6 Simple Tips To Help You Overcome Overtrading. Trade Less To Make More Money.
Contents in this article.
Over-trading and micro-management (continuously fiddling around with your trades and orders) are among the main reasons why traders fail and very few understand why they are over-trading and even fewer know how they could stop this bad and expensive habit.
In this article we take a look at the most common problems many traders face, how they could eliminate a lot of the problems that come with over-trading and micro-management and how to become a better trader by trading less.
#1 The 80/20 rule applied to trading.
The 80/20 rule says that 80% of your results come from 20% of your actions – this is a widely accepted principle in many areas of our daily lives and in business. Famous examples are: 80% of your sales come from 20% of your customers; 20% of your sales reps close 80% of the deals; 80% of the complaints come from 20% of your customers; 80% of wealth is owned by 20% of people, and so on…
In trading, the same applies and 80% of your results come from 20% of your actions. However, most traders don’t fully understand that the things they attribute the least importance to will actually make the real difference in their trading.
What you should be doing more of:
Things that don’t add much value and should be avoided:
Flipping through time frames and markets, hunting signals without doing your preparation Following your trades tick by tick Going through forums hoping to find a better trading method Arguing with traders on social media Micro-managing trades and being glued to the screen.
The 5 last points are huge time wasters (I know that because I have been there myself), but most traders approach trading in the complete opposite way of what they should be doing and they spend the majority of their time on things that don’t help them become better traders.
#2 Micro-managing vs. set-and-forget.
Micro-management is a HUGE performance killer for most (read: all) traders. Here are things traders do when they micro-manage their trades:
Watching trades tick for tick Moving to lower time frames once in a trade Looking for outside confirmation (social media, forums, news sites that have usually nothing to do with your system) Constantly moving around stop loss and profit orders Adding to trades and/or partially closing trades (usually without a plan) Checking trades on the phone while on the gone.
The set-and-forget approach is the complete opposite: after you have done your analysis and placed your trade, you set your stop loss and profit orders and then don’t look at your trade again. You let price do what it will do anyways and wait for price to either reach your profit or stop order. No manual interaction with your trade anymore!
I have seen first-hand that such an approach not only improves the quality of one’s trading, but it also boosts the performance when traders stop micro-managing their trades. The main reason why traders can’t stop this habit is because they don’t trust their system, they only think about the money involved, they haven’t validated their edge or don’t have any trading rules at all.
#3 Screen-time and boredom.
Screen-time can be a good thing if you know what you are looking for. But if you just flip through time frames, hunt for signals, without really knowing what to expect, you are setting yourself up for failure.
Boredom is a dangerous emotion and it always leads to bad trading decisions, especially if it is combined with excessive screen-time. Here are some tips on how to create a better trading routine and eliminate boredom:
Every Sunday, you analyze your markets and create trading plans . You identify the most important price levels for the week ahead. You set your price alerts at those levels. You wait for price to get there without watching the market. When your price alert goes off, you check the chart and evaluate whether you have a trading entry or not: Yes? Great, enter the trade. No? Set yourself a reminder to check back in a few hours or take the instrument off your watchlist if price movements made your trade idea invalid. You let the set and forget approach do the rest for you and don’t interfere with your trades again.
Most traders approach their trading very differently and often follow the same, old and generic advice that eventually brings them all very similar results. Maybe it’s time to do things differently and follow a new path if what you have been doing did not make you a better trader…
#4 Eliminate the need to trade.
The need to trade is often what breaks the amateur trader. Having a trading edge means that you have a way of identifying very specific situations and price constellations that provide a positive long-term expectancy. Most traders make the mistake of believing that they have to be in the market all the time.
It’s so important to understand the premise of your system and know under which conditions you have an edge and when you don’t. Traders have to be more selective and only enter when their system tells them to do so. Although this is very obvious, it’s hard to find amateur traders who follow this approach – this is where common sense isn’t so common in trading.
