5 Powerful Tips for Forex Trading

By: Kelvin Chan

I'll like to share with you 6 powerful tips for forex trading with you today ... These are tips that I've gathered from my months and years of forex trading so don't look down on them. Are you ready to receive them? Ok, let's go ...

#1 - Intentionality of Trading

Ok, the first one here isn't too much about forex trading as it is about trading in general. Have you ever asked yourself why you want to be trading whatever you're trading? (be it futures, currencies or stocks) I say this because there are some people who trade only because they want excitement or they feel bored and that's a totally wrong motive for going into trading. Be sure to clarify this with yourself.

#2 - Daily Hi/Lo Fibonacci Swings

Be sure to understand the basics of fibonacci extensions and retracements. It would be wise of you to do a fibonacci study on a daily basis of the previous day's range (from high to low). Most important points are the 38.2%, 50% and 61.8% retracements.

#3 - Market Reacts to Psychological Numbers

If you haven't noticed by now, market very often reacts to psychological numbers or round numbers for that matter. So whenever it gets close to the double "00" figures, be sure to pay attention to what the market is actually doing and wanting to do.

#4 - Average Daily Range of the Pairs You're Trading

Be sure to understand as much as possible about the pairs that you're trading. You need to know that GBPUSD has a greater range than EURUSD for one. Use ATR (an indicator) over a period of 9 or 21 to find out the average true range over the past 9 or 21 days respectively.

#5 - Put in your stop and take profit per trade during entry

This isn't common knowledge but it's based off my own experiences. I always put in my stop and take profit for each and every trade during trade entry time or during the first 5 minutes. You don't want to be caught with your pants down.

Hope these 5 powerful tips will come in useful for you ... I need to say this again. They are really useful and powerful because these come from experience. Meantime, take care and happy trading!

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