Start Today Earning Thousands as a Successful Forex Trader

Everyone is talking about the Forex. The foreign exchange rate has changed dramatically or the last ten years. The change has taken place due to the internet and technology. As a forex trader you can trade 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday). The trading can be done anywhere there is an internet connection.

Sounds to good to be true you are thinking. The Forex is great place to trade. But, you do need to educate yourself with some basic knowledge. You don’t need any special degrees or diplomas to start training on the forex. There are a lot of great sites on the internet with forex tools that will help you to start your training \ education.

You will need some basic knowledge in the economic arena.

1.Payroll \ Unemployment
Strong job creation is a good indication of economic growth, as companies must increase their workforce in order to meet demand

2. The Discount Rate \ FOMC Interest Rate Decisions
The Federal Open Market sets the discount rate, which is the rate at which the Federal Reserve Bank charges member banks for overnight loans.

3. Trade Balance
The balance of trade measures the difference between the value of goods and services that a nation exports and the value of goods and services that it imports.

4. CPI – Consumer Price Index
The CPI is a key gauge of inflation, as it measures the price of a fixed group of consumer goods.

5. Retail Sales
Retail sales is a measure of the total goods sold by a sampling of retail stores. It is used as a gauge of consumer activity and confidence as higher sales figures would indicate increased economic activity.

This data is public information and easy obtained via government websites, newspapers and online resources.

Now that you have some basic knowledge of economics your next step is to open up a demo forex account. You will need to purchase an automated forex trading software application. Look for a forex software application that has a demo account. Using a demo account is a great place to start it is free. Who doesn’t like free. When you feel confident and ready to start trading you can open up an account and start making money.

The mini forex is a good place to start for people just entering the forex market. The mini forex allows you open an account that is at a reduced amount. It requires a smaller capital compared to regular forex accounts, a minimum of $300. With mini forex trading, you can control a $10,000 currency position. The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. Say with a $250 deposit, one could trade a maximum of 5 mini lots. This kind of leverage is greater than stocks or day trading. Of course, it is recommended to start with a manageable leverage that allows greater flexibility in transactions.

Now that you have started trading on the mini forex if that is the route you have taken there are few other concepts to learn. They concepts are moving averages, Fibonacci levels and Bollinger Bands. These are ratios and measurements used to determine the highness or lowness of the price relative to previous trades. You just need a working knowledge of these concepts. Your automated software will handle all the mathematical calculations for you.

Now that you have a good knowledge of these concepts, there is one other thing we must consider. Fear, which can be the worst enemy of the Forex trader. To become a profitable trader you must leave fear aside and stick to your trading plan.

In conclusion, the key to being a successful forex trader is to have the knowledge and proper psychological preparation.

Tracy Lenyk