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Sunday, February 05, 2006

Rules for success in Forex :

Currency Trading is not a Get Rich Quick Scheme. Currency trading is a skill that takes time to learn. Skilled Traders can make money in this field, however like any other occupation or career, success doesn’t just happen overnight. there is no substitute for hard work.

Practice and training.

Practice trading on a demo account and pretend the virtual money is your own real money. Never open a live trading account until you are profitable trading on a demo account.

It is highly recommend that to follow 1 or 2 major currency pairs.

It gets far too complicated to keep tabs on all four. It is highly recommended that traders choose one of the majors because the spread is the best and they are the most used. The Euro/USD is the most commonly traded pair and usually has the best ‘spread’ because of its liquidity. The USD/Swiss Franc is usually the most volatile and moves the most during the trading week. The USD/Yen moves a lot on the news out of Japan and normally the Pound Sterling/USD is more stable in it’s moves than the other three.

Follow and understand the daily ForexNews and Analysis of the professional currency analysts.

Even though this system is based solely on technical analysis of charts, it is important to get a birds-eye view of the currency markets and the news that affects the prices.

While reading the daily news and technical analysis, it is recommanded to note what direction the analysts are saying about the major currency pair you are following.

Fortunately, all the best Forex news and analysis is offered free on the Internet.

There is a lot of specialized websites where you can find news and analysis:

www.forexnews.com : The site gives the big picture of how the economic calendar and central banks affect the currency markets.

www.fxstreet.com : Here there is a good listing of all the major daily currency analysis and forecasts with support and direction forecasts.

www.currencypro.com: A Forex Portal with excellent analysis on the Major Currency pairs.

Learn how to use the technical indicators and always trade with stop losses.

It is worth to be patient and learn how to use the technical indicators on tutorials.

It is important when trading Forex, to be disciplined and to stick to a plan. Never trade with gut feeling. The use of technical indicators outlined and always stop losses option on every trade is the key for success. Everyone who trades has a different tolerance for losses. It depend on evryone risk capital, and strategy.

1 Comments:

At 10:44 PM, Blogger TradingCourses said...

Interesting blog. I can see that you've done a lot of work on it.

Regards,
Emini Futures Day Trader
day trading video
http://www.daytradingcourse.com

 

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