NEW to currency trading? 1.The difference between forex trading and stock trading: In order to profit from investing in the stock market, the share price has to move in one direction and that is up. However, when it comes to Forex trading, a trader can trade on the Long (Buy) side and on the Short (Sell) side as well. This gives Forex traders a great deal of flexibility, allowing the trader to profit from the currency markets regardless of price direction. 2. There are three keys to profitable forex trading: A. Strategies You must have a proven set of rules to tell you when to enter, when to exit and when to stay out of the market. B. Money Management You must practice strict money management by controlling your risk for every single trade. Great traders do not risk more than 3% of their capital per trade. This prevents you from blowing up your capital in a short period of time when you experience a string of losses. C. State Of Mind You must be disciplined and not let emotions rule you when it comes to trading. In order to do so, one of the most effective ways is to have a trading plan and follow it diligently. 3.Mentoring and coaching are the best ways to learn how to trade successfully. If you can learn from another successful trader who has already walked the path that you are seeking, it will greatly shorten your learning curve. 4.The key to spreading the awareness about forex trading is through education. As investors acquire the knowledge, their interest on forex trading will naturally be peaked. Couple that with proper coaching and guidance during their learning phase, traders will come to realize the wealth potential trading the forex market. 5.Here are three reasons current stock traders will be attracted to the forex market: 1) Largest market in the world with USD4.3 trillion traded everyday 2) Open 24 hours a day 3) Flexibility to go short or long anytime
Posted on: Wed, 11 Sep 2013 06:49:14 +0000
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