Dwayne Buzzell, Author at HowTheMarketWorks Education Center

Learn to trade Forex in a conservative manner

Dwayne Buzzell Guest Posts February 19, 2019

If you try to fly too fast in the trading business of Forex, there will not be a good performance. This is because the volatility in this market is very high compared to any kind of financial markets. The traders will have to maintain their performance to the most efficient level possible. As there can be a change in price trends at any particular moment, your trading process must be protective. Even the change can come at the time when there is trade running. For this kind of situations, the traders will have to design their business to handle the trades. There are some tools known as stop-loss and take-profit. They are very good with proper closing of the trades with a limit set based on pips. Traders will have to set them based on their profit targets. Like those, there will be a lot of good trading system in this business. All you will need to do is concentrate on the effective trading process. For that, traders will definitely have to remain down to earth.

Focus on your money management skills

Forex market does not need any kind of clever traders to make money from it. That does not mean that you can be overconfident about a proper performance. It is very hard for making a good trade and manage a proper risk to reward ratio. For that, the traders will have to learn about proper position sizing of the trades. Most importantly, proper market analysis needed for finding the right signals. Even the closing of the trades will have to get some protections. The tools we mentioned in the introduction are known as stop-loss and take-profit and will help trades with that. For all of these, the traders will have to select the right profit margin targets, first. It is like the traders are going to think about a decent risk to profit margins even before opening a trade. This system helps traders to maintain a consistent performance in the business.

Learn from the experienced traders

Being new to the retail trading industry, you have a lot to learn from the experienced trader. If you start using the copy trading mt4 service, you will understand how the pro-Aussie traders are making a consistent profit. Try to analyze their trades and develop a unique trading system. Use the demo account offered by Rakuten broker and build your confidence. Always remember, trading is nothing but a business where knowledge is the most powerful ingredient needed for you to become a successful trader.

Start your career in the demo trading account

Now all of the novice traders may have a basic idea of proper management of trades. But it is not so easy to learn about all of the process and strategies. If you think about learning them in the live trading account, there will be losses. This is because improper planning will make you lose the trades. From there, the traders will have the chances of refining their edge. From time to time, traders can reach a superior level of trading. But that must not make you lose a lot of money from the account. For that, the traders will have to select the demo trading process to learn about things. It is a system in which traders will not have to worry about losing their money. Because the investment in this sector of currency trading is fake. So, the losses will not affect the trader’s performance. You can learn about every single necessary process very easily and properly.

Learn properly about the right risk management

One thing has been forgotten in this article which is necessary for a better performance. We are talking about risk management. It is necessary for the traders to remain consistent in the performance for a trade. Basically, it reduces the tension of losing capital from the trades. You must maintain it all the time.

A balanced trading strategy is all about planning

Dwayne Buzzell Guest Posts February 19, 2019February 19, 2019

We are actually talking about the proper risk to profit margin ration. It is the one which is used for analyzing the trades. On one side, you will see the risk and the other side will define your return from the trades. That can be good for the traders to maintain some proper income. There can be another use of that feature. The trading system can get help from the right ratio. You will just have to target the amount of profit and fix the risk per trade for that. Basically, all of the traders will have to be with their own version of the risk to profit margin. As the volatile markets will not let anyone know about any certain signal, there will have to be some proper strategy which depends on the target. The traders will have to use that in the business of Forex for some proper income from it. In this article, we are going to talk about the proper working process on the basis of your own risk to profit margin ratio.

You can fulfill your targets from long term trades

The traders must know that way to maintain their business so that the proper income is possible. All of the traders will have to do the right things with their trades. If there is no good performance available for the traders, no income will come. But the marketplace will be a sweetheart for the traders to not let them lose money if the system is right. Or even a decent trading edge will have a proper income from the business. All you will have to do is choose the right timeframe for trading with. The bigger you can think of the timeframe, the proper it will be for good income. From the methods of trading into currency markets, the swing trading and the position trading process will be very good for the traders. They will help the traders to work with key swings in the process of the market analysis. Proper pips are also available on big time trades.