Focus on making 1 good trade a week – that’s really all you need.
#5 Minimizing errors easily.
Take a look at pilots, physicians and other professions where little errors can end very badly. In all those fields, it’s common to use checklists to ensure that their standard procedures don’t get messed up. Traders can and should do the same. Trading is a game of pattern recognition and the process of scanning for and entering trades usually does not change. Thus, it’s very easy to implement a checklist that you go through before entering a potential trade. First, a checklist makes sure that you don’t forget anything, it also makes you more aware of your decisions and it holds you accountable.
#6 Get your priorities straight and finally stop over-trading.
Do you want to become a trader because you want to trade or because you want to make money? In a recent interview, Jack Schwager described the importance of trading less to trade better nicely when he talked about Kevin Daly whom he interviewed in his book “Hedge Fund Wizards”:
Although Daly’s stock selection contributed to his success, being out of the market when the environment was highly averse to his strategy was the key factor underlying his superior performance. Or, in other words, the trades not taken were more important than the trades taken.
With the help of this article you should step back and audit your overall approach to trading. Here are the key take away messages from this article:
80/20: Do more of the things that really make a difference and eliminate the time-wasters Avoid micro-managing your trades and the habits that are connected with it Try the set-and-forget approach to create a more stress-free trading environment Don’t let inefficient screen-time and boredom enter your trading Plan your trades ahead and let price come to you Understand the premise of your system and know when to stay out Utilize a checklist.
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10 comments.
I agree with most ideas from article except the fact that “set and forget” trading is a dangerous myth, there is no such thing as “set and forget” in trading.
An open position has to be managed actively since the market could change any time. Of course, “managed” doesn’t mean “watching tick-by-tick”, or watching M1 on a multi-day position.
BUT if the reasons for entering a certain trade have changed then sometimes the best thing to do is to exit, and not to wait like a bunny until the stoploss hits you in the face. I simply can’t believe in a “set-and-forget” approach. My two cents opinion.
‘Set and forget’ works, but you forget it for the time frame you’re trading from.
I personally trade from daily time frames, so I don’t look at the trade until next day, because there’s no reason for me to make any decisions until the next daily bar has closed.
I can tell you from my experience, it works and this is a stress free trading method I found. After all, I chose trading to make money and have free time to myself, not have another job by being in front of my computer all the time. I suggest you to check the concept of ‘illusion of control’ in trading.
set and forget thing, you could also set alert when market move, the point is you don’t need to watch the chart all day long.
Thank you for another great article. I am a recent subscriber to Tradeciety and I really enjoy reading all its content. The head game is so important in trading and the great advice in your article will be extremely valuable to traders at all levels. Thanks again and keep up the good work.
Great information for a new trader like me.
Fantastic article! This came as a timely reminder for me as I’ve felt myself slip slightly off track.
All of the info is spot on and took me a long time to accept/figure out…probably because some of it seems counter-intuitive (such as the set-and-forget mentality…that really boosted my performance). Setting up scenarios then letting alerts bring me to the charts is another one which improved my focus and made it easy (easIER!) to enter my trades as I knew that I was following my plan.
You guys are putting out excellent information - thanks!
Thank you, James. I am glad you like our work and it’s helping your trading.
Great article this is very help full for traders, and can i know what is the best % for risk when we open a trade.
Excellent article. Especially about alerts. That one thing has really improved my trading. No more staring at the screen. Just set my alerts at a key level and when it goes off…either place a trade or not. Simple.
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Over Trading Is A Forex Trader’s Biggest Mistake.
Over-trading is perhaps the most prevalent trading mistake that Forex traders make. This article will fully explore over-trading and provide some solid tips to help you overcome this extremely destructive emotional trading problem.
If you don’t know if you are over-trading you probably are. In fact, most traders who are not making money consistently in the markets are over-trading, whether they realize it or not. The problem with over-trading is that it can be difficult for the trader to know if they are doing it or not because it has many different ways of “sneaking” up on you without you realizing it.
