The Disciplined and Undisciplined Forex Trader

'Disciplined' or 'Undisciplined' which one do you think you belong? If you think that you are an undisciplined forex trader then tragedy awaits you in the future. Being a discipline forex trader is vital that it can change your entire life for good.

Let's first cover the outcome of being a disciplined forex trader.

Owned a Huge House

If you are a well disciplined forex trader then trading the forex market is like an ATM to you. But, the difference is that the money that you can take out from forex is unlimited. You can be a millionaire in no time. This is the reason why most successful traders are utterly rich that they own huge houses.

Multiple Set of Computers

People who blames their PC or laptop on their failure in trading the forex market is not actually the real reason why they failed. Its none but other than their undisciplined way of trading the market. If you started from an old and slow PC but you are a well disciplined trader, I can already see you in my future-vision staring on the screens of multiple sets of powerful computers.

Expensive Cars

As a successful well discipline forex trader, you will have enough profit to buy even the most expensive type of cars. Not just cars but you can also own boats, private planes and any other form of vehicles that you would like to have.

Vacations

An undisciplined traders always doesn't have any available time for themselves. They simply go on trading even if the market is at its highly-unstable condition. On the other hand, a well discipline forex traders can leave their trade with a complete peace of mind. They are confident enough that their trades are on the right direction.

A Lot of Money

There is only one reason why we trade the forex market and that is to make unlimited amount of money. You have to know that discipline is the key to success of trading the forex market.

What if you are an Undisciplined forex trader?

Old Small House

You are still living on your old and small house.

Old Car

You should still be thankful enough if you have an old car rather than walking on foot from far places that you need to travel.

No Money

Your pocket or wallet is always empty.

Debt

Finally, you have a growing insane amount of debt.

The Discipline Forex Trader

A disciplined Forex trader is someone who follows a set of rules and guidelines when trading, avoiding emotional decision-making and impulsive trades. A disciplined trader has a well-defined trading plan, with clear goals, risk management strategies, and a structured approach to analyzing the market. 

They adhere to their trading plan, avoiding deviation from their strategy, and maintain a patient and long-term perspective on their trades.

The characteristics of a disciplined trader include patience, consistency, focus, and objectivity. A disciplined trader has the ability to remain patient and avoid impulsive trades, waiting for the right opportunities to enter or exit a trade. They maintain consistency in their approach, sticking to their trading plan and not being swayed by market fluctuations. 

They remain focused on their goals and their strategy, avoiding distractions and emotional reactions to the market. Finally, they maintain an objective perspective, avoiding biased analysis and making decisions based on facts and analysis rather than emotions.

The advantages of being a disciplined Forex trader are many. First and foremost, a disciplined trader has a higher likelihood of success and profitability over the long term. By following a well-defined trading plan, they avoid impulsive trades and emotional decision-making, reducing the likelihood of losses.

Additionally, disciplined traders can maintain a calm and objective perspective on their trades, avoiding the emotional rollercoaster that often accompanies undisciplined trading.

To develop discipline in Forex trading, traders can employ a range of strategies. One of the most important strategies is to define clear goals and a trading plan, outlining the entry and exit points for each trade, as well as risk management strategies such as stop-loss orders. 

Traders should also establish rules for their trading, such as the maximum amount of risk they are willing to take on, and the maximum number of trades they will enter each day or week. Finally, traders should maintain a trading journal, recording their trades and analyzing their performance over time.

The Undisciplined Forex Trader

An undisciplined Forex trader, by contrast, is someone who lacks a structured approach to trading, often making emotional decisions and impulsive trades. An undisciplined trader may enter or exit trades based on emotional reactions to market fluctuations, rather than following a set of rules or a well-defined strategy. 

They may also engage in over-trading, entering too many trades in a short period of time, or taking on excessive risk.

The characteristics of an undisciplined trader include impatience, inconsistency, lack of focus, and emotional reactivity. An undisciplined trader may lack the patience to wait for the right opportunities to enter or exit trades, often engaging in impulsive trades based on emotional reactions to the market. 

They may also lack consistency in their approach, deviating from their trading plan or strategy based on emotional reactions to market fluctuations. Additionally, they may lack focus on their goals or their strategy, becoming distracted by market noise or short-term fluctuations. 

