Table of Contents
- 1. How it Works
- 1.1. Basics of Forex
- 1.2. Order Types in Forex
- 1.3. Trendlines
- 1.4. Real-Time Charting
- 1.5. Calculating Interest
- 1.6. Proper Timing in Trading
- 1.2. Order Types in Forex
- 2. Forex Trading Strategies
- 2.1. Assassin vs. Power Strategy
- 2.2. Channel Breakout Strategy
- 3. Psychology of Trading
- 3.1. Don’t Get Emotional in Trade
- 3.2. Be Objective on Forex
- 4. Automated Trading
- 4.1. Automated Trading Software
- 5. Forex Secrets
How Forex Markets Works
Forex is a currency exchange market, which means that it involves exchanging of different international currencies for a profit. There can be another reason to purchase the foreign currency – if you want to buy some commodity of another country, besides earning money through the difference in exchange rates. In the latter case, you should purchase foreign currency when its rate is low, and sell it off when it rises. Currency trading is generally performed between the central banks, the government and speculators. As you can understand, the nations won’t be able to trade with each other without existence of a foreign market.
Both the government and the central bank are trying to stabilize their national currency by speculating –buying and selling currencies at appropriate times. This means that they are able to influence the market when trading in huge volumes. However, the government and the central bank must have huge reserves of foreign currency to purchase its own one, so it makes it almost impossible to inflate the currency value artificially.
Forex market sees a huge amount of money traded daily there, but the amount invested by individual traders is very low. Nobody individually is able to have any influence on the Forex fluctuations, even the governments. As you can see, the level of the currency indicates the strength or the weakness of the economy of the entire country. This means that the Forex market is a great place for competition.
Since the banks trade a lot in international currencies, it leads to a chunk of the volume in the financial market. The banks purchase currencies not just as individual bodies, but also on the order of their clients. The banks also trade in lots of futures. Recently, the brokers were able to influence the volumes of trading in the currency exchange market, but thanks to the electronic services available today, the services of brokers are not required, because it is very easy to operate electronically.
Meanwhile, it is only possible to trade with foreign countries if Forex market exists. No Forex market means no common currency between the countries, so it is impossible to evaluate the value of one currency in the other.
The buyer will pay the seller in his own currency. Upon receiving the money, the seller purchases goods in the buyer’s country and sells them in his own country. Only after the operation he can know how much he has made through the export. But in case of Forex, it will be easier for a seller to know his earnings once he conducted an export trade. Accordingly, the buyer will also know the cost he’ll have to incur in order to purchase goods from another country.
Basics of Forex
Forex trading is actually dealing in foreign currencies. On this market, you can sell one currency to purchase another. As a Forex trader, you should deal in the market at the most appropriate time in order to profit from the transaction. The ability to predict the rates will be very useful here.
Currency exchange market can help you make a fortune. However, there are some rules to follow before starting your trading career at Forex. First of all, you must receive a thorough knowledge about the trends in the financial market, the fundamentals of trading and risk-taking ability. It won’t be a problem to get all the help you need for attaining these rules. There are a lot of websites out there that will help you clarify your basics.
You may wonder how currency exchange comes to be such a lucrative earning opportunity if changes in the rate are so little. But don’t forget that when done in big volumes, any minor change can mean much. Moreover, there are also a lot of non¬monetary advantages to it. Anyone who has a desire to deal in the financial market is able to do so, because you only need to have the basic knowledge to start.
Today major businesses are connected to the worldwide web, and Forex is not an exception. You are able to trade foreign currencies right from your house. Actually, the trade is conducted entirely on the Internet. You can choose the suitable time for trading, and you won’t have to meet any deadlines.
A sound reason why currency exchange trading can be considered is that there are frequent changes in currency rates, though in percentage terms it may seem insignificant. You will profit if the fluctuation is in your favor, but the reverse is also true. In fact, nobody can accurately forecast the trend of the rates. One more reason why Forex is so popular is liquidity. But the most important one is that at Forex you are able to earn a lot of money even if your initial deposit is on a lower side. You are able to invest as little as $50,000. There is no upper cap to the amount of investment, so don’t forget that even if you made a nominal investment, the earning ability is definitely very huge.
Generally, you are your own boss. The entire process of trading through the Internet is quite simple for anyone to understand. All you will need is to start an account for Forex trading with a reliable brokerage company and it will complete the rest of the formalities for you. The only thing you need to do is to provide your investment amount.
