http://www.netpicks.com/tjgiveaway1 - YOUR FREE TRADING SYSTEM Forex is one of the most popular markets experienced and beginning traders take part in. With low initial deposits, free trading software, and virtually 24 hours access, it’s extremely tempting for people to jump in with both feet without having much in the way of trader training. This is dedicated to some of the best Forex trading tips taken from not only real world trading experience but also from the many who Netpicks “family members” who’ve enjoyed success trading one of our trading systems. Think of it as a checklist you can follow before you set off on your trading journey. See more at: http://www.netpicks.com/best-forex-trading-tips/

1. Forex Trading Tips
http://www.netpicks.com/best-forex-trading-tips/

2. Forex is one of the most popular
markets experienced and beginning
traders take part in. With low initial
deposits, free trading software, and
virtually 24 hours access, it's extremely
tempting for people to jump in with
both feet without having much in the
way of trader training.

3. This is dedicated to some of the best Forex
trading tips taken from not only real world
trading experience but also from the many
who Netpicks "family members" who've
enjoyed success trading one of our trading
systems. Think of it as a checklist you can
follow before you set off on your trading
journey.

4. There are 3 broad categories that
make up "what it takes" and these are
something that successful Forex
traders have not only understood, but
aim to excel at. These 3 items when
combined can set the stage for your
trading success

5. A FOREX TRADING STRATEGY
EXCELLENT MONEY MANAGEMENT
SKILLS
AN UNDERSTANDING OF
PSYCHOLOGY AS IT RELATES TO
TRADING

6. The following trading tips are going to
focus on what has a direct effect on
your success or failure. If you need
the basics such as charting
information, brokers, or even Forex
demo trading, you can download that
information for free from this link.

7. http://www.netpicks.com/forex123/

8. Trading Strategy
Before we get going I want to mention
something very important:
There is no holy grail in Forex or any
other market regardless
of what the emails and marketing
websites say!

9. Focus on a Forex trading method that
you can understand, replicate, and has
proven itself to have an edge over
time. Any system or method based on
the mechanics behind price, does not
totally rely on lagging indicators, and
can be easily explained is something
you may want to investigate further.

10. A trading strategy, regardless of the
market you trade, should have the
following two important variables:

11. Setup - What constitutes a valid
trading opportunity?
Trigger - Once the setup occurs, how
are you triggered into the trade?

12. I am going to use a supply and demand
trading example to explain what a
trading setup is. Supply and demand
in this regard simply refers to battle of
the bulls, bears, and the imbalance
caused by having one group being able
to exert control over a market.

13. This is an actual Forex trade setup and
for this trading tip, I wanted to use one
that worked.
Remember that your trading wins and
losses will come at a random
distribution.

15. I used a trend line to show the price
traded inside a channel and then
spiked up and broke through the top
of the line before dropping hard.
When this occurs, it highlights an
important area to watch if/when price
comes back to it.

16. You can see the drop (1) was fast and
hard which shows - an imbalance of
buyers/sellers where sellers totally
overwhelmed the buyers. (this is KEY)

17. Price takes about two days before it
drives hard to the bottom of the
yellow zone that was started way back
at number one. This becomes our
setup although in this instance, a sell
limit was set a few pips below the
supply area.

18. The larger time frame for this chart
was sitting at a supply level and our
level here is right up against it.
Buying into a supply level (or selling
into a demand level) when right on
top of it will not be a positive for
your trading account.

19. I want to draw your attention to the
large green candle. It should be
obvious that a large number of
contracts were bought to drive price
this fast and hard in a 30 minute
period. The high represents the last
buyer who then saw price plummet
and take them into a losing trade.

20. Without a trading strategy, it's easy to
justify buying that large candle. With a
trading strategy (what this section of
Forex Tips is about) you would not
have been a buyer and this highlights
why an actual trading strategy is
paramount to your future as a trader.

21. The setup occurred when price came
into the zone we were watching.
Now we need a trading trigger.

22. In this trade, the trigger is actually
price just coming into the zone. Let's
say that you need a little more
confirmation and require an actual
trigger to get you into the move.

23. Important: Confirmation can often
require price moving in your direction
which could increase your stop size
thereby lowering your position size.

24. Two trade triggers can be seen on this
chart. The MACD is a momentum
indicator and when you see the histogram
drop lower, you can use that for your
trigger into the trade. This indicates that
the upside momentum is starting to lessen.
This is NOT foolproof (nothing is) but
taking into consideration our trade setup
and what it represents, it's not a bad play.

26. We also have a mini trend line
connecting the lows of the candles and
you may elect to simply short this
market upon the break of that line.
No entry is the perfect entry so we can
just use what price is showing us.

