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Profitable Forex Trading

Date post: 19-May-2015
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http://www.theforexnittygritty.com/forex/profitable-forex-trading Profitable Forex Trading There are two basic goals in trading foreign currencies. Companies that do business internationally use strategic Forex trading in order to hedge currency risk when paying for products and services. Speculators seek profits from the natural volatility of the Forex markets. Whether one takes a conservative or aggressive approach to trading the bottom line, so to speak, is whether Forex trading serves its purpose of hedging risk or gaining profits. With this in mind here are a few thoughts about profitable Forex trading. Basics Come First Successful traders learn and use technical analysis in order to anticipate price changes in the currency markets. This can be the time honored Japanese candlestick system or one of its younger variants. Many choose candlesticks because they are a clear and easy means to do technical analysis of Forex pairs. The Japanese candlestick symbol looks like a candle with wicks on both ends. The length of the candle shows the difference between opening and closing prices and the wicks, called shadows, are the range of trading for the day. A white candle is an up day and a black candle means that the traded currency closed lower than its opening price. Learning to use technical analysis is a good first step towards profitable Forex trading. Where Oh Where Are the Profits? The life of a trader interested only in hedging risk is easier in a non-volatile market. A currency speculator seeks volatility in order to make money. Many traders use an alert service that follows all possible trading pairs in order to know quickly where they can find promising price action. Profitable Forex trading requires a price differential between buying and selling. Skill Leads to Profitable Forex Trading A successful Forex trader needs to know what to do and he or she needs to be able to do it in the hustle and bustle of online currency trading. The set of skills necessary for currency trading includes the use of the trade station, skill in fundamental and technical analysis of currency pairs, and the ability to modify a trading plan to increase profits.
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Profitable Forex Trading By www.TheForexNittyGritty.com
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Page 1: Profitable Forex Trading

Profitable Forex Trading

By www.TheForexNittyGritty.com

Page 2: Profitable Forex Trading

By http://www.theforexnittygritty.com/forex/profitable-forex-trading

There are two basic goals in trading foreign currencies.

Companies that do business internationally use strategic Forex trading in order to hedge currency risk when paying for products and services.

Page 3: Profitable Forex Trading

By http://www.theforexnittygritty.com/forex/profitable-forex-trading

Speculators seek profits from the natural volatility of the Forex markets.

Whether one takes a conservative or aggressive approach to trading the bottom line, so to speak,

Page 4: Profitable Forex Trading

By http://www.theforexnittygritty.com/forex/profitable-forex-trading

is whether Forex trading serves its purpose of hedging risk or gaining profits.

With this in mind here are a few thoughts about profitable Forex trading.

Page 5: Profitable Forex Trading

By www.TheForexNittyGritty.com

Basics Come First

Successful traders learn and use technical analysis in order to anticipate price changes in the currency markets.

Page 6: Profitable Forex Trading

By www.TheForexNittyGritty.com

This can be the time honored Japanese candlestick system or one of its younger variants.

Many choose candlesticks because they are a clear and easy means to do technical analysis of Forex pairs.

Page 7: Profitable Forex Trading

By www.TheForexNittyGritty.com

The Japanese candlestick symbol looks like a candle with wicks on both ends.

The length of the candle shows the difference between opening and closing prices

Page 8: Profitable Forex Trading

By www.TheForexNittyGritty.com

and the wicks, called shadows, are the range of trading for the day.

A white candle is an up day and a black candle means that the traded currency closed lower than its opening price.

Page 9: Profitable Forex Trading

By www.TheForexNittyGritty.com

Learning to use technical analysis is a good first step towards profitable Forex trading.

Where Oh Where Are the Profits?

Page 10: Profitable Forex Trading

By www.TheForexNittyGritty.com

The life of a trader interested only in hedging risk is easier in a non-volatile market.

A currency speculator seeks volatility in order to make money.

Page 11: Profitable Forex Trading

By www.TheForexNittyGritty.com

Many traders use an alert service that follows all possible trading pairs in order to know quickly where they can find promising price action.

Profitable Forex trading requires a price differential between buying and selling.

Page 12: Profitable Forex Trading

By www.TheForexNittyGritty.com

Skill Leads to Profitable Forex Trading

A successful Forex trader needs to know what to do and he or she needs to be able to do it in the hustle and bustle of online currency trading.

Page 13: Profitable Forex Trading

By www.TheForexNittyGritty.com

The set of skills necessary for currency trading includes the use of the trade station,

skill in fundamental and technical analysis of currency pairs,

Page 14: Profitable Forex Trading

By www.TheForexNittyGritty.com

and the ability to modify a trading plan to increase profits.

Conservative versus Aggressive Currency Trading

Page 15: Profitable Forex Trading

By www.TheForexNittyGritty.com

• There is aggressive Forex trading and there is conservative Forex trading. Which is better?

Page 16: Profitable Forex Trading

By www.TheForexNittyGritty.com

The one that leads to profits in the current market is what one needs for profitable Forex trading.

Markets are fluid.

Page 17: Profitable Forex Trading

By www.TheForexNittyGritty.com

When fundamentals shift there is almost always a period of uncertainty, an inefficient market.

Page 18: Profitable Forex Trading

By www.TheForexNittyGritty.com

It is often during the period of market inefficiency that traders can make their best profits.

Page 19: Profitable Forex Trading

By www.TheForexNittyGritty.com

It is also during such times that traders can lose money if caught unawares.

Page 20: Profitable Forex Trading

By www.TheForexNittyGritty.com

Conservative trading dictates that the trader only picks the very best and most profit prone trades.

Page 21: Profitable Forex Trading

By www.TheForexNittyGritty.com

Aggressive trading does not mean reckless trading but rather that the trader is very active in looking for trades,

Page 22: Profitable Forex Trading

By www.TheForexNittyGritty.com

comparing the best, and executing those most likely to end up in substantial profits.

Both conservative and aggressive approaches can result in profitable Forex trading.

Page 23: Profitable Forex Trading

By www.TheForexNittyGritty.com

Smart traders often switch back and forth between conservative and aggressive approaches depending upon market conditions.

Page 24: Profitable Forex Trading

By http://www.theforexnittygritty.com/forex/profitable-forex-trading

This approach often leads to the most profitable Forex trading over time.

For more insights and useful information about currency trading visit www.TheForexNittyGritty.com.


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