Finally, they may be emotionally reactive to the market, making decisions based on fear, greed, or other emotional impulses rather than objective analysis.

The consequences of undisciplined trading can be severe. Traders who engage in undisciplined trading may experience losses or negative returns, as impulsive or emotional trades can lead to poor performance. 

Additionally, undisciplined trading can lead to emotional distress, as traders may experience feelings of anxiety, stress, or frustration as a result of their losses. This emotional distress can then lead to further undisciplined trading, creating a vicious cycle of emotional decision-making and losses.

Finally, undisciplined trading can have a negative impact on future trades, as traders may become stuck in a cycle of undisciplined trading habits that are difficult to break. This can lead to long-term underperformance, as traders struggle to maintain consistent profitability over time.

Strategies for Developing Discipline in Forex Trading

To develop discipline in Forex trading, traders can employ a range of strategies. First and foremost, traders should establish clear goals and a well-defined trading plan, outlining the entry and exit points for each trade, as well as risk management strategies such as stop-loss orders. 

Traders should also establish rules for their trading, such as the maximum amount of risk they are willing to take on, and the maximum number of trades they will enter each day or week.

Another important strategy for developing discipline is to maintain a trading journal, recording each trade and analyzing performance over time. This allows traders to identify patterns and areas for improvement, as well as to track progress towards their goals. 

Traders can also use tools such as trading algorithms or automated trading systems to help maintain discipline, as these systems can remove emotional decision-making from the trading process.

Finally, traders can practice techniques for developing self-control and emotional regulation, such as meditation or mindfulness exercises. These techniques can help traders maintain a calm and objective perspective on their trades, reducing the likelihood of emotional decision-making or impulsive trades.

Overcoming Undiscipline in Forex Trading

For traders who have already developed undisciplined trading habits, there are strategies for overcoming these habits and developing a more disciplined approach. One of the first steps is to analyze past trades to identify mistakes and areas for improvement. 

This analysis can help traders identify patterns of undisciplined behavior, such as impulsive trades or emotional decision-making, and develop strategies for avoiding these behaviors in the future.

Traders can also seek advice from experienced traders or professionals, such as trading coaches or psychologists. These professionals can provide guidance and support for developing a more disciplined approach to trading, as well as strategies for overcoming emotional barriers to success.

Another important strategy for overcoming undisciplined trading habits is to practice self-control and emotional regulation techniques. This may involve techniques such as meditation or mindfulness exercises, as well as techniques for managing emotions such as fear or greed. 

Traders may also benefit from setting realistic expectations for their trading, avoiding over-trading or taking on excessive risk, and maintaining a long-term perspective on their trades.

Conclusion

In conclusion, discipline and undiscipline are critical factors in Forex trading success. A disciplined approach to trading can help traders maintain a calm and objective perspective on their trades, avoiding emotional decision-making and impulsive trades. By contrast, undisciplined trading can lead to losses, emotional distress, and long-term underperformance. 

To develop discipline in Forex trading, traders can employ a range of strategies, such as setting clear goals and a well-defined trading plan, maintaining a trading journal, and practicing self-control and emotional regulation techniques. 

For traders who have already developed undisciplined habits, there are strategies for overcoming these habits and developing a more disciplined approach to trading. By prioritizing discipline in Forex trading, traders can increase their chances of success and profitability over the long term.

The Four (4) Different Kinds of the Forex Market Trend

Did you know that there are actually four different kinds of trends of the forex market?

(Oh! for those who already have the basic knowledge about forex, you may skip this topic as it is intended for the complete beginners).


The 4 different kinds of forex market trend are the following:

1. Range Bound Market

2. Bullish Market

3. Bearish Market

4. Choppy Market

Range Bound Market

A range bound market is the condition of the trend where the prices touches the support and resistances lines bouncing back and forth. The best way to profit from this kind of market is to BUY or go LONG when the price goes near the support level. On the other hand, SELL or going SHORT are best entered when the price is near the resistance line.

Above is an example of a range bound market where the trend reverses its direction once it hits the support or resistance lines. The red horizontal line is the support while the blue horizontal line is resistance.

Bullish Market

A bullish market condition is when the trend is constantly going up for some period of time. It is very similar to the range bound market but the only difference is that the market is moving toward the higher prices.

