the best traders of all time.

Trader Vic – Victor Sperandeo a great all round book and there are many more.

Rather than buying a e-book from someone without a track record, get your FOREX Education free on the net and get some classics from legendary traders.

Most of the courses and systems on the web are over priced, don’t work and you can frankly, do better on your own with the above advice.

FREE ESSENTIAL TRADER PDF'S AND MUCH MORE

On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html

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If you're looking for a forex trading platform, I can highly recommend Easy Forex. They offer competitive spreads, guaranteed stop-losses if required, live training and support, and you can start trading with as little as $25.

Forex Trading 101 – 10 Essential Tips For Novice Traders

(by Sacha Tarkovsky)

If you are new to forex trading you know that 90% of traders lose their money quickly, so you need some tips on how to join the 10% that make big consistent profits.

Here are 10 essential tips to increase your chances of making big profits from forex trading.

1. You need to rely on yourself

Many novice traders think they can buy success.

If you think you can buy success from someone else for $100 or so, you are mistaken.

Think about it – If you could a lot more traders would win than do!

Rely on yourself, do your own research and homework and come up with a system that you are confident you can make money with.

2. Avoid day trading

Day trading is popular, but the fact is it doesn’t make money, as it’s based upon flawed logic.

You cannot predict volatility in short time periods so don’t try.

Do it and you will lose.

If you don’t believe me then ask any day trader for a track record of real profits and you won’t get one.

3. Get a method your confident in

This means a simple method and for novice traders one which is based upon technical analysis.

A simple method will be easy to understand and more importantly, it’s a fact that simple methods work better than more complicated methods.

Why?

Quite simply, their less likely to break in the face of brutal market conditions.

Just a few indicators you understand and are confident in. are all you need

If you want a methodology to base your method on:

Base it on “breakouts”, most of the world’s top systems are based upon this methodology and you should consider it.

4. Discipline

If you have a method you must execute the signals with discipline.

As you will have devised the method yourself and it will be simple to understand, you will be able to acquire discipline.

Keep in mind, if you can’t execute a method with discipline you don’t have a method at all!

If you are using a technical method don’t be tempted to listen to the news.

Why?

Because you will hear lots of convincing stories that are probably wrong.

Remember, that experts in the media tell good stories but their more often than not wrong.

It’s a fact that:

Important market tops form on very bullish news and market bottoms form on bearish news – SO ignore it!

5. Money management

This is a major problem for most novice traders.

You need to protect what you have and run longer term trends.

You must take a risk!

Don’t be tempted to place your stops to close and MOVE them to quickly - you will be stopped out continually.

Most novice traders try to restrict risk, but actually end up creating it by ensuring they will be stopped out.

6. Have realistic aims

Most traders think trading is easy but of course it isn’t.

If you consider that the top traders in the world make 50 – 100% per annum then you will see that getting rich over night is not an option.

You need to set realistic objectives and be patient.

7. Work smart not hard

You don’t need to work all hours of the day, or acquire vast amounts of knowledge.

Once you have a method you are happy with, your trading should take less than an hour a day.

There is no reward for how much effort you put in.

You only get rewarded for getting market direction right.

8. Forex trading looks easy

But, if it was easy, 90% of people would not lose there money quickly.

Be humble and accept that the market is all powerful and you need to work smart to make money.

9. Patience

Many novice traders think that they need to trade all the time in case they miss a move, but this is a recipe for loses.

You need to be patient and wait for the right opportunities to come along.

10. Perseverance

If you are in a losing run (and don’t worry this will happen) you need to persevere and maintain your discipline.

Wait for the losing run to end and keep your emotions in check.

TO be successful at forex trading you need to work smart and acquire the right knowledge and then apply it with discipline.

If you can do the above forex trading can build you serious wealth over the longer term

Good luck!

FREE ESSENTIAL TRADER PDF'S AND MUCH MORE

On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html

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If you're looking for a forex trading platform, I can highly recommend Easy Forex. They offer competitive spreads, guaranteed stop-losses if required, live training and support, and you can start trading with as little as $25.