testing

Introduction to Forex

So now, you have finally decided to do some currency trading. I would assume that you guys have some basic knowledge of forex and how it works. Therefore, what I am going to do is to list some rule of thumb to follow when trading.

- Know your trading style

Example of type of traders : Momentum traders, short term traders, long term traders, scalpers. The least you could do is to define your trading style and get to know the strength and weaknesses of your style. Then, try to fix it and see whether you can improve your style.

- Trade the amount you can afford to loose

If you are thinking of getting a loan or doing a margin trading, think twice. Forex is not a get-rich-quick-scheme where you'll guaranteed for a sum of return. The higher the reward is, the higher risk is.

- Money management

There are whole lot of ways to play around if you have enough capital. One of it is to always look into risk to reward ratio. If you are going fo a trade with high risk to reward ratio, better consider finding another trade with a better risk to reward ratio. Another point to consider leverage option. Always know what leverage can do for you. Of course with higher leverage, you get to earn more but on the other hand, if certain trade does not work for you, you are doomed to loose your account faster than the lower leverage account.

- Plan your trade and trade your plan

By far, this is one of the hardest part of trading. It is simply because we are bound with greed and emotion. Always have a stop loss and profit target pre-determined for a trade. This will ensure that you can act fast as the market never stop moving. If you fail to do this, you'll end up having your stop loss trigerred and watching you account decreasing.

More free resources to come including free daily signal will be provided soon.....