For example, if you have committed to learning and mastering the daily charts first, do you still find yourself going and looking at the lower time frames more than you are looking at the daily charts? This is a very easy way to start over-trading. Traders who have not yet mastered price action trading on the daily charts are very likely to over-trade if they focus on the lower time frames instead. This is because lower time frames tend to be riddled with lower-probability trade setups that often tempt traders to take positions that they would not have otherwise taken had they been focused on the daily charts.
Another example; do you enter into additional trades just because your current trade is in profit and you’ve moved to breakeven? Was the additional trade setup REALLY valid or did you jump the gun because you were feeling excited about your first profitable position?
There are many other situations in addition to the two discussed above that constitute over-trading. The main problem is that many traders are simply unaware that they are over-trading when they are in the moment. It is very easy to become fixated on a less-than-perfect trade setup and forget about your trading plan and not be consciously aware of whether or not you are over-trading.
Due to the fact that the emotion-inducing situations that occur in the market can sometimes be hard to detect and sometimes even over-whelming, we have to combat this enemy by planning out our trading plan and trading strategies while we are away from the market and not in any trades…
• The best way to stop over-trading is before you start…
As we just discussed above; because it can be difficult to realize you are over-trading when you are “in the moment” of trading, it is best to simply go on the offensive against over-trading by planning your trading strategy and trading pla n in advance.
We can think of trading as a sort of war. The war basically boils down to your logical or objective b rain mechanisms vs. your “fight or flight” or emotional brain mechanisms. It is extremely difficult to over-ride thousands of years of human-brain evolution…especially “in the moment”. The best way to win this war is to make a comprehensive f orex trading plan, and stick to it…passionately.
I would bet money on the fact that if you are reading this right now, and you do not have a tangible and practical Forex trading plan, you are probably over-trading. It is absolu tely essential to create a Forex trading plan and foll ow it if you want to get on and stay on the right trading path. All traders must do this in the beginning to develop the proper trading habits of logical and objective trading rather than emotional trading. Trading the markets naturally induces emotion and em otional trading…so if you don’t purposely make a plan to counter this reality, you are almost certain to over-trade.
In a recent article I discussed the importance of learning to trade like a sniper. This concept is very important to overcoming your problem with over-trading. If you are over-trading you are definitely not trading like a sniper, instead you are trading like a machine gunner by “shooting” at many more trades than you should…or by simply shooting at anything that you “feel” is a trade setup.
Not having mastered a proven and effective trading strategy like price action will also induce over-trading. Simply put…we want to trade like a sniper and not a machine gunner, and if you don’t know what your trading strategy is…and / or have not fully mastered it…there is no way you can trade with a high enough rate of skill to pick your trades like sniper. Basically, if you don’t know exactly what you are looking for in the market you will end up over-trading / shooting at every little thing that looks like a trade.
If you’ve been following the recent Forex market activity you are surely aware that the EURUSD has been consolidating recently, actually for about 2 months now it’s been in a trading range. I find that traders often over-trade in these types of consolidating markets because they lose patience or they simply do not know how to filter out the lower-probability trades in favor of the best price action trade setups.
Let’s take a look at the recent daily chart of the EURUSD and analyze the difference between over-trading and trading like a sniper…
(See the explanations corresponding to each number below the chart)
1. At point one we can see two inside bars formed off support through 1.4050-1.4000. This setup was valid because the support level had already been tested recently on two previous occasions, and the setup thus provided us with an obvious inside bar strategy from a confluent level and a good risk reward scenario.
2. At point two we can see a bullish pin bar setup that formed off the 1.4050-1.4000 support area mentioned above. This setup was valid because we knew the level was significant, the pin bar was well-defined and obvious, and once again provided a good risk reward.
3. At point three we can see a bearish pin bar strategy that had good formation / definition and appeared to be in-line with the recent downward thrust. Now, the difference here is that the risk reward scenario was very poor since you would have been shorting right into the previously established significant support level near 1.4050-1.4000. A trader who is patient and skilled, and with a trading plan, very likely would have not traded this setup due to the fact that it required them to sell into a significant core support level.
