Can individual investors become currency traders? The answer is yes. Anyone who is serious, rigorous and realistic enough can learn everything there is to know about currency trading.
To become a forex trader and make money on a regular basis, it is essential that you be organized and work in an intelligent manner.
Success in the foreign exchange market depends on the trader's trading strategy as well as the discipline with which the trader applies his strategy.
The below articles will teach you the concepts you need to know in order to invest in the forex market like a professional trader. These tips are easy to understand, yet most investors do not have the psychological profile nor the rigor that are required to develop the mentality of a professional trader. You can also read our articles on the psychology of traders to further your education and acquire the discipline needed to properly use a forex trading strategy.
Some tips to avoid the mistakes that are typical of beginners traders. Know the broker's trading conditions, secure your profits, follow the trend, establish a strategy, manage risk, etc...
This article, written by a professional trader, explains three methods for managing risk. Risk management and position size management can make the difference between two traders who use the same entry and exit points.
Proper money management allows one to maintain control over the risk/reward ratio of each trade. It significantly increases the likelihood of making money over the long run through management rules pertaining to stops and position sizes. The mastery of risk is the basis for success in forex trading.
A forex trading plan helps traders avoid making mistakes. It consists of a set of rules that precisely define the trading strategy, money management and the management of emotions.
Traders oftentimes lose money because of a lack of rigor or discipline. Ironically, these investors are usually aware of the reasons of their failure, but they are unable to adopt the mindset of a professional trader. Here are 10 reasons which explain why professional forex traders make money.
The transition to a real trading account is difficult and often leads to losses at first. Here are a few tips to know if you are well prepared. Make sure that you go through this checklist before you invest your savings in the ruthless world of forex trading.
There is no magic formula enabling one to become a profitable forex trader. There are as many approaches to trading as there are traders. Nevertheless, professional traders have things in common in terms of how they approach currency trading.
A hybrid trading system which combines a mechanical (or automated) approach and a discretionary approach can be ideal for forex traders who are influenced by their emotions.
In forex trading, herd mentality refers to traders who blindly follow the trend of the masses. These traders generally adhere to the well known investment saying "the trend is your friend".
Here is a neat and nicely arranged list of key things you need to know in order to become a profitable trader.