While Forex deals in the trade of the most valuable commodity, Money, it is often a market with severe possibility of losses. Studies show that nearly 90% of the forex traders suffer from small to major losses due to several errors in judgment. Despite of the chances of terrible and mind shattering losses, forex trading is a popular business and experienced traders make huge amounts of profits through forex trade. Hence, it is an obvious natural question that what do the experienced and professional traders do in order to make huge profits that you don’t? To answer this question one often needs to focus on the mindset of a professional forex trader as the reason for their success lies in the way they think. Here are some quick tips on how to think like professional forex traders.

#1 Taking Control of your Emotions

The words business and emotions are the worst enemies and can rarely go hand in hand. When it comes to forex trading, chances of emotional outbursts are high as your hard earned money is on the line. Fear and greed are the two major emotions that one needs to be wary of. Remember that forex trading is a risky business and money loss is inevitable. With proper patience and self control, it is very easy to eliminate fear and greed that lead to bad decisions.

#2 Aim To Control Your Actions Rather Than The Market

Unlike the other markets, forex trading isn’t about tycoons and kingpins. Most professional forex traders aim on deriving the maximum profits from the various opportunities that are present in the market. Experience traders know the importance of disciplined trading and do through market analysis before jumping into the market. Trying to conquer and control the forex market is not only a foolhardy notion but will only result in loss of your hard earned money.

#3 Never Make Wild Guesses

The most common cause for failures in forex trading is caused by the habit of making wild guesses and bets. Most failing traders are somehow led into the belief that they know how the market will function. Most experienced traders are well aware of the fact that forex is one of the most volatile markets in the world and one needs to analyze the market conditions properly before making any assumptions. No one truly knows how the market will do next and it is best to adopt a set and forget trade mentality for higher chances of success. An exit before the stop will not only curb your chances of success but will also have a bad influence on your confidence.

#4 No Risk No Reward

Most experienced traders know about the 50-50 chances of success in the forex market and thus take calculated decisions that may lead in smaller losses but also bigger profits. Traders must respect the market and think more about the level of risk involved than its reward. Anticipation of trades and risk bearing are the primary quality that successful traders have. Remember, that the forex market is not an ATM machine but a roulette wheel that can result in losses. Professional traders are known more for their risk bearing abilities than the overall profit they have made.

#5 Do Not Get Attached To Things

For a long term success in Forex, one must first and foremost, learn the ability to let go of things. Forex trading has no room for emotions and attachments and knowing when to exit is an essential quality that traders should possess. Getting attached to non-profitable will only cause you further harm and make you lose your hard earned money. Holding a position for too long is never advised and will cause significant damage to your morale and possibility of long term gains.

Forex trading is a waiting game which requires immense levels of patience and analysis. Planning your moves in advance will not only protect you from unexpected losses but will increase your chances of making a good trade.

Six Important Factors To Take Into Account While Choosing A Forex Broker

The forex market gives you umpteen opportunities to make money. However, it is quite competitive in nature as well. Selecting a reliable and professional broker is of paramount importance to tread on the path of success as a forex trader. There are certain features of a foreign exchange broker that you must always look for before choosing one. Some of these features have been discussed below:

#1 Security

Security is one of the primary features of a good broker. In the end, it is he who will be dealing with your thousands of dollars. Given below are the names of the regulatory authorities where you can check the integrity of a forex broker:

• Financial Services Authority (FSA): United Kingdom
• Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA): United States
• Swiss Federal Banking Commission (SFBC): Switzerland
• Australian Securities and Investment Commission (ASIC): Australia
• Autorité des Marchés Financiers (AMF): France
• Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN): Germany

Prior to taking part in any trade, you have to ensure the broker is a member of any of the authorities mentioned above.

#2 Deposit and profit takeout

A dependable broker will always allow you to deposit money and take out your profit without any difficulty. Brokers just keep your money for making the trading process simpler and they don’t have any right to stop you from withdrawing your profits you have acquired. He should also guarantee that the withdrawal method is prompt and hassle-free.

#3 Transaction Expenses

Irrespective of the fact which type of investor you are, you will always have to bear transaction fees whether you prefer it or not. Charges are taken for the commission or the spread. Therefore, it is sensible to search for the most reasonable rates. On certain occasions, you may have to give up affordable transaction costs for a dependable broker. Always try to maintain the right equilibrium between affordable transaction charges and safety.

#4 Forex Trading Platform

You have to carry out your trading activities via an online trading platform which the broker will offer you. It is essential that the platform has to be user-friendly and steady.

Choose a trading platform which comes with the following features:

• Simple-to-understand charts and technical widgets
• Free news feeds
• All the details you require to invest in the right manner

#5 Execution

It is always compulsory that the broker gets you the best possible rate for the orders you have placed. If the market situation is normal, for instance there is no issue with liquidity, no major news or fallout that can affect the market, then there is practically no ground for the broker not to attempt to get you the best possible market rate or even close to it while you select the “buy” or “sell” button.

For instance, if it is assumed that your Internet connection is steady, when you choose to “purchase” EUR/USD for 1.30, your  broker must fill you at that rate or inside micro-pips of it. The momentum at which the broker is filling your orders is quite crucial, particularly when you are playing the role of a scalper. Even 1-2 pips variation in rate can turn out to be an impediment for you to make gains on that deal.

#6 Customer Service

You will not find a broker who is absolutely ideal. Hence, you need to choose one whom you can communicate with anytime you want or if there is any issue.

The capability of brokers while they are tackling technical assistance problems or account-related concerns is just as crucial as how they perform on carrying out deals. During the initial stage, brokers might be co-operative and friendly, though their “after sales” assistance may not be satisfactory. Going through online forex guides on a regular basis is a good idea.