This is my official beginners guide to forex trading to help all those people that are new to this market become great achievers. This can be a very intimidating and complex business for those that are new, but it really isn’t all that complicated. If you don’t build it up as this big thing, you can do very well on a simple philosophy.

• What’s The News Say?: Are you about to make a trade? Have you gotten any information from your free consultant television? The news is a large ground of information that are very important to forex traders. It’s not like currency does it’s own thing, everyday on the market place. The very news we watch everyday on television has an effect. What should you be looking for? Well, you need to identify the economic news. Topping the economic news would be the Central Banks of countries. Any time they announce interest changes, the value of currency will change. Other important news would be on economic growth, GDP, employment rates, etc. The next thing to watch would be the “emotional” news. People are emotional and the market will reflect that. Acts of terrorism, especially in places with commodities, will shack up the markets. Check out the news before you start making trades. It’s a free tool to take advantage of.

• Lose Smartly, Not Stupidly: Everyone from the richest forex trader to the poorest forex trader have bad trades that result in losses. It’s just away of life in this business. The different between the richest and poorest forex traders is how they DEAL with it. I noticed aspects of the “gambler” come out in people with this business. You buy in and you’re down. You say to yourself “I’ll hold onto it, it’ll go back up”. It goes down further, “I’m going to hold onto it, hopefully I can make back a little of my loss”. It goes down further. As you can tell this is a cycle. You do not want to get in that. There is a point where you need to declare you’re out. An objective point. The best time to decide this is before you trade or a few seconds after you trade, than you don’t have to worry about it while you’re in the moment.

• Automated Software: Automated software like Forex Killer is a needed tool for this business. You wouldn’t expect to see a carpenter without their hammer, so don’t be a trader with your software. You can’t be in front of the computer all the time and Forex Killer can be set up to end trades for you. It can sell when it hits a specific profit margin, or it can sell to protect you from losing too much.

For more information on the Forex Killer software, check out Forex Charting Software.

This entry was posted on Monday, October 22nd, 2007 at 9:26 am and is filed under Articles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.