Forex trading secrets

If you are looking for forex trading secrets, you've come to the right place! 

Welcome to my best day trading beginners' blog. Today I decide to share my best forex trading tricks.

Prepare your essential tools

Many beginners only want to find forex trading secrets. They never spent one minute figuring out how to write a forex trading plan, build a forex trading checklist and keep a forex trading journal excel. 

In fact, they are 3 essential tools for a successful forex trader. If you want to make money in forex market, you should prepare a business plan, a pre-trade checklist and a excel forex trading journal.

My secret to trend trading

You should identify the dominant trend on the weekly, daily and 4 hour chart. It means that you must read forex charts rather than FX market news & forecast.

I often use the following tricks to determine trend 

1. Use my eyes to feel the market.
2. Draw a trend line to identify the main trend
3. Use moving average crossovers to enter trades
4. Use Bollinger bands to gauge trends
5. Use ADX indicator to identify trend

Let me say it again. You must trade with trends on the daily chart unless you are a day trader and likely to trade after a major news release.

Demo before you dive in


You must demo trading before you dive in. Some beginners believe demo trading is not a good practice. So they never open a demo account and test their forex trading system.

However, professional traders think demo trading is very important. So you will practice currency trading systems with a demo account. If you can have success on it, then you can go and open a live account and start real forex trading business.


Secret trading system

I think a lot of successful traders have told you there is no secret to profitable forex trading. But there is, in all this, some currency trading tips and tricks. 

First, I must identify and trade with the trend in forex. These are my tricks.

• Use my eyes to determine the direction of the trend.
• Draw a trend line to determine the major trend.
• Spot trends with MACD indicator
• Use ADX indicator to find day trading trends
• Identify a trend using Bollinger Bands

Second, I have to use the position sizing strategy. A lot of novice traders are often to make use of a fixed lot size for all of their trades. It is infinitely too bad! 

I often use the forex grid trading system, martingale trading system or pyramid trading system. I think they are the best money management system in forex.

Forex trading secrets books

Today I commend two forex trading secrets books to you.

First, Long-Term Secrets to Short-Term Trading by Larry Williams 

Well, I've read that book so many times. It provides many useful theories for forex trading. Now I know it like the back of my hand.

I believe this book richly rewards the effort. You have to take notes while you read it.

Second, Trading Systems and Methods + Website (5th edition) Wiley Trading by Perry J. Kaufman

If you haven't created a winning trading system, you will can't make consistent money in the forex trading markets. So I think it is a best trading systems book for beginners. 

Third, the Psychology of Trading: Tools and Techniques for Minding the Markets by Brett N. Steenbarger

I found this book is very useful for every trader. Whether you are a novice or an old hand, you should read it. Until now, it has helped me vastly improve my trading psychology

I also enjoyed reading Dr Brett N. Steenbarger's blogspot on trading psychology. His blogspot name is traderfeed.

I think there are a lot of secrets in the forex trading books. You must take notes while reading them. It could enlarge your forex trading knowledge.

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