General Rules That Will Improve Your Forex Trading

There are many things that take traders a long time to learn when trading Forex. There are also things that you can do to make trading somewhat easier at the beginning. In this article I will point out a few.

Trade the EURUSD

Currency Trading

There are many pairs to trade but he best currency pair to trade and to learn on is the one that is the smoothest in terms of the trending angles and the one that has the most liquidity. This is the EURUSD as 30% of all trades are made here. The reason this is important is that it reduces the volatility around the trade entry. Think of it as your first slide at the playground, there are fewer bumps. However, don't let the smoothness of the ride fool you, the power of trading the EURUSD can provide enough money to derive your income if applied correctly.

Trade either the London Open or better the New York Open

This has nothing to do with the not likely the Asian time period it is just that most of the trading world is not paying attention and the markets are often tight and range bound. Trading when there is momentum that can drive your trade through to a solid profit is important and as London is the largest market and New York is next and there is a span of time when both are open, this is the best time to trade.

Trade after the news has been absorbed

News creates swirling waters. A trade caught in swirling waters will be like a swimmer in the same condition; lost! Wait until the news has broken and prices have settled into a direction that you feel makes sense, typically in the direction of the previous trend. Outside of swirling rapids the river starts to flow again. That is the time to trade.

Have a reason to trade

Every trader needs to have a reason to trade and it is not just to make money. No one should try to take money from the Forex market without a well thought out trading system to do so. The people who trade Forex swallow up small traders like a whale with its mouth open, just because they are there.

Trading in Forex requires thought and a solid system to find the edge in the market - like stealing candy when no one is looking. Only in Forex, we do it from home and it is legal. The above ideas and thoughts will help you on your journey to improve.

General Rules That Will Improve Your Forex Trading