To say the truth, just about 5% of people who try their hand in Forex trading actually make some money with it. If you want to make money with trading currencies, then you have to do the following.
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-Know about the fundamental of Forex trading
Many people just jump into trading Forex because they read on a website how some 15 year guy made thousands of dollars form it. If you really want to make money with Forex, you have to master the very essential fundamentals of trading. You have to know exactly what Forex trading is all about.
- Learn about what and how Forex market really is
Some people try to trade currencies when they can't even give a clear cut definition of what the Forex market is and what it is made up of. This is one of the reasons why they don't make any money in this very lucrative industry. Treat your Forex business as a real business and make some extensive research on it.
- Train yourself to getting familiar with the technical analysis in Forex trading
Just like any other thing in the world today, there are so many different terms associated with Forex trading. The technical aspect of it is also not an easy thing to grasp. You have to master both these phenomenon if you really intend to make money with Forex. It is said that practice makes perfects. Constant training is what you should be doing. The more you know about the different signals and what makes which currency to move up and down, the easier it will be for you to start making money with Forex.
- Learn how psychological factor affecting in the trading and define your best trading personality and character
This is of utmost importance. Some people simply fail to make money with Forex because they are too emotional. Or maybe they are too profit driven. You have to find a balance between those two aspects.
- You should be aware in your risk and money management
Forex trading is a business, and with every business comes its risks. The risk in trading Forex is even higher than the risk involved in normal business ventures, I guess that is why the rewards are equally high. It is a general rule: The higher the profit potentials, the higher the risk evolved.
- Develop your most effective unique trading system based on your unique knowledge.
You have to have specific trading system which you are using to make your trades. This system may not be perfect from the start, but you can always adjust it as time goes on. Perfecting this trading system should be your most important objective as you identify where you can easily make money and go in for those trades, and where you can loose money and systematically avoid those trades. (Watson Fru N)