There is nothing sadder than to see the newbie Singapore FX traders loose their initial investments in online trading. In this article we would like to discuss some popular trading mistakes and help the beginner traders muster the skills of a online trader.

The first error is an attempt to start trading Forex from day-trading. That means trading within a day on short-term charts, mistakenly suggesting that this way traders can gain much more money. In reality it is certainly a myth. Day trading is recommended to the experienced traders only who have many years of experience in online trading. The reason is that on day trading a trader must make correct decisions immediately, not basing on the market analysis so much, but rather on the basis of his intuition and big trading experience. If you don’t have much trading practice, it is almost impossible to succeed on day trading. The novice traders are recommended to start their online trading career from technical and fundamental analysis on 24 hours time frame graphs. Though it takes more time, this trading strategy is less risky and will help you get a valuable trading experience.

The next and the most common fault is trading against a trend. Half of the new traders on Forex Singapore market loose their money for this reason. There is a rule on Forex market: trend is your friend. Don’t think that you are smarter than the others. When there is a trend, you have to trade with a crowd in order to make profit.

The third error is too much trust to various signals, automatically trading systems, popular analysts and guru of the financial markets. Notice that the decision regarding trading must be only yours. It is your money that you invest and trade with and if you loose due to the recommendations of a guru, alerts or other assistants mentioned above, none of them will take responsibility for your losses. Also, making the trading decisions based on your own analysis, you are gaining a valuable experience that will be very useful in the future.

And finally, the fourth error in currency trading is the lack of an prepared trading plan and your own trading strategy. At any time, disregarding of the market’s behavior you should know what to do at the moment. In order to make your trading planned and less risky we recommend (especially to the beginners) keep a diary where the main issues of your online trading are noted.

It is very important when finding the moment of opening a trading position follow the proportion of at least 2:1 of profit to losses. But in general the more positive positions you have, the better. Following all the rules described above will help you make profit trading Forex in Singapore or any other financial market.

Having the basic understanding of Forex trading, you can already start trading on Forex demo account for practice money. Usually every Singapore Forex broker provides with a free demo account with the real prices. So that a trader can get familiar with a trading platform and the Forex market. Practicing in demo provides with the basic experience of trading and stops being afraid to trade. The market changes only in two directions: either down or up. Sometimes it bewilders the new traders as they have a gambling approach to online trading: sell or buy? Fortunately, years of research of other traders gave our generation a lot of indicators together with the opportunity to improve them. For example, one of the most popular and simple indicators is the moving average. It can be a good help in your online trading. Set one moving average for a long period, another for a short period. At the spot of intersection of both lines of the indicator you open a trading position and wait for profits.

During the training period when a trader is practicing on demo account, the trader has a big chance to practice different trading methods. At this stage he is learning, that’s why no risks are involved and it is a good time to try different trading methods. In addition it is not necessary to calculate all possible ways where the market will go and be under the pressure because of the coming news that can change the market and cause the losses. A simple instrument of moving average will help a trader with a probability of more than 50% predict the behavior of the market in the near future. If a trader gets the result where the total profitable positions will be more than losing ones, then together with the applying of some rules of money management, you can make profit. Though you earn a virtual profit at this stage, it is also important, because thus you will become more confident in Forex trading and in your own knowledge. You don’t need to be a genius to find a right point to open a trading position, and there is no need to climb Mount Everest to start trading Forex. It is simple and easy, drinking coffee in the morning, clicking the right button when receiving a signal.

Usually Singapore brokers provide their potential customers an access to seminars to help the new traders get started on the Foreign Exchange market. Every Singapore trader can take part in different long term training courses, which may last up to 3 months. After finishing a course it will be possible to start trading on currency market for real money with confidence. You will be able to develop your own trading approach, optimize the use of indicators and create your own automated trading system.

As you can notice online trading offers a great potential for any trader to make profit. Trading platforms offer different tools to help the traders. The only thing you need is to learn to use them and know how to analyze the currency charts.

When working on creation of your own trading strategy, don’t forget to take the volatility of the currency market into your consideration. The Forex in Singapore as well as other parts of the world is working 5 days a week, 24 hours a day, which allows any trader from any part of the word take part in the global online trading and not to miss any big opportunity to increase your funds. Every trader must understand and take into his account the timing of various trading sessions since the foreign exchange market at different period of a day may act differently.

Each currency pair that is traded in Forex market has some volatility where it shows the biggest movements. It usually happens during the certain hours of a day when the country is active and many events happen. Usually every country has biggest influence on its currency, so knowing the schedule of each trading session may give you a sign which currencies it is better to trade.

