Making Forex Trading plan - Forex trading in Australia

Any Forex trader should have a good trading strategy in place to survive in the ever unpredictable Australian Forex market.  And as with any trading strategy, proven methods are acquired through testing and proper risk management. Moreover, if you’re a wise trader, you wouldn’t want to put more than 2 to 5 percent of your total trading capital at risk.

The Australian foreign exchange market makes up a considerable part of all the Foreign exchange transactions happening throughout the world. This is despite the fact that Forex in Australia is in small number as compare to other nations but it growing rapidly. The popularity of the Aussie dollar is attributed by its high liquidity and worldwide recognition. 

THE IMPORTANCE OF A FOREX TRADING PLAN

Any Forex trader should have a good trading strategy in place to survive in the ever unpredictable Forex market.  And as with any trading strategy, proven methods are acquired through testing and proper risk management. Moreover, if you’re a wise trader, you wouldn’t want to put more than 2 to 5 percent of your total trading capital at risk.

This is something that all successful traders follow. While a proper money management plan can mean slow profits, they can also be consistent and steady, making you a winner over the long run.

In a perfect world, we can slide right in to big profits on our first few trades but unfortunately, we’re not living in a perfect world and profiting from the Forex market is just not as easy as that, no matter what the things around the Internet tells us.

SUCCEEDING IN THE FOREX MARKET WITH A TRADING PLAN

Creating Forex trading plans that work over the long run can take a long time and these types of plans tend to develop over time. So be patient. Once you obtained a few trades under your belt, you will begin to develop rules that you can refer to when conducting trades.  You will also learn to make reasonable decisions as you understand the volatility of the Forex market. If you have been investing on traditional stocks before, then you’ll find Forex trading as very fast-paced and more unpredictable. The Forex market can move the equivalent of what the stock market can move in a month, in just a few days.  So always take time to observe the markets while developing your initial skills.

In the process of learning Forex trading, it’s also a smart idea to test more than one strategies and for obvious reasons you’ll want to do this through paper trading. Most brokers offer demo accounts for beginners as well as for testing new strategies.

Overall, once you’ve decided to leap into Australian Forex trading, this is how you should view it: No plan equals failure. Simple as that. Even if you have the best trading system out there, if you have no proven plan to use, you are only setting yourself up for failure.

So treat Forex trading as a real business. After all, it’s a complex and multidimensional market that demands for a great deal of attention. Your knowledge, experience, attitude and focus on mastering the different areas involved will all greatly support your long term success.

Regulated Forex Broker? 

Regulated Forex brokers in Australia will ensures credibility because it’s required to provide fiscal reports to regulatory bodies. By doing business with this type of broker, you eliminate the likelihood of getting ripped off or encountering any other underhanded transactions

Forex Trading in Australia vs Stock trading

Forex trading in Australia is becoming more and more popular especially when fluctuations are on crazy heights. Forex trading is done not only by savvy traders but also everyday people who have a few thousands to even hundreds of dollars. This wasn’t the case before though. In the past, trading and investing in the financial markets was only doable for the elite class and large financial institutions.

Forex Trading vs. Australian Stocks

There are two main financial markets that have the highest volume of trades. These are the Forex market and the stocks market. These two have several differences but both can be profitable. For starters, the Forex market is the largest, most liquid financial market in the world with its $4 billion daily trade volume.  The stocks market on the other hand has a $74 billion daily trade volume. 

One of the major advantages of Forex over Australian stocks or from other countries is the fact that it is open 24 hours a day, since it’s a global and decentralized market. This makes it possible for Forex traders around the world to conduct trades at anytime of the day. 

For stocks trading, it is considered a more traditional way of investing and there are many people who prefer stocks because of the common notion that these are a safer investment and one that is more suitable for long term investments. 

The real disadvantage to the stocks market however is that there is more uncertainly with it compared to currencies. For instance, if there is some sort of crash of your stock or of the entire market, this can result to substantial losses.  Moreover, there are over eight thousand different stocks on the NASDAQ and the NYSE and these can be very costly in terms of time and effort trying to keep up with these all. In Forex trading, you need to only focus on one or a few more pairs of currencies. This allows for a more accurate and in-depth analysis in order to trade profitably.

You might also think that trading in the Australian Forex market can be more expensive than stocks, but the fact is – when compared to stocks, futures or options, it doesn’t really cost a ton of money. There are several online brokers out there that offer micro accounts and mini accounts, and some with a minimum deposit of $50.

