Must Know Before You Start Forex Trading

Many people have heard about Forex trading, some have even made the effort and looked for information.
Forex trading has a lot to offer the private trader.
A successful Forex trader can earn a lot of money in a short period of time.
Before you dive into the Forex world you should be aware of the following:

1. Forex trading is a risky business , it involves high leverage and you may lose money. Because of its complexity and the fact that most traders experience losses - sometimes it is compared to gambling. However Forex trading is not gambling, as you control your level of exposure via your ability to get out whenever it suits you to minimize your risk and make your investment safer.

2. Do not start trading unless you have money that you can afford losing. The worst thing to do is to trade with “Coward Money”. When someone opens a real account and deposits money that can’t be afforded the money will probably go down the drain as a result of the psychological element that comes into play. When trading you must be detached from your emotions. If you trade with money that you can not afford to lose you add a level of anxiety to your trading and that will disrupt your thinking and planning.

3. Forex trading is a profession like any other profession and therefore you must study and know what you are doing. There is plenty of information available on the Internet or in books.

4. Trading requires discipline and an organized system especially when talking about Forex trading. Every trader must have a plan and discipline in order to survive and earn a living
Before you start trading with real money you should study up as much as you can about trading. You may choose a fundamental or a more technical approach however keep in mind that you will have to constantly maintain your studies and develop your own system and approach towards trading.

5. Money management is very important in any kind of trading , especially in Forex trading where leverage is high. Sometimes you will have to make difficult decisions that may cost you some money in the short run but save you much more money down the road. Successful traders will often opt to cut losses and forgeit a small portion of their money instead of losing big sum of their money. There is no place for prayers , wishes or hopes in the world of professional trading - successful traders are detached from their feelings and remain impassive to the rises and falls of the market.

6. Like any other business , Forex trading requires forward planning. Before entering a trade you should analyze the market , charts and conditions. The successful trader plans trades and recognizes the precise moment of the entry, exit and stop loss points way before the trading even begins. The keys for long term success is analyzing planning, managing the trade strictly according to the plan.



Although trading is not for everyone , if you are serious in your decision to become a successful trader then it is possible. The thing that differentiates successful traders from the rest of people is their determination and desire to become successful. Successful traders never stop learning about the market and new systems.

articles by ziv Al
http://Forex-intro.info .