Full-speed Ahead for Forex Investment Traders
Forex investment trading is quickly becoming a great way for many people around the world to earn a substantial income. By watching the markets around the globe and investing in currency pairs you believe will become profitable (either in the short-term measured in minutes or by holding onto the pair for days and even weeks), you may be able to set yourself up for a very enjoyable retirement. Before you can expect to do well in the Forex investment market, though, you are going to have to learn the “ins and outs”, and the tricks that only education and experience can provide.
The Unquestionably Best Forex Investment Trading System
If you follow this set of Forex investment rules, you will have a great chance to reap large profits in your currency trading:
1. Learn all you can about Forex investment trading. Visit free forums, such as BabyPips.com, and go through all their tutorials – take notes. Go to ForexTSD.com and other Forex clubs and read the questions and answers. Post questions yourself about Forex investment.
2. Go to independent forums and get Forex investment software and broker reviews. Websites such as ForexPeaceArmy.com and Forex-TSD.com are good sites, but there are many other good forums to find Forex investment information. You must realize that some people will post fraudulent comments to encourage novice Forex investment traders to use their brokerage firms, so be sure that you are basing your opinion on software or a on a large number of review comments.
3. Realize from the start that non-ECN brokers, or any broker that has a dealing desk, actually trade against their Forex investment clients. These market makers (also called “bucket shops” by traders) are often unregulated and have great discretion on how quickly and at what price they fill orders. Not all of these types of Forex investment brokers are bad, your trading is just more transparent with non-dealing-desk brokers.
4. Open a demonstration account (demo account) with a Forex investment broker and trade for several months using only virtual money. These Forex simulator trading accounts are usually very similar to the actual trading platform you will be using with live trading, and the price information you receive will be either delayed only slightly or will be real-time currency price information.
5. Try different Forex investment trading system software programs, such as Stealth, Forex Virtuoso, London Gold Rush, etc. You may even trade some automated Forex investment systems like FapTurbo and Megadroid, but, again, only in demo mode to start.
6. Once you are consistently profitable in demo trading, switch to a live account for your Forex investment trades, but use small margin and small pip values. Probably the largest challenge for you early in your trading career is to follow your Forex investment system rules exactly and not let your emotions get in the way. You will not discover how difficult it is to follow your system and control your emotions until you are risking real money.
7. Practice money management. Never risk more than 1% of your account capital in any one Forex investment trade (this means you must use stop loss orders set at the 1% loss values – this likewise means you do not need to be using a broker who does not have a wide range of order options such as stop loss, stop limit, buy limit, etc.).
8. Limit the amount of leverage to use – 50:1 is adequate for Forex investment trading unless you just want to gamble your money away.
9. Make your own Forex investment trades, monitor them closely. Treat this is a business, not as an outlet for your gambling urges. While there are some good Forex investment signals services, the best trading is done using a Forex trading system that you understand thoroughly and that generates its own signals.
Electronic Forex Investment Trading
Forex investing used to be performed by a closed door, tight knit group of people and large financial institutions, but with the advent of electronic trading through the Internet in recent years, online Forex investment has become available to the average investor. These Forex investment traders understand the fundamentals of trading foreign money and benefit from having a great online trading system. As a result, even the average Joe can trade, as long as they have some basic understanding of what successful people are doing to earn their money from the Forex investment markets. Minimum knowledge includes:
- You need to understand the basic fundamentals of how the markets move, and the principals of supply and demand.
- You need to thoroughly investigate the Forex investment broker you are going to open an account with.
- All foreign income investing that you do is must be done with money that you can afford to lose.
- A Forex investment must always be done after “demo trading” or Forex simulated trading at the brokerage for several moths to ensure you know what you are doing, and you must follow strict money management (no more than 1 percent risked on any one trade and no more than 10 percent of your Forex investment funds at risk at any one time in all of your trades).
- When it comes to discipline, you are going to have to make sure that you have the strength to deal with stress and control your emotions.
Stick to the Forex Investment Trading System
It does take some time to get used to a new Forex investment strategy, so once you have developed a strong foundation and determined how you intend to trade, make sure that you stick to the Forex investment plan that you have in place. This will also help you to greatly minimize the total amount of money you lose, while making it through your initial learning curve. Online Forex investment is a different beast from other types of trading, but with the right mindset and planning in place, people stand to earn a lot of money by making the right pair trades at the right times. As with any investment, it is best to get advice from professionals before starting your Forex investment journey.