Professional Forex Trading - The Insider So Called Secrets How The Pros Make Consistent Profits

Professional