Forex Trading How to Loose Your Shirt

Forex trading is a fast-moving, exciting way to make a lot of money, but it's also the easiest way I know to lose your shirt!

Follow these few simple tips to make sure you suffer big losses trading the Forex.

The first thing you must do is make sure you do not spend any time at all studying the basics of Forex trading, even though this information is readily available you must make sure you completely ignore it.

It is possible to sign up for a free practice account with most Forex brokerages but rather than making virtual currency trades and learning how to do things without risking real money, if you want to lose your shirt it's best to start right at the beginning using your own funds, because that way you will know what it feels like to really lose money.

Even though it is possible to receive news feeds or be alerted about items that could affect the currencies you are trading you shouldn't do this, it's best not to let up-to-date news affect your thinking if you want to lose money big time.

You should also make sure you completely ignore the Forex trader’s forums that are available on the web. The fact that it is possible to pick up helpful tips and information on trends affecting the currency markets is of no interest to you, you know what you want to trade and you're not going to be influenced by the opinions of others.

It's best if you completely ignore any advice from the Federal Trade Commission even though they do provide information about the various frauds that could get you. The fact that the Federal Trade Commission is responsible for monitoring Forex trading is of no interest to you what so ever.

Some people suggest that when you first start trading it's best to only use small amounts of money that you do not require for any other purpose, now this of course is absolutely stupid, how can you make big money if you don't trade with large amounts? It's best to get involved right from day one trading large amounts of money.

When it comes to selecting a Forex broker don't pay any attention to other people's recommendations just go with your own gut feeling probably the one with the flashiest web site will be the right one for you.

Definitely don't bother having any trading strategy and on no account must you use stop loss positions, just go with your gut feeling and you're probably be right.

If on the other hand you'd rather make some steady profits from your Forex trading you might just try doing the reverse of all the above tips.

Forex Trend Following - the Art of Trend Following For Mega Profits

Forex trend following offers you the opportunity to lock into the trends that can make triple digit profits but while it looks easy, its not and you wouldn't expect it to be with the rewards on offer but if you can master it, then you can enjoy spectacular success and this article is designed to show you how to do it...

Look at any forex chart and you will see trends which last for weeks, months or years and if you can lock into them, you can make triple digit profits and here are some tips on how to do just that.

First - Be patient!

The big high odds trends only come around infrequently you can't force them so wait for them. I know traders who only trade a few times per year per currency yet, pile up triple digit gains.

Don't be in a hurry wait for the right opportunities and these will normally come from breakouts to new chart highs or lows.

Most big trending moves start from these so you need to go with them and the more valid the breakout is, the bigger the chances of a continuation of the trend will be.

Spotting Trend Direction is Easy - Making Profits from the Trend is Harder

It's easy to spot a long term trend and many traders are right about trend direction but simply can't make any money from them - Why?

There are problems normally with money management as well as psychologically.

In terms of money management, you MUST have a stop outside of normal volatility, or you will get bumped out the trade -- only to see the market stop you out and then go back the way you thought!

This is not normally a problem when you enter the trade - but when you trail your stop.

Fact is most traders pull their stops up to tight and again get bumped out by volatility when you must hold it back outside of volatility. Sure you give a bit back at the end of the trend but that shouldn't bother you. If you caught 50% of every major trend, you would make a killing from the markets.

Hold you stop back and trail it slowly.

You will find that this may look more risky but it's actually less risky and will give you a bigger reward.

The other problem with traders is psychologically they cannot accept huge profits, even when the market wants to give them to them!

A typical example is a trader gets in on a trend and makes a profit but the bigger the profit becomes the more he wants to take it before it gets way.

As the profit gets bigger and bigger and the volatility eats into open equity, the more the trader wants to take it until in the end he snatches the profit or bumps his stop right up. Sure he gets out with a small profit but most big trends last a long time and instead of having a spectacular profit, he has a small one.

Understand This!

In forex trading your aim is to make money, not seek perfection with market timing. You can't do it and you cannot buy or sell market bottoms and tops so don't try.

You have to understand if you want to bank a big profit from the major trends you are going to have to give back a bit at the end and have open equity dips, along the way. That's just the nature of forex trading.

If you can trade with discipline and be patient, then long term forex trend following offers you spectacular profits and all you have to do is - accept the profits the market wants to give you.

This may sound simple - but requires iron discipline.

Master the art of forex trend following though and you could get rich!