Avoid using indicators and EAs

Those who are relatively new to the investment industry might think the successful traders in Hong Kong are using an automated trading system. But in reality indicators and EAs has no place in the Forex market. You need to analyze the market sentiment to find profitable trades in favor of the market trend. Start working hard so that you can easily develop a balanced way to place trades with low-risk exposure.

The right position sizing will require proper targets

If you will not be able to make proper trades with right position sizing, the system will not let your money. This is because the trading business in Forex is all about managing the right signals for trades. Even when there is a huge lot for trading with, the volatility will not let the trades to bring back some proper income for you. In fact, the proper risk management will fail to make you right for trading and doing the right kind of performance for the income. That is why the traders will have to think about the right profit targets and work with it for proper position sizing. When there will be proper ones for your trades, there will be good income to make your smile for the business.

Risks management is a must for any kind of trader

Without the proper position sizing of the trades, there will have to be right risk management. Because the system will not let the traders be humble in the process. If you have tensions about losing your investment or random planning will come to you like overtrading or micromanagement. The right trading process will go in hell and take the trading account with it. So make the right choice for your money management plans and reduce the chance and tensions caused by the possibility of losing your capital.

How to justify your Forex trading performance?

Dwayne Buzzell Country-Specific Investing, Guest Posts October 9, 2018

Sometimes to get better in any profession you have to monitor your work. And it has to be judged by you before anyone else notice what and how you are doing work. Thus you can improve all of your working technique from time to time. This is a good and really effective strategy to improve yourself in any working sectors or any jobs. And the plus point is, no one will be able to judge you for poor performance. In the trading business, the system is the same. Here you can also use this method to improve yourself. Though there is no one to judge your performance, you will still experience the effect of poor performance. So, why not improve yourself before performing badly? Today we are going to show you how you can monitor if you are trading well or bad.

Comparing winning and losing trades

Trading is a business and it acts like a business. Here you make an investment in your trading account. Then you deal with your products here which is known as trades. You start to trade by buying or selling. Then after some time, you close the trade doing the opposite of what you did earlier. And based on the change in pips, you get to make profit and loss. So, if you can count how many winning trades there is in your account and compare them with your losing ones, it might describe your performance all by itself.

Learning from your mistakes

Mistakes can be very useful if you can learn from it. Open a demo trading account and start to trade the market with the virtual dollar. It’s very obvious you will make mistake but try to learn from it. Majority of the rookie traders are overtrading the market and losing a significant portion of their investment. But if you overtrade the market it will be really hard to learn from your mistake. You need to focus on the long-term market trend and write the down the details of each trade execution. Stop thinking about securing big winners in this market. Set rational goal and trade the market with discipline. Never think you will be able to change your life within a day. Consider trading as a long-term plan to change your life.

Using risk to profit ratio

Another thing that you can use for monitoring your performance is the risk to profit ratio. It is for monitoring the performance on a particular trades or all individual trades. It is represented something like 1:1. It is the ration of what you have invested and what you are getting from a trade. If you are investing too much than making returns the ratio would be like 2:1. Or if you are making losses the ration would be something like 1:-1. If you’re doing ideal the ration would be 1:2 or 1:3. Expert’s results in most trades remain from 1:2 to 1:5. Combining multiple trade’s ratios, you can estimate your performance in each trades.

Observing your own strategy

Without any tool or data, you can justify your trading performance just by monitoring your trading strategy. If you are playing too aggressive, you will be making more random trades. And sometimes, the trades will be simultaneous. Your chart observation will be very frequent too, as your brain might not want to miss any chance. Worse than that, you will start micro-managing every plan of yours before trading. Then after opening a trade, you will start thinking about it. When you are worried about money, it won’t get out of your hard. Even after you have closed the trade, it can haunt you with emotional problems. As a result, you will again start getting too busy with your trading. But that is not the most appropriate thing for doing well in this business. If you can relax your senses, it will be the best for your career.

Can You Get Rich Through Forex Trading?