Above is an example of a bullish market. You can see that I plotted the 'trend channel' which serves as the support and resistance lines. It is important for you to know never to trade SHORT on this kind of market but LONG. The best way to enter your trade is when the price goes near the lower-trend line of the channel.

Bearish Market

Bearish Market is the complete opposite of the Bullish Market wherein the trend is moving toward the lower prices. The best way to trade this kind of market is to go SHORT or SELL when the price goes up near the upper-trend line of the channel.

Choppy Market

A choppy market is the worst kind of market that you should avoid making trades. At this condition, the market is incoherent wherein it has no particular direction. Thus, stay away from choppy market as there are no clear directions that you can follow.

The Importance of Forex Trading Strategy

Often neglected as paperwork, the forex strategy is relegated to the corner by most new forex traders because they are too busy opening accounts, selecting forex brokers, training or checking out demo accounts or placing orders and getting ready to profit. In the excitement of making profits and earning higher levels of returns the newbie forgets that this is an important part of the forex trading process.

Importance of Forex Strategy

When you have a forex trading strategy you have the exact guidelines that you need to follow in order to make sure that you do not make hasty and costly decisions. In absence of an efficient strategy, forex traders tend to make emotional decisions that can lead to disastrous results. A good forex trading strategy should lay down proper guidelines to select potentially profitable trades and the manner in which the exit decision should be made. See more on easy forex classic. These guidelines can help in keeping you on the path of trading responsibly too.

How to Create a Forex Strategy

There are essentially three ways in which you can create a good forex trading strategy. Each of the methods is fine as long as they are followed and practiced properly. The manual option is the one in which the trader creates a strategy with trial and error based on specific actions that he takes. This is an extremely time consuming process and can be difficult for someone who works at a day job that requires his full attention. However, once you create a strategy like this you will internalize the ways in which the market works.

The second option is to choose a guide that can help you create a strategy. These are forex gurus that help new forex traders in getting a handle on the forex market place. While this a time saving option for those who have limited time, it is not easy on the pocket. Forex experts charge a fair amount of money to give this expert advice.

The third and practical option is to look for forex robots that can help you plan and execute forex trading. These forex robots have become extremely common ever since retail forex trading has become popular. The issue is that you may still have to do a fair amount of checking and evaluating before you find a good forex robot and be certain that it is not a scam. In addition,you need to be aware that no forex robot has been able to achieve the level of return that it advertises. So be sure to keep your expectations lower than what is being touted.

Each of these options has its advantages. If you are in the forex trading market for the long haul, you may want to invest the time in creating your own strategy. This will help you internalize the market so that you can gain better confidence in addition to better returns.

The Unpredictable Condition of the Market

A market is often termed where transactions of buying and selling are conducted. In your place, you might have the actual market place where sellers are selling their products to any interested buyers that are in need of the product. The same goes to the forex market but the only difference is that there are no sales-talks that are involve where everything is setup automatically.

Traders are the participants of the forex market. They are the once responsible in buying and selling different types of currencies. It sounds like an easy job but the truth is, it's highly complicated that you might end up with your own conclusion that profit can only be gained by luck.

A lot of individuals had tried to predict the unpredictable behavior of the market but failed. After losing a large amount of money, they often claim that forex trading is a scam and swears never to come back into this type of business again. It only proves that the survey conducted regarding about the number of successful traders from the unsuccessful once is true. The result of the survey makes a total of 99 percent individuals who are failures on this business while the remaining 1 percent are the only profitable traders.

What makes the market unpredictable?

It is natural that you cannot foresee its future direction unless that you have the psychic ability to see through time. There are actually a lot of things that are unpredictable in nature such as when are you going to the toilet, when are you going to cut your hair and etc... A trader who claims that he or she can predict the market's direction is an over-statement.

The market only moves in two different directions which is either up or down. Through these movements, trends are formed which are commonly used by traders for their analysis. It is by human nature that we tend to follow what the others are doing. Thus, when a lot of people are making buys then you should also buy and the same goes to selling.

Moreover, the most important part to remember is "Don't be Greedy". Always put a range between your Target Profit and Stop Loss to minimize the number of your trades since there will always be another day.

Trading the Forex Market is Very Hard

Who says that trading the forex market is easy?