In other words, Forex trading is clearly one of the best businesses to make money. Although it has a level of risk attached to it, the latter can be avoided if you take due care and have an alert mind!
Order Types in Forex
There are different kinds of orders the traders are able to place while playing in Forex. Below you will see the four main types of the orders.
This is the most simple and common type of the order. The trader purchases and sells the currency at the rate prevailing in Forex at the time of placing the order. Thanks to the gigantic size of the market and high volatility, the rate trends may reverse at any moment, so traders prefer to place orders at the market price in order to guard themselves against any adverse trend.
This type of the order will be filled only when specific conditions are met in the market, indicated in the order. There are two kinds of the entry order: a limit entry order or a stop entry order.
Limit entry order
For instance, the current market price for currency pair is 0.6505-10. This means that you can transact at these levels. In this case, you can put a limit entry order to sell your funds at a price more than the market price, say, 0.6515. Your order would only be executed if that price is attained. Vice versa, you can place an order for purchasing at a level of, say 0.6500, and your “buy” order would remain pending till the price falls to that level.
Stop entry order
This kind of order is usually used when you have reasons to believe that the currency is trading in a fixed range and think that it’s on the verge of a breakout from that range. You may want to purchase at a price higher than the market price or sell at a lower. For instance, you may go ahead and purchase at 0.6520 or sell at 0.6590, where you think that once these levels are attained, the currency will only go up or fall further. You exercise the stop entry order only when you have grounds to believe that the market will face sharp movements in the currency rates soon.
Stop loss order
Because of the volatility, stop losses are very important – they define the maximum loss you can afford to suffer. In the example above, if your risk-taking ability is low, you may place a stop loss at 0.6505, and it will be the level at which the market will book losses for you, and you won’t be affected by any fall below 0.6505.
The trader announces a price at which he wants to buy or sell the foreign currency. For example, if a trader has purchased one currency against the other at the price of 0.6510, he can later place a sell order at 06525, so that he profited after execution of the order However, the order will be automatically cancelled if the target price isn’t achieved during the day.
As for the trading tolls, we can say for sure that there is no single super smart instrument that can give you a fortune in a matter of minutes. The best solution here is to use a combination of different instruments in order to find the favorable market forces allowing to get a maximum number of high probability trades within a specified period of time. One of the most popular market trading tools is called Trendlines, and many experts gave their testimonial for it.
Trendlines are a very effective instrument for trend identification. It represents a straight line connecting two or more price points and then extending it into the future for you to follow You will see the lines drawn across considerable lows in an uptrend, along with considerable highs in a downtrend. In order to classify trendlines, experts divide them into three types:
- Short Term
These lines are drawn across the latest two lows in case of an uptrend or across the latest two highs in case of a downtrend. The best observations can be found on a smaller time frame like 15 minute or 30 minute chart.
- Medium Term
These lines are observed on a bigger time frame, such as a 60 minute chart. It will connect the nearest considerable low to current price action to the previous considerable low in case of an uptrend In the same manner, it will connect the nearest considerable high to current price action to the previous considerable high in case of a downtrend.
- Long Term
This one will use larger time frames, such as 4 hour chart or even the daily chart to draw long term trendlines in the same manner as with Medium Term lines. These lines are regarded as an effective market trading instrument The daily chart is usually used by traders of big companies who don’t normally engage in small moves on an intra day level.
When you draw a trendline on a daily chart, you are then able to graphically analyze where the price currently is and where it’s likely to bounce. However, the traders should employ trendlines as a market trading tool with caution and discretion. If you cover your charts with every possible trendline, it will lead to confusion and blurry analysis.
It is also not a great idea to rely solely on a short time trendlines, because they can merely give you a defined picture of current price action, which are often broken during the day. In fact, their main use is to provide you with a clear, easily recognizable graphical representation of current price behavior.
In case you notice that the price is coming back to test a trendline on the bigger time frames, you should look at other factors. You can try drawing in horizontal lines to see key support and resistance through previous highs and lows. You can also draw Fibonacci retracement and extension levels, find out the daily pivot points and locate them on the chart as well.
If you want to make money in the area of foreign currency exchange, you have to possess technical knowledge and stay focused on the capability of tracking the price rates by reading actual Forex charts. If you are not a professional in this area, you must quickly discover authentic Forex charts from the web or choose free charts. Meanwhile, the experts recommend to take the help of free chart recognition software and master on it so that it suited your business well.
Online market charts will allow you to know the currency values at any moment, even between short time gaps such as minutes to long intervals such as years. The graphs depicting the rates fluctuations may be line graphs, or bar diagrams or candlestick charts.
