Forex Tips

Forex Tips

 Forex > Forex Tips

When the conversation turns to forex tips, everyone is sure to have an opinion. Different commentators and prognosticators have their favorite currency pairs to play, or may offer viewpoints on more general matters, such as the direction of the U.S. dollar.

Many times, though, forex tips amount to little more than mere opinions. That is why, when you do get a chance to hear a concrete forex tip that has value, it’s best to seize upon that opportunity and fully internalize the information you are encountering.

There are insightful forex tips available for:

• Short-term trading
• Trading particular currency pairs
• Trading the latest forex news
• Trading the crosses
• Forex trading full-time

When you are searching for tips about how to make money trading the foreign currency markets, you will definitely want to spend time evaluating the quality of the information you are being given. There is some real nonsense out there floating about.

At the same time, some forex tips can make you a lot of money.

Specific, Actionable Forex Tips

The first category of forex tips would be specific, actionable tips. For example, the call by ForexCurrencyPro.com in early 2010 to go long USD/JPY was a tip in the same sense that you might get a tip on a horse, at the racetrack.

This kind of FX advice is specifically tailored to be acted upon—that is, you would theoretically buy or sell a particular currency pair based on the forex tip that you received. There are various companies and individuals that offer this brand of forex tip.

When you are actually trading real money based on what you hear from someone else, of course it’s vital to assess the validity of the source. Typically, forex prediction specialists allow you to view their trading accounts to prove the worth of their buy or sell calls.

Especially if you’re planning to pay for FX trading tips, be careful to heed the old axiom, “Trust, but verify.” You won’t want to pay for someone else’s erroneous advice.

One source that we enjoy and trust is Dr. Sivaraman over at www.i-knowindices.com. Dr. Sivaraman’s conscientious and research-intensive approach is something that other forex predictors would be well-served to emulate.

Generalized Forex Tips That Help You Become a Better Trader

When you first start out trading currencies, the temptation may be to always be seeking the next hot tip about which currency pair is headed up or down. Sometimes, though, the best forex tips are more like general advice that a teacher might give to a student.

FX tips can help you learn how to:

• Read forex charts
• Trade directly from forex charts
• Trade during economic news events
• Avoid margin calls
• Manage your money

For example, one forex tip that we found helpful early on was what a “doji” means on a candlestick chart. A doji is a candlestick that looks like a cross—this indicates that the currency pair finished the time period without changing price at all.

If you see a doji on a chart that has seen a strong trend over recent times, you must be on the lookout for a potential reversal in the trend. A doji shows indecision among traders as to what the price should be. From this point, the market could break either way.

It’s kind of like the old parable about the difference between giving a man a fish versus teaching a man to fish. Not every tip has to make you money now in order to be valuable. If you can absorb enough quality advice from enough successful forex pros, you will become a better FX trader. In the end, this process will help you make money.

Ultimately, the best way to ensure FX trading success is to achieve a high level of mastery. Listening and taking note of forex tips can help you do just that.

The Forex Tips You Give Yourself

Not to be underestimated, too, is the reality that you must be teaching yourself, learning from your own experiences, if you are to become a true forex pro and perform successful forex trading at eToro USA or other online brokers.

Into this category would fall the notion of learning from your own mistakes.

If you keep a trading journal, for instance, writing down why you bought X currency pair, when, and for how much, and then what happened, you can gain control of your trading, as opposed to exclusively relying on other people’s perceptions to form your views.

Obviously, expert opinions have value. But the best FX traders usually have a pretty pronounced independent streak and a good ability to think for themselves.

Putting It All Together Is the Hard Part

If you’re in the forex information-gathering stage, it can be confusing when you have 100 forex tips that you’ve collected, and no way to organize them. Therefore, it’s a smart idea to spend time looking at the bigger picture, trying to put the pieces together.

To help you keep your thoughts clear, and not let those valuable forex tips get away, you may want to organize the best forex tips you find into different categories.

For example:

• Forex chart tips
• Advice for particular currency pairs
• Economic data

With a subject as full of information as forex trading, any steps you can take to keep different thoughts in different boxes can be considered a positive. Especially when you are in the heat of the moment executing trades, it’s difficult to locate important bits of forex advice without a system of categorization.

Even if you don’t formalize such a system, the act of trying to put together what you learn into a coherent overall vision of your FX trading strategy can help you understand the forex markets better, as well as your own role in those markets.

Two things it is very important to understand as fully as possible.

Important Forex Information

The most important step in currency trading is finding the right broker; our forex experts can help. See our
reviews of forex brokers for more information.  

Contrary to what you might think, a margin call in the forex markets can be a very, very good thing. Get tips on
forex margin calls.  

Avoid exiting currency positions manually rather than setting a stop-loss order that automatically triggers a sale. Read about
the problem with manual exits.  

You can capitalize on fear if you can see it. Through the use of forex charts and technical analysis, you can see this fear taking hold. Learn to turn fear into forex profit.