If you are going to browse around the internet and check those ads around any forex related website then you will encounter some of them stating that trading is easy. Some even claim to be very easy but provided that you are going to buy their secret products. Such products could cost an expensive amount since it brings promising results.

Before deciding on buying any of these enticing products, it is highly advised that you need to conduct your own investigation about them whether they are one-hundred percent working or not. The best source to conduct your researches is browse them on forums. If there are a lot of members who claims that it is profitable and it's really working for them then read through the whole thread. Perhaps you may even participate by asking your own questions that are not yet answered.

Most products come in the form of a Strategy or Automated Trading Robots. If you are purchasing a manually strategy-based product then you must have at least some knowledge about how to trade. You know how to manipulate those tools from your broker's trading platform and make adjustments on their settings. In short, its not recommended for the newbies. Anyway, noobs or beginners can purchase Automated Trading Robots which will do the trick to gain profit automatically without exerting any effort of analyzing the condition of the market. However, there are rumors that such automated programs doesn't work in the long run where it will lead to failure at some certain point which might even cause depletion of your account balance.

Therefore, trading the forex market is not easy where it requires a lot of dedication and work. You need to invest a lot of your time educating yourself and gaining experience until you have your own clearly defined strategy to be profitable.

Hammer - Reversal Signal for Downtrend Condition

Have you ever handled a hammer?

If not then this is a simple tool used by the carpenters to put nails into the wooden surface. Anyway, the relationship with the Candlestick Pattern which is also known as "Hammer" is their appearance. As for those who are completely clueless of how does a hammer looks like then I suggest searching for its images on Google Search Engine.

This type of Candlestick Pattern can only be found on a downtrend condition of the market. Hammer can be easily identified by it's small sized body with a long wick or shadow which is twice or longer than its real body. As for the color, it can either be bullish or bearish.

Take note that when you are able to encounter this type of candlestick especially on a downtrend situation, it is advisable not to make any rush decision since it requires more additional candles for confirmation. What we need is a "Close above the Close". This means that we need an additional two succeeding candles and they must close above each other closing prices.

You might experience in some certain situation that the trend reverses at an early stage without patiently waiting for the two confirmation candles. There is an explanation about such occurrences where you need to zoom at a closer time-frame. If you have already acquired some knowledge and experience then you will most likely be able to determine the exact period to setup your orders.

Trading alone simply with the use of a candlestick can be very plain and simple but it's too complicated especially for the beginners. To provide more probability on guiding your decisions, it is suggested that you make use of other tools as your secondary method for confirmation.

Morning Star - Bullish Reversal Signal

The life of being a Forex Trader can be very boring and the worst part is it's very exhausting or stressful. If you intend to become a Trader, you must have the determination to succeed or you will simply end-up losing a lot of money. Read through various Books and participate of Forum Communities. I'm sure that you will have a good start and minimize the risk of losing huge amount of your capital.

I have been previously discussing about Candlestick Patterns which is one of the basic and important aspect that every Trader should try to learn and fully understand. On this post, we are going to deal with the Morning Star. This is a type of Candlestick Pattern that provides you an early signal for the Bullish Reversal.

The Morning Star Candlestick Pattern composes of three candles. The first candle should be tall composing of a bearish Real Body. The second one can either have a Bearish or Bullish body that gaps below the first candle. The third candle must have a Bullish body that closes at least 50 percent from the body of the first previous candle.

On some information that you may come across, they may say that there must be a gap between the candles. However, it is still considered as valid even there is no gap because intraday Forex candles doesn't always make a gap. You may still count them as a Morning Star.

The Tweezer Top and Bottom

This type of Candlestick Pattern may come in various different ways and it is very important that you need to know about them. Let's start with the Tweezer Bottom. This type of Candle Pattern composes of two or more candlesticks that exactly have the same matching bottoms. The bottom levels can be composed of Real Bodies, Wicks/Shadows, and a Dojis.

Tweezer Bottom can be encountered on a Downtrend which provides a high possibility of reversal signal.

The Tweezer Top is the exact opposite of the above case. When the current trend of the market is up then it is most likely that you will encounter this type of Candlestick pattern especially on the near end of the move.

