Did you know that the five deadliest factors that cause traders to fail are self-inflicted? Many traders self-sabotage their own trading and may not even be aware they’re doing it. When their account goes to zero, they have nobody to blame but themselves. While it might be too late for these traders, fortunately, it’s not too late for you. We want to make sure that you don’t suffer from the same blind spots and can, hopefully, avoid sharing the same fate of a blown account.
As a beginner, you’ve taken your first steps towards learning the basics of forex trading. But it only gets harder from here. Just like learning how to walk, you have to take baby steps, and in between, you will fall, but you get back up and press forward. If you’re trying your hand at forex trading for the first time, know that most beginner traders are best served by keeping things simple.
What separates good traders from bad traders? A good trader realizes that trading is patience, discipline, and requires a trading approach adapted to their specific psychological profile. A good trader concentrates on the PROCESS of trading, and not just on the result.
Don’t have time to learn how to trade forex? Want to be part of the Billionaire’s Club? If you answered “yes” to these two questions, the forex managed accounts scam is the fraud for you! You can call our hotline at 1-800-4XFRAUDS!
“Buy my ‘End of the Rainbow’ system and you’ll be able to make at least 100,000,000%!!!” It’s like finding the end of a real rainbow but easier!! Guaranteed profit worth a hundred pots of gold with absolutely no risk! Don’t be a sucker! You’ve probably heard or seen something similar on TV ads, online pop-ups, or even from your next-door neighbor.
Forex robot scams encompass Expert Advisors (also famously known as EAs) and other automated trading systems. What is a forex robot? In the forex world, a “robot” is a program that strictly uses technical signals to enter into trades and lets the human sleep in a hammock on a beach while he “makes” money.
Forex signal services do everything a robot does except the actual execution of trade entries. Besides possibly using an automated program, a “professional” trader may generate trading signals (for a fee, of course) for clients to act upon. However, you may be paying for a signal in which you do not know the causes for and how the “professional” came up with it.
Watch out for forex broker scams! Believe it or not, there are some brokers who “cheat” their clients. One way they do so is by manipulating bid/ask spreads. Normal spreads between brokers would be around 2-3 pips but scammers would have spreads around 7-8 pips. Seven pips might not seem like a lot, but it does add up. Imagine each time a client trades, he has to pay a spread of 7 pips. Imagine if he takes a just a few trades per day.
Despite the forex market being the largest financial market in the world, it remains largely unregulated. There is no international organization or global agency that monitors and oversees the currency trading occurring all over the world in the interbank. Due to the unregulated nature of the spot FX market, this opens up the opportunity for forex scams and frauds. While there is no international organization to protect forex traders like there is S.H.I.E.L.D. to protect the world, there are countries that monitor and oversee forex trading activity, including forex brokers, that occur within their borders.
If you live in the U.K., the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are for you! On April 1, 2013, both of these agencies replaced the Financial Services Authority (FSA) as the financial industry’s regulatory bodies. The Financial Conduct Authority is a non-government agency funded by the firms they regulate, and they are accountable to a Board appointed by the Treasury. Their goal is to protect consumers, ensure industry stability, and promote healthy competition in the financial services industry through the regulation of financial advisers, asset managers, or any firm not covered by the PRA.
Yes! Really bad people are out there trying to make a dishonest living. However, unlucky for them, you are smart! You know that the only way to succeed in currency trading is to learn from square one and build trading experience! Now say this three times out loud: “I will not fall for no-risk robots! I will not succumb to guaranteed returns! Lastly, I will not be lazy and let someone else trade me lucky charms *cough* I mean my money for me!” Now that we have that over with, let’s close out with some questions our viewers have asked us countless times!
Lesson 13 : Quiz: Which Trading Style Is Best For You?
During Junior Year in the School of Pipsology, we learned that each forex trader is unique and that various trading styles fit different types of personalities. If your personality doesn’t match your style of trading, you could wind up hurting your account and your ego. This quiz can help you find out whether you are better off as a scalper, a day trader, a swing trader, or a position trader.
Each currency pair is unique. As Dr. Pipslow said about finding your trading niche, each set of currency pairs has its own behavioral tendencies that set it apart from the others. It is important to match your personality with behaviors of the pairs you trade. We already talked about the majors, the comdolls, and the crosses in the What is Forex section of the School of Pipsology. Now here’s your chance to learn more about them and discover which suits your trading personality best.
Are you a noob struggling to make sense of all the seemingly complicated trading concepts? Or are you an expert trader searching for bigger challenges? There’s an overwhelmingly large amount of information out there and we don’t want you to get lost! That’s why we decided to come up with this quiz that will help you classify your trading experience and match it with exactly what you’re looking for. Amazing, huh?
Some forex traders live and die by technical indicators while others couldn’t care less about them. Some rely heavily on their own fundamental or technical analysis while some like to let robots do the thinking.
We learned all about mechanical trading systems in the School of Pipsology. We even learned how to design and build our own forex trading systems. But like men, not all mechanical trading systems are created equally. Some systems, called trend-following systems, do a better job at catching strong directional moves, while others (aka mean reversion systems) are better for spotting probable currency pair reversal points
More often than not, your attitude towards risk is crucial to determining the success of your forex trading endeavor. This could help you find out which trading style is best for you, what kind of system you should use, appropriate trade management techniques, or how you can improve your trading in general.
We here at dnbcmarkets.com can’t stress enough how important proper risk management is to succeed in forex trading. To help keep us from losing our risk capital, we have learned in the Senior Year of the School of Pipsology all about stop losses.
Congratulations! You made it! You’ve read all six gazillion pages of the School of Pipsology and now you have everything you need to conquer the forex world, retire in a year or two, and then go travel the world in your Gulfstream G650 jet, right? Think again NOOB!
A common mistake by many new traders is that they think they can make money… fast! While it’s true you can make money in a short amount of time, it doesn’t mean you will end up profitable in the long run. A typical scenario is that a new trader reads a little bit about trading forex, finds a system online that claims to make money quickly, and then jumps right into trading because he feels like he’s got enough of a background to make millions of dollars.
Unless you’re a good lookin’ dude (like Pip Surfer – holler!) who’s trying to win over his lady crush, never make the first move. What we mean by this is that you shouldn’t always jump in when you see the market moving so quickly. Dealers know that, about 80% of the time, markets are ranging. This means that sharp and sudden moves are most likely to be faded. This represents a good opportunity for dealers to make some profits. First of all, why will it most likely be faded?
We’ve made the School of Pipsology as easy and fun as we could to help you learn and understand the basic tools and good practices used by forex traders all over the world, but remember that a tool and technique is only as good as its handler.
Ask any quant on Wall Street (the super geeky math and physics PhDs who create complex algorithmic trading strategies) why there is no “holy grail” indicator, method, or system to pull profits 100% of the time. You will probably be given two reasons: 1. You can’t predict the future. Is there any way to know what a central bank head will say during a speech?
It’s a virtue…Especially with forex trading. Arnold H. Glasgow, an American humorist, once said, “The key to everything is patience. You get the chicken by hatching the egg, not by smashing it.” Developing your currency trading plan will take time. Developing skills will take time. Waiting for the right trade opportunities requires patience. Entering and exiting a trade at the right moment requires patience.
In his prime, NBA legend Kobe Bryant MADE 1,000 shots a day in practice to increase his chances of making the 20-30 shots a game he takes. Along with team practice, Peyton Manning (NFL legend) watched hours and hours of tapes of opposing teams every day (even during the offseason) to develop his uncanny ability to read defenses and score against them in one 60-minute game a week.