Wednesday, 1 June 2016

How to Start Currency Trading and Become a Successful Forex Trader?

People are smarter nowadays than any of the previous decades and there are many success stories of wealthy Forex traders who inspire us to work in the currency trading. We will tell you why some Forex traders have become immensely rich? How to use currency converter?  And deliver their top most secrets to you as well. But before you start investing, you should know that to become a successful Forex trader is more to concern your mindset than any successful trading strategy.
In fact, there is not any trading strategy can be profit making if the trader is with a wrong mindset. He needs to optimize it because it is like surfing in the ocean full of rip tides and for successfully trading in the financial market one needs talent, patience, proper equipment and being mindful of the surrounding.
If you are perfect at blending good analysis with the right implementation in the world of finance, your success is for sure and like other skill sets, successful Forex trading and investments come from a combination of talent and hard work.




Most Profitable Keys to Start Currency Trading and Become a Good Forex Trader

Right Pair within right hours

There is not any time limit for doing Forex trading, but to trade for most of the success, then trade during peak volume hours to guarantee liquidity. Liquidity is nothing but a trader’s ability to sell a position and this is easier to do when the market is active. Say, if you are in a day job shift, then early or late in the day plus it also depends on the pair of currency you are trading.
And we have a hash one secret for mini account holders or small traders, experts advise trading US currency against various currencies. And EUR/USD is the pair most frequently traded plus you can avail latest information on these currencies in print, broadcast and internet media.
You can follow these pairs because of good liquidity in these pairs and it might be wise for part time traders to trade in between most tradable currencies.
§      EUR/USD
§      USD/CHF
§      CAD/USD
§      USD/JPY
§      GBP/USD
You should be loaded with immense knowledge before trading other currencies against US dollars because it requires sophisticated knowledge, for which information might not be available up front.

Why Forex is Very Lucrative for the Diligent Trader?

Yes, Forex trading is a serious business and does not have any place for fools so understand the business before trading and investing through Forex brokers. And currency trading by far the most lucrative business for the reasonable businessmen, patients and diligent individuals who have the time and the energy required for success. 

How to Approach?

A famous saying fits over here, if you fail to plan you are planning to fail so preparation is the most important part to approach the right thing to trade because to gain what you are looking for, you need to align your goals and temperament with the instrument and market that you are comfortably relate to.
For the best of everything you can work with the best of these three time tested points.
1. Time: you should choose time frame suitable for your temperament and the trading as well because this way you can avoid exposure to the overnight risk. Prepare a daily chart indicating an easy with overnight risk and willing to face some days go contrary to your plans. Remember that the way to make substantial money in the market requires time and the frequency of your trading.
2. Strategy: after you successfully decide the time frame you need a consistent and working strategy. There are some traders trade using indicators such as MACD and CROSSOVER while other prefers buying or selling breakouts. After a perfect and consistent working strategy test it if works to provide you with an edge. You can also frame a list of strategies and can choose the right one after one delivers positive outcomes consistently.
3. Understanding the Market: means the proper use of instruments because there are some instruments which works better than others and use of erratic instruments fail to meet winning system so test your system on multiple instruments. This will help you to check the personality which should be equal to the instruments being traded. For example, Fibonacci supports good and its resistance level is trustworthy if you are trading USD/JPY currency pair in the Forex market. You can be successful in the Forex trading market if you test multiple time frames, so as to find that combines your trading system the best.
Friends it is easy to avoid risk overnight if you can ensure following elements found in the successful and wealthy traders in your business as well.

Patience

Never chase the train after it has left the terminal; wait for the next one. Yeah the same thing works in the Forex trading also once you are clear with what you expect from your system then sit back and relax it might take longer than you expect and let your system indicate either the point of entry or exit.

Discipline  

Discipline helps you to be patient- to sit and relax until your system shows an action point. Why discipline? Because it helps you to pull the trigger when your system tells you to do so, trust your system instead of going on to plan B.

Objective

No emotions in the business and no business is done without emotions, almost perfect here because you need to be emotionally detached if you have a system that provides entry or exit level with less reliable factors, then you don’t need to be emotional or getting influenced by other’s opinions. Make sure that you have a reliable system so that you can be confident in working on its signals.