The first type, line chart, is very easy to interpret. It will help you to broadly check ups and downs of the currency prices. It will also help you track the current trend of rate change On the other hand, bar charts aren’t as lucid as line graphs, but still provide much in-depth information.
In short words, the length of a bar chart shows the amount of rise or fall in price, while the breadth indicates the duration, which has witnessed this. The chart shows initial and final rates, so that you could identify the range and whether it is a fall or rise. You can use pattern recognition software to interpret the bar diagrams and ease your task.
Candlestick charts were first used by the Japanese. They built them to plot their amount of their rice production. That’s when they became increasingly popular. Basically, they are similar to bar diagrams, but are colored, where each color is a code to signify the rise or fall in price. You can find the index written on the graph itself. That’s why candlestick plots are considered more user-friendly than bars. Once you are able to identify the particular pattern, you will be able to identify the market trend.
An actual Forex chart usually comes with a lot of technical indicators like trend, strength, volatility and cyclic movements. The market chart itself is useful, but this additional information will further ease your task of market analysis, allowing you to predict both movements in the market and market volume.
The best thing about trading on the international market of currency exchange is that you are able to trade with leverage. This means that you can borrow as much as 1,000 times your capital to make a deal Nevertheless, borrowing money for trading on Forex is similar to borrowing money for any other purpose –you will have to pay interest on the loan. Since Forex trading involves both buying and selling, the interest on your loan may be offset by the interest made on the currency you purchase Let’s find out what are interest rates in general, to understand how the Forex market is affected by them.
Central banks set interest rates in accordance with their national monetary policy – high interest rates would make the national currency more expensive to purchase, while lower interest rates make it less so. If you imagine the government of a country having high inflation, it would help you realize how interest rates are used.
The government, witnessing the rapidly rising prices, may take a decision to raise interest rates, which is supposed to increase the cost of the national currency, and make demand and consumption drop, because borrowing would become more expensive.
In return, this would cause prices to fall, while inflation rates would decrease In the same manner, if a country undergoes recession, it may lower interest rates in order to boost the national economy, because lower price of currency would cause demand and supply to increase.
The interest rates set by central banks define at what rate commercial banks can borrow money from the governments and lend them to their customers. This includes Forex traders, and that’s where interest rates start affecting the trade.
If you, for instance, want to purchase EUR/USD, you will need to borrow the dollars in order to buy the Euros and therefore pay interest on the dollars and earn it on the Euros If the interest rate set for Euro is higher than that for the American Dollar, you will earn more on the Euros you bought than you pay on the dollars you borrowed This means a profit for you.
But unless there is a considerable difference between the interest rates, the net profit or loss would be marginal. In addition, while interest rates are set on an annual basis, trading positions are normally opened for short periods to considerably lower any gain or loss on interest rates.
Proper Timing in Trading
When you feel a promising opportunity in trading, the deciding factor will be to know exactly when you should buy. However, that’s where most beginners loose the plot by timing their entry levels improperly. Below you will find basic guidelines that may help you at such crucial moments:
- Why buy low and sell high doesn’t always work. Because this traditional rule may appear counterproductive in Forex trading. The matter is that if you really wait for prices to fall, you will end up missing your best opportunities on the market. You should consider what the chances are of the currency pulling back if it starts to pick up, and what will happen if it just doesn’t and steadies out. In the event that you keep waiting for a pullback, you may end up never returning into trading, as most of the changes in foreign currencies happen from new market highs and without pullback.
This means that if you are going to focus your strategy on waiting for an entry at support prices, you can find yourself standing to loose out on the most profitable deals. Instead, your trading strategy should focus on buying high and selling higher. In other words, you should do the reverse of what the others are doing. Just try and keep a lookout for any breakthroughs in support and resistance, after which you can sell and buy correspondingly.
- Make proper use of support and resistance. In case you stick to the fundamental rule of the share market (buying low and selling high) in currency exchange as well, you’ll only lose money. First of all, you have to understand how the system of support and resistance works. A support price is a tested price at which you intervene and buy, in other words, you “support the market” The more times it’s tested, the more bankable the support price will become In return, a resistance level is determined as a level where the prices were resisted from moving any higher. The same rule applies here: the more times this level is tested, the more reliable the price becomes.