27. This chart has inside candles and these
same candles don't show with
certainty whose in control. We can tell
that momentum is slacking and given
the nature of this setup, just shorting
when the market shows weakness is
also a viable trading decision.

28. This is not a complex trading method
but has proven to be very effective
and allows larger position sizes due to
the "tight stop" that is usually used. It
has both aspects that we need: a
setup and a trigger.

29. If your trading system does not
have these two variables, seek
out a better system.

30. The bottom line is this Forex tip is all
about keeping things simple. Don't get
bogged down in confusion.

31. The main drawback of this type of
trading though is at times, people have
an issue quantifying the setups. For
those people, a trading system by
Netpicks may be something to
consider.

32. All the setups are mechanical with a
little bit of art, which means when
certain variables are met, you are
informed of a trading opportunity. All
targets, stops and entries are printed
for you and that helps keep you
consistent in your trading.

33. Money management is not the most
glamorous Forex topic but without a
full understanding of risk and leverage,
you run the risk of account ruin.

34. Nobody is able to tell you what risk to
use per trade but the standard quote
is usually 1-2% of your account
balance. I will add two things to that.

35. .5% is conservative and allows new
traders to take the losses without too
much account damage.
Consider using the balance +/- the p/l
of any open trades.

36. This can be an in-depth topic with
examples and "what ifs" however
following two basic account
management tips can go a long way in
protecting your account from a string
of losses and ending your Forex
trading career.

37. What you are thinking of risking, cut
that amount in half.
Ensure your stops are not just a
suggestion..but a demand that will be
executed.

38. While the majority of traders simply
use their account balance as a sign of
success or failure, it does not go far
enough pointing out where you can
improve. It also doesn't show you
where the bleeding is happening with
your trading.

39. A free software application is available
called the Ultimate Trade Analyzer and
you will see this software that you can
download right now, is feature rich.
http://ultimatetradeanalyzer.com/simple-download/

40. Important Trade Statistics like Profit Factor, Expectancy,
Expectation, Avg Wins/Avg losses, Net Profit, Number
of Trades, and more.
Wins vs. Losses; learn their characteristics so you can
make subtle yet powerful changes to your trade
approach
Learn the best time to quit trading each day with our
"Power of Quitting" Analysis tool for both your am and
pm session trades

41. Mechanical and automated trading
have their pluses especially when you
realize that trading psychology would
not be an issue.

42. We would have no issue sticking to any
type of trading whether it is trend
trading or any of the numerous mean
reversion systems.

43. Our trades would execute and either
our targets would be hit for profits or
our stops would be hit and protect us
from over sized losses.

44. We would risk the appropriate amount
for our account size and trading
system expectations.
Stating the obvious - We are human.

45. We are all subject to emotions and
doing things that we know are not
good for us. We make excuses why we
do things.

46. For instance, taking a few losing trades
and then seeing price bounce back, we
decide to ignore the stop the next time
we trade. This one doesn't come back
and your account is drained.
This happens all the time!

47. Again, this is such a vast subject and
there is no way to do it justice in a
blog. However, what I am about to say
was one of the most important Forex
tips I ever received.

48. Why?
Because it encompasses so many
things such as:

49. Follow your tested and proven trade plan
Use stops to protect your account
Ensure your risk per trade can
withstand a string of losing trades
Don't over-leverage

50. HERE IT IS: EMBRACE THE FACT THAT
WINS AND LOSES COME IN RANDOM
DISTRIBUTION.

51. This means that we don't know if the
next trade is going to hit our targets or
register a loss. In fact, we don't know
if the next 3 or 5 trades will win or
lose.
What we do know is that it will win OR lose.

52. Can you see how understanding that
basic fact makes it crazy to risk too
much on the next trade?

53. How it makes moving your stop
further from price is not a smart thing
to do?
How skipping the next setup even
though it is a perfect trade plan setup
is senseless?

54. How increasing your risk % on a sure
thing is a suckers bet?
You have to give yourself a fighting
chance with every trading opportunity
that presents itself. Embrace not
knowing and do everything that
makes up smart trading on every
single play.

55. You don't know if the next trade will
return the recent dollar losses back
into your account. It makes no sense
to skip it.

56. You don't know if price will bounce
back so it makes no sense to not honor
your stop.

57. You don't know if the next trade will be a
loser (with slippage) giving yourself a larger
pip loss. Makes no sense to increase risk.
In my opinion, how to trade Forex
successfully means doing everything you
are supposed to do on every trade.

58. Every trade, give yourself the goal to
improve on every aspect of the three
categories mentioned above. It is my hope
that this assembly of Forex trading tips
helps refocus you to act and think like a
professional trader who enjoys the good
life because of doing all the right things.at
the right time..which is every time.