Forex Trading – 3 Basics

FX Incognito – OHLC is ALL you need!
FX Incognito – OHLC is ALL you need!

Outlined are three important elements into the Forex trading System:

Forex Trading – What Is Forex Trading?

Have you heard of Forex Trading through acquaintances, articles or advertisements online but are unsure what it is all about? If so you have come to the right place. Here we will delve into it and what is all about.

People involved with Forex Trading will take one form of currency and exchange it for another with hope that the value of this currency will increase above that of the currency exchanged. This is possible because currencies do fluctuate in value.

As an example, I may believe that the EURO is going up in value as opposed to the US dollar, therefore...

First

You must've a good forex trading system. The forex system should be profitable in the long run and must be easy to implement. it's better if it's of a mechanical nature, allowing little or no discretion or judgment from the traders part. Especially if you're a starting trader, it's important that you follow mechanical hard-and-fast rules: if A=B than do C and D. The reason for this is simple. There are a lot of emotions that come into play when trading forex. If you've a set of rules to follow than you know exactly what to do and no matter what your feelings are telling you, you can ignore them and simply follow the precise rules dictated by your system. Remember, your emotions are your biggest enemy when trading. Accept it and approach it accordingly.

Forex Master levels by Nicola Delic
Forex Master levels by Nicola Delic

First

You must've a good set of money management rules. Throughout my trading career I've come to learn that success in trading isn't only about having a good trading system (of course that's VERY important) but also about having a good set of money management rules and principles. Trading without following these precise money management rules is a sure way to fail.

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Dan Katz the owner of Forex Trading Tutor, a Forex Trading Education website, developed to guide new forex traders get into the forex market and update professionals with new concepts.

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