Being able to identify either a Tweezer Top or Bottom can be helpful on your part as a technical trader where it can provide you an early signal allowing you to perform the necessary actions. Below are some images that illustrates the various forms of Candlestick Patterns for both the Tweezer Top and Bottom;

First Case

Second Case

The Bullish and Bearish Engulfing Pattern

The Bullish and the Bearish Engulfing Patterns are the most popular type of candlestick signal because it can be easily identified from your chart. However, errors or mistakes often occurs if it has been interpreted in the wrong way. To make it clear especially for the newbies, please refer on the image sample below.

In the case of the Bullish Engulfing Pattern, you have to make sure that the market is on a downtrend situation. If you do not know how to define the current market trend then you need to learn "Line Plotting" which I will be discussing on some of my other post. The first signal that you need to look is a short term candle which indicates a downtrend. If it's a Doji then the higher would be the chances of reversal. The second candle must have a completed body denoting an uptrend and it must engulf the first previous candle. As for the wicks or shadows, simply disregard them.

For the Bearish Engulfing Pattern, it is the opposite of the above case. The trend must be on a clearly definable up trend and look for a short term candle or Doji. The second succeeding candle must engulf the first but the a stronger signal can be achieved when the second candle engulfs two or more of the previous candle's bodies.

The Spinning Top Reversal Signal

Have you ever played a spinning top during your childhood days? If you are then it only tells that you are already an old person. Anyway, this is a classic type of toy where you can spin it by pulling the string that has been winded around the top. It's really an interesting toy but I'm sure that most of the younger generations these days doesn't know how to play it.

With regards about Forex, the Spinning top is a positive indicator for trend reversal. It has been named after the toy since they do have some similarity in appearance. Just make use of your imagination and you will be able to form the image within your own mind.

The body of this type of Candlestick is small which means that the open and the close price are almost near at the same level. It can be encountered with any type of body color. Finally, you have to take note that seeing this type of candlestick on your chart means that the market has less direction to move.

The Spinning Top

The Gravestone Doji - Bearish

It sounds creepy since the term is related about death. Well you shouldn't because every body dies and someday you will soon have your own gravestone. Anyway, when we are talking about Forex, Gravestones refers to the type of Candlestick Doji that provides indications of possible reversal.

The previous post discussed which is all about the Dragonfly Doji is the complete opposite of this type of candlestick. Although, they do have the same type of body where the open and close are on exactly the same price. The tall wick shadow indicates a high possibility of bearish reversal.

This type of Candlestick is most commonly found on the top of an up-trend. Open-up your trading terminal and try to identify as many Gravestones Doji as you can. Treat it as your exercise for today and keep on practicing until you will be able to get a hung on it.

We have another type of Candlestick having the same purpose and it is the "Shooting Star". If it happens that you have encountered a Gravestones Doji and followed by a series of Shooting Stars then there's a very high possibility of bearish trend reversal.

Dragonfly Doji - Bullish

Have you ever seen a Dragonfly?

If not then they are some kind of insect that only comes out during the rainy season. They often fly around and it's quite hard to catch one of them. Catching them requires some great skill but anyway, just leave them free out-there since our primary focus is the type of Candlestick which is also referred as a "Dragonfly Doji".

If you have read the previous post which is all about Doji then this Dragonfly type of Candlestick has a close similarity. They don't have any Real Bodies but the level of the closing and opening price is near the top level.

In most cases, you will notice this type of Doji Candle at the bottom part of the trend. The long wick or shadow simply indicates that that a bullish reversal could occur at any given period of time. A similar issue goes with the "Hammer" but comparing the two, the Dragonfly Doji is more bullish than a Hammer.

Doji acting as Reversal Signal

I don't know where the name of this type of Candlestick came from but anyway the most important part is that we get to know how to make use of it. As the title states, it acts as a Reversal Signal which provides you the early warning of getting out of the trade.

Most strategies out there are composed of various sets of indicator tools where some can accurately predict the entry points. However, the problem comes on the part of determining the exit point. This is the reason why you need to learn how to read Candlestick patterns which will lead you into success.

To describe a Doji, it is a Candlestick that doesn't have any Real Body. The body is simply composed of short horizontal line. This means that the opening and closing price are almost exactly near at the same price. As for the body, the Bulls and Bears are on the balance of trying to overcome one another.

