I'm going to share with you some of my forex trading tips and strategies that should help you transform your trading into a more long term profitable trader. This is a great market to get into and definitely a great place for people seeking a second income to start.
The first thing I want to discuss is the margin trading accounts offered by brokers. This a very different from traditional thinking. You've probably not heard much about these with stocks and things like that. The idea is that you put in a deposit and you're allowed to trade a certain amount of times more in the brokers money. Basically that means if you deposited $1000, you would be able to trade up to $100,000. The idea is very foreign because it seems like free money, but it really isn't. When you have extra money to trade, you have more leverage in the market and can make a bigger profit for yourself. As well, the broker makes more money because you're making more money. This makes it a win-win for both. With that said a broker isn't going to let you lose $100,000 of their money. Basically, you're allowed to keep trading as long as your losses don't total your original deposit. If they do, than your broker will cut you off. The best way not to get cut off is to only trade a percentage of what you're allowed, like 10-20%. This means instead of trading $100,000 which could end up with huge losses very fast, just trade $10,000 or $20,000. It's a lot of money, but not so much that your original deposit would be lost in a blink of an eye.
The next piece of advice I'll give you is to get yourself a piece of software like Forex Killer. It makes trading easy because it has automation features. If you have an active trade, but need to leave the computer, you can setup the software to watch the trade and make the most profitable decision if it is needed. That is like having your own employee working for you. It is a very profitable tool to have.
The automated software of Forex Killer will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out Forex Charting Software.