Dwayne Buzzell Advanced, Guest Posts July 20, 2018

That is one of the leading questions anyone considering forex trading asks. The simple answer is yes you can, but the reality is that it depends. The best way to enumerate this is to start with an example. George Soros, worth an estimated 8 billion US dollars, made his money through investing. He is known as the man who broke the bank of England because, in 1992, he took a short position against the pound and made a profit of 1 billion dollars when the UK withdrew from the ERM. There are other examples to consider, such as Andrew Krieger and Stanley Druckenmiller. Clearly, there is money in forex exchange. However, there is a reason why when you Google people who became millionaires via forex trading only these few names come up. The reason is that it takes more than luck or a casual knowledge of the forex exchange market to make it big. Instead, it takes time, commitment, and willingness to fail and learn from failure. George Soros, for instance, studied at the London School of Economics and followed that up by working in various banks. It then took him more than ten years after starting his first hedge fund to make that 1-billion-dollar profit. He took his time, learned what he needed to learn and eventually it paid off. Therefore, wherever you are trading from, forex exchange the United States, India or forex trading Australia, the principals that govern success in the forex trading are similar. Here are three of them.

Start Small

The continuous piece of advice every experienced trader gives is that everyone ought to recognize that forex trading is not a shortcut to immediate wealth. While there are people who are lucky enough to make it big with their first trade, for 99% of traders, it takes time. It does not matter how skilled you may be, always start small. The best place to start is with a demo account. Find a good broker, and there are many available such as Rakuten broker and open a demo account. Practice until you feel you have learned enough then move on to live trading. Once you start live trading, do not immediately begin trading 300,000 dollars on a 10,000 dollars’ account. Chances are, you will probably lose 20% of your account in a matter of weeks. Always start small and increase your leverage with time. That is the foundation of making it big in forex trading.

Commit Yourself to Learning More

Everyone is a total of what they know, and it is what you know about forex trading that will determine how successful you are. The thing about forex trading is that it is not constant, it changes every single day. The factors that affect the falling and rising of a particular currency are continually shifting. As a result, it is necessary that you commit yourself to learning more, and to keeping up with the changing industry if you are to remain competitive. At the moment, traders who initially embraced cryptocurrencies and machine learning are raking in money merely because they noticed an oncoming change and were quick to adapt and learn. The trick to forex trading success is always to be open to learning more. Never stop learning.

Do Your Research and Take Advantage of the Tools Available

In the current age, there are countless tools to help a trader. The trick is in identifying which device is right for you. It could be SSI, a tool that tells you the traders who are short vs. those who are long on a specific currency pair. The tool could also be copy trading or social trading; a tool that allows you to learn from and copy more experienced traders. In essence, the tools available are too many to list. Therefore, do adequate research, combine that with what you have learned and pick a tool you are convinced will make you a better trader.

Final Word

Remember also; your broker plays a vital role in your success as a trader. Rakuten Securities, for instance, or any other trusted broker who will partner with you to ensure the best possible environment for a successful trading career.

How to discipline your trading mindset

Dwayne Buzzell Advanced, Guest Posts July 19, 2018

You would have heard about discipline. In fact, disciplined behavior must be something that you have previously encountered. But what about a disciplined trading mindset? Have you heard of it? It’s okay if you haven’t. We will make it clear for you! The market for foreign currency exchange is not as it’s painted by the trading platform developers and some scam brokers. They paint the market as if it doesn’t involve losses, but rather only generates gains. They paint it as if it is easy to be a trader and you wouldn’t need anything much. Of course, you don’t need anything much compared to other careers but still, there are certain unique demands for the foreign currency exchange market that are required. They paint a picture-perfect market, but it is not true. Even the Forex market has a few flaws. There’s nothing perfect in this world. Everything would be flawed if you look deep enough into it. However, the picture-perfect imagination impacts traders heavily. They easily get effected by such marketing tricks. Read this article to get the clear and true picture of the market. What does that have to do with having a disciplined trading mindset? Well, there are a lot of things that you can do if you have the right mindset. You will find it below!

Identify the mistake

Making mistakes can be great, effective way to learn new things. In fact, all the senior traders bring positive change to their trading strategy by assessing their mistakes. As a full-time trader, you need to write down the details of each trade setup so that you can assess it during the weekend. This will help you to pinpoint the key problems with your strategy within a very short period of time. Once you know the problem, you will be able to work out how you can use the demo accounts to fix the issues.