If you happen to see a Doji on your chart, this could be a Pending Reversal but you need to take caution since it could just be a false alarm. Thus, you need another set of confirmation candle before you make your final decision. A good example is when the current market trend is up, you need to wait for the next succeeding candle if it will end-up with a close just below the close of the Doji. If this happens to be the case then it means that the trend has changed.

The best tool for providing Entry and Exit points

Since I started trading the Forex market, I disregarded the use of Candlestick Patterns where I simply relied on those complicated moving average tools. I have been spending most of my available time reading and participating on various forum discussion asking for some tweaks and the best settings for my tool.

And the result of more than a year relying on such indicators is more on the negative side of failures.

I came to realize that the market behaves in such different ways which makes the tool fail in the long-run. It still works but provided that you need to make some modifications all over again which can be very complicated for the newbies to learn and understand.

However, I came across one interesting thread on Babypips where the author of the strategy simply uses Candlesticks patterns as his only tool in trying to trade Forex. He has even provided a solid proof of his own success by demonstrating on a live-trade. His thread already composed of hundreds and nearly thousand of pages for the interested newbies to read. It's a tough challenge to read them all but the benefit would be great.

Again, there are several tools out there that can predict future price movements with some good accuracy but the problem lies on the part of trying to determine the Entry and Exit points. Take note that if you happen to enter your order late, there are chances that you will earn nothing and the worse case is that you will be paying for the spreads. The same goes with the Exit points where you do not have the exact level of taking your profits. There are chances that if you wait long enough, the price could suddenly fall-back where you end-up earning less. Or the opposite will happen where after you have decided to take your profit, the market trends more further as you have never expected.

The answer to all of this situation is the use of the Candlestick Pattern since it allows you to determine the exact Entry and Exit Points. It will become even more powerful if you are to combined it with your other set of indicator tools.

The Power of the Candlestick Pattern

The Reason why Candlesticks are Reliable on all Time Frames

If you are already familiar about some of the Candlestick patterns then you might have already noticed that there are some of them that are rarely seen especially on the intraday trading period. The reason is that they require a gap between the close and the opening price.

You can check such instances by referring into your trading platform and checking the exact intraday period of the day. You will most likely notice that the Open price does not equal the closing price of the next succeeding candle. Anyway, this can be resolved by using the so called "Poetic License" which will be discussed on another topic.

Moreover, there are hundreds of Candlestick patterns out there that you can use as reference to guide you on the future direction of the market. Some of the most commonly used candle stick patterns are the Morning Stars, Evening Stars, Haramis, Shooting Star, Spinning Top and so on...

The good part about making use of a Candlestick Pattern is that it can be used on all Time Frames. You do not need to make any adjustments as compared with the other tools such as the Moving Averages, MACD or any other tools that requires modifications on its settings.

Moving Average and MACD

More about the Bar Charts

I have just previously discussed about the Japanese Candlesticks and on this post, we are going to deal with the Bar charts. 

Open-up your trading platform and select the Bar Chart which are most commonly found on the top navigation. 

I'm currently using the Meta Trader Platform since it's still the best trading terminal that you can easily gain access for free and it has hundreds and thousands of available tools. 

If you are having some trouble looking for the right tool then I suggest asking them on any Forex Community forums.

The same as the Japanese CandleStick, the Bar Chart is another form of graphical representation of the market prices. You will notice that it composes of a vertical bar as the body. 

The opening price of the market is indicated by the horizontal line which is on the left side while the closing price is on the opposite. 

I find it a little bit confusing where you need to take a closer look by using the "Zoom" function.

Depending on the type of strategy that you use, you have the capability to apply Bar chart on any Time Frame that you choose. 

The most commonly used time interval is the 1 hour period for the Scalpers while Daily or higher for the Day Traders. 

The most important part is that you are able to obtain the real time prices of the market.

Below is an image of how a Bar Chart looks like. I've taken it from my Meta Trader terminal with a black background. You can customize the colors of your chart which is another good part of using the MT4 terminal.

Bar Chart on Meta Trader 4

This next image is a closer view of a single Bar with identified parts.

The top and bottom edge of the vertical bar indicates the Highest and Lowest price attained by the market. Those two short Horizontal lines determines the Open and Close price.

The use of this type of chart depends on the trader. If you find Bar Charts a lot more simpler and easier for you to understand and identify the trends then you should keep on using it. 

