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Best Forex Trading Posts of March 2010

The Rapid Forex Blog had 51 posts in March, 2010. This is virtually the equivalent of an entire “Forex for Dummies” style book, that rapid forex blog readers received for free. With all that great online forex trading information, there were some amazingly exceptional posts.

Based on number of comments, views, & my own favorites, I’ve ranked the rapid forex blog posts for March 2010 and listed the 10 BEST forex trading posts online for March 2010.

If you haven’t read these posts, you should read them now:

1. Rapid Forex Supreme Package Re-Release Announced – When I announced that I would re-release the Rapid Forex Supreme Trader Package as a multimedia webinar, this was HOT news for the online forex trading industry. This post has been viewed the most times and has the most comments on the entire rapid forex blog.
2. 5 Tips for Picking the Best Online Forex Broker – everyone who wants to engage in online forex trading needs to pick a forex broker. This post helps you decide which forex broker you would like to choose as well as my top 5 favorite forex broker picks.
3. Rapid Forex Scam Watch Gets Your Money Back – everyone knows there are online forex trading scams out there in addition to many reputable companies. Not only does this blog post warn you about these scams, it also gives you a place to report online forex trading scams and get help from me in getting a refund.
4. How to be a Forex Trading Expert – this was my personal favorite blog post last month. It didn’t rank #1 because it was the last post of the month. In one day this post rose to be the 4th most popular post on the whole rapid forex blog. If you want to be successful at trading forex online, apply these steps to attain forex trading mastery in only 30 minutes!
5. Create Your Trade Plan for Forex Trading – It’s wise to have a plan before entering a trade, it’s also necessary for forex trading success. These tips will help you make sure all of your bases are covered before you put your forex trading money at risk.
6. Japanese Candlesticks in Forex Price Charts – Japanese Candlestick Patterns are extremely useful in online forex trading. Each candle reveals tons of information that simply isn’t available with bar or line charts.
7. Support and Resistance in the Forex Market – Support & resistance are fundamental forex trading concepts that any trader needs to have a firm grasp on. This is also the first time you start to consider entry and exit signals for executing forex trades.
8. 8 Rules For Successfully Trading Candlestick Formations – Knowing Japanese candle patterns is great. This post shows you how to use them to make forex trading decisions.
9. Six Killer Forex Trading Strategies – Here’s your guide to keep printed by your forex trading station when you’re online looking for trades. These guidelines will help you trade according to a plan instead of just reacting to your emotions.
10. Forex Gambling Mentality Kills Profits – this post shows you why money management is important. When you see how the gambling mindset can turn a successful trader into one that loses money, hopefully you’ll follow your money management system without emotionally deviating.

The 10 rapid forex blog posts above are like a little mini online forex trading seminar!

Reading these posts will give you plenty of good ideas and useful forex trading strategies that are sure to make you more successful.

Reader Participation – I’d LOVE to hear which of these posts is your FAVORITE!!! Click Here to leave a comment to let me know your top pick. In a few days I’ll update this post with a “reader’s choice” blog post for March 2010.

Posted in Best Forex Posts

Create Your Trade Plan for Forex Trading

Forex trading is not at all like playing Poker, Blackjack, or any other casino game. Forex trading is an activity best done by people who are educated about it, who have a plan, and who follow the plan.

If you are relying on any element of luck in your forex trading, then you will not be a successful trader. While no forex trader is profitable 100% of the time, traders who are educated about how the market works, who create a forex trading plan and trade that plan, who do not allow themselves to become emotionally involved in any trade, are the traders who are consistently successful.

The education you received in the last 30 rapid forex blog posts will contribute greatly to your success as a forex trader, providing that you practice what you have learned.

In addition, it is important to be psychologically prepared as a forex trader in order that your emotions do not overrun your intellect and begin making trading decisions for you.

There are several forex trading strategies, in addition to forex education, that will help you succeed as a forex trader:

1. Decide to be a day trader or a position forex trader
2. Manage your risk. You may or may not be able to quantify how much you could potentially profit in a trade, but you can quantify how much you could potentially lose, and from that decide how much you are willing to risk.
3. Risk no more than 5% of the value of your forex account on any single trade. If you risk more than 5% of the value of your forex account on any one trade you will be overtrading your account, a practice that successful traders do not engage in.
4. Once you have identified the risk in a given trade, decide if that amount of potential loss fits within your equity management plans. If it does not, pass on the trade. There will be other trades that do meet your equity management requirements.
5. Use Proper Risk/Reward Ratio- The amount of money that you could potentially lose on any given forex trade should be proportional to the amount of money that you could potentially win; this is called your risk/reward ratio. That ratio should be, at least, 1:1.5 on every trade you make.

For example, if the distance between your entry and your stop loss covers 40 pips, you are risking about $400 on that trade, so you want to make sure that you can set a profit limit order at least 60 pips away from entry such that your potential profit is about $600, 1.5 times your potential loss.

6. Learn how to take a loss. You will lose – no trader profits 100% of the time. Know, however, that percentages mean nothing.If you practice sound equity management, set your stop orders and limit orders according to a risk/reward ratio of at least 1:1.5, and only enter trades where potential loss is relatively small, then you will likely profit (make money) overall.For example, consider a forex trader who wins 30% of the time and loses 70% of the time. If that trader goes for rewards of $2000 on each trade and minimizes his potential losses on each trade to $300, then he will still net $3900 in profit, even though he lost 70% of his trades.# of wins is 3 out of 10 (30%) * $2000 profit limit for each trade = $6000 gross profit

   # of losses is 7 out of 10 (70%) * $300 stop loss for each trade = $2100 gross loss

   = $3900 net profit

Following these six steps for having a solid plan for your forex trading will help you become a forex winner trader (nobody wants to be a forex loser trader). These are fundamental concepts, if you ever start losing money as a forex trader you should re-review this blog post.

Posted in Money Management