Friday, November 27, 2009

The Five Basic Rules for FOREX Trading

Yes it is worrying starting your journey into FOREX trading .The rules and methods of trading can seem like a lot to deal with . Of course you will learn many things along the way , like which currency pairs perform the best and trends in the market.

There is however key rules and methods you should be aware of in order to keep loses to an absolute minimum and maximize profits. You will avoid many pitfalls as well as recognize opportunities that will boost your profits in the FOREX market.

These are the four rules/methods we will cover :
  1. Don't Over Leverage Your Investment
  2. Quit When Your Ahead Know When That Is
  3. Do your Research Before Making Trades
  4. Stop Loss Orders Protect Yourself From Large Losses
  5. Consider Getting Trading Robot That Will Save You Time and Money

  • Don't Over Leverage Your Investment
It's so easy to get caught up in the buzz of FOREX trading , However Leverage is a two edge sword. Leveraging is basically trading more money than you have in your portfolio . For example If you have $2000 in you account some brokers will allow you to buy $50,000 of a currency .

Its better to get the know the market over time than take unnecessary risks. Don't get carried away as you need a steady well thought out approach to make a long term consistent income with FOREX trading .

  • There Is A Time to Quit - Know When It Is
When your riding high on a profitable trade ,many people don't want to sell in the hope there profits will just keep on rising . Well values can fall as well as rise so don't get greedy and lose your gains.

However you don't want to cash in to quick and miss those few extra gains. Some trades you make won't be successful. But over time and careful studding the market trends , you will get a feel for when to start and stop trading. Even Experienced traders have a few losses along the way , but over all they have far more wins that losses and you will too.

  • Doing Your Research Before Making Trades
Research is a word many people don't like , because it involves extra work with no apparent benefits . Well in the FOREX Trading market , having an idea of history and current trends can be the difference between winning and losing . Don't treat the FOREX market like a casino because you will lose far more than you win. Do your research.

  • Stop Loss Orders For Protection
Stop loss is part of a system that stops you from losing too much of your investment or profit , basically if the value of the currency falls to the value you set in the stop loss , Stop loss will sell and stop you from losing any more profit .

Stop loss should be st up before you start to trade ,and you need to decide the value that the stop loss activates. The successful traders use this safety method all of the time .

  • Consider Getting Trading Robot That Will Save You Time and Money
Well after reading the four rules above you must be wondering if there is an easier way .

Well yes there is , FOREX automated robot software , not only trades on average better than humans it can also trade night and day with no interaction from you. Real live account studies have shown one particular Robot Doubling Profits every month


Fulvic Acid said...

Its good to get have basic knowledge of this stuffs before getting into this. I am sure this can be really an interesting thing to work on if we have some proper guideline to deal with it.

Orlando Fl Golf Communities said...

Forex trading becomes well known now days. For the right trading you have to follow certain rules. you post such a nice step for the forex trading.

VPS Hosting said...

Forex trading can be performed by a broker, a company dealing funds and in their country.

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Forex trading becomes so popular now days for the better rules we have to follow this rules and regulation. Thanks for the sharing this rules it helps in improving our forex trading.

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so classsy tutorials. good and udseful tips, I guess these advices will be so helpful to everyone. great!

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How much would be that Trading Robot cost? I am a bit interested in getting one or even two of it.

Derek Weaver said...

This is what we call The Five Basic Rules for FOREX Trading! Now I see. Thanks for the great info you have given.

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Please accept my poor effort of saying my praise and appreciation into your post:thank you. I now have knowledge towards the rules of FOREX Trading. I'll wait for your next post for another useful information in this.

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