4. At point four we can see another bullish pin bar setup that formed off the 1.4050-1.4000 support area. This setup was valid because we knew the level was significant, the pin bar was well-defined and obvious, and once again provided a good risk reward.
5. At point five we can see two pin bars that formed. These two pin bars had proper form…but this is a good example of the fact that a price bar formation is not really a price action setup unless it has some factors of confluence behind it. These pin bars were just “hanging” in the middle of nowhere with no supporting factors behind them; they weren’t off any core support level and resistance was pretty close overhead, limiting the risk reward potential. This was a setup that the skilled and patient price action trader very likely would have passed on.
Another way many traders end up over-trading is by over-exposure to correlated Forex currency pairs. For example, trading the EURUSD and the GBPUSD is essentially like taking two nearly identical positions since the pairs are very correlated and move in a similar manner. So, you have to be aware of this and make sure you aren’t doubling-up your position. Even if there are two valid and high-quality setups in both pairs, you would not take both, you would use your discretionary price action trading skills to pick the better of the two setups and stick with that one.
This point of over-trading by trading too many currency pairs at one time also brings up the point that over-trading is basically the same as over-leveraging your trading account. Some traders get lulled into thinking by taking multiple positions they are diversifying or spreading their risk out, but in fact most of the time they are just adding risk by taking a larger position spread out among multiple pairs. You should view over-trading as two emotional trading errors in one; over-trading AND over-leveraging, because by over-trading you are also risking too much money.
If you really want to stop over-trading you are going to have to realize that less is more in forex. Unfortunately, many Fx traders come into the market with the opposite attitude; more is better. Aspiring traders tend to think that more trading is better, more indicators are better, more analysis is better, more hours in front of the computer is better, etc. However, this is definitely NOT the case and you need to understand this if you want to stop over-trading…
Spending too much time in front of your charts induces over-trading because you will over-analyze the nearly limitless amount of market-related variables out there and end up “manifesting” signals that aren’t actually there. Learn to “set and forget” and trade end-of-day strategies, if you can do this you will greatly reduce your chances of becoming a chronic over-trader. Remember, over-analyzing leads to over-trading.
Obviously, in the beginning of your trading career you’ll need to spend more time with the markets because you’ll need to learn and master your strategy, but once this is done there really is no point in sitting in front of your computer for hours trying to “figure out” what is going to happen….because you can’t “figure it out”, all you can do is master your forex strategy, develop a plan and routine around it, and follow it with discipline.
Also, many traders try trading 15 different trading patterns or setups or who knows what else. My price action strategies are effective yet concise; my setups condense many redundant candlestick patterns into a handful of powerful price action strategies that are easy to learn and to trade. If you look at any candlestick book you will soon realize many of the patterns are very similar and this tends to confuse traders, I have eliminated this problem with the way I teach price action. It helps to eliminate trade frequency / over-trading by focusing your attention to a more refined set of trading strategies, instead of spreading your focus out over too wide a spectrum.
• You can control yourself, not the market…
Simply put; over-traders are trying to control the market…you need to honestly stop and ask yourself if you think you feel like you are trying to control the market. Once you realize and fully ACCEPT that you really have NO control over the market, you will begin to think differently because you will realize you have to master a trading edge…and then you have to only trade when the market shows you your edge. To learn an effective trading edge, check out my price action Forex trading course. Learn to control yourself rather than the market…if you want to stop over-trading.
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45 Comments Leave a Comment.
Thank you Nial for opening my trading eyes.
is price action really effective on 1hr time frame?
I must say that you have reduced burden from newbi to use so many indicators and signals on the charts.
A very nice and informative article. Please keep it up.
I shouldn’t use too many indicators, confused myself. Thank you Nial.