- It takes guts but makes profit. You should be brave enough to go against the crowd. Just think over your strategy with a clear head and you will understand that it’s the most logical thing to do. You might have heard of traders buying into support, while Forex continued its freefall, breaking the support Or you might have heard of the price going to soar and never getting to support, thus making traders miss the opportunity to capitalize on the trend. These examples prove that instead of being traditional and losing assets, it’s better to adopt the breakouts policy: although you won’t be comfortable on entry, you will still be earning money. The secret is to break away from the stereotype that the losing majority sets and to do productive and logical things taking into account the common and predictable response.
Forex Trading Strategies
If you want to build a career in the huge foreign exchange market with a turnover of 3 trillion dollars a day, you should understand that it is necessary to constantly develop new plans to minimize your losses and maximize your profits to stay on the right side of the market. Moreover, you should always adapt to the changing conditions of the market to be able to use every opportunity to profit on Forex.
Assassin vs. Power Strategy
The Assassin formula and the Power strategy are two of the most popular trading instruments on the market Both of them are recognized worldwide and received great reviews. However, their operating principles are different, and it might appear useful for you to know their principle of work.
The Assassin formula was developed as a solution to the busy people’s problems with currency trading. This instrument is perfect for the average expert who wants to generate some extra income from Forex trading but can’t spend much time on either monitoring the markets within the day or studying complex technical formulas and graphs.
Assassin represents a simple and convenient strategy used even without understanding of how the Forex market actually operates. It usually takes around 15 minutes every week to get ready and assign a trading strategy. Once you have done that, you can relax and allow Forex to do its work.
The formula is quite straightforward, but also rather limited, because you aren’t required to have complete understanding of Forex The target here is to let you make limited money by minimizing your chances of loss, which is still not the best way to earn a lot of money.
On the opposite, the Power strategy offers a detailed and an in-depth course based on the dynamics and economics of Forex The strategy takes into account plenty of information, and includes all levels of Forex trading. In return, it will require an investment of your time and attention if you want to successfully make it through the most of the course and absorb the lessons. In other words, if you can’t afford to spend some time to it, this tool is not right for you. However, if you can, you may be sure that by the time you complete the course, you’ll achieve a better knowledge of how Forex actually works, which increases your earning potential.
Channel Breakout Strategy
Forex system is apparently the largest global trade, which taps into some movements for businessmen to get profit Channel Breakout is one of the recognized Forex business strategies utilized rather gainfully in the market.
Basically, channels consist of paths made on a schedule to track the array where currency exchange had been made in a time span. It is very easy to build them You can observe the schedule in a time span and draw the lines connecting the comparatively high spot business expenses, and down under connecting comparatively low spot business expenses. The result will show you a picture of the business array existing within a time span of, say, six months.
Once the value of exchange reaches the peak network line, there will be a rising network getaway. In addition, once the value drops below the lowest network spot, you will get a downward network getaway. Those can happen upwards and downwards. Having enough Forex input with scientific scrutiny, you will be able to utilize the process in order to get a gainful exchange business agenda.
Meanwhile, you should build the channels with care. Any meeting of lines won’t indicate a proper getaway. In case there is any fallacy in the line building, what you see is business out of the array, which only leads you back inside. This means that before using any strategy, you should gain enough knowledge on the currency exchange market
When you find out the working of networks, you will see gains. Build your business with enough pauses, so that in case of a wrong getaway sign, you would get tolerable losses or in the opposite case, a very low profit. However, if you are on the right side of a proper network getaway, the very tiny lack will be moved away, giving you a big satisfactory gain.
Today any successful Forex business shareholder capitalizes on channel breakouts. If you want to cash in the exchange markets, you should spend a certain amount of your time on Forex education to create this strategy and study different technological scrutiny processes. This, in its turn, will allow you to build up the exchange strategies, which would bring you profit. If you aren’t ready to spend your time on completely figuring out the stakes and yields contained in a business agenda, you wouldn’t get the desirable outcome In other words, your gain only depends on you.
Psychology of Trading
Don’t Get Emotional in Trade
Actually, getting emotional in the Forex market may be the worst thing that can happen to a trader or an investor Indeed, seeing paper losses in everyday trade is a very common thing In many cases, once the traders took a decision to purchase something and make losses, they still hold on even if situation gets worse, only because they hope that it might turn back in their favor. Their problem is emotions: the decision to stick to a losing trade for a while is undoubtedly an emotional one, because a trader is in no mood to accept a loss and leave the market
Currency exchange market is largely influenced by the financial market, so the traders should always trade based on indications of the general market, not just initiate the operation because their heart tells them to. Sometimes, traders might be too emotionally attached to a certain currency in the market, which make them more exposed to the financial market. However, there’s nothing wrong with it if you have reasonable grounds to think that your favorite currency will do well. In this case, you will most likely profit from the transaction But it becomes wrong if you open up a trade in a currency only because you want to. In this case you are strongly recommended to check the reality by looking at what the Forex indicators say That will at least provide you with a clear picture of whether or not it’s worth it to trade in that currency.