Now, while stocks and currency trading in Australia has their own pros and cons, remember that just like other types of investments, these two come with risks. And by adding more to your knowledge and experience consistently, you’ll be able to see some significant profits whichever investment you choose.

Forex Trading in Australia - Understanding Forex trading

In Australia Forex trading, it seems that traders today are not better off compared to traders 50 years ago. Today traders are not only tilted to traditional or physical currency trading but its online currency trading. I still remember when i was purchasing different currencies and putting them in my house safe for profit margin and this all time , i was afraid to not being theft. Now, you cannot imagine to go for this sort of currency trading and most of Aussie are really speeding up in online currency or simply forex trading on their mobiles. lol .Losing consistently is still very common among traders. This is despite all the advances we have seen in the Forex trading arena and the reason the same the same number lose, is because they fail to get into the right mindset to success in Forex trading.

Currency trading in Australia, just like other types of investments, include a certain deal of psychology. While there are a lot of things you need to consider when trading Forex, there’s no good reason to exclude the psychology aspect at all. Forex trading psychology is equally or even more important because when you trade Forex, you have to adapt a certain kind of mindset that is not common in everyday life.

In a perfect world, traders can follow their emotions, trading whenever they feel like it – and realizing profits from it. Unfortunately, this is not a perfect world and traders who trade according to their emotions lose money at the end. There are two emotions in particular that have been the source of devastation for Forex traders over the years namely fear and greed. When the market is moving against a trader, he feels fearful and closes his position prematurely. In the same way, when the market is moving upwards, he tends to feel greedy and continue making trades, even increasing his leverage mindlessly.

Beating Your Emotions

Never letting emotions occupy you while you trade is something that any trader should master and this is indeed a great step towards being a successful trader.  The best way to beat or at least minimize your emotions is by making a detailed trading plan and sticking to it. Your trading plan should include a complete entry exit, stop loss and take profit orders. Also, make sure your rules are clearly written and take some time to back test your plan before using it with a live trading account.

A good strategy to keep in mind is to not try to make up for losses immediately. Think about long term goals. Know how much you are looking to make and when to add more funds.

Overall, remember that Forex trading involves working smart and adding more to your knowledge. While the sophisticated tools and trading systems we have today are helpful, nothing will help you become a successful trader more than having the right attitude and mindset.

Australia Forex Trading Strategies -

Navigating yourself in the Forex market and trading successfully is by no means a simple matter. There’s a steep learning curve involved and requires a great deal of time, patience, and self-restraint.

Any trader who tells you that it's easy to make winning trades is only fooling you. Truth is, currency trading is a very volatile and risky market. The practice of trading currencies by way of margin increases that volatility exponentially.

So keeping this in mind, it would be a wise to take into account technical and fundamental data before making any trading decision. Timing a trade properly is one of the most crucial variables in trading currencies successfully.

If you are looking to leap into currency trading in Australia, here are some things you need to consider to put the best chances of profitable trades on your side.

1. Do not Trade Money Which You Can’t Afford To Lose

You may have heard this from other resources about Forex trading in Australia before and may already sound basic to you but remember that trading Forex, while exciting, can also be addictive. If you've had any issue with gambling before, then you may find it difficult to deal with the psychological side of Forex trading. Having a sound money management plan which includes knowing when to close positions, add more funds and withdraw is a good step towards trading successfully and responsibly.

2. Adapt to Market Movements but Do It Cautiously

Keep yourself updated with the news and adapt accordingly. News and economic data is the main driver of changes in the markets. However, remember that the markets’ reaction to any type of update is unpredictable. So engage in a game of probability. Be aware that there’s no news release that will guarantee that the market will move in a certain way. Keep your stop loss orders tight and use leverage conservatively.

3. Keep it Simple

It’s no question that the Forex world today is full of sophisticated tools and trading methods that promise profitable results. And while there is nothing wrong with these tools, these have the potential to cloud a traders’ thinking, therefore leading him to exhaustion and inaccurate trading decisions. The key here is to master the fundamentals and never let go of them. People who lose sight of these are more likely to lose money on average.

These are just some of the strategies that experienced Forex traders follow. Overall, if you are serious about being a successful Forex trader, then you will do well to take heed of the advice and disciplined trading mindset of the extraordinary Forex traders who have played the trading game longer than you and have profited consistently at it over the years.

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