Focused Approach to Forex Trading

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Focused Approach to Forex Trading

Sometimes sticking to one approach in foreign currency trading is better than engaging in too many strategies, trading too many currency pairs, or, for that matter, making too many trades. A focused approach to Forex trading ought to stick with what works, limit experimentation to well-developed strategies, and include routine audits of trading results. We have written about strategic Forex trading, conservative Forex trading, aggressive Forex trading, and technical Forex trading. Although a focused approach to trading currencies could include any of the above, the goal of a focused approach to Forex trading should be profitable Forex trading.

Forex Trading Is a Business

Despite the hype that new traders often see on the internet, trading currencies is a business. The reason for Forex markets is to facilitate international trade. Those purchasing foreign products commonly need to exchange currencies to make payment. They commonly engage in hedging strategies to reduce currency risks. Speculators seek volatile markets in search of profits. In each case, a focused approach to Forex trading is more likely to result in success than a haphazard approach. There was a scene in the old MASH television series in which the Harvard educated surgeon states that he does one thing at a time, does it very well, and then moves on the next. Although the example comes from fiction, the lesson is a good one.

Many traders use a Forex alert service to help spot potentially lucrative trades. A trader can select a trade suggested by an alert service, apply his own fundamental and technical analysis, trade to a profit, and then wait for the next trade. This is a focused approach to Forex trading and goes along with the example from the TV show. Having reliable process to follow, following it, and fixing it when necessary is a profitable way of going about trading currencies whether your approach is technical of if you engage in fundamental based Forex trading.

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Focused Approach to Forex Trading

  1. 1. Focused Approach to Forex TradingBy www.theforexnittygritty.com
  2. 2. Sometimes sticking to oneapproach in foreign currency trading is better than engaging in http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  3. 3. too many strategies, tradingtoo many currency pairs, or, for that matter, making too many trades. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  4. 4. A focused approach to Forex trading ought to stick with what works, limit http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  5. 5. experimentation to well-developed strategies, andinclude routine audits of trading results.http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  6. 6. We have written about strategic Forex trading, conservative Forex trading,aggressive Forex trading, and technical Forex trading. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  7. 7. Although a focused approach to trading currencies couldinclude any of the above, thegoal of a focused approach to Forex trading should be profitable Forex trading. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  8. 8. Forex Trading Is a Business http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  9. 9. Despite the hype that new traders often see on theinternet, trading currencies is a business. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  10. 10. The reason for Forex markets is to facilitate international trade. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  11. 11. Those purchasing foreignproducts commonly need toexchange currencies to make payment. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  12. 12. They commonly engage inhedging strategies to reduce currency risks. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  13. 13. Speculators seek volatilemarkets in search of profits. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  14. 14. In each case, a focused approach to Forex trading ismore likely to result in success than a haphazard approach. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  15. 15. There was a scene in the old MASH television series inwhich the Harvard educated http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  16. 16. surgeon states that he does one thing at a time, does itvery well, and then moves on the next. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  17. 17. Although the example comes from fiction, the lesson is a good one. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  18. 18. Many traders use a Forex alert service to help spot potentially lucrative trades. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  19. 19. A trader can select a tradesuggested by an alert service, apply his own fundamental http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  20. 20. and technical analysis, tradeto a profit, and then wait for the next trade. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  21. 21. This is a focused approach toForex trading and goes alongwith the example from the TV show. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  22. 22. Having reliable process tofollow, following it, and fixing it when necessary is a profitable way of http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  23. 23. going about trading currencies whether your approach is technical of if you engage in fundamental based Forex trading. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  24. 24. Practice Makes Perfecthttp://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  25. 25. A tourist is lost on his way toCarnegie Hall in New York City. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  26. 26. He happens upon a man selling pencils.http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  27. 27. He asks how to get toCarnegie Hall and the manreplies, practice, practice. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  28. 28. A focused approach to Forex trading always includesreviewing your trading results. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  29. 29. First, traders should do results audits. That is simple. How many trades did you make? http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  30. 30. How many were winners andhow many were losers? What proportion of your gains or losses included fees and commissions? http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  31. 31. What was your return on time spent in dollars per hour? http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  32. 32. If you want to improve onthese numbers you will do a process audit. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  33. 33. You will pick both your worst and your best results and analyze why you lost when you lost and why you won when you won. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  34. 34. A focused approach to Forex trading must include timespend in researching trades and market http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  35. 35. sentiment and it must includean honest review of how you have done in order to continue doing what works and change what does not. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading
  36. 36. Forex trading is a business and should be treated as such. http://www.theforexnittygritty.com/forex/focused-approach-to-forex-trading

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