The main thing you need to remember is that if you have already initiated a trade, and are currently incurring paper losses, and everything shows that things are getting even worse for you, then you best decision is to book losses and quit trading instead of sticking to it till seeing some questionable gains from it. Never forget that the markets don’t have room for emotions.
Basically, Forex trading is never a win-win situation for traders So you have to be ready to lose on some trades. That’s how Forex works – someone wins, someone loses It isn’t even a question of whether you are right or not, it is more about the market moving in an unexpected direction You can throw all the fundamentals and experience into the air if the market decides to change its course
The way out is to follow the indications seen on Forex In the event that you feel after initiating a trade that situation is developing in the wrong way, book your losses and quit it. It will be better to invest your money into other deal and profit there rather than sticking to your losing trade.
Be Objective on Forex
Sometimes, it isn’t easy for Forex traders to understand that the currency market is highly unpredictable. The beginners spend a lot of time trying to learn the mechanism of the foreign exchange trade and forward their energy on trying to find a way to forecast movements. Therefore, they naturally believe that there are some common rules that govern the movement of the market. However, this is not true
Although Forex traders can choose between a lot of instruments at their disposal that would allow them to determine the right time to open or close a position, most of them rely only on one instrument In this case, after having opened a position, the traders watch their favorite indicator and usually base their trading decisions only on it, the others being ignored
This may work well enough until the chosen indicator starts telling the traders something different from what the other indicators are. Those traders who are caught in an open position with their favorite indicator telling them to hold, will do so, regardless of the fact that other indicators are recommending to close and get off the market. In most cases, they end up losing their money.
The main problem here, of course, is that the traders aren’t looking at the market as is, only through their own believes about it In addition, they use their favorite indicator to reinforce the ideas instead of considering the bigger picture. Further, encouraged by the fact that their favorite indicator is predicting the profit, the traders are focusing more on money than on the market movements
In case the Forex market wasn’t entirely unpredictable, it would have collapsed, because all market participants would profit all the time. However, there are a lot of instruments out there that can help you predict the direction of the market and such tools are usually doing a great job. However, even in the hands of the experts, the best instruments may occasionally fail to forecast the market’s movements accurately
This is in the nature of Forex – to lose in trade due to predicting the market wrongly, and you should accept it. In addition, you need to learn to avoid getting in a situation where you have few choices. That’s why you have to accept the fact that Forex can have a mind of its own and you have to follow its movements instead of trying to make the market go in the direction you want it to.
Forex trading is recognized today as the best form of investment for a lot of people The reason is clear: the Forex market is the largest in the world, having a steadily growing trading turnover, which has increased from $500 billion to $2 trillion in the last two decades Moreover, as it isn’t tied to any fixed place, it is a very liquid market. Operating 24/7 also makes it an always open market. This means that Forex can effectively follow the financial markets around the world since they are opening and closing at the same time.
That’s why large and small traders are so attracted to this electronic trading. They like a wide choice of strategies built on different aspects of the foreign exchange rates. A lot of traders entering into the market find the different things affecting currency prices very attractive for a simple reason – they are able to use a wide range of instruments tools when working in this exciting and stimulating environment.
Automation might have the greatest influence on the future growth of the currency exchange market, because it provides more benefits than drawbacks Meanwhile, manual systems trying to operate in this fast changing and volatile environment incur them losses. For example, a mere time delay in purchasing and selling may lead to a row of losses in a manual system, thus causing immense frustration of the Forex trader At the same time, automated trading can allow you to trade anywhere in the world, in real time, and is able to eliminate the losses seen in manual systems.
Working in a wide range of various currency markets simultaneously, without having to worry about the time zones, is another benefit brought by automated Forex trading. If you sit in New York at 2am, you can still conduct business with traders in many countries on the other side of the globe without any effort.
The nest thing traders usually worry about is risk management However, even this can be reduced with automated Forex trading. For example, you can now synchronize the payments in real time and be satisfied with the result, unlike manual trading, where you can’t be certain about payment being made after completion of trade. In our days, the automated trading system is developing fast, which brings with it hopes that markets risks will soon cease to exist at all.