London (European) session is the biggest Forex market and is more volatile than any other sessions. During the London session about 30% of daily
Trading volume are done on Forex market. The average price change for all currency pairs during the London session is about 80 pips. For example, the daily range of currency pairs as GBP/CHF and GBP/JPY is about 140 pips. In addition to these pairs, the most traded pairs in Forex market at this time considered to be USD/CHF, GBP/USD, USD/CAD and EUR/USD. Realizing of volatility for each traded currency pair helps you to set levels of take-profit orders more correctly.

It is a fact that after the London session is finished, many big investors prefer to transfer their investments from the European currencies to the US dollar. As at that time the New York (USA) session starts that is the second largest turnover in the Forex market. Knowing the time of different sessions and their features, can become the basis for the creation of the trading system. The New York session is open from 12.00 to 20.00 GMT. The greatest volatility during the day is seen in the period from 12.00 till 14.00 when both European and American sessions are running.

After the USA session is finished the Tokyo session starts, which lasts from 0.00 to 8.00 GMT. This session includes all Asia and such big financial centers as Singapore Forex trading and Hong Kong. The biggest attention during this time is paid to the currency pairs GBP/CHF and GBP/JPY at an average daily range of about 100 pips. Trading in Singapore is also based on AUD, SGD and NZD currencies. Taking into the consideration the specifications of different sessions you can build a trading technique that takes into account time zones when the appearance of a trend is most likely. Using the time factor of trading sessions and some good technical indictors is the clue to building a successful trading system.

While watching the Japanese candle stick charts we usually pay attention on the historical prices of the certain currency pair including the support and resistance levels. The historical prices gives us more or less correct information about what we can expect from the market in the nearest future and trade accordingly.

If watching a candle stick chart you pay attention that there is a big trend so it must be a sign for any Singapore trader where the market is moving and what direction to trade. Before you start a trade you should also consider using the moving averages or Fibonacci levels and place the stop-loss orders accordingly.

There is another method of trading on candle stick charts. It is using the theory of support and resistance levels. According to this theory, if the price did not break the resistance, then it would return to the level of support. The support and resistance levels are analyzed for a period of few days, depending on the time frame of your trading. It is also very good to add Fibonacci levels to this strategy.

And now few words about Japanese candle stick analysis. This is an ancient method of construction of charts that appeared in Japan in the 17th century. A candlestick perfectly reflects the battle between bulls and bears and gives a clear picture on which side is an advantage. In addition it shows a moment when the fighters change their places.

Graphically a Japanese candlestick is composed of body and shadows. The upper shadow on the daily chart shows the maximum that the price reached during the day, the lower shadow – minimum price. The body of a candle gives the price of opening and closing of a trading day. If a candle is white or green, so the closing price is above the opening one. If a candle is black or red, so it is on the contrary, the rate at the end of the day was lower than the beginning of the day.

When analyzing a candle stick chart, we look for the figures that a group of candles create. Usually we need three-five candles in order to have a figure. The most important figures in chart’s analysis are Falling Star and Dodges. These combinations will let you know if a current trend is reversing or continues.

In Singapore Forex trading the Japanese candle stick analysis method is mostly used for a long term trade and for cross-rates like EUR/GBP. It performs good for trading in corridors by defining the historical trends. Forex trading in Singapore and Asia in total is mostly done on the Japanese candle stick trading and chart’s analysis. Today this technique is popular among the traders of the entire world as it produces correct information about the market and helps increase the number of profitable trades.

There are plenty of many Forex ebooks online that teach new traders how to trade using the levels of Fibonacci, Elliot Wave, etc. Of course these ebooks are very good for any new Singapore trader, but the problem is that the writers of these books give 100% guarantee that if you do as they say, you will make profit.

Alas, the reality is not so easy and to justify himself in the loss, a trader begins hysterically recall all his steps in order to make sure there is a reason of his mistake and loss. Someone may has forgotten to take into account a very important indicator while placing a trading positions, another one has miscalculated the Fibonacci levels – and now such traders are making a sad conclusion: “No, the Forex market is not for me…” And of course everyone who thinks this way is not right, as Forex in Singapore has many systems and some of them are very easy like trading with reverse orders that can give you more than 500 pips every month.

The advantage of trading with a reverse orders technique is that you have a good chance to catch the market disregarding of its direction. I suggest many of you have faced a problem when you predict the direction of the market and open a trading position. But the market goes against you and your position is closed by stop loss order with a loss. And after that the direction changes and goes your way. How disappointed we are when it happens.