Put the trust in yourself

There are many traders who easily lose faith in themselves. Why does it happen? Why is it common among newcomers? Unless a person trusts himself or herself he or she wouldn’t be able to continue their journey. This doesn’t apply only to Forex trading but also to everything else in life. Even to complete a degree or any other educational course, you should believe that you can. You should not do it just because someone asked you to. So, this is all about trading mindset and the connection it has with you having confidence in yourself. If you trust yourself you would listen to your trading instincts. On the other hand, if you don’t trust yourself you would always have doubts about your decisions. A trader should not exhibit this type of behaviors. So, you should discipline your trading mindset. How do you do that though? It is pretty simple! You have to believe in yourself. To be honest, most traders don’t trust themselves which is why the success rate is very low in trading. You are the main reason for your success, you should trust yourself to do it.

Focus on smaller changes

You don’t have to work monotonously. Even your trading journey doesn’t have monotonous. If you want to improve your trading experience and behaviors you should add a few changes at a time. You should focus on the smaller changes. Some traders prefer not to change but sometimes change can be positive. You should make your mindset to accept the changes that you make if not it would be impossible to gain profits. For example, finding a new trading method. Or finding a new strategy.

Think out of bounds

If you are in the foreign currency exchange market, you are not bound by any rules. You can create rules and break rules. But don’t break rules without having a valid reason to do so. You are on your own your trading journey, so why not try to think outside of the box? Most traders work according to the way that has been mentioned in whatever material they have read. But this might limit your success. So go beyond the bounds of convention, and the sky is the limit.

Three key strategies you need to know as a currency trader

Dwayne Buzzell Advanced, Guest Posts July 19, 2018

Everyone wants to lead their dream life. People wake up very early in the morning thinking about how to can secure their financial freedom. Due to the global economic crisis, finding the perfect job has become extremely hard. Even if you manage to have the right position in the top tier of a company, the chances are that you will become a victim of professional politics in the working environment. So what do you need to do to live your dream life? This is where the term Forex trading comes into action. If you can master the art of currency trading, you can easily use a high leverage trading account to make a huge profit from this market. But things are not so easy. You have to learn the details to find the best trades. In today’s article, we will highlight three important strategies you need to know as a trader.

Price action trading strategy

Price action trading strategy is extremely popular among the professional traders. It allows them to trade the key levels of the market with an excellent level of accuracy. Some of you might think about mastering the art of price action trading is nearly impossible, since you will have to memorize different candlestick pattern. But if you can understand the psychological reason behind the formations of such candlestick patterns you can easily improve your chances of winning trades. Those who are looking to make a quick profit from this market will have to face extensive losses even after using price action system. You need to trade the market in a stress-free environment and focus on the long-term trend. Try to do the multiple time frame analysis and wait for the confirmation signal to place your order. Never rely on your emotions as they will likely lead you to overtrade the market.

Chart pattern trading strategy

Chart pattern trading is often considered the most advanced form of trading strategy. In fact, this is one of the most effective ways to execute a long-term trade in your online trading account. During the event of the high impact news release, the market becomes extremely volatile and it becomes nearly impossible to find the best trades. But this doesn’t mean the professional traders are not taking advantage of the highly volatile market. They are simply using the different chart pattern to ride the long-term trend. Most of the time the price tends to break a major support and resistance level after the news is released. So there is no point in placing trade prior to the scheduled news event as it will increase the risk factors dramatically.

Simple trend line trading strategy

Though the trend line trading system is extremely simple the professional traders often consider it as the most effective way to make money. First of all, you need to identify the trend in the higher time frame. Those who try to ride the trend in the lower time frame are the ultimate losers. However, there are some scalpers making a huge profit by trading the minor trends. As a new trader, your prime focus should be on the daily time frame since it will give you an overall picture of the market. If possible try to use your price action and chart pattern trading know-how to find the best trades. Some of you might even use the Fibonacci retracement tools to find the strong levels of the market. When you do use the Fibonacci retracement tools, make sure you are using the correct time frame and key swings of the market. So far you have read about the most important strategies in the retail trading industry. If you can master these three simple strategies you will be able to trade like the pro trader. So learn this three point system very carefully in order to execute the best trades in this dynamic market.