Trade Forex Like A Pro The Foreign Exchange Market is the largest trading market in the world. Unlike stock markets, which are open for a set number of hours each day, the forex market is open 24 hours a day, 7 days a week. Do not allow this to intimidate you though; trading forex is possible for anyone.
Before opening a forex account with a broker, open up a demo account or two. Spend an hour each day trading on the demo account. A demo account uses the actual forex market rates, so it is exactly the same as live trading. The biggest difference between demo trading and live trading is the emotions involved. Trading on a demo account helps you get familiar with a broker's trading platform. Since different brokers have different trading platforms, it is advisable to open demo accounts with several brokers.
The role of education cannot be minimized. If you plan to be successful, you must learn all about forex. Learn about the currencies, how trading differs in different markets, terminology, and so on. If you are checking out forex news and read "Loonie rose on Friday before hitting the Fib 50% retracement resistance, then bullish momentum picked up", do you understand what it means? If you do not understand forex lingo, you cannot use news and analysis to your advantage.
Practice trading during different markets to learn at which times of day you are most successful. If you do well in a fast-moving market, then trading after the London open or just after the New York open might be a good choice. You also have to take into consideration other things in your life. If you work a nine-to-five job in the U.S., then you may not want to be awake when London opens at 3:00 a.m. EST.
Most forex experts agree that the biggest obstacle to trading successfully is the lack of ability to manage emotions. Both watching your money drain away in a losing trade, or watching it increase ten-fold in a winning trade, can cause extreme emotional responses. Emotions can cause you to make mistakes, leave a trade too early or stay in a trade too long. Practice meditation to help you gain control of your emotions. Spend time meditating before and during your trading sessions if you find yourself losing control.
Decide if forex trading is just a hobby or if it is a job. If trading is a hobby, making or losing money
doesn't make much of a difference. If forex is a job, treat it as such. Schedule time to trade and continue your forex education. Decide on a set amount of time to spend on forex each day. Whether you spend the time trading or learning doesn't matter. What matters is that you take trading seriously if you truly expect to make money.
When you first begin trading forex, take your time. Take baby steps, and increase both your trading frequency and the amount of your trading account as you gain experience. Practice, patience, and knowledge produce positive results. Click here for more information