In order to reduce the chances of losses in such situation a technique of reverse orders was created. It is a very simple trading technique and every nivice trader may use it. What you must do is when you open a position on Buy instead of stop-loss level after 25 points you place a position for Sell. The same you do for a position for Sell, you secure it with a position for Buy. The point is that you don’t use a stop loss and if the market goes against you, you will still remain in the market.

By using this strategy you have a chance to correct your trading position any time disregarding of the market’s change. The correction works the following way. If one of the orders got a profit of 10 points you should open another order in this direction. This technique will let you to diminish the losses. When you have three positions (two sell and one buy) where in totall you are in profit you can start closing the profitable positions if you see that the market turns and takes another direction. Trading this way helps you open many positions and you can also use high leverage for it. This trading method may be uses on any platform and with all Singapore brokers.

It is not important with what Singapore brokers or trading terminals you are trading. If you don’t have your own trading strategy, it will be very complicated for you to make a regular profit on Forex market. Before you start trading with large amounts of your own funds, we recommend you to take your time and develop your own trading strategy using demo or mini real Forex account. Once you create a trading strategy and make sure that it works for you and helps you make profit on Forex market, you can go ahead and invest your funds in trading.

Pay attention that almost every trading strategy is based on two main parts, that are critical in Forex trading in Singapore: the point of entry the market and exit from the market. In order to guarantee yourself success in trading currencies online the most important thing you need to know is when it is best to open a trading position and when to close it. This is exactly what you need to keep in mind while building your own trading technique. The knowledge about the market and the information when it is better to start your trade can be gained with the help of both technical and fundamental analysis and of course practice. In general your trading system must give you signals for certain actions that you have to make. The aim of the strategy is to help you find the market situation, when opening a position gives you the biggest potential for income with smallest risks.

When trading on Singapore Forex markets, every trader must look for the way to decrease his risks and at the same time make income. The professional traders determine the risks by the levels of support or resistance. They usually use the stop-loss and take-profit orders to secure their trades. The stop-loss order must be set on no closer than 20-30 pips from these levels on the condition that you don’t risk more than 5% of the total balance in this position. The take profit order must be set on the next level of support or resistance in the direction of price movement. As the price goes your direction, you move the stop loss further from the losing area to the break-even zone. The most important factor using this technique is to find the right entry point.

The purpose of the exit point is first of all the protection of your main capital and of course generating profits. The successful trading strategy must be targeted for diminishing the risk of losses but not seeking for huge profits. If you learn how to reduce your risks while trading Forex, you will definitely make money while trading online. Those trading strategies that are based on the analysis of Elliott Waves, provide with an accurate way to find the optimal entry and exit points with the lowest risk or trading losses.

In this article we want to share our Forex trading experience with every Singapore trader who has no or little Forex trading experience.

1. If you are going to start real trading in Forex, deposit the available money only. Never invest your last money for currency trading that you cannot afford to loose. If you don’t have available money, it is better not to start real trading at that moment in order to avoid the psychological pressure from yourself and your family. You must feel emotionless when trading in Forex market.

2. Don’t expect always win and have profit while trading Forex. Even the most experienced traders have losses. The skill is to know to carry your losses and increase the number of profitable positions.

3. Don’t go against your own trading strategy. Experience shows that you must not modify your trade every time when the quotes jump or make a rapid movement. Not following your trading plan may lead to the unsuccessful trading.

4. Don’t follow the bulk of traders. Experienced traders are often feel uncomfortable when they see that their trades are the same as that of the most of traders. Experience shows that the majority is often mistaken and the opinion of the crowd will be in most cases mistaken. There are numbers of advisers, signals and analytics around. It is clear that in many cases these tools give wrong recommendations so sometimes it is smart to act controversially.

5. Take control of your feelings. Keep yourself unemotional when you trade. If during long practice you gained enough skills and developed good trading strategy, uncontrolled emotions can desroy everything and bring you much looses.

6. Don’t follow recommendations of other people. Trading in Singapore is an individual work and no one knows for sure where the market is going to move. Practice as much as possible to create your best trading method that will help you have more profitable positions than losses and follow it.

7. When trading, concentrate on few currency pairs and check their price changes. Always analyze the movements of the group of chosen currencies to carry out successful trading. For example if one of the currencies becomes stronger it makes the other one weaker and makes the price changes. The experienced traders always try to buy the stronger and sell the weaker currencies. Many Singapore brokers provide their traders with the special features where you can see the graphs of few currency pairs at the same time.

8. Always analyze your strategy and look for the way to improve your trading method. There is no existing strategy that guarantee 100% profit. But if you succeed to develop a strategy that gives for sure at least 55% profit, it is already a great success!