Make Money Trading Currencies
http://www.theforexnittygritty.com/forex-trading/make-money-trading-currencies
Can you really make money trading currencies? Many may believe that profitable currency trading is a fantasy after losing their trading capital. However, the Forex markets offer substantial profits to those who approach the job of Forex trading wisely and with a plan. There are several pitfalls in Forex and if you avoid them you can commonly make money trading currencies. So, develop a currency trading system that hedges risk and takes advantage of recurring Forex volatility. Read more about how to make money trading currencies.
Forex Trading Is a Business and Not a Trip to Las Vegas
If you want to make money trading currencies you need to follow the fundamentals that dictate currency rates and you need to track market sentiment with technical trading signals. All too often traders fall victim to the twin demons of trading, greed and fear. When you are in a losing trading and do not understand why it is not time to “double your bet” but rather to get out and reassess both market fundamentals and technical signals. Trend trading is an established way to make money trading Forex and other markets. However, the most successful traders know why the USD is going up versus the Euro or why the Yen is going up versus the British Pound. They keep track of the economic factors, political factors and central bank policies of the nations whose currencies they trade.
Where Analysis Works the Best
Most successful traders trade the major currency pairs. These are as follows:
USD US dollar
GBP British Pound
EUR Euro
YEN Yen
CHF Swiss franc
CAD Canadian dollar
AUD Australian dollar
All of these currencies trade in high volume and liquidity. These twin facts make technical trading of these currencies more accurate and thus more profitable. The US dollar is part of eighty-five percent of all trades. Thus the USD trades at the highest volume and has the most liquidity. There are many minor currencies that one can trade but commonly one must trade them versus the US dollar. When a minor currency in involved there are two reasons why you might not make money trading currencies. The first is that the fundamentals may be misleading. Not all economies are as transparent as those of the major currency pairs. What you think might be great info that will lead to profits may be just hype or downright lies. The other factor is that trading volume in minor currencies may be very small. That means you can buy a minor currency and watch it go up versus a major but when you want to see you may find that there are no buyers! Most successful traders stick with major pairs.
3. Many may believe that profitable currency
trading is a fantasy after losing their trading
capital.
4. Before We Continue…
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5. However, the Forex markets offer substantial
profits to those who approach the job of
Forex trading wisely and with a plan.
6. There are several pitfalls in Forex and if you
avoid them you can commonly make money
trading currencies.
7. So, develop a currency trading system that
hedges risk and takes advantage of
recurring Forex volatility.
10. If you want to make money trading
currencies you need to follow the
fundamentals that dictate currency rates and
you need to track market sentiment with
technical trading signals.
11. All too often traders fall victim to the twin
demons of trading, greed and fear.
12. When you are in a losing trading and do not
understand why it is not time to “double your
bet” but rather to get out and reassess both
market fundamentals and technical signals.
13. Trend trading is an established way to make
money trading Forex and other markets.
14. However, the most successful traders know
why the USD is going up versus the Euro or
why the Yen is going up versus the British
Pound.
15. They keep track of the economic factors,
political factors and central bank policies of
the nations whose currencies they trade.
19. All of these currencies trade in high volume
and liquidity.
20. These twin facts make technical trading of
these currencies more accurate and thus
more profitable.
21. The US dollar is part of eighty-five percent of
all trades.
22. Thus the USD trades at the highest volume
and has the most liquidity.
23. There are many minor currencies that one
can trade but commonly one must trade
them versus the US dollar.
24. When a minor currency in involved there are
two reasons why you might not make money
trading currencies. The first is that the
fundamentals may be misleading.
25. Not all economies are as transparent as
those of the major currency pairs.
26. What you think might be great info that will
lead to profits may be just hype or downright
lies.
27. The other factor is that trading volume in
minor currencies may be very small.
28. That means you can buy a minor currency
and watch it go up versus a major but when
you want to see you may find that there are
no buyers!
31. The great baseball pitcher Satchel Paige
was criticized for holding the ball in his and
staring at the batter before finally throwing
the pitch.
32. His response was the batter cannot hit the
ball when it is still in the pitcher’s hand.
33. Likewise you can never lose money in trade
that you do not enter.
34. If you start the trading day with a clear
trading signal, execute a trade based on it
and make money trading currencies by 10
am you are allowed to take the day off,
unless, of course, you see an equally clear
trading signal.
35. The pitfall to avoid is to try to replicate that
great feeling of a big win when the
fundamentals and market sentiment are not
in your favor!