Great article! The idea behind it is very smart. Over-trading is a mistake a lot of traders commit. I use to tell people : don’t rush your trades, wait for opportunities.
I like the way you use a support and resistance model to illustrate your toughts. Sometimes it is almost crystal clear a currency pair is overbought or oversold, and this is a good timing to get a nice entry on a position.
Your posts are very interesting. Keep it up!
Worth every dollar!!
I really liked the article, and the very cool blog.
Hey Nial, i hope u consider what u gat goin here as philantrophy, u are touchin lives Nial, good work. may d Lord b with u. more power 2 yr elbows.
Spot on as usual Nial!
I love the way you handle this issue off over trading and is actaully the case. Thank you for help we the beginners to over Emotion and fear that cause over trading.
Brilliant article once again Nial, its a good reminder for me to be reading this as it helps me get on the road of consistency. Keep up the good work, tons of appreciation for you showing the path to good trading! Cheers.
Thanks for such a great article. I used to be a machine-gunner but since I came across your price action lesssons I am now a deadly sniper who is consistently profitable. Keep up with the good work and thank you for being such a wonderful mentor.
Nail, Great article, overtrading is so contagiuos, you never know you were in it, unless someone outside remind us. This article is reminder and a key note in everyone’s trading plan. Wish the articles keep continuning as it’s a hope for aspiring traders…
Thank you once again for a great piece of advice..
Very good article as usual Nial, The chart examples shown were particulaly good, please show more in the future. Andrew T…….
Still getting my head around looking at charts with no indicators, good stuff Nial.
As always fantastic presentation of a core principle, amazing how quickly I can ‘forget’ (or more likely ignore) the basics.
I can’t control the market.
The differentiation of a successful trader is just that he knows what he’s doing.
He has a trading plan and when his edge is present he plans his specific trade, sets entry, stop, take profit levels and position (or stake for spread betters) size and walks away.
He then diligently records all of his trades and keeps alive the ‘expected success rate’ of his trading plans’ strategy (or strategies if he uses more than one). Thus every time that particular edge or strategy trade set up appears, he cooly, with no concern for anything else going on in the fundamentals, places his trade in the knowledge that it has an x% chance of being successful and a (1-x%) change of being stopped out for a loss.
How? Because that is what his journal results tell him over a very large sample size of trades.
At the end of the month, he knows that providing he has followed his trading plan diligently, his trading account will be Y% greater than it was at the start of the month, regardless of whether this specific trade now today ‘in the moment’ turns out to be a winner or a loser.
This is the experience of the successful trader and how he ‘knows what he is doing’
Seems so simple and obvious, so why does each trade have such a massive emotional weight associated with it?
keep up the excellent work.
This advice IS GREAT.
I am guilty. Working on it. Thanks Nial.
Great article, and great explanation – it really help me understand the importance in confluence.
Thanks for the article. I always read them with concentration and soul searching >< They really talk to me.
Pliz keep the good work, and may you continue to be blessed.
Hi Nial, You must see what I did last week. Overtrading and finding signals without confluence…. Your article is clear , very useful for me and immediately shows me how I can improve my trading. Your style of writing is educative, funny and I love it. Thanks again and keep writing.
Thank you for pulling me back to the ground. I wish I had gotten this reminder-article three days ago before I kept trying to get the reversal that never came and I over-traded myself by wanting to control the market on my own.
Althought we constantly hear it and read it again and again, it is amazing how often we tend to forget the basic advices.
Thanks Nial as always. The volatility in the market today is easy to trade and is a process of logic over emotion. Even when I watch the corrections “price action” has been my ultimate indicator. Todays lesson is confirmation of what I’ve been thinking, enter my trades like a sniper and using the daily chart as the battlefield. As you say I have no control over the market. So patience is key.
superb lesson but imtrying not to over trad but keep doing it i dont know why, thanks nial hope i can start controle myself overtrading,
The article is excellent as usual. The chart examples are superb. I hope future articles can include similar charts that show both good and poor setups with the explanations of the factors that make them good or poor.
