So now you're sitting in your office at work, you found some time to surf the internet and a lot of your friends were talking recently about making money on Forex trading and here you are reading this post thinking if you can do it too. In a word – YES!
One thing you should know is that Forex trading as well as stock trading is not an instant get rich formula but if you work right, if you work with your head and not your gut, if you prepare yourself each and every day to a new trading day you can make a lot of money because Forex is not gambling, it's all very calculated. You will learn to read charts, to forecast the market, to expect the direction of the market and more and all this will help you knowing when to sell the currency, when to buy, how to lose a minimal amount of your money and how to earn more.
All things which are new need to be learnt and you can find all you need online whether books, videos and Forex trading systems which will help you know when to buy and when to sell. You should first know what it means to trade with foreign currency, understand the terms, understand how to read charts, feel the market and above all understand the psychology of the market and the people who trade because believe it or not, trading in stocks and Forex is all about psychology of people! Just so you'll understand, 70% of correct trading is understanding the psychology of people and how they think and just 30% is all about reading the charts right…. why? The charts assist you knowing when to buy or sell in the technical view but the news about the world and the market make people fear or feel confident and this effect their judgment and so, when they fear they sell and when they're confident they buy so the best way to make the most amount of money is combining news with technical view and charts…. but that's not all.
I don't want you to think it is too hard and complicated to trade when it comes to Forex because it's not and very much possible making money from home trading and thousands of people all over the world practice it each and every day. Once you get the feel of things and understand how everything is connected and effect one another, you'll know to expect the direction of the market, read the charts quickly and effectively and make the correct decisions to make more money. You'll also know when to buy and when to sell for a larger profit of your trade.
Trading Forex is very much like playing poker, so here are some tips I want to share with you prior to investing money and trading:
- Don't ever trade with all your money and bankroll. Trade only with the amount of money you're “willing" to lose. I know it sounds strange, who wants to lose? We all want to profit yet hear me out. You should trade with the amount of money that you know if you happen to lose it, nothing happens to you and you can get up back on your feet, never invest everything you have in trading especially when you just begin your first steps, start with a small amount of money, earn less but gain a lot of confidence and experience and with time trade with higher amounts of money when you're an expert. Remember you're not gambling with your money and your decisions are calculated, still things you can't foresee happen from time to time so protect your money wisely.
- Always prepare for the next trading day. If you haven't done your homework, if you don't have a plan how much you're willing to lose if things go wrong and how much you prepare to earn prior to the trading day, do not trade that day at all. Only when you're organized and work with your head and mind and not your gut feelings you'll succeed in trading.
- Know when to take small profit and when to set a stop-loss. Don't be greedy, sometimes you need to know when to take profit, even if It's a small amount because if you don't you may lose it all the next day. There are days when the trade is very volatile and these are the times when taking small profit is wiser than risking it all and being greedy to lose even more.
These are a few tips you should be aware of even before you've made your first trade but there are a lot more and this world of Forex trading is very interesting and has a lot money making potential if you trade the right way which is calculated, planned and smart.
If this interest you and you would like to know more about Forex trading strategies you should visit the ForexTradingStrategies101.net site where you'll find more Forex trading tips , information about Forex trading systems, day trading and much more…
I wish you all the best because this is not about luck, it's about being smart and knowing how to trade and the best part is that anyone can trade successfully, anyone!