How You Traded Forex and Lost Big.

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One of the key changes that you must make to improve your results in Forex trading is to switch to the right time frame. If you are losing money you are together with 95% of all traders. Reading this article and trying to learn more is the first right step that you took towards any significant improvment. At least you are not giving up yet. But will you eventually make money? Everyone claims to be a Forex expert these days and ads to learn Forex are on every page of your daily newspaper. It is the hardest business to succeed in, and yet there is an expert trader on every corner.

Why do YOU lose? You know why. Because the mortgage payment is due tomorrow, so is your credit card payment and maybe even alimony. Somehow you have convinced yourself that YOU can make money FAST by trading currencies and pay your bills tomorrow. A pip here and a pip there, a little bit of cheap spread, trailing stop and a nap and you made millions. So you hopped on the first Forex website you could find. You opened an account and 15 minutes after funding it with your nest egg the entire $1000 is almost gone.

It was "make it or break it" for you. Someone smart once said something like this: "The way of thinking that created the problem can not be the same way of thinking to solve it".

Markets don't have a heart. Here is an old saying for you. Scared money does not make money. Here is another one. Trade with the trend. Here is even a better one. DO NOT USE THE SMALL CHARTS. In fact, the GREATEST, BEST KEPT SECRET about trading is to trade in large time frames. Once you can get your head around the fact that you will NOT MAKE MILLIONS TODAY but will make money slowly, you just might start enjoying this little business of ours.

That is why you failed. You gambled when you were supposed to be running your own business. The fact remains that if you trade BIG CHARTS you will change your way of thinking and POSSIBLY MAYBE even make some money. Of course if I were you, I would get me some REAL Professional training first. Could you possibly start a car repair business tomorrow if you knew nothing about car repair? Maybe you could but that is why my car never runs AFTER the repair.

A good technique is crucial to making money in trading, but the most crucial element to success for a new trader is the trading time frame – which chart are you taking your trades in. As a beginner you should not try to trade in 5, 10 or 15 minute charts. Although possible, it is not the easiest way, and definitely not for you until you get to an expert level. Those are the toughest time frames to trade in. Here is why.

Because there are at least 4-5 different market conditions throughout a trading day if you trade like that. Some of them are not worth trading and some require complex approach. It is a mine field out there and you are walking on it.

It seems like everyone you talk to is opening a trading account. There are more suckers everywhere. A simple risk disclosure statement that the broker is required by law to show you frees the broker from any liability from your losses. It has become like hunting for ducks and of course you are not the hunter. So don't trade the small time frames. Trade like the pros, the secret is in the big charts. Why do they work? Each 4 hr bar contains what happened in the 15 min increments and therefore it tells the whole story.

You are trading on a scale of 3- 4 days and therefore a spike due to some economic news will not affect you as badly and since your stop loss will be much bigger pip wise (money wise still the same as you have adjusted your lot size to be smaller) and you will be well out of trouble and still in trade. Fluctuations of 50-60 pips will now start to mean nothing to you as you remain calm in pursuit of your first 500 pip trade. In fact it will also keep you away from the computer except for every 4 hours when you check up on your trade. This is necessary so that you do not mess with your trades. YOU happen to be the next biggest reason for your losses. But enough about you.

There is the light at the end of the tunnel. In case you ever wondered I want to make it clear to you - Yes you can make money trading and a lot of it and yes there are techniques that anyone can follow. Remember there are 25 experts in the paper this week. Hopefully at least one of those could do 5-6 profitable trades in a row. He's the guy to talk to even if you have to pay him $10000 to teach you. Trust me, that pales in comparison to what you will lose without training.

Article Source: http://depositarticles.com/

Marijan Koturic is a professional Forex trader and actively trades the Forex market. He has developed a unique approach to trading and strives to pass this to other fellow traders to improve their trading results. His philosophy and some of his techniques can be found at his Forex trading resource site www.koturic.com

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