Implementation

There is not possibly a system with 100% profitable trades even good systematic work with 65% profit to loss ratio. So it is an art to make profits by the management and execution of trades. Currency as a part of asset class-
§      You can earn the interest rate differential of the pair
§      In the exchange rate, you can get the value

The Risk Involved in the Forex

This perception is not entirely true that inter-bank market being unregulated and consists big risks instead it would be a better approach to the discussion of risk after understanding the differences in the decentralized market and centralized market than updating yourself where the regulation would be the best.
Since the market is constructed by each of the bank or traders giving away offers and bid for a particular currency. And due to the huge flow within the system, it is near impossible for an individual trader or central bank to influence the price of a currency and indeed in today’s high volume market co-ordination and cooperation of other central banks can’t move the market to any length because trillions of dollars are being traded every day.
Let’s discuss some secrets of very successful Forex traders- Bill Lipschutz, George Soros, John R. Taylor, Jr, Stanley Druckenmiller, Andrew Krieger, who made their own fortune with extensive knowledge of the market they had. And if you want to be the best, you must learn from the best.
You can follow these Tips and Tricks recommended by Forex traders who made their fortunes and even a beginner can make his business successful after following these tricks. 
§      It has been found in statistics that beginners in Forex trade get very low success rate and this is one of the way that people loses hope and quit.
§      If you are new to the market, then it is obvious that you would lack knowledge and experience as well. Most of the online Forex brokers offer a practice version of their trading platform that helps you the very same experience as a live trading application.
§      Expectation beyond possible that is “to be rich in a day” and many Forex traders think of this and get depressed. It takes years to convert Forex trading into a perfect occupation and that might take time and a good investment as well, so as a new Forex trader, if you handle to stay in the game without losing all your assets in the first few months and this is the reason not to quit your day job yet.
§      Excessive leverage can help you depending on your experience level, trade leverage is a powerful tool which helps you get to maximize your returns, or it can make your downfall. So don’t trade until you understand because it is not something to take lightly. Big success overnight or more than effective cash management becomes your Greed; yeah, it is straight forward greed which can compel you to enter into any ridiculous trade and you may end up with a big loss.
You should know about commodity future trade commission (CFTC) which puts a limit to retail traders in currency trading to 50:1 for major and 20:1 for others. And maximum leverage for OANDA Canada clients is generally determined by IIROC, and you can analyze that every Forex trader who has become successful will tell you that most challenging is keeping your emotions out. 

Start Genuine Building

It is highly recommended to build your own working system rather than picking one from the internet because just copying a system that works for a successful trader might not work for you. And that is why build your own genuine system, yes, you can borrow bits and pieces from other people’s trading strategies. 

Pay Yourself First

Now if you gain good after many successful investments, then the first thing you should do is to pay dollars for yourself because if you don’t who will so never reinvest everything you earn. And since in Forex trade you can use the currency converter before investing in an exchange between euro to dollars, bitcoins to dollars, Bitcoin is nothing but a virtual currency and many other exchanges are possible, but you need to be under an experienced broker so as to get financially strong without taking any loans.
Since Forex trade is the only market where banks, big commercial companies, central banks, management firms, retail Forex broker and investors as well are involved that is why it is the largest market in the world, immensely profitable as well.
Ask yourself if you are ready to invest then you should know the answers of this question; how can I invest my money in the foreign exchange market?
The Answer is very simple this is the only market where about 5 trillion dollars trading is done in a single day and banks, commercial companies, investment firms, hedge funds, and retail investors, foreign exchange allows participants to buy, sell, exchange and speculate on currencies. 
Foreign exchange or Forex is also called the currency market where currency conversion and other financial decision are made for profiting our business. And now as you are well aware of Forex trading and currency converting strategies so we are introducing some technical terms here.
§      Exchange traded funds (ETFs) and Exchange traded notes (ETNs): there are some ETFs with a single currency while you would find others who buys and manages a group of currencies.
§      Certificates of deposits: good to know that certificates of deposits (CDs) are available on individual currencies or even on a basket of currencies which allows traders to earn interest at foreign rates.
§      Foreign Bond funds; there are some mutual funds which are invested in the bonds of foreign governments. These are nothing but shown in the currency of the country of sale. If the value of the currency of another country rises in relation to the investor’s native currency, the earned interest is increased when it is converted. 

Is There Any Future of Currency Trading?

Since in Forex trading we can exchange between any currencies; euro to dollar, bitcoins to dollars, dollars to rupee and many more but to engage yourself in currency trading in the future as well as in other Forex market, then the difference between trading currency are worth considering. Big difference between currency trading and its future is when the trading price is determined and when the real exchange of the currency pair takes place. I want to conclude this by putting the tagline that ''Forex is Future Currency Trading''.

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About Author:


Phung Thi Bich Hong is an expert writer with over 5 years of experience. She loves writing and make everyone happy with her work. She likes travelling and taking care of her small family. Writing is her passion.


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