I’m here to give advice for the inexperienced forex trader, the person out there that is new, but can’t seem to get it together. I want to help you because I was once like you. I hope this advice will lead you on your way.

When should I be trading?

I think the best time to trade, personally, is during high volume times. High volume simply means the time of the day in which most trades and money are being exchanged. The reason for this time is because at this time you can be certain of one important thing: market forces. When there is such a high volume, market forces are truly in control. If you took a time when the volume is low, like the evening, you’re going to notice that there can be quick shifts in the direction of currency. The reason this happens is that large banks and firms have a lot of money to move around and since there isn’t many people trading at this time, their trades end up massively effecting the currency.

How do I avoid bad trades?

Well, that’s something that will come with time. As you get more experience under your belt, you’ll notice that you have less bad trades. The problem is that you’ll never be able to avoid them completely. You need to learn to deal with them. The best way I’ve found to deal with them is to cut your losses long before a currency has a chance to cost you a lot more money. What I do, is before a trade I decide a loss point. This loss point is where I’m going to let go of the currency if it starts to go down. As soon as it hits that point, I’m out.

I’m currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you’re interested in participating, check out the Casual Forex Trader.

This entry was posted on Wednesday, October 8th, 2008 at 11:13 am and is filed under Learning. 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.