So you want to know how to trade currency like all the other experts out there? Well I'm going to help you build the foundation for which you can build a house of profitable currency trading. You can't be told how to be a good trader, you just need to be told how to build the foundation and you learn as you go.
When should I trade?
I don't often suggest following the crowd, but in this case, you trade when everyone else is trading. This time is known as peak hours and it's when the highest volume of trades are occuring. The reason I suggest trading at this time is because this high volume really makes the currency completely moved by market forces. If you take times where the volume is low, a bank can make a huge trade that can move a currency in a totally different direction. If you're doing sound analysis of a currency, you could end up losing. Stick to the time when the volume is high.
Should I worry about the competition?
No. You don't really need to worry about other traders stealing your profits. It's not like that. You'll find most forex traders are willing to exchange information and learn from each other. You should worry about that emotional person inside of you. That person can be very unprofitable. If you make trades because you have a "good feeling" about it, than you're looking for trouble. If you get upset about a bad trade or get all stress out, you're going to lose your money. You need remember that the profitable long term trader is making decisions based on numbers and only numbers.
Should I be buying when everyone else is buying?
This is the time that you don't follow other people. Warren Buffet (who is one of the richest people in the world) gets rich because he doesn't follow other people. The people that follow the crowd are always middle class and they always will be middle class. Basically when everyone is hopping onto the new trend, it's really not that profitable anymore. You want to be more like Warren Buffet. You want to be able to look a currency and say "everyone has been selling this currency off and I'm pretty sure that it's at the end of this downward trend. I'm buying in." That is a profitable move. Being able to identify when these trends end, allow you to be the first one in and make most of the profits.
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.
When should I trade?
I don't often suggest following the crowd, but in this case, you trade when everyone else is trading. This time is known as peak hours and it's when the highest volume of trades are occuring. The reason I suggest trading at this time is because this high volume really makes the currency completely moved by market forces. If you take times where the volume is low, a bank can make a huge trade that can move a currency in a totally different direction. If you're doing sound analysis of a currency, you could end up losing. Stick to the time when the volume is high.
Should I worry about the competition?
No. You don't really need to worry about other traders stealing your profits. It's not like that. You'll find most forex traders are willing to exchange information and learn from each other. You should worry about that emotional person inside of you. That person can be very unprofitable. If you make trades because you have a "good feeling" about it, than you're looking for trouble. If you get upset about a bad trade or get all stress out, you're going to lose your money. You need remember that the profitable long term trader is making decisions based on numbers and only numbers.
Should I be buying when everyone else is buying?
This is the time that you don't follow other people. Warren Buffet (who is one of the richest people in the world) gets rich because he doesn't follow other people. The people that follow the crowd are always middle class and they always will be middle class. Basically when everyone is hopping onto the new trend, it's really not that profitable anymore. You want to be more like Warren Buffet. You want to be able to look a currency and say "everyone has been selling this currency off and I'm pretty sure that it's at the end of this downward trend. I'm buying in." That is a profitable move. Being able to identify when these trends end, allow you to be the first one in and make most of the profits.
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.
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