Forex Money Making Survival Tips

When people start to trade the Forex Market with a beautiful plan there is still some small things you should know. I have tried to collect them all I have been smart enough to learn from. I would like you to add on the list so I and other traders can learn from them.

•Know when your Forex broker opens and closes for the week (if you have back tested to start on Monday 06:00 and the broker opens at 08:00 you have a problem). Anyway if this problem occurs, don’t trade! Putting on a random trade is not the solution for consistency.

•Know if there is any maintenance time on your Forex broker(rollover etc.)

•Make sure you know when your Forex broker is changing to and from daylight savings if this changes.

•Know when you are changing to and from daylight savings.

•Know when the Forex currency you are trading changes daylight savings.

•Know how all the entry and exit Forex orders work before starting (there is always a tutorial on each broker’s web-page).

•Never trade Forex when you have been drinking (it’s obvious I know but wait and see). This is not the place to be cool or revenge trade because of a drawdown earlier that week. It’s like buying more products you have no idea how to get rid off.

•Set a time you can trade in the Forex Market everyday (if you trade weekly, it’s even more important, if you miss a winning trade you will increase your draw-down massively).

•Make sure you have an internet connection that works. Many cafeterias and libraries don’t let most of the broker platform connections through because they run on a connection similar to downloading programs. Remember, if you are about to trade in the Forex market and you can’t because the internet is not working how would you feel? Even worse if that was a winning trade.

•Start out your Forex Trading with as little as 3-400 dollars, if or when you are consistent and turn that into 1000 dollars you are doing great. If you turn 400 into 5-6000 you can add more money if you want (not that I see a reason for it as the money you receive in Forex will quickly accumulate up to the amount you want to add, unless it is a lot).

•If you can’t be consistent in your Forex Trading don’t throw good money after bad. I promise you there is no point putting more money in than 2-300 dollars a time as with most traders you will blow several accounts trying different “smart” things. With 1:100 leverage and by risking 2% of 2-300 dollars a time it should be enough to learn how to trade Forex. Boring? Maybe, you’re better than paper trading.

•Set some profit goals in your Forex trading, when you reach 1200 dollars take out 200 and buy something to yourself or go to a nice restaurant with your lady. Feel that the money in your Forex account is hard cash and not just numbers.

•Never brag or talk about your Forex trading to your family or friends there is not a single thing that will come good out of it. You will only be placed in a threatening position which is the last you need as a trader (it is hard enough as it is) only talk too other traders about trading stuff. Join a forum for discussions and general talk. Remember this is a very big psychological game; you don't need extra load...

Forex Secrets to Make Money

The foreign exchange market (Forex) is the largest and most liquid financial market in the world. Traders include large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.

Trading the Forex Markets can be very lucrative. It can also be an easy way to lose all your money. It all depends on your approach. It doesn't necessarily require you to go through an extensive research and study program for months. You will, however, need to invest some time and effort to digest all the information required to do well at it. Provided you trade wisely and cautiously, you can become a Forex expert within a year or so, making consistent substantial profits from it. So, where do you start? Well, at the beginning, of course.

Get a decent Internet connection

It may seem silly to have to mention this but, at least in my experience, a slow or dodgy internet connection can cost you...a lot. Part of what has made Forex Trading so accessible to regular folks is availability of high quality free software and market information. There's a wide array of sources of information, most over the internet, so the importance of the internet is obvious.

The main reason why the quality of the internet connection comes up, aside from speedy delivery of information, is software trade execution. I once entered a trade impulsively - this is a big no-no, and this example underscores why - and, shortly afterwards, realized my mistake. I knew I needed to get out immediately. I attempted to do so but my Wireless internet connection went off at that point. I had lost a substantial amount of money by the time I got my connection back. I blamed karma. Fate was obviously after me. In truth, it was because of my unreliable internet connection. All it takes is one case such as this to destroy your trading Account. If you are going to trade seriously, get a good broadband service.

Research & planning

The second phase of Forex trading has four sub-steps: research, research, research and planning. One just cannot put too much emphasis on the importance of research in Forex trading. Read a book, or three. Get some background on world markets and how they affect each other. Remember that the Forex Market is influenced by a lot of external factors. You will need to understand correlations to maximize your profits. There is some free information available, so you don't necessarily have to spend money. However, be wary of e-books that try to sell you systems. Get your own knowledge first...unless of course you can try them risk-free.

Along with research, formulate a feasible plan about how you will conduct your trading. If possible, write it down and treat it like a business plan. It should serve as your blueprint for trading. Think about how much you are going to invest. Also write down your short-term and long-term goals and how much loss you can afford. Your strategy will depend on this information so try to be clear and precise.

Find a broker

Your next step is to find a brokerage firm through whom you will buy and sell currencies. You need to be thorough while checking out brokers. Regulation in the Forex Market is no where near the level of other markets. There are still a number of unscrupulous firms out there that might try to defraud you. Try to find a firm that has ties with an international bank or any other financial institution. You should also check if the firm is registered with Commodity Futures Trading Commission, the US government institution that regulates fraudulent trading practices.

Along with the above, you will also want to confirm that the broker is a good fit for you. How good is their software? Do they allow you trade and view charts via website, in case you are unable to get to your own computer? Do they have a mobile application? Make sure you have all these answers. Ultimately, if you are unhappy with one, you can change to another one.

Set up a demo account and trade

All brokers should now offer demo trading accounts. These will allow you trade "fake" money against real-life conditions. Open one and trade, trade, trade! Test out your strategies for at least a few months on a demo account before going live. You will learn a lot about yourself and what you are comfortable with as a trader this way.