FOREX TRADE

There are thousands of successful Forex traders making money trading foreign currency, but did you know that 90% of new traders lose money doing this? In order to be successful, there are a few things you absolutely must know. The following are some of the more important forex trading tips to understand if you plan earn money trading currency.

Learn In Pairs - Know Both Sides Of The Currency

It is absolutely impairitive that you understand the relationship that both currencies you’re trading have with each other. Understand how swings on one currency affects the other, and their cyclinicals. Failure to have the basic understanding of learning what you’re trading will likely end up cost you alot of money.

Watch Global Influencers - News and Events

One of the largest contributers in currency fluctuation is events happening around the world. News good or bad, especially in the financial sector, will cause a swing in global currency values. Instability in one market will likely lead to upturns in another - make sure you know your pairs! Remember, instability and volatility is where you make your money.

Tiny Margins and Over-Cautious Trading

We’ve all heard the old addage “slow and steady wins the race.” Well, it’s this trader’s opinion that those types of investments will lose the race. This is a player’s game, if you don’t give your position a chance to demostrate it’s value you’ll end up undercutting yourself in trading fees. Making big trades is where the money is, then again you must know and be confident in your position.

Have A Strategy But Stay On Your Toes

Would you start a business without a business plan? If so, Forex trading isn’t right for you. You must have a plan that details the approach to take, the currencies to trade and how to manage the risk your taking. But with that said, always be aware of your market and don’t be afraid to call an audible if you see indicators suggesting a change of plans Remember the global influencers?

Emotional Trading and Confidence

This goes back to having a strategy. If you’re emotional then you’re not thinking with your head, much like a poker player who goes on tilt. Keep cool stay confident and stick to your plan. Learn to manage stress and understand that as long as you play a winning strategy, they’ll be ups and downs but in the end you’ll be successful as long as you keep your cool.