Great price action examples..I think equally valid on 15min time frame.
I must say this was a timely reminder for me, especially on the over-exposure part. I didn’t really trade for the past few weeks, till this week when I start to see good setups going on and start trading more than my planned max 2 trades per week. There will be time when there’s not much opportunity in a week or two, but we have to be ready when the it comes. Sniper rule.. be patient.
Great article Nial.
A wonderful article at †ђε right time. Nial you arε †ђε man keep up †ђε ‎​G̶̲̥̅Ơ̴̴̴̴͡.̮Ơ̴̴̴͡D̶̲̥̅ work. Thanks.
In my demo, I made $160 per trade 10 times streight trading huge lots and just one trade cost me $5000, just missing by 1 pip. This is overtrading.
This is exactly like my wife tells me!! Excellent Artical !! I have printed and put in front of my desk. I ready every artical from you and learn something everyday. Your notes many times just a good mentor for me. Keep writing good articals like this one !! Thank you Nial.
thank you for your ‘guiding article”…to the point , as always..
bless…have a good week-end.
greets from germany!
thank you very much for your article. it really helped me to be more critical with my actual trading style;)
i love reading your articles.
Another superb lesson, and having engaged in a lot of what you have written about I am going to go back to basics and take the advice from this article.
Thanks for this article and the great examples.
Your teaching style is so refreshing!
I must say that i love the way you analyzed those price action setups on the Eur/Usd chart. It really helps to know valid and invalid setups. Cheers!
I’m so satisfied with the course notes and your aditional stream of information. Until few months ago, I read the notes and didn’t do exactly what you said. I didn’t value the whole picture. After re-reading the notes(a lot of times), studying the videos, I suddenly understood the importance of confluence. My trading results changed immediately! Nial, I don’t know what you are made of, but sharing this information like you do, I’m so thankful and impressed about Your work. Thanks again, Nial!
I timely reminder. I actually had the inclination this week that I was ‘over-trading’. Thanks for drawing my attention to my current weekness Nial. appreciated. Keep up the words of wisdon and knowledge. From a happy member.
very practical and useful. good as always. Many thanks.
What an amazing Artical mate…
Every point is so so important.
Keep up the clear and concise work!
Appreciate All your efforts.
I have been learning the pateint part last few weeks. It is very hard not to trade because You havent put a trade on for a week. That is a bad way to trade. I must say the Forum on LTTTM keeps me on track,
Timely article Nial.
Exactly what I was looking for, thanks Nial!
Hope you are well. Another superb lesson. Thank you so very much.
Thank you for all your help.
Thanks and Regards.
Great article Nial , I like the chart example you showed to show how are professional trader would view the market. Keep up the good work. Shane.
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Overtrade forex

After several profitable trades, inexperienced forex traders become overconfident. This leads to overtrading - opening and closing too many trades in a short time. Typically, overtrading brings about the interruption of a winning streak and the beginning of a series of losses. Euphoria may, in principle, be a nice emotion to experience, but it is not good in forex trading. Do your best to trade as unemotionally as possible.
Sure enough, overtrading can be the result of mere boredom. For example, you are sitting in front of the screen, looking at the chart of the currency pair of your liking. You see that trading is pretty much dead, there's hardly a 20-pip upward move followed by a 20-pip downward move. It's been like this for the last two or three hours, with no clear market direction whatsoever. Based on your strategy and your opinion about market sentiment, you should not place a trade under such circumstances. However, you haven't put in a trade in the last two days, and you simply can't stay put. So you decide to open a position, then you close it, and then open a new one, and so on and so forth. That's a big mistake! If you're bored, call a friend. If you don't know what to do and you are looking to kill time, go take a walk, but don't you ever trade just for the sake of trading.

Forex Trading – How to Trade Forex?
