Day Trade Forex
You should learn to day trade forex. But before you embark on your journey of forex trading, I want to make a few facts very clear. These facts should be the foundation of any forex trading system that you develop and use daily for trading.
The first most important thing that you should understand and make very clear is that forex is not a get rich quick scheme. Skilled currency traders can and in fact do make good money in forex trading. However like any other business or career, success just doesnt happen overnight or in a few weeks. You should use this great formula for success: Patience+Practice+Persistence=Profits.
There is no substitute for hard work and diligence. You should make it very clear. First practice trading on a demo account. Do not open a live trading account until you become profitable on your demo account. Pretend that virtual money is your own real money when you trade on the demo account. You can only be successful if you stick to a system and a plan. Double you demo account first three times in a row.
When you start trading forex, just choose two major currency pairs that you will trade in the start. It will become very difficult to keep tab on the all major currency pairs in the beginning. You should start with a major currency pair. The spread on the major pairs is the best and they are the most liquid. EURUSD pair is the most commonly traded pair in the currency markets and usually has the best spread because of its liquidity.
The USD/CHF is the most volatile and moves the most during the trading week. The USD/JPY moves a lot on the news out of Japan. GBP/USD is the most stable of the above three pair.
Follow and understand the daily forex news and analysis of the professional currency analyst. It is important to get a birds eye view of the currency markets and the news that affects the prices. It is also important that you know and understand what the key technical support and resistance levels are in the currency pair that you want to trade.
Support is the price level when there are more buyers than sellers. It is at this point the currency pair price action moves up on the charts. You should buy at the support level. Resistance is the price level when sellers jump into the market and overcome the buying pressure. It is where the currency pair price action moves down on the charts. You should sell on the resistance level.
Fortunately all the best forex news and analysis is available freely online. While you are reading the technical news and analysis, write down on a piece of paper what direction the analyst are saying about the currency pair that you are trading and the key support and resistance level.
You should learn how to use technical indicators. Always trade with stop losses! It is worth your time to be patient. Learn how to use technical indicators on the charts.
Learn to be disciplined when you are trading. Avoid emotions in trading! Stick to a good system and a plan. Depending on your risk appetite and strategy, set your stop losses accordingly when you trade. Try not to trade your gut feeling. - 23223
The first most important thing that you should understand and make very clear is that forex is not a get rich quick scheme. Skilled currency traders can and in fact do make good money in forex trading. However like any other business or career, success just doesnt happen overnight or in a few weeks. You should use this great formula for success: Patience+Practice+Persistence=Profits.
There is no substitute for hard work and diligence. You should make it very clear. First practice trading on a demo account. Do not open a live trading account until you become profitable on your demo account. Pretend that virtual money is your own real money when you trade on the demo account. You can only be successful if you stick to a system and a plan. Double you demo account first three times in a row.
When you start trading forex, just choose two major currency pairs that you will trade in the start. It will become very difficult to keep tab on the all major currency pairs in the beginning. You should start with a major currency pair. The spread on the major pairs is the best and they are the most liquid. EURUSD pair is the most commonly traded pair in the currency markets and usually has the best spread because of its liquidity.
The USD/CHF is the most volatile and moves the most during the trading week. The USD/JPY moves a lot on the news out of Japan. GBP/USD is the most stable of the above three pair.
Follow and understand the daily forex news and analysis of the professional currency analyst. It is important to get a birds eye view of the currency markets and the news that affects the prices. It is also important that you know and understand what the key technical support and resistance levels are in the currency pair that you want to trade.
Support is the price level when there are more buyers than sellers. It is at this point the currency pair price action moves up on the charts. You should buy at the support level. Resistance is the price level when sellers jump into the market and overcome the buying pressure. It is where the currency pair price action moves down on the charts. You should sell on the resistance level.
Fortunately all the best forex news and analysis is available freely online. While you are reading the technical news and analysis, write down on a piece of paper what direction the analyst are saying about the currency pair that you are trading and the key support and resistance level.
You should learn how to use technical indicators. Always trade with stop losses! It is worth your time to be patient. Learn how to use technical indicators on the charts.
Learn to be disciplined when you are trading. Avoid emotions in trading! Stick to a good system and a plan. Depending on your risk appetite and strategy, set your stop losses accordingly when you trade. Try not to trade your gut feeling. - 23223
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know These Forex Broker Games. Learn Forex Trading!
posted by X - Men @ 2:45 AM
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