Learning to Trade on the Forex Market
By Gerald Greene
Learning to trade forex online is easy. Learning to select
the right dealing firm and to trade forex well and at a
profit is more of a challenge.
There are several outstanding reasons why learning to trade
forex is a worthwhile educational project. Forex, or foreign
exchange trading is the granddaddy of them all in the
trading field. Daily volumes are into several trillions of
dollars. The huge size of the forex market reflects the
basic use of money by everyone in the modern world. This
massive activity every business day means that the skilled
forex trader has a virtually unlimited pool of money to tap
into almost at will.
After learning to trade forex the more successful forex
traders can make hundreds, even thousands, of dollars every
business day right from their own home or office computer.
One of the most successful forex traders ever, George Soros,
once made over a billion dollars in just a couple days time
by correctly forecasting that the Bank of England would not
be able to support an overvalued British Pound.
Once Soros had completed his analysis he took massive action
and placed a large short position against the Pound. As the
Pound collapsed Soros made his fortune.
So to come back to the good reasons as to why learning to
trade forex may be a terrific idea for those new wannabe
traders who have risk capital to trade with:
1. The forex market is where the huge money is. There are no
limits as to what a skilled trader can earn from the forex
market.
2. The forex market is international and in major currencies
extremely active. You can trade forex 24 hours a day five
days a week.
3. The forex market is super liquid. This means that there
is always a tight dealing quote at which you can buy or sell
active currencies.
4. Forex trading usually comes at you in a hurry. Your trade
will most often move into a profit or hit a stop loss point
within a few hours, sometimes within minutes or even
seconds.
5. Currencies usually trend one way for long time periods.
It is not unusual for a currency to have a major trend in
one direction for three to five years at a time. When you
trade with the major trend this gives you a trading edge.
If there is one point above all others about learning to
trade forex it is this one. Your chances of having a
successful outcome to your trade are increased tremendously
when you trade with the major trend. When you enter your
trade on a reaction (correction) within the trend your odds
of completing a successful trade increase even further.
As an example, let us say that you have identified the Euro
as being in a major uptrend against the US Dollar. This is
easy to determine by looking at a long term chart of the
Euro against the Dollar. Instead of immediately placing a
trade into the forex market and buying the Euro at its
current level you wait until a correction takes place and
buy the Euro on a pullback. This takes some patience and
discipline to do but the payoff can be huge.
Once the major trend again kicks in your Euro position moves
immediately to a profit. Then you have the difficult but
pleasant decision to make as to when to take your profit.
Learning to trade forex can be learned by breaking trades
down into a series of easy to follow rules. But you must
perform better than most traders and follow your rules.
The key to learning to trade forex at a profit is to take
your time and make a careful analysis as to the direction of
the trend. Then you must wait for a good entry point.
Patience and discipline are the hallmarks of the most
successful forex traders.
To gain immediate free access to a wealth of forex
information written by a forex successful trader check out
Learning to Trade Forex
and Forex Trading
Secrets Revealed.
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