Apply “the Secret” To Forex Trading Success

The Forex market is the largest trading network in the world with $1.8 trillion dollars being exchanged every day. There are dozens of different currencies traded but the big players to focus on are all traded with the US dollar and include: EUR (Euro), GBP (British pound), JPY (Japanese yen), CHF (Swiss franc), AUD (Australian dollar), NZD (New Zealand dollar), and the CAN (Canadian dollar).

Download The FREE Forex Course Here Worth $97 

Each of these currencies is exchanged with the currency of other nations at different exchange rates—which are always in a state of flux because the market trades around the clock (Sunday through Friday).

The volatility and sheer size of the market means that there is ample fluctuation to produce big profits—and losses. The challenge for the investor, as always, is to predict which direction the rates of currency pairs will fluctuate.

The beginning point in any investment strategy is determining what type of analysis will be used to help guide enter and exit decisions. Investors who use fundamental analysis look at a nation’s interest rates and other economic indicators when deciding to enter or exit a position.

Fundamental investors tend to trade based upon news releases and economic data from the nations involved in the currency pair.

Briefly, technical analysis involves the interpretation of price performance and chart patterns—all historical data. Some technical indicators used in this type of analysis include:

• Moving averages including Simple & Exponential • Breakout Points • Lines of Support & Resistance

Technical traders do not believe that the past necessarily predicts the future—but that long and short term trends can be identified and exploited to help guide current decisions on entry and exit points on positions.

Technical traders try to identify current trends in the Forex market to determine entry and exit points. If they are correct, they can ride a trend (in either direction) for a profit until an exit point is reached (when the trend is ending).

The most successful traders on the Forex tend to look for long-term trends and favor technical analysis. Fundamental traders have to enter and exit positions very quickly in order to capitalize in price fluctuations caused by news events (interest rate changes, release of economic data, etc.) and are therefore more vulnerable due to excessive trading. If there truly was “a secret” to trading success on the Forex, the top investors all tend to agree on the following:

1. Choose currency pairs involving U.S. dollar (has volume to produce the price fluctuations necessary for big profits and the liquidity to enter/exit positions at will) 2. Find currency pair through backtesting that has most profit potential (pip movement) and least volatility through use of technical analysis 3. After determining trends, set stops and exit points for both protection and maximum profitability 4. Review charts once per day (overtrading and day trading can hurt your portfolio) 5. Remain patient and exit positions once technical decision point has been reached

If there really is a secret to trading success on the Forex it has to be patience. Trading strategies are never perfect because the market will never be predictable 100% of the time.

There will be times when any strategy fails and stop points are reached before profits are realized. Continuous back testing, remaining patient, and setting stops are the true secrets of Forex success.

 

5 Tips For A Good Forex Trading System

Forex trading

19 March 2011

5 tips for a good trading system. Ask any successful trader what differentiates those that succeed in making money from those that consistently lose money and time and time again you will hear good forex traders tell you that the system is what makes a difference. Discover in this unique article what the best 5 tips for a good forex system are. [...]

Read the full story

Advantages Of Trading Forex

Forex trading chart

19 March 2011

So what are the advantages of trading the FX market. This article covers some of the most important basics of the FX market and why you should consider trading the fx market. The fx market is one of the leading markets out there - But do you know what they are? [...]



Read the full story

Tips For Choosing Forex Brokers

Forex currency trading

19 March 2011

With so many forex brokers to choose from which broker you choose can make or break your forex profits. In this article we cover some of the best tips to getting the best forex broker for you. You can save yourself hours of work by simply going through this list we have put together when it comes to choosing a forex broker. [...]

Read the full story

Advantages Of Forex Trading

Forex trading software

19 March 2011

Forex has so many advantages when compared to all the other markets, in this article we cover some of the biggest advantages of the FX market and why you should consider trading the FX market if you arnt already doing so. Read the advantages of forex trading here. [...]


Read the full story

Basic Introduction To trading Forex

Forex techical analysis

19 March 2011

So you are new to forex! But where do you start? There is so much to cover when it comes to forex trading that we made this short article which explains the basics of forex trading to help you when it comes to deciding whether forex is the market for you or if forex is not for you. This article will take any newbie and let them know the basics of forex trading but without breaking their bank account. Read more in our basic intorduction to trading forex article [...]

Read the full story

Forex Beats The Stock Market

Forex trading courses

19 March 2011

So not sure if you should trade stocks or forex? Well this brief article will let you know why we and many other consider the FX market a whole lot easier to trade than the stock market, with more than 9,000 stocks to choose from do you really have time to scan the markets and find the right stocks to trade? If not read why we think you should trade the FX market in our Forex beats the stock market article [...]


Read the full story

Sign Up For A FREE Forex Intro Course Worth $97 Includes Videos + Free Video Course Below & Get The Latest FX Market News





  • Forex predator youtube
  • Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.


    Forex Predator expressly disclaims all liability for the use or interpretation by others of information contained on www.forexpredator.com. Decisions based on information contained herein are the sole responsibility of the visitor, and in exchange for using the information contained in this website the visitor agrees to hold Trading System Forex and its affiliates harmless against any claims for direct, or indirect, damages for decisions made by the visitor based fully or partially on such information.


    Whatever is the manual trading method, or the automated trading strategy, don't forget to test it first in demo. Also be aware that past performance is no guarantee of future results.