About Forex

Advanced Forex

As you gain experience and insight into how the Forex market operates, you will no doubt want to expand your knowledge and improve your Forex trading even further. To help novices improve their understanding and to help professionals brush up on their technique, we have put together these hints and advice for more advanced Forex trading:

Control Yourself

If you allow yourself to be swept up in what the market thinks, you will always be following someone else. If your research gives you a strong indication that a very profitable trend is forming or that perception about a currency is about to change, go with it. Do not allow the news or other traders to sway you.

Plan Effectively

The best way to minimize the number of unprofitable trades you make is to plan very carefully. Why are you going to trade a particular pair? If you can't answer that question, don't make the trade in the first place. You can take as long as you want to plan your trades, and every trade should contribute to your ultimate plan.

Advanced Charting

Understanding and analysing charts is one of the most important skills in Forex trading. As traders improve they should look to discover new ways of reading graphs and profiting from their analysis. To further your understanding of advanced charting techniques, read our "Charts & Analysis" page.

Learn From Your Mistakes

Sometimes, a good theory just isn't that great in practice. If most of your trades have been less profitable than you wanted them to be, stop and consider why. Your ideas should always be flexible enough to change as your experience grows. Your trades exist only to make you money. Be ruthless in cutting out any beliefs or ideas that keep you from turning a profit.

Value, Timing and Currency

When you begin thinking of your next trade, you need to avoid thinking dogmatically about what a currency "should" be worth. Each currency type is worth exactly what someone else will pay for it and this is going to change constantly. There are two ways to consider what this change is going to be. You can look for a trend to form or try to understand how people typically look at a particular currency.

Shrug it Off

The most important part of getting over an unprofitable trade is to realize that it's inevitable. Every investor has, at some point, made a bad decision. So long as your plan is fundamentally solid, the occasional mistake just means you're taking some risks.

Understand Countries

The psychology of the market is as important as the fundamentals of a country and its currency. A currency's value can be battered because it's unpopular. In the same vein, the currency of a country in economic ruins can be held up because it's well perceived.