Forex trading has one goal: to make money. Remember, that like any speculative venture, there is a potential for loosing money. The same holds true with the stock market the commodities market, and the money market. Any investment that has a chance of great gain poses a certain level of risk. As a forex trader you want to minimize your chance of risk. Observe the following Best Practices:
• Stay informed. Peruse the current events magazines and political journals. Know how the global political and social landscapes. Have been shifting
• Brush up on economics. A college refresher course can keep you out of the red. Journals by economists like John Maynard Keyes, Kenneth Galbraith and Walter Williams can help you guesstimate potential forex uptrends.
• Read periodicals like the Asian Wall Street Journal and Business Investors Daily.
• Fire up a practice demo account and get a feel of the game before jumping into the market.
• Be friend a broker you trust.
• Cultivate friendships with other traders into active trading.
• Understand historical trends and their impact on the charts.
• Take a short course on forex trading to get your skills up to speed. These cost under $200 and can help you avoid $20000 losses
• Research forex on the Internet. Forums provide great sources of information
• And finally, invest money that you can actually afford to lose if worse comes to worse. Then you won’t be out of the game completely.
The stroke-prone are discouraged to dive into Forex trading .He followed all of the rules. His college degree was in history with a minor in political science and he went back and took extra courses in economics and business. Jerry stayed informed. He watched CNN, CNBC, MSNBC and Fox News often. He went to all the major web sites and read several magazines. He also spent time with a demo account mbefore he got into the market in a big way. Jerry was determined to make a killing, and he eventually did. Jerry also only invested money that he had designated as risk capital. He could still live without it if needed.
Sam Franks, Jerry’s friend, didn’t do as well. Sam never took an economics course in his life and in fact was bored by Economics. He knew nothing of history or politics and didn’t even know who John Maynard Keyes was. Sam took his life savings and invested in forex trading without having spent time practicing with a demo account. He knew nothing of the currencies he was trading, and didn’t know what historical trends were, or what activity was occurring.
He knew nothing of inflation, and in the end he lost some of his money. The difference in these two people is important.One was prepared and the other was not prepared. One made money and the other did not. One did his homework and one neglected it. What you can learn from this is that it is better to be prepared. By knowing something about other countries and the activities happening over there, you’ll be better able to make educated guesses. For instance, if there is a great deal of inflation in a country, you may not want to invest in its currency. However, if you are hedging against that currency you may do well.
Remember that it is never too late to learn. There are many good courses available online, and offline. There are many great books to read. Many economists write newspaper and magazine columns and many have web sites you can go to. By doing so you’ll be able to learn at the feet of the masters. See how their minds work, and what currencies they are currently investing in, and you’ll be in a better place when it comes time to make those hard decisions yourself. Also going online and meeting other people in forums and chat rooms who share your interest will give you more insight and knowledge. Like anything else in life, forex trading is a job that you must prepare for. The better educated you are, and the better prepared you are, the more likely you will be to be successful.
• Stay informed. Peruse the current events magazines and political journals. Know how the global political and social landscapes. Have been shifting
• Brush up on economics. A college refresher course can keep you out of the red. Journals by economists like John Maynard Keyes, Kenneth Galbraith and Walter Williams can help you guesstimate potential forex uptrends.
• Read periodicals like the Asian Wall Street Journal and Business Investors Daily.
• Fire up a practice demo account and get a feel of the game before jumping into the market.
• Be friend a broker you trust.
• Cultivate friendships with other traders into active trading.
• Understand historical trends and their impact on the charts.
• Take a short course on forex trading to get your skills up to speed. These cost under $200 and can help you avoid $20000 losses
• Research forex on the Internet. Forums provide great sources of information
• And finally, invest money that you can actually afford to lose if worse comes to worse. Then you won’t be out of the game completely.
The stroke-prone are discouraged to dive into Forex trading .He followed all of the rules. His college degree was in history with a minor in political science and he went back and took extra courses in economics and business. Jerry stayed informed. He watched CNN, CNBC, MSNBC and Fox News often. He went to all the major web sites and read several magazines. He also spent time with a demo account mbefore he got into the market in a big way. Jerry was determined to make a killing, and he eventually did. Jerry also only invested money that he had designated as risk capital. He could still live without it if needed.
Sam Franks, Jerry’s friend, didn’t do as well. Sam never took an economics course in his life and in fact was bored by Economics. He knew nothing of history or politics and didn’t even know who John Maynard Keyes was. Sam took his life savings and invested in forex trading without having spent time practicing with a demo account. He knew nothing of the currencies he was trading, and didn’t know what historical trends were, or what activity was occurring.
He knew nothing of inflation, and in the end he lost some of his money. The difference in these two people is important.One was prepared and the other was not prepared. One made money and the other did not. One did his homework and one neglected it. What you can learn from this is that it is better to be prepared. By knowing something about other countries and the activities happening over there, you’ll be better able to make educated guesses. For instance, if there is a great deal of inflation in a country, you may not want to invest in its currency. However, if you are hedging against that currency you may do well.
Remember that it is never too late to learn. There are many good courses available online, and offline. There are many great books to read. Many economists write newspaper and magazine columns and many have web sites you can go to. By doing so you’ll be able to learn at the feet of the masters. See how their minds work, and what currencies they are currently investing in, and you’ll be in a better place when it comes time to make those hard decisions yourself. Also going online and meeting other people in forums and chat rooms who share your interest will give you more insight and knowledge. Like anything else in life, forex trading is a job that you must prepare for. The better educated you are, and the better prepared you are, the more likely you will be to be successful.
