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Date Created: 12/18/15
Currency Trading Made Easy Trading currencies may seem like a daunting proposal, but it is possible to trade in the Foreign Exchange Market successfully. There is great potential in earnings when trading forex, and if you pay attention to the tips in this article you can reap the rewards. Learn forex market lingo. Learn the nicknames for different currency pairs, common methods of technical analysis, and what to look for in the news that may trigger a market movement. Choosing the right trading platform is important. All forex trading software and web platforms allow you to trade in the market, but you need to find the one that is comfortable for you. When you pick a trading software program that is intuitive to you, you can avoid making simple, yet costly mistakes. Before choosing a broker, do your research. Learn about the broker's reputation among other traders, particularly traders in your own country. Make sure that the broker you choose is one with a good reputation. Also consider whether you want a dealing desk or non-dealing desk broker, and learn whether or not the broker you are considering is a market maker. When you are first learning to swim, you do not jump off a high-dive into an ocean. Instead, you dip your feet in, then slowly get into shallow water. As your confidence grows, you take bigger risks and swim into deeper water. You should trade forex in the same way. Start out small and slow. Limit your risk as you gain experience in trading the market. Pay close attention to your risk/reward ratio. If you are risking $1000 to make $100 that may not be a good choice. With high leverages available in most parts of the world, it is easy to let your risk/reward ratio get out of control. Micromanage this part of trading. Always be aware of how much money you are risking, as well as the percentage of your trading account that is at risk. Try not to risk more than 2% of your account on any one trade, and keep your total risk on all trades at less than 50% of your trading account. This gives you the buffer you need in case the market moves against you suddenly and severely. Spend a bit of time each week after the trading week is over to reflect on your trades. Evaluate each trade- not just the losses. Knowing why you entered a trade when you did and why you exited a trade when you did, and analyzing the results of the trades will help you add to your trading plan. You can tweak your plan if parts of it are not working the way you want, or leave the plan alone if your results are what you expected. Some things you learn about forex are not going to make sense. Sometimes this is because you have more to learn, other times it is because the information is wrong. If you follow the tips you have just read, you are on your way to success in forex. But do not stop here. Continue your education so you can be a better trader. Click here for more information
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