THE EASY WAYS TO FOREX

What are the easiest ways to trade FOREX?
Where should I start digging up?

The easiest way known to me is: "Monkey see, monkey do".
If you want - walk away from the screen so you can see a general slope or a move-up in the market.

Yeah, you may laugh about walking away, but this is a very efficient trick. It prevents your eyes from seeing the individual candles and thus opens your mind to get the whole pic of the price direction.

Now, that you come closer to the screen again, simply open your order in the direction you've identified from the distance.

That's it. The mighty simplest Forex trading!

LEVERAGE: THE DOUBLE EDGED SWORD

Fully understand that leverage–that is, trading on margin–will work for you when you are making a profit, but will also work against you when you predict a market move incorrectly. It is key for a trader to understand the difference between the required margin and the trade size. A margin requirement of $1,000 might actually mean a trade size of $100,000. This means that a 2% movement in the price of the instrument is actually a 2% move on $100,000, rather than $1,000.

THE RULES OF THE GAME, OR, TERMS OF BUSINESS

Also worth mentioning is the fact that different brokers have different trading rules, or “Terms of Business.” Take time to read these, and truly understand them, before making any decisions on using one broker over another. Easier said than done, we know. However, ignorance is rarely a defense. It is pointless to read your new broker’s Terms of Business when the inevitable trade query appears, as they so often do, so be proactive and grab yourself a big cup of coffee, a red pen and hide yourself away from distraction and get reading (and, no, in bed before you fall asleep does not count­–treat it as you would any important business document).

GLOBAL ECONOMIC CALENDARS AND THE PENNIES IN YOUR ACCOUNT

Many governmental and economic bodies around the world publish various economic indicators. Be aware of these; such indicators are closely monitored almost all professional traders worldwide. Why? Well, with currency markets reflecting the relative performances of the national economies of the world, such indicators can significantly impact the value of a currency, often within seconds of the announcement of the indicator.

Failure to pay attention to upcoming announcements have led many novice and unprepared traders to wake to see their trading accounts in significantly different states from the prior trading session.

WHEN YOUR WRONG, YOUR WRONG AND WHEN YOUR RIGHT, YOUR RIGHT!

Learn to be disciplined when trading, but take action when appropriate. If a trade that you have placed is clearly going against you, uncross your fingers, and get out of the position rather than praying that it comes back in your favor–as the saying goes, it’s never too late to turn back on a wrong road. Likewise, when your position is making money, hesitate before jumping out to take a quick profit. Consider using a Trailing Stop Loss to lock in gains as your position moves further into profit territory

KNOWING WHAT YOU DON’T KNOW ABOUT FOREX^^

That headline may sound like a strange way to start a tutorial, but when it comes to something as complex as trading, it is important to acknowledge the preconceived notions you may have about trading and to understand that you probably have much to learn about this complex subject, especially if you intend to master what could be the most difficult undertaking you will ever attempt.

First and foremost, despite what you may have heard or read about trading being an easy, get-rich-quick scheme, the truth is that there are no trading secrets and no easy paths to quick success in trading markets. Beware of anyone who tries to tell (or sell) you such. Its no coincidence that trading markets is similar to most other human endeavors: Hard work and experience are required to achieve notable success. By the same token, understanding the process of trading can be achieved with perseverance and a willingness to continue to learn.

Ironically, a major advantage of being an experienced trader is knowing what you dont know about markets and trading. There are certain elements of trading that you may never know nor understand, like knowing for sure what a market is going to do in the future. Market analysis and trading is not a business of bold predictions but one of exploring market probabilities based upon market knowledge, price history, human behavior and trading experience.

Knowing that you don’t know

exactly what a market will do actually gives you a trading edge because it means you probably will exercise more caution and think about and plan for what could happen if a trade turns against you. Successful traders know that some trades will turn against them and that they need to take steps to preserve capital to trade another day.

Anyone who plans to trade for a while absolutely must respect the markets. Most people do not like to be wrong but only the market is 100 percent right. Traders who think they know exactly what a market will do are not showing the markets respect.

WHY DO YOU TRADE?

You may be comfortable accepting the fact that you don’t know everything there is to know about trading yet, but you definitely should have a good idea about several things when you get into trading. The first is why you want to trade in the first place. People have a number of motives for trading, all of which have merit, but you should be clear what it is that is driving you into trading. Your reasons for trading may go a long way in determining your trading style.

Profits

Probably every trader’s goal is to make money. But if that is your main reason for trading, are you willing to do what it takes to achieve this goal? It will mean you have to provide the seed money and other resources you need to be successful, and it will involve a commitment to learning to gain trading experience.

If trading is going to be your business, you obviously have to put making money high on your list of goals. That requires consistent, strong discipline and the ability to control your emotions as none of the experience or success you have gained in other areas will guarantee that you will be a success in trading. Your trading approach may even be boring, but if your real goal is making money, you will have to have the discipline to stick with a trading plan.

Being ‘right’

Are you a person whose greatest satisfaction comes from being right about

things? Traders generally love to compete and be better than everyone else in whatever they do. Just having the opportunity to crow a little about their prowess is their biggest reward.

However, trading may be one of the worst places to look to feed an ego. Whatever success you have had in other aspects of your life may not transfer very well to the trading arena, which has been known to humble even the strongest ego. Of course, traders have to have a strong sense of ego to have enough confidence to trade, but you’ll have to keep that ego in check whenever you enter a market position if you want to survive as a trader.

Excitement

Trading certainly can provide plenty of excitement, both highs and lows, and that may be reason enough for trading. But expect to pay an entertainment tax. Just being in a market position can be exhilarating and can inspire you to keep up with what’s happening in the market and in the world’s news events.

However, to be successful over a longer term – unless you have deep pockets – you usually will have to forego the excitement and emotion generated by trading, just as you have to keep a lid on your ego trip. You naturally will experience some excitement whenever you are trading, but it is a factor you must control. If excitement is an objective of trading for you, perhaps the solution is to have one account you trade conservatively and another account where you get a little wilder.