THE TREND

In having a successful forex trade you need to understand the three important D's of forex Trade.

1.    Determine the Trend: you need to know the direction in which prices are moving. Either up or down. The prices have a pattern in which they move. Often times these pattern is a function of the time zone you are operating from. I would discuss extensively on time frames and zones in subsequent post. Prices are either moving in the Support direction or the Resistance direction. However please note it is also a function of the existing fundamental analysis.

2.    Determine your take Profit: it will  be absurd for you to just enter a trade without first determining what you want your take profit to be. Really you need to know your end point in terms of what you want as a profit, say $10, $20 etc. Some traders make a certain profit per trades others per day. Ensure you observe all indicators before you place a trade.

3.    Determine your Trading Pattern:this has to do with the style in which you make your trades. No doubt that the London session is the most active hours, yet it is not a guarantee that profit is sure. As much as I appreciate the London hours, I prefer trades at the close of the US sessions.

FOREX trading is not a get rich quick market, but a systematic approach to building wealth. It is a High Risk High Reward market.

However with proper knowledge you definitely will always smile to the bank.

Watch out for my online tutorials soon.

THE RUDIMENTS OF FOREX TRADING

There are a lot people who have got their hands burnt in forex trading, for various reasons, such as greed, inexperience, naivety and much more. Fx is not a get rich quick investment and investors who approach trading with this mind set will hit the rocks. One of the peculiar reasons why the big dogs invest in Fx trading is because it is High risk investment market, and this is one of the attributes of Well informed investors.
Let me point out here that to go into Forex trading, you need to have a strategic plan on how you need to minimize your losses and maximize your profits.   
Study the following steps below.

1.    Understand the fundamental analysis involved; With respect to your opinion on technical analysis, there is no indicator any where that will give you a 90% signal direction. This is a market controlled by fundamental analysis, most especially News releases. Take for instance the current crises in Libya. There was no indicator any where that says the oil rich nation will be invaded. Such speculation could only come from economists who have an understanding on the effect of commodities demand in the world market. The effect in the currency market definitely favoured investors who are well inclined in understanding that the tripling effect of the crises may affect oil supply, and as a result push the dollar currency upwards. This is an indication that upward trend is the way to go.

2.   Respect Pivot Point; The resistance and support levels are very powerful indicators, that reveals currency trending patterns based on fundamental analysis. Of course other indicators are good views but the signals may not be certain. Lets face it, no indicator any where predicted the fall of oil prices during the economic recession. Every speculation that was given got a spark from various economic events in oil exporting countries. If you really want to profit in Fx trading forget about does complex confusing technical analysis, and start paying attention to economic indices, most especially oil price fluctuations.

3.    Throw that Robot in the Bin; I get amazed when i hear some traders say they use robot to trade. How can you trust your investment to a robot program written by a human. Real and knowledgeable investors do not even pay attention to such. The robot software, will definitely not stand the test of time. It is so dumb not to know that a thought of war in an oil producing state, could cause oil prices to take a flight, which will have a spill over effect on currency trends.
To be knowledgeable in Fx trading, you need to understand the economics involved. I would be doing some explanations on this in subsequent posts.
If you really want to make a wise decision in Forex Trading, follow oil prices closely.

UNDERSTANDING FOREX TRADING

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Forex trading is a currency market that has a daily turn over of over $2billion dollars. It is an over the counter market that is done electronically, at various time zones and regions around the world. The volatility of this market makes it an interesting investment for big time investors.

It involves the trading of one currency over another, such as US dollar (USD), Pound (GBP), New Zealand dollar (NZD), Yen (JPY), Euro (EUR), etc. These currencies are traded over the other with one of the currency as the base.

Forex is not a get rich quick market as some quarters have had you believe. The profit markup is high no doubt, as well as the losses. No one could claim to be a guru without having his fingers burnt in the trade, what separates the expert from the mediocre is the style of trading and the information at their disposal. Here I would be giving you a down to earth approach to FX trading and the challenges I have had to face, how to minimize your loss, this is inevitable and make profit sure.

I would be exposing to you the realities of FX trading, and why you should not follow the crowd. Sometimes the best way forward is to take a reverse direction.

There are a lot of sites that you may have come across that explains the FX market to you, but right here I would give you the opportunity to have a first hand information on the intricacies and rudiments to a successful trading.

I do not claim to be the best, but with my strategies you are guaranteed over 70% profit of your investment.

I would like you to keep a date with this blog, and bookmark it so as to get informed each time a post is made. If you had had your fingers burnt in Forex trading, this is the best place to be, as you would be tutored on the realities in currency trading.

My next post we would be looking at the terminologies in FX trading and other requirements. Remember Information is what gives you an edge in business.

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