What's Your Trading Style?

One question beginning Forex day traders will face is: What's your trading style? Are you a position trader? Or do you consider yourself a scalper? There are many different types of Forex styles, but in general, they fall into four basic categories. Traders can consider themselves scalpers, day traders, swing traders, or position traders.

Each of these styles will help Forex traders reach specific goals, and each style has a different time commitment. So which one suits your needs best?

If you're just beginning in the Foreign Exchange Market, it's important to carefully consider the different types of Forex styles. It's not to say you can't always change up your style, but it will help you direct your focus as you're just starting out. Here's a look at the four most common types of Forex trading styles:


Scalping is a high-speed, quick-profit strategy that requires the trader to open many positions throughout the day with the goal of "scalping"…

Tips for Making Your Forex Journal Actionable

Keeping track of your Forex trading - whether digitally or with pen and paper - is critical for your growth as a trader. And for many, the start of a new year is the perfect time to revisit the previous 12 months of trading. Looking back on your trades will help you determine what worked, what didn't and what could use improvement.

Yet, it's difficult to know what you should do with your personal data. What exactly should you be looking for? And how can you use your journal to improve your trading? Here are a few quick tips for using your yearly trading data to improve your strategy:

1. Look Over All Your Data Once

Start by examining the full year of data. Look for your milestones: Your biggest wins, your biggest losses, and missed opportunities. Also, be sure to calculate your profits, losses, and the bottom line. This will help you set a baseline for your trading and serve as the point that you want to improve upon in the coming year.

2. Develop Goals For Moving Forward

Once you&…

Calculating the Size of Your Trading Positions

Forex day traders must master a number of skills before they should begin trading real money. But calculating the size of a position is one of the most critical. Why? Success in Forex trading is all about managing risk, and properly sizing your trading positions will ensure you're managing risk wisely.

To calculate your position size, you must know several key pieces of information. You must know:

* Your Account Balance
* Currency Pair You Wish to Trade
* % of Balance You're Willing to Risk
* Where You Will Set Your Stop Loss
* Currency Values

Once you've determined this information, you can begin to calculate how much currency you will buy.

Determine Your Risk

Your account balance is easy enough to figure out. But then, you must calculate the amount of that balance you're willing to risk. Typically, the majority of traders tend to risk 1-3 percent on a single trade. It's very rare for a trader to risk a greater percentage, as the losses can add up quickly and completely wi…

Forex Analysis: Three Currencies That Declined Against the USD in 2017

The U.S. Dollar had a strong year in 2017. The U.S.'s improving economy and steady job growth, as well as the December interest rate hike by the Federal Reserve, helped the greenback gain in value.

The same wasn't true for the world's other major dollars: The Canadian, Australian, and New Zealand dollars. Thanks to sagging commodity prices, as well as the Chinese downturn, these currencies declined in value compared to the USD. In Canada, for instance, the Canadian central bank cut interest rates twice in 2017 in an attempt to boost crude exports.

Yet, the effects of Canada's strategies have yet to be seen, as the CAD hasn't yet started to rally. In fact, the country's currency dipped to 12-year lows compared to the USD, and some experts have speculated that the Loonie might continue its downward trend before reversing course.

Here's a quick look at why the AUS, NZD and CAD all underperformed in 2017:

Loonie Reaches Decade-Plus Low: It was a rough year for t…

Building Confidence in Forex Trading

All successful currency traders share a similar trait. It's confidence. Confident traders are much less likely to second guess themselves. They're more disciplined, and they stick to strategy even when the markets are unstable. Yet it can be a challenge to develop trading confidence, especially when the markets are unpredictable.

The good news is that you don't need years of experience or a giant account balance to trade confidently. In fact, even novice traders can develop self-assurance. You just have to be willing to put in the hard work.

Take a Look at What You Can Control

One of the difficulties of Forex trading is the uncertainty. Unless you're a fortune teller, you'll never be able to accurately predict where prices are headed. Yet there are a number of things that you can control. For example, if you keep a close watch over major policy announcements, you can rest assured you won't be blindsided by a rate increase, or unsavoury economic news. There are m…

Tips for Trading in Volatile Markets

For day traders, trading in volatile markets can be advantageous, but err on the side of caution. Why? Larger swings can lead to massive profits if you guess right or huge losses if you guess wrong.

So how can you approach Forex trading during periods of increased volatility? Your options range from small steps like increasing vigilance over your open positions, to the more dramatic like avoiding day trading all together. Here are a few things you should consider when trading volatile markets:

Be Cautious With Leverage

In stable markets, leverage is your friend, helping to increase gains and maximize profits. But in volatile markets, high leverage can be your enemy, resulting in dramatic losses when the market swings against you. That's why you should reduce your leverage when the markets are volatile. Although this can reduce your profit, it will also lower your risk, helping you to avoid losses that can quickly add up.

Avoid Margin Calls

Significant market fluctuations can lead to th…