Forex - Decisive Trading, page-4

DailyFX and FXStreet are good websites. DailyFX is run by IG Markets and they recommend going against what most of their customers are doing!

I'm hopeless at Forex. I reckon it's too erratic and you need to study what's happening on both currencies. But as a general principle, it's best to have a balance of FA for direction and TA for entry. Have a look at the EUR/USD example in my new mega-trend thread in the CFD forum. People who focused only on TA with small timeframes were wasting their time when the pair was tumbling on the bigger timeframes for solid FA reasons. Much better to get on on any pullbacks and enjoy the ride.

The big trap for CFD and Forex newbies is overtrading and trading too big. But you can warn someone a hundred times and they'll ignore it because the reason they are interested in the first place is that they are seeing dollar signs due to the leverage. Then a trade goes against them and they move their stops and panic, and it leads to bad habits and a downwards spiral. So trade at levels that are relaxing, which for many people is a tenth of what they were dreaming of trading. And only do a few trades per week. And maybe focus on one or two currency pairs, preferably ones that are not correlated. Everyone trades the EUR/USD because of tight spreads and there's plenty of news and commentary to get a good picture of what's happening.

I also recommend using guaranteed stops. Have a look in the previous CFD thread for an example of a CHF pair moving 25% in 20 minutes due to a change in govt policy. You could end up owing your broker your home.