Posted by forex at 7:20 AM
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1. Focus on a specific currency pair. Each market has its own characteristics. For example, some currency pairs are more volatile than others. Also, specific currency pairs are more active than others at certain times depending on which Forex trading session is active. Once you're comfortable with one currency pair, branch out to others.
2. Regularly read a Forex news service. Different news events regularly cause short term volatility in the Forex markets. It is important to know when these events will occur so that you can stay out of the market during these volatile times.
3. Choose a trading strategy and learn as much about it as possible. There are many potentially profitable trading strategies. Some are more technical and rely on factors such as price patterns and indicators, while others rely on analyzing fundamentals such as national economic data and international trading activity.
4. Develop a personal trading strategy. Use the tools and information you gain from studying existing trading strategies to develop your own strategy. Write down the approach you plan to take to stay accountable to your strategy.
5. Paper trade at first. Trade with a demo account to get familiar with the mechanics of trading Forex. Keep trading a demo account until you are consistently profitable.
6. Adhere to your strategy when trading with real money. This seems like an obvious suggestion, but trading with real money is different than trading a demo account. The most important things to do are control your emotions and stick to the rules you have set in your trading strategy.
7. Adjust your strategy when necessary. If you incur a series of losses, evaluate your trading strategy. Determine if part of your strategy needs to be improved, then make adjustments if necessary.