Although, the majority of traders these days now prefer the use of the Candlesticks.

Forex Tools and Computer Requirements

If you have just recently encountered Forex as one of the best online investment that could provide you huge profit in return then there are a few requirements that you need to know about regarding the tools that are to be used and the capability of your computer.

Let’s start with the discussion about the software tools.

After you have found a reliable FX Broker they are going to provide you their Deal Station software. This is also known as the “Trade Station” or “Trading Terminal”. 

The use of this software allows you to have an access with the currency pairs and place your trades. 

Other details are also provided such as the Dealing Rates, Open Trades, Entry Orders, Account Balance, News and etc… The more information that they could provide means the better.

Most Deal Stations offers you the charting platform and the most popular among them is the Meta Trader 4 or more commonly known as the “MT4” for short. 

You can download this Trading Terminal for free and it is popularly shared on most Forex related websites.

The Charting Platform of your Trade Station should consist of various sets of technical indicator tools and provides you multiple different time frames. 

The most common time frames used are the 1, 5, 10, 15, 30, minutes, 1 hour, 4 hour, Daily, Weekly and Monthly. 

Take note that some traders will only use a certain range of time frames to base their analysis and speculations.

The Computer Requirements

You won’t be able to perform your trading activity if you do not have your own personal computer and it is a must requirement. 

Anyway, your computer should be fast with a processor of Pentium 3 or higher. Lower than what is mentioned here will still allow you to install and use the Trading Terminal but you will be experiencing lags and delays on placing your trades.

The minimum required RAM should be 256 Mb but there are still some instances where your computer goes slow and these are due to some malicious files that might have infected the system. 

Therefore, it is recommended to increase your computer’s RAM to avoid such problem.

Having huge or dual type of monitor screen is just optional where an ordinary type works just fine. 

However, the use of huge screen or dual monitors provides you an additional advantage on trying to keep an eye on your multiple charts.

Fast internet connection is also recommended where you have to subscribe on those Broadband or ADSL services. 

Dial-up connections might also be good but there are some situations where the connection goes unstable.

You should only use those Windows Operating systems such as the Windows 2000, XP, 7 and etc… because most of the software offered only works on this OS.

Moreover, if you have not yet found any Forex broker that you wish to invest your capital then there are a few important things that you should need to consider. 

Honesty and Reliability are the two most important factors that you need to know about. The forums and blogs are the good places to check the reputation of the Broker that you intend to join. 

Try and ask those individuals who are using their services whether they are fully satisfied or disappointed.

Meta Trader Email Settings

The Security of your information must not be shared from any third parties of your Broker. 

If they do, you will be surprised to receive an email-spam and you might even receive anonymous calls offering you their products.

Accurate Order Execution is very important because every pips count. You can check the accuracy of any broker’s Order Execution with their Demo or Virtual Account.

Marketiva Platform Review

Most forex traders are already aware about the existence of Marketiva where it offers attractive features and services. 

You can even start trading the market for free by simply registering an account. Take note that creating multiple accounts is strictly prohibited and it must be avoided.

One of the best features of Marketiva is their Customer Support that actively answers all related concerns and issues about their trading platform. 

You can contact them through the Chat-Box where you will receive an immediate reply. Some delay can be experienced if there are too many inquiries but this rarely happens.

The bonus for successfully creating an account is worth $5 dollars. 

They might change this amount to increase more traders’ interest to join but I think that this will never going to happen as they already accumulated huge numbers of traders. 

You can freely use your bonus to trade Live but you are not allowed to withdraw this cash unless you have managed to triple the amount.

Other requirements before you are allowed to withdraw your earnings are scanned copy of your valid ID (Identification Card) and any Proof of Billing containing your name and current address. 

You have to send these documents for confirmation on Marketiva’s official website under the Account Center. It might take a few days before your documents are checked but normally it takes around two to three days period.

Marketiva’s platform is known as the “Streamster”. 

Its file size is 524 KB where it simply takes slight seconds to be downloaded. After completing the download, you have to install the program on your Operating System. 

Take note that Streamster will only work on Windows 98/ XP/ ME/ 2000/ 7 and Vista. To all MAC or Linux users, it’s too sad to that they are not currently support.

