innerFX (How I Trade)

innerFX is one of the leading authority on FX Trading. He is an independent trader, and has been trading currencies for the past 8 years. To my delight, he has written an article on how he trades the forex market. Well, that guy has been doing it full time for 8 years. He has to be good, right? 

So spend some time to read through this article at innerFX!

THE PATH OF A SUCCESSFUL FX TRADER

Inspirational Speaker - Les Brown (Part 1)

Confessions of a Trader

Just bear with me for this one. Sometimes it's tough to be completely honest with yourself, but it's important that you do. Otherwise, you will never improve.


At the moment, I'm sitting on losses in my EUR/USD trade. Even though I was in profit at one point, it wouldn't have meant much even if I won the trade. Because I would have won it the wrong way. Better to lose the right way, than to win it the wrong way.


Mistake 1: Choosing to see what I wanted to see


For example, take a look at EUR/USD. The "M Formation" doesn't qualify because there are too many peaks within the "M". But I chose to view it as a "M" so that I could quickly make back my losses in CHF/JPY. Moving forward, I will leave my trade on until I get stopped out.


Mistake 2: Adding on another position without planning for it beforehand


Yes, it was an impulse adding of position, and at the worse possible price. I added a short almost at the lowest point: 1.42628


Lessons learnt: Be objective and stay out of the market if I'm emotional after losing a trade.

Dukascopy FX Trading Competition

 
You may be interested to know that Dukascopy has been running a monthly FX trading competition. You can find the website here.  You will be trading on a Demo account in this competition, and attractive prizes are up for grabs.With high returns and absolutely no risk involved, why wouldn't you give it a shot?

The registration for July Contest is now open! 

See you on the other side!