Forex (Foreign Exchange) is one of the largest financial market in the world with turnover expected every day to run up to $ 3 trillion. And if you wish to make a fortune in Forex trading market, you need to know what you will do. Forex is complicated. Without knowing the keys to building a profitable trading strategy, then you will never prosper. Many novice traders fall one by one for this reason. Woke, maybe they were already convinced by the demo account which is now piling up dollars (virtual her), was already feeling the forex science can master it, if asked to talk about forex, UHF smart anyway,But is it enough? I just wanted to give input only, may be useful:
Key One: Know your market
The surest way to profit is to maximize profits and minimize losses. You must know the market and how it works, should know how to do trading. You must see clearly, as you see the back of your hand. It's important for you to know the state of the market and its rules. You should be familiar with your broker and in currency pairs involved.
Well, then we can not instantly for immediate trading forex, dong! Most novice traders rush like that,Be patient a little !! You absolutely must have a profitable trading strategy from the beginning.
Trading is done on the currency pairs, with the currency pair's most heavily traded: U.S. Dollar / Japanese Yen, Euro / US Dollar, and Swiss Franc / US Dollar, GBP / USD. In Forex trading, everything is not tangible and virtual. There is no actual product being sold or purchased, and money no changes to the trader's actually holding the money in cash benefits resulting from his account. All this buying and selling activity really should be understood. Say, for example, you use U.S. dollars to buy euros, expects that the euro will rise. When the rise in value, you can sell euros for dollars, and with this difference that you benefit.
Key Two: Learn the term
There are three concepts you need to know in the currency market.
Pips
Pips it refers to one hundredth percent increase from the value of the currency pair you trade. The amount traded, each pip usually may have a value of $ 1 or $ 10.
Volume
Is the number of lots or the amount of money traded at a certain time in the market.
Buy and Sell
A trader is buying with the expectation that the price of the currency will rise. Selling is putting the currencies of other people to buy because you might expect a decline in value.
Then two types of analysis that is usually used in the analysis of the currency technical analysis and fundamental analysis. Technical analysis is usually used by small and medium players. Here, the analysis concentrates on the pattern of price activity. Fundamental analysis is often used by large companies and players that work with larger investments. This type of analysis is more complex and saw many other factors that may affect currency values. With fundamental analysis, investors are carefully monitoring the situation in the country issuing the currency, including such issues as political stability, tax policy, inflation and unemployment. All these are factors known to affect currency values.
Key Three: Learning (or develop) a solid trading strategy
Your trading strategy should match your personal characteristics, and also applies to you, including what kind of kind of Forex traders. An ideal trading strategy also will prevent (or rather reduce) losses.
Your strategy should also consider the size of your transaction. Do not over trade (many times to be reminded). This approach encourages discipline, and also reduce risk, reduce any possible losses that will erase your capital. The basis of any good trading strategy is a combination of discipline and smart money management.
Key Four: Many exercises
Be sure to do virtual trading until you really understand how to work everything. This is a great way to build your trading skills, learn how the markets function and feel comfortable with software and tools you use. Virtual trade will also build your skills everyday. Some brokers offer a demo account with virtual money trade. They will provide training and experience before you dive in it and manage risk your own money.
Key Five: Choose a Forex Broker that suits you
You need to learn and to check that your chosen broker registered in good standing. How is their reputation in this financial industry. Always be sure to be careful, because there are terms: vet also offers investment.
Therefore I am here just want to give advice, a trusted broker and I recommend to you. You can open this broker Account:
FX Clearing
Forex trading may seem easy to manage. But emotionally stressful, demands and challenges of being a Forex trader takes more than just knowledge about the market. It takes more than just a cool and wise head for business. It's all about the game plan. And for that, you definitely will need a profitable trading strategy.