Before you can make it big in the forex market,there are traits or building blocks that i believe to be the foundations to the forex profit.below are the traits you need to have.
Trait one.(1) currency trading is not a get rich quick scheme or platform.currency trading is an art or skill that takes time to master.skill traders can and will always make money in this field,nonetheless like any other business or career,success don't just happen overnight.
here is a success formula in forex trading. practice +patience+persistence= profit
As it is said there is no substitute for hard work,practice your strategy on demo account and pretend that the virtual money is yours.Do not open a live account until you consistently making profits on your demo.stick to your trading style and strategy and you will succeed.
Trait two(2).Follow on or two major currency and stick to it.it is recommended that traders choose one of the four major currency pairs.the eur/usd is the most commonly traded pair because of its spread is the best due to its liquidity .The usd/chf is usually the most volatile and moves the most during the trading week.The usd/jpy responds to a lot during news time out of japan,and the gbp/usd is more stable in its move than the other three pairs.so choose the currency pairs that appeals to you and fall in love with it.
Trait three(3).Understand the daily forex news and analysis. it is very important to get a birds eye view of the currency pair that you want to trade and the news that affect the currency. it is also important that you get to know the key technical support and resistance levels of the pair you are about to trade .support is a predicted level to buy,while resistance is predicted level to sell ie where the currency pair should move down the chart.
fortunately all the the best forex news and anlysis are offered up for free on the internet.visit these site before you start trading each day www.forexfactory.com www.actionforex.com www.fxstreet.com www. currencypro.com
Trait four(4).Learn how to use technical indicators and always use stop loss.it is wise to be patient and learn how to use the technical indicators on your chart.it is also very important when you are trading forex that you be very disciplined and stick to your trading style or strategy.don't just trade your gut feelings,trust those technical indicators and don't open any trade without using stop loss.
Happy trading.
