Author: Thomas Grennell
A successful currency trader needs a good forex trading strategy.There are alot of hidden risks in the forex market. Your trading strategy will have to hold up under pressure.
Give Yourself Time To Learn The Basics
In the beginning, you will have to learn about discipline and following your trading plan.If you apply your knowledge and exercise discipline, you have a better chance of becoming a profitable forex trader.
I suggest studying one currency pair when you first get started. Make sure you understand the simple price action of this currency pair. Is it trending up or down? How does today\'s current price calculation compare to last month\'s price? Study the charts.Look at the historical charts to determine the price action of this specific currency pair.
The time you spend upfront to research will pay dividends down the road.Take your time and enjoy doing research.There is no need on your behalf to hurry things along. Which explains why you should start trading with small lot sizes on a real account or better yet, begin trading with a demo account.
How You Can Analyze The Market
Many forex traders use technical indicators to interpret historical prices. Whatever you decide to use, you must become familar with exactly how it works and how you are going to use this tool to place trades, manage forex trades and exit these trades for profit or even loss.
You can read about your specific indicator or forex trading strategy of choice by reading books. Many large bookstores offer excellent trading books by many authors. My favorite is Barnes and Nobles. You may browse these books for free while visiting the bookstore.
After you decided on your trading approach, you need to find good price charts to interpret price data. After you complete this, you will be able to investigate further in different aspects of technical analysis.
What Causes Forex Prices To Move Up and Down?
There are many different reasons for price fluctuations in any given currency pair. Economic news reports such as Unemployment Rate, Retail Sales or even Natural Gas Inventory data can affect currency price. Political events and some social events even have an effect on specific countries currencies.You should try to stay up to date with all of this economic news. You can do so by looking at economic news event calendar for forex.
I suggest my favorite source for economic news, the forex factory calendar.
Exactly What is Day Trading Forex?
Day trading refers to the act of placing and closing your forex trades on the same day. It is a short-term trading approach. Forex traders can choose to scalp different forex currency pairs or swing trade. Scalping the forex markets usually occurs on the smaller time frames such as 1 minute or 5 minute charts. Swing trading usually occurs on 15 minute or 30 minute charts. Regardless, all trades are opened and closed on the same day if you are a day trader.
As I mentioned earlier, the forex market is volatile and has many risks. If you want to try day-trading the forex markets, you should have realistic expectations. Manage your losing trades and try to keep your winning trades larger than your loser trades.This approach helps keep forex day-traders profitable even if they lose more trades than they win. You will be much further ahead if you can manage your risk and reward ratio along with following a written trading plan.
A disciplined trader with a not so good trading strategy will fare better than an un-disciplined forex trader with a great trading method.
Article Source: http://www.articlesbase.com/day-trading-articles/thinking-about-day-trading-forex-5546800.html
About the Author
Thomas is an experienced and knowledgeable forex trader and writer. His passion for the markets and helping others learn about different forex trading systems is his inspiration for writing. His favorite forex trading approach involves
Forex Renko Charting and he highly recommends the Renko Charts Forex Trading System