3 Tips for Successful Currency Trading
Currency trading is another name for forex, overseas exchange, or FX trading. It has gained a lot of popularity lately around the globe. According to statistic available, currency trading is the biggest market on the face of the earth, translating into daily trading volumes that run into trillions of dollar. Forex represents trading currencies, which in turns means the buying of a currency and selling it to make gains. Currencies are always traded in pairs for instance GBP/EUR or USD/JPY.
Currency trading is a highly volatile business. It creates room for an investor to make solid returns on any given exchange. The forex market had an exclusiveness to institutional investors in the 1970’s and its latter openness to retail investors due to technological innovations. At the early time the primary players in the currency trading market were Central Banks, multinational corporations and financial institutions. Although, we still have retail investors today accounting for a small fraction of the total currency trading volume. For individuals who want a piece of the cake in this trillion dollar exchange business, the provision for retail investors is a welcomed one.
One of the unchanging ideas is to purchase a currency that would appreciate in value against another so that gains could be made. For instance, if you believe that the British Pound will appreciate against the US dollar, then you can purchase the Euros and sell them out when its values goes upward for some profit. For you to achieve this you’ll have to determine which currency and when the currency would appreciate in value.
We’ll be looking at some easy tips that would describe and aid you attain the desired success trading foreign exchange not minding that around 95% of traders lose money. Some of the tips I’ll disclose are going to go a long way in seeing through into becoming a successful trader, only if you follow them. So let’s list them out:
Work Smart not Hard Working smart is what is required of you to be successful in this business not necessarily hard. A lot of traders out there are of the belief that the more trades the initiate, the better their chances of success but is falsehood. The right information is what you need and learning the best trading styles is king in this business.
Keep Your Trading System Simple Yes, a lot of traders out there develop a trading system that’s way too complex, although very smart trading. What we’ve come to understand is when a trading system becomes very complex, it would have so many thresholds to break. Take the simple advice of keeping it simple and based your trading system on technical analysis.
Discipline is Vital Trading with discipline and sticking to your trading plan is vital in this business. When traders get out of control and refuse to adhere to the basics, the consequences are dire. Most of the successful traders we see out there have been able to overcome their emotions. This is essential for you to keep losses down and catch the big trends. Always remember this, ‘you have no trading system, if you can’t trade it with discipline’.
Thanks Daniel for this post. Most traders will keep on adding and adding technical indicators to their charts until it becomes a 2 years old drawing. What are we looking at when we look at a chart? The answer is simple: PRICE! When we add many indicators, we'll see everything but the price.
When I started trading forex. I had that bad manner to add indicators as much as I could. I kept on loosing until the day I deleted all the indicators from my chart and from Metatrader. It was only at that point in my trading life that I really saw the price and it's price action. Since then, I only use few lines here and there on the chart (mainly support/resistance/trends) and that's it. As a matter of fact, profits increased...
Originally posted by paradiseThanks Daniel for this post. Most traders will keep on adding and adding technical indicators to their charts until it becomes a 2 years old drawing. What are we looking at when we look at a chart? The answer is simple: PRICE! When we add many indicators, we'll see everything but the price.
When I started trading forex. I had that bad manner to add indicators as much as I could. I kept on loosing until the day I deleted all the indicators from my chart and from Metatrader. It was only at that point in my trading life that I really saw the price and it's price action. Since then, I only use few lines here and there on the chart (mainly support/resistance/trends) and that's it. As a matter of fact, profits increased...
i start the same thread with 10 tips :P
i think you both must read those tips also
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Well i would like to suggest you some important which would be helpful to you while doing trading. First you have to grab good knowledge and ideas as much as you can so that it will be helpful to you to make a good amount of profit in forex trading. Don't be greedy while doing trading and just be happy with your profit and yes take every decision in forex trading very carefully , wrong decision always result in big loss. I hope this will help you in making good amount of profit.
During learning process, we have to work hard and smart. But as an experienced trader, one has to work smart. Working hard will obviously affect state of mind. A good tip :)
Originally posted by paradiseThanks Daniel for this post. Most traders will keep on adding and adding technical indicators to their charts until it becomes a 2 years old drawing. What are we looking at when we look at a chart? The answer is simple: PRICE! When we add many indicators, we'll see everything but the price.
When I started trading forex. I had that bad manner to add indicators as much as I could. I kept on loosing until the day I deleted all the indicators from my chart and from Metatrader. It was only at that point in my trading life that I really saw the price and it's price action. Since then, I only use few lines here and there on the chart (mainly support/resistance/trends) and that's it. As a matter of fact, profits increased...
Same happen to me, first years of study, many indicators, and when I began to study price action, things changes...
A trader needs to be patient and disciplined in these markets and have a calm and composed approach. Also a trader should have a profitable and a easy trading strategy to be able to make good profits and also a trader should be able to control their emotions.
A trader needs to learn the basics of Forex first and also need to be patient and disciplined in their approch. always start trading with demo and after getting some good experience make good start with live trading.
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