The technology that has advanced by leaps and bounds over the past several years is, of course, a computer technology. The important thing here is that advances in computer technology are good for traders willing to use the best Forex automated trading. Indeed, getting access to technology easily and cheaply from the comfort of your home means you can manage your own investments without any effort In other words, automated Forex trading will come as a welcome addition to an entirely empowered investment vehicle for everyone in the currency-trading world.
Automated Trading Software
Automated Forex trading has a number of benefits of its own. In fact, all you have to do here is follow trade signals generated by the system, and if you can manage to execute them with discipline and your system is logical, you will get profit Before considering different ways of how you can profit from this software, let’s make it clear what you should avoid doing.
A lot of traders find Forex robots on the Internet and purchase them. However, they should remember that most of them are just pieces of junk and have never traded in real time. Simply take a look at their track record and at the disclaimer. In most cases, it’s either hypothetical or stimulated, and it’s no sure indication of future results.
Undoubtedly, this software makes money for the vendor, and after they get the sale of it, the trader gets spanked in the market. The reality is that you won’t get 100,000 annual income for $100 In fact, you will never make any money through those stimulated systems, so stay away from them.
Now let’s see how automated Forex trading is performed in the proper way and consider the options.
You should purchase a system having a track record audited during more than two years. Of course, it won’t be cheap, but it will pay for itself many times over. All you have to do is to understand and agree with the logic of the system before starting using it.
You can also try the free systems. Study the market and you will understand why they are a great start of your automated Forex trading career.
Finally, you can go ahead and create your own system In fact, it’s easier than it seems. Moreover, it’s a better way of trading: indeed, if you build and customize the system on your own, you will be more confident in it and be able to trade with discipline, even during times of loss. If you chose this option, study the market to learn what to start with However, the best way to go is to trade breakouts, to new highs or lows, get momentum indicators to time your moves and concentrate on long term trends. The simpler your system is the better, because it will enable it to face the constantly changing market condition. Meanwhile, packing it with too many indicators can just break it down.
After you have got a system, get hold of Forex software package, program the rules and you are ready to go! Remember that all Forex trading systems, even the best ones, may suffer losses for a long period of time. In these cases you need to keep trading until you hit a home run, because discipline and money management are necessary here If your software does 50-100% compounded per year, it is the best automated Forex trading software and you are free to trade markets and enjoy success in trading.
Taking into account that 95% of Forex traders lose money, you should think twice what will let you win. Below there’s a checklist for you to evaluate your chances of success on the market. You can find out whether you’ll be able to become one of the elite traders, making outstanding long term profits. The options below are a few ways to lose your money. If you want to try any of them, you are better to change your mind immediately and give up the idea of trading:
- Day trading and scalping. This one simply doesn’t work because of the random short term volatility. Just as the robots, even people selling these demonstrate simulated track records.
- Using a Forex robot with simulated gains. This tool will promise you achieving success without any effort You will be asked to accept the tool’s track records simulated going backwards. However, your equity will be destroyed by trying to do so.
There are more of similar tools, all falling into the category of looking for someone else to ensure you success. Such approach doesn’t work in Forex markets.
Apart from the necessity to have a trading edge, the trader should also understand the ways and reasons leading to success. Below there are a few of them:
- Success comes from within. You have to understand what you are doing in order to trade with discipline. This means having confidence, which you definitely won’t get if someone else tells you what to do. You can only get confidence from your own knowledge and education
- Discipline and losses. Since you have to continue executing trading signals within losing periods, discipline can be hard. You have to continue this till you hit a home run, even if you are losing money.
- A trading edge. This is what separates out your trading system from those 95% losers You have to be able to answer what exactly your trading edge is and how it can help you win You don’t have a training edge if you don’t understand what it is. Indeed, only few can succeed in Forex trading. The options below are present in the winners’ trading strategy:
- Using simple robust Forex system
- Having education in the basics of currency exchange trading
- Understanding exactly why the system will lead you to success
- Being confident and disciplined to stick with the plan
- Realizing that only you are responsible for your success on the market
In other words, you should stand alone, have confidence in your actions and be disciplined enough to follow your plan in the trading.
- Success is in your hands. Although this may sound simple, it is in fact depends on your own approach to trading. You should have the right mindset and get right education. You should rather beat yourself than allow the market to beat you in Forex trade All you have to do is learn the fundamentals of Forex, get a suitable system, gain confidence, get an edge, remain disciplined and enjoy currency trading success!