Making Money Currency Trading

These thoughts about making money currency trading
are not only for beginners but also for those
experienced in trading currencies.

http://www.theforexnittygritty.com/forex/makingmoney-currency-trading

Understanding Forex fundamentals is essential to
making money currency trading.


Likewise a focused approach to Forex trading is more
likely to be profitable than a haphazard one.


If you are interested in making money currency trading
let us start with the basics of Forex.


Forex Basics


The Forex market is huge with an average daily
currency turnover of around $4 Billion.


It can be volatile and obviously is very liquid with the
huge numbers involved.


Trading major currency pairs on a decentralized
market that is open around the clock can be very
lucrative to those with a successful trading Forex
system and the skills and patience required to use it.


It can be terrible way to lose money for the uninitiated.
Success in making money currency trading starts with
learning Forex basics.


The Forex market is largely the province of central
banks, multinational corporations, multinational
banks, and other international players who manage
currencies or do business across the globe.


It was developed to facilitate international trade but
also provides potentially lucrative market for currency
speculators.


What separates the successful Forex trader from the
rest is devotion of time and effort, education, thought
given to how and when to trade, patience, and more
homework.


With computer software it is possible to simulation
trade on the current market and it is possible to trade
past market conditions as though they were new.


Understanding the Forex markets comes with learning
the major currency pairs and trading them repeatedly
to get the basics of Forex trading down pat.


The most actively traded currencies are those of the
most advanced economies.


These are wealthy nations who allow their currencies
to float in the Forex markets of London, New York, and
Tokyo.


These currencies trade in high volume and with high
liquidity.


These facts make the technical analysis of major
Forex currencies more accurate and the trading of
these currencies potentially more profitable.


 Most Commonly Traded Currencies
 US Dollar (USD)
 Japanese Yen (JPY)
 Euro (EUR)
 British Pound (GBP)
 Canadian Dollar (CAD)
 Australian Dollar (AUD)
 Swiss Franc (CHF)


 Most Commonly Traded Pairs
 (USD/JPY)
 (EUR/USD)
 (USD/CHF)
 (GBP/USD)


Making Money
Currency Trading


Learning the basics of currency trading is necessary if
you are interested in making money currency trading
but there is more.


To a large degree successful Forex trading is a
performance art.


You need to know the basics and you need to practice
the basics in real time.


You can trade in simulation all day long but it is a
different world when your trading capital is at risk.


A major factor in making a profit in trading foreign
currencies is the psychology of trading.


The twin demons of trading are greed and fear.


Traders are prone to stay in a position too long
because they are trying to eke out more profits.


Traders are also prone to exit a position too soon
because they are fearful and do not trust their
fundamental and technical analysis.


Good traders develop a strategy and they use the
strategy to trade.


They analyze their results and make changes in their
strategy as needed.


Making money currency trading is possible when you
learn the basics, avoid the demons of fear and
greed, and continually hone your trading strategy in
search of more efficient trading and higher profits.


Making Money Currency Trading

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