You are not only going to be restricted to placing trades on Commodities, Indices and Stocks when you sign up and become a Binary Options trader at any of our featured Brokers, for you will also find that you can place trade on the value of any major countries currency too.
In fact we have many Forex Broker reviews dotted around our website and by trading Forex in addition to the more standard Binary Options that will give you plenty of additional ways of making a healthy return on your investment.
Deposit: $100 Payout: N/A A CFD Service.
Deposit: $5 Payout: 888:1.
Deposit: $100 Payout: 400:1.
Deposit: $200 Payout: 86%
Deposit: $100 Payout: 200:1.
Deposit: $200 Payout: 85%
However, you may have no experience in regards to trading Forex online or via a mobile trading platform and as such we shall now give you an overview of all that is required for you to be able to start pairing up any two currencies in the hope the one you select against the other increases in value over any given time period.
So please do read on an once you have familiarized yourself with the way Forex trading works and operates then take a look through each of our Forex Broker reviews as each Broker we have listed is going to give you not only a wide range of currency options but will also give you some form of trader bonus when you start trading as a real money trader at their respective site.
What is Forex Trading?
The is a lot of volatility in regards to the Foreign Exchange markets, and this is something you will probably be already aware of if you have ever wanted to turn your home currency into another currency when for example you are about to go on holiday.
There was a time when if you wanted to try and profit from Forex which is the shortened abbreviation for Foreign Exchange you would have to wait for the value of another currency to increase in value, then purchase that currency and then hold onto it until such a time that it then drops in value and when it does you simply exchange that currency for your original one.
However, that way of trading currency is a very expensive one for you are also going to be liable to having to pay commissions to the currency exchange company and those commissions can and often would make a large dent in any potential profit you could make.
When you become a Forex trader at any of our featured Forex Broker you are not actually buying any physical hard currency, instead you are simply placing a wager that the currencies you have chosen to pair up together move in the direction you have chosen in regards to their respective values over any given time period.
How to Place a Forex Trade.
If you do wish do starting trading Forex then you will first need to open up a trading account with one of our featured Forex Brokers that will take you about a minute or so to do and once you have signed up and logged into their trading platform you can then opt to trade via a demo account and by doing so you will be able to test out the trading platforms is a no risk environment.
If however you wish to start trading for real money then the first thing you will need to do is to make a deposit into your trading account. Please do be aware that many of or reviewed and fully licensed Forex Brokers are going to allow you to claim a bonus as a first time depositor, and as such do consider claiming those bonuses to allow you to lock in additional trading value.
Once you have logged into your account and have made a deposit then you can start trading in a real money trading environment where all winning trades and financial gains will of course be yours to keep.
You will next have to pair up any two currencies together to place your initial trade. You will find that at all of our featured Forex Brokers you are going to be able to pair up any two currencies that you wish to trade against each other, and you will also find some of them will even allow you to pair up the value of Bitcoin with another major currency if you so wish.
The one most important thing to remember when you are performing a Forex trade is that the first currency you select form those on offer which will be the one listed on the left hand side of your currency pairing is known as the Base Currency.
So for example is you base up Euro with USD then the trade you will be placing will be displayed n the Forex trading platform as EUR/USD and as such the Euro will be the base currency in that trade.
You will be given two options in regards to how you can place your Forex trade and that will see you either “ buying ” or “ selling ”, that will see you then hoping either your base currency increases in value against the other currency in your pairing or decrease in value against the other currency dependent on whether you have chosen a buy or sell trade.
As you can pair up any two currencies of your own choosing then you will need to think long and hard in regards to just what way any currency will move against another and that is also going to take some research. However, much like when you place Binary Options trades there will always be a lot of reason why currencies will move one way or another and the art of becoming a profitable trading is you knowing how to spot those reasons.
Why not open up a demo trading account at any of our featured Forex Brokers by doing so you can gain valuable experience in placing Forex trades in a no risk environment via their demo trading accounts and will then be able to switch over to trading for real money once you are confident you know how the trading platforms work and operate.