Friday, November 22, 2013

Helpful Hints For Making Successful Forex Trades


by Stavros Georgiadis


The downside to Forex trading is the risk you take on when you make a trade, especially if you don't know what you're doing and end up making bad decisions. Follow the guidelines included in this article in order to increase your chances of trading safely and minimizing risk.

Watch the news daily and be especially attentive when you see reports about countries that use your currencies. News can raise speculation, often causing currency value fluctuation. Get some alerts set up so that you'll be one of the first to know when news comes out concerning your markets.

Foreign Exchange trading depends on worldwide economic conditions more than the U.S. stock market, options and futures trading. Before engaging in Foreign Exchange trades, learn about trade imbalances, interest rates, fiscal and monetary policy. You will be better prepared if you understand fiscal policy when trading forex.

Dual accounts for trading are highly recommended. One account, of course, is your real account. The other account is a demo account, one that uses "play money" to test trading decisions.

One trading account isn't enough when trading Foreign Exchange. You need two! You can have one which is your real account and the other as a testing method for your decisions.

You may find that the most useful forex charts are the ones for daily and four-hour intervals. Easy communication and technology allows for quarter-hour interval charts. However, short-term charts usually show random, often extreme fluctuations instead of providing insight on overall trends. Avoid stressing yourself out by sticking to longer cycles.

Don't try and get revenge if you lose money, and don't overextend yourself when you have a good trading position. It is crucial to keep emotions out of your foreign exchange trading, because hasty responses or trades that go against your pre-planned strategy could cost you a lot of money.

The rumor is that those in the market can see stop-loss markers and that this causes certain currency values to fall just after the stop-loss markers, only to rise again. It is not possible to see them and is generally inadvisable to trade without one.

Many trading pros suggest keeping a journal on you. You should fill this journal with both your successful trades and your failures. Doing this can help you figure out what to use in the future and what to stay away from.

These tips come straight from individuals who have experienced success trading with Foreign Exchange. While investing in the Foreign Exchange market may not make you a millionaire, you will come one step closer to that day by using the information from this article. By applying what you learn here, you may be able to make more money than you thought possible.




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