I’m here to share with you the currency trading basics. These should hopefully put you on the right path to building a strong foundation that leads to profitable trading over the long term.
- Your Free Personal Consultant: Did you know that every currency trader has a free personal consultant? Yes, it’s called the news. Everyday there are news releases and stories happening that have an affect on the direction of currency. Some news have more affect than others, but you can be sure that the more economic impact, the more currency impact. When starting out, stick to following economic news. This type of news is not “breaking”. It is released at specific planned out times. Usually happening in the morning. Any information about GDP growth, unemployment rates, etc that show the economy is doing well, is typically good for a currency.
- Exit: When looking for a currency I bet you put more focus on the entry costs, than the exit costs. It is understandable since in our own lives we are looking for good buys, but in this business, good sells are what we’re looking for. We make our money when we exit our trades. If we can’t exit for more than what we entered for, we lost. We have made a bad trade. You need to focused on finding the great exit. Than compare it to the buy price. You want to be sure that when you buy, you’re going to be able to sell in the future for profit.
- Simple Routines: Ask yourself, what was I doing on a regular basis when I was successful at something? You probably were applying a simple routine. Routines are really the key to success and in this business, it is no different. You need to have a simple routine of trading. You need to look at A,B,C than do D,E,F, than finally G. At that point, you move to back to A. The idea here is to simplify the process of trading, and just make it into easy steps to follow.
By: Charles Nash
I’m currently giving a 7 day free forex course. Newbies and experienced are all welcome. If you’re interested in participating, check out the Casual Forex Trader.
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