The only way to keep up with the latest about Forex is to constantly stay on the lookout for new information. If you read everything you find about Forex, it won’t take long for you to become an influential authority.
Whether you’re a futures broker, mortgage broker, banker or stock picker, FOREX trading is an essential part of a person’s portfolio. The FOREX market is risky, volatile and yes, an extremely lucrative market. Data shows that 90% to 95% of FOREX traders lose money in there first year of trading. So, you ask, why should the FOREX even be considered a part of a well rounded portfolio? Honestly, because trading the FOREX has the potential to make anyone thousands of dollars a month.
Only until recently has the average person been allowed to trade in the FOREX market. Now, even a mini account can be opened and with little as $300 and off you go. One caveat however, if trading the FOREX market were easy, then everybody would become millionaires trading it and this just isn’t the case.
FOREX trading requires vigilant market analysis and in general there are two approaches to this analysis. The first is known as using fundamentals. Fundamentals rely on government reports such as, trade deficits, changing interest rates, CPI numbers, retail sales and supplies of raw material. FOREX traders will make a projection for upcoming data and place trades based on their speculations of that data, trade floor rumors and breaking international news events.
Those of you not familiar with the latest on Forex now have at least a basic understanding. But there’s more to come. Another type of FOREX trader is what is known as, a technical trader. FOREX technical traders rely on charts and mathematical formulas to place their trades. Their belief is that history and price direction repeats itself. Based upon these historical patterns traders can and do use them to predict price movement in the future.
The information about Forex presented here will do one of two things: either it will reinforce what you know about Forex or it will teach you something new. Both are good outcomes.
There is no proven, fool proof method to trading. Some people claim to have found, “the answer”, to currency trading. However, my experience shows it may be best not to try and reinvent the wheel. Learn with a time tested system. Follow a simple, reproducible and proven money making plan. Then from it develop your own style or basic method of trading. Decide when the best time to trade is, develop a good money management system and set goals. A lot of experienced FOREX traders trade when the London and New York markets overlap, between the hours of 8:00 am EST and 12:00pm EST. They trade during these hours because the market moves around a lot and becomes extremely volatile. The result is, most long surviving FOREX traders have learned how to become extremely good at money management.
One key to success in trading any market is to keep your emotions in check and thus lower your anxiety level. A true FOREX trader will discipline themselves to stick to their trading style regardless of what happens in the markets. You must plan a trade and then trade the plan. People too often feel after a few short months of trading successfully in a demo account they are ready for the real thing. Take your time and really learn how the FOREX market works as your long term success is at risk.
When word gets around about your command of Forex facts, others who need to know about Forex will start to actively seek you out.
Those who only know one or two facts about Forex can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you’re learning here.