Throughout the month we will be giving you a few Forex Profit Hacks. These are little bits of advice designed to help you get the most pips possible. There are 5 posts in all, so look for
updated links at the bottom of this post as new ones get added.
Tip 1: Establish a Personal Set of Trading Rules
Success in the markets is determined by how much control you have over your own trading habits. Knowing when to get in is important for making money, but knowing when to get out is equally as important when it comes to not losing money.
Knowing when to exit the market is an important rule to have, but it should be one of many that you utilize when you trade. You should have many rules that cover everything from your winning and losing percentages, to how much you risk per trade and more.
A lot of people are new to trading the Forex, so how are they supposed to know what should and shouldn’t have a rule? That’s a good question that can only be answered with experience. However, in an effort to get you started, here is a list of Market Traders Institute’s own Josh Martinez’s rules for trading.
Josh’s rules might not work for you, but this gives you a base so that when you recognize your own habits you are able to create new rules of your very own.
Tip 2: Place Your Trade…Then Go Away
Remember those old late-night infomercials that encouraged you to “set it and forget it!”?
It may seem odd, but the strategy that works for making chicken also applies to your trade.
Every trade you put in needs to have two stopping points. A stopping point when you have reached your goal, and a stopping point when you have lost too much.
It’s vital to your trading future that you not only force yourself to stick with these outs but that you pay no mind to what happens in between your in and out.
You need to set your trade and forget about it until it’s completed.
If you watch every time the market goes up and down you will drive yourself crazy. Every time the market reverses direction you will be overwhelmed with a sense of pulling out too soon or over-correcting a position and losing even more money.
You need to trust your software, trust your strategy and hope that your market prediction will come true. To prevent yourself from emotional reactions to the small changes in the market, it’s best to look at your trade twice: when you set it, and when you exit it.
Tip 3: Get to Know the Euro Open Strategy
The European session (called The London Daybreak) opens at 3 AM EST, and this session is huge for traders because nearly 75% of all Forex transactions happen during this session.
This is also when the market’s highest highs and lowest lows will occur.
Using your charting software, or a market scanning tool, you should look to the Euro session as a target for the best time to trade.
That does it for part one of this series of five hacks to profit off of the Forex.