The currency trading basics enclosed cover the key facts you need to be aware of as a new trader. You need to consider each of them and if you do, they will give you an indication of whether you have what it takes to succeed at currency trading…

If you understand all the facts below, you can get the right Forex education and enjoy currency trading success. Here are your currency trading basics to consider.

Fact: Currency Trading Success is NOT Easy

You read online all the time from the vendors of sure fire systems and junk Forex robots, about how easy it is to make money trading currencies but the facts tell you its not. 95% of traders lose money and that’s a huge percentage.

If you are not prepared to get a decent Forex education and learn skills, you are going to join the losing majority.

Fact: Anyone Can Learn to Trade it’s a Specifically Learned Skill

It is a fact that anyone can learn to trade Forex. This was proved in spectacular fashion by Richard Dennis, who took a group of people who had never traded and taught them in two weeks. He then set them up with trading accounts and saw them go on to make hundreds of millions of dollars.

These traders learned quickly, they only used a very simple system, with strict money management rules but they made fortunes.

Dennis knew though that anyone could learn to trade a system, that’s the easy bit of currency trading, the hard part is applying a trading system with discipline.

We will now move to the key difference between winners and losers.

Fact: The Most Important Character Trait for Success is Discipline

If you can’t follow a system with discipline you simply don’t have one and most traders lack this key trait.

Discipline is hard, because you are going to have to trade your system through losing periods, as the markets make you look a fool and takes your money and it can be hard to stay on track. You must in losing periods, trade with discipline and keep your losses small.

Discipline is the key to success and while it can be hard to trade with discipline, if you understand losing is part of winning, keep your losses small and maximize your profits you can achieve currency trading success.

The Road to Profits

You need to consider the above key facts and understand that, learning a method is easy, learning the right mindset to succeed is the hard part but you can do both and enjoy success.



Thanks to Kelly Price for contributing this article to our Currency Trading blog:

Currency Trading Forex Market

Can you answer kaboodle777’s question about Currency Trading?:

I’m interested in trading currencies with a FOREX account, but I’ve also heard plenty of bad things about numerous companies. Does anyone know which company has the best reputation for FOREX trading?

Get a Money-making Website

Anyone can achieve currency-trading success – you can learn everything about trading currencies by simply investing the time necessary.

Fundamental Analysis

A currency trader who makes trades based upon fundamental analysis, will look at the supply and demand situation relevant to the particular currency studied, and try and predict the impact of such factors as:

. The health of the economy

. Interest rates

. Balance of payments

. Employment

. Trade deficit

. Other factors

Technical Analysis

Technical analysis is the study of a currency, based strictly on using only the price history of the currency.

Technical analysis uses no information about the currencies supply and demand situation - it simply focuses on price action. The secret of currency trading success is using technical analysis to spot them.

Long Term or Short Term Trading

For long term currency-trading success, is it better to be a long-term trader, rather than a short-term trader.

While traders can, and do make money with short-term methods of trading, the fact is, currencies trend longer term and these are the trends that yield the biggest profits.

Choosing a Trading Method

While there are many ways to achieve currency-trading success, all methods have the following salient points in common:

1. Simplicity

Most of the best trading systems are simple. There is no correlation between how complicated a strategy is and how successful it will be.

2. Liquidate Losers Quickly and Run Big Profits:

The basis of any successful trading systems that deals in leveraged products is:

You need to be able to run the big profitable trends and exit losers quickly.

3. Understand your Method

This may sound obvious, but you need to understand your trading method, and the logic behind it, so you can execute it with confidence and discipline.

4. The Importance of Discipline

Currency trading success is rooted in a successful method applied with discipline. This means a trader has a method and follows it. This however is much harder in practice than many traders believe.

The more disciplined you are in trading, the more profits you will make longer term.

You should not underestimate the need for discipline, if you want long-term currency trading success.

Robust trading method + discipline = currency trading success

There are a number of variables involved in longer-term currency trading success and the above are the salient points to keep in mind when deciding how to trade currencies.



Thanks to Sacha Tarkovsky for contributing this article to our Currency Trading blog:

Currency Trading Tips

What are the best currencies to trade? Here we will answer this question and also look at a few over looked currencies and in particular one of the best for novice traders.

Here we are going to look at the best currencies against the US Dollar.

Perhaps the most important consideration is turnover and liquidity of the currency traded. and these currencies also offer the tightest pip spreads which reduce your cost of doing business. You can trade the majors for just 2 or 3 pips and the currencies with the highest volume against the dollar are.

-    The Euro

-    The Japanese Yen

-    The British Pound

-    The Swiss Franc

Any trader should consider the above 4 and the euro and the yen are favorites for most traders and will work well for swing traders or trend followers.

I trade the euro, yen and Pound but not the Swiss Franc - nothing against it, it’s a great trending currency but it tracks the euro to a degree now as the country has become more integrated with Europe so I have picked the euro.

Two other great currencies to trade are, the Australian and Canadian Dollar.

They don’t have the volume of the big 4 and spreads are a little wider but for trend followers they offer some excellent trends and with both being commodity currencies, they have given some great trends over the last few years with the recent surge in commodity prices.

If I was to pick a currency that is good for novices, it wouldn’t be the euro or the yen - but the Canadian dollar.

It works well on any technical system and offers reliable trends and the major advantage is it lacks the frequent volatility spikes you see in the big two

Of course any list of best currencies to trade is going to be subjective but if you are a novice trader or trading the majors and want a change, check out the Canadian dollar - it really is a great currency to trade.



Thanks to Monica Hendrix for contributing this article to our Currency Trading blog:

Forex Trading Strategies