The trading platform offers two types of an account which are the Demo and Real Account. The Demo account provides you a default amount of $10,000 dollars that you can use for practice purposes. 

If you have lost this entire amount then you can contact the service support to reset the amount. The Real account contains your investment or deposited money. Your $5 dollar bonus is automatically added on this account.

Meta Trader Virtual Account

Streamster currently supports 20 different currencies with spreads that ranges from 2 and above. There might be changes on this part as they conduct upgrades to further improve their services.

Gaining profit on trading the Forex market can be easily done provided that you have good knowledge and strategy. 

This will allow you to withdraw your profit or simply re-invest to increase your capital. Anyway, you can withdraw your earnings on Marketiva through e-dinar, Liberty Reserve, Web Money and Wire Transfer.

Trading the Breakouts with great Success

There are currently hundreds of available trading methods out there that it will surely take you years of trying and defining what works best for you. 

Most strategies are the technical or mechanical type of trading style where the aim is to simply buy at the lowest price and sell at the highest price of the current market. 

The reason is that the behavior of the market often goes for a trend and comes back at the normal price level.

Some traders especially newbie think that they can make money by simply predicting the direction of the trend. Predictions offer a huge risk and often lead into a complete failure and lose of an account.

One of the best method that guarantee your success in trading the Forex market is to trade only on a high odds where there is a good confirmation of the trend’s direction. 

Try and observe your trading chart. You will notice that the bullish trend always starts in the same manner especially when it breaks through overhead resistance. 

Sometimes it even moves further making a new high and it’s the reason why it’s best to make a buy on breakouts.

Defining for buying at the right breakouts can be done with the help of your resistance levels. 

If the resistance has been tested several times in the past and held before the break then there is a high probability that a bullish trend continuation will mostly likely going to occur.

A six or more tests are already good enough to confirm the strong level of the resistance. The wider the gap of the tests in terms of time provides the best odds for the breakout to continue.

The Bolinger Band Breakout

Trading the Breakouts offers a very high reward and with a very low risk of losses because the stop loss is always close or near the level of resistance. 

If you managed to hit the high odds of a certain breakout then your profit can tremendously increase depending on how far the range of the market will trend.

You may simply choose just to trade on the break of resistance levels but you can also choose to use other tools such as momentum oscillators to further confirm the best signal that you wish to take.

Forex Trading Course

Most new traders tends to use Mechanical or Technical Forex trading system while others are undergoing courses offered by any professional gurus. 

There is no wrong option between the two where they can both lead into a trading success as long as you are comfortable. 

Anyway, the focus of this topic is about learning Forex Trading in a more detailed discussion.

It is always emphasized that Forex Trading is a risky business where almost 95% of all traders lose their money and this should serve as a warning for those who wish to be involve on this line of work. 

Anyway, there is no type of investment that doesn’t involve risks if such exist then everyone could become a millionaire for a life time. 

Buying a system on the market does not guarantee you to make profit especially when you are using it the wrong way. 

You will simply lose your money and the sure winner of the game is the vendor who made an income from selling his so called profitable trading robot.

Learning is the best way to go if you wish to achieve success in trading the Foreign exchange market. 

It would really require some effort of learning all the basics and putting all the knowledge that you have acquired into practice. 

The good part is that you will be able to generate money with a high probability of success. You can almost learn everything online by searching through your favorite search engine. 

There are several informative website and blogs out there (like this one) that you can always browse and read the contents as your references or even participate on a Forum Communities. 

If you are still having some trouble trying to understand the basic concept of trading the market then you can enroll to any online Forex Courses.

A Professional Trader will be your teacher on the course that you have chosen to enroll. He will be teaching everything about his system and to share his successful experience. 

The strategies and tools are also provided by your teacher which is used to make profits. 

Before everything starts-up, the logic and strategies are well explained to let you have some confidence on your trades. 

To prove that the system being taught works you will be able to check or trade at the same time with your instructor and it’s up for you whether to keep on learning the method or not.

There are several courses offered today and the best once are those that you can try them risk free for a period of one or two months. 

If you are not satisfied of what it is being taught on the course or simply cannot follow the concept then you can always withdraw and get your full money back.

The MetaTrader User Guide

If you do not have the money to spend on such courses then you can always rely on any forum community. 

As for your trading platform, you can learn every function by simply referring to its User Guide.