Monday, April 11, 2011
Trading forex is not much different - we need to develop that keen sense of what is happening around us. Will we ever be able to predict every move in the forex markets? Absolutely not. But we can use our understanding of the context of the market – the six forces of forex – to make better, more profitable trading choices. Once we understand these forces, we can create and operate within a comprehensive trading plan:
Who trades forex? Understand who participates in the markets, why they are successful, and how you can emulate them.
Why trade forex? There are superior returns in forex, but not for all investors. Are you one of them?
Where should you trade? Choose to work with service providers who can efficiently enable your style of trading.
What should you trade? Select the currency pair, entry, exit
and money management methods that will maximize your returns.
When should you trade? Trade when the environment is most likely to produce the best conditions for executing your system.
How should you trade? Trade using methods that maximize
your ability to emulate the proven winners.