2 trillion worldwide currency exchange market. But the odds are against you, even forex trading profits so if you don’t prepare and plan your trades.
This suggests that self-education and caution are recommended. Here are some approaches that may improve your odds of taking a profit. A better way of entering the Forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael R. Rosenberg is short, not too sweet and highly admired introduction to the Forex market. Forex Strategies: Best Forex Strategies for High Profits and Reduced Risk, by Matthew Maybury is an excellent introduction to Forex trading.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex, by Kathy Lien is another concise introduction that has stood the test of time. All three are available on Amazon. Rosenberg’s book, unfortunately, is pricey, but it’s widely available in public libraries. Use the information gained from your reading to plan your trades before plunging in. The more you change your plan, the more you end up in trouble and the less likely that elusive forex profit will end up in your pocket. Diversification: Traders who execute many small traders, particularly in different markets where the correlation between markets is low, have a better chance of making a profit.
Putting all your money in one big trade is always a bad idea. Familiarize yourself with ways guaranteeing a profit on an already profitable order, such as a trailing stop, and of limiting losses using stop and limit orders. These strategies and more are covered in the recommended books. In “On Any Given Sunday,” Al Pacino reminds us that “football is a game of inches. That’s a winning attitude in the Forex market as well.
Remember that you are going to win some trades and lose others. Take satisfaction in the accumulation of a few more wins than losses. Over time, that could make you rich! Is There a Way to Completely Eliminate Losing Trades?