Trading currencies is not that different to trading the equity markets otherwise known as stocks. Currency markets move in cycles and produce patterns that are referred to as trends, support and resistance areas etc. From the novice to the expert trader Forex provides an opportunity to make or loose money. Its important to remember that for every winner there is a looser. Having this in mind it is imperative that you have the proper training before moving in to make a new career in the financial markets. Prices of training can range from a few hundred dollars to many thousands. With out proper training trading can be a nightmare, however with proper training an excellent income can be made. The trained eye can see where potential support is likely to be found in an up trending market, and on a minor pull back a good buying opportunity is made. When the trade has been purchased on support the stop loss is a touch under support to allow for a little whiplash; therefore not much is lost. Remember the basic idea is to minimise your loss and maximise your gain and with the right training this can easily be achieved. The main path to success is discipline and this is where females often can do better than the average male in trading. Their daily task is organised and takes a lot of discipline in the day-to-day functions of doing the so called womanly roles. Men have trouble with their ego and find it difficult to accept when they are wrong, on the occasion :). Money management is one of the key elements for the successful trader, minimizing the loss and maximising the gains is no easy feat as the amateur is easily swung out of a trade or hangs on too long and the loss becomes so large that the trader looses control over the trade, not knowing where to go. Money management if you ignore it will cost you big time ensure you understand size of the trade, loss management and how to take profits. This is why training and advanced knowledge is a key element to success. Learning the art of money management is the most important tool in trading, how to identify a buying opportunity, where to place your stop loss so that you can get out of a bad trade. Where do you set a target and take profits a lot of traders forget to do this or get too greedy and miss out. Planing your trade and executing it is one thing, however it is up to you to stick with your plan. Always continue a trade in the time frame that the plan was set around. For example if a day trade, be out at the end of the day, if a swing trade may be in the trade for up to a week or two. Make sure you do not confuse the two or even worse change it to an investment. It is dangerous to stay in a trade once it has gone against your plan, once in the trade the trader needs to be disciplined enough to stick with the original plan. Trading the Forex Markets is usually very short term, they are the largest markets in the world, remember the big banks trade these markets in a big way which makes it very liquid (volume). The Forex markets provide high leverage providing opportunity for large amounts of profit to be made with small amount of cash, with the right training; or large losses without. If you take anything home from here keep these main points in mind Competent training is of utmost importance
Trade with a plan
Set targets and take profits
Set stop losss and minimise losses
Trade with the primary trend not against it
Use support and resistance as buy and sell areas
How liquid the stock is (volume)
Be prepared to take a loss using strict money management
Dont trade until you have done training As you can see from the above there is certainly some homework, however once you have some training, you will get an understanding of how to set your plan and put it into action to make your mega wealth. Once you are on your way to profits only 20 minutes a day is required as you can set your trades on autopilot. Yes you can pre enter your targets and stop loss to automatically take you out the market at pre determined amounts. No need to sit there watching it. As mentioned earlier trading is not only for men there are great women traders in the markets as well. Please note I am a trader I am not licensed to provide advice, trading can be risky, this is provided as general information. Seek a brokers advice and or do training prior to entering the markets. I take no responsibility for any loss incurred. Wealth & Prosperity to you all |
