I'm going to share with you some of my advice and tips for the forex currency traders out there struggling to improve their trading. This market is very exciting because it is growing at such a high pace. There is a great potential for all people to profit in this business.
The first point I want to discuss is the exit trading. You have to block out that training we got in society that has us looking for the cheapest buys and bargains on the shelf. It doesn't work that way. We don't make a penny of profit until we exit the trade, therefore the exit price is what we should be looking for. Developing the necessary analysis to predict the direction of a currency overtime should be your main concern. If you can fairly confidently predict a currency will go up to a value of A, and if you buy it for B, you will make a profit of A-B. If that profit is good, you should make the trade.
The next thing we're going to talk about is the role of a central bank on a currency. All countries have them. In the United States, it is the Federal Reserve. In Canada, it's the Bank of Canada. In England, it's the Bank of England. All these banks play one simple role, controlling the supply of money. Basic economics state as an economy grows, more money needs to be added to meet the amount of value created by an economy. The way money enters the economy is through the banking system. The way they do it is by changing interest rates. A cut means more money goes into the economy, causing the price of currency to go down. A raise means less money goes into the economy, causing the price of currency to go up.
Lastly, be a simple person because simple works. You don't have to make a big complex plan to win at this game. You don't have to reinvent the wheel. Just keep it simple and you'll do fine.
I'm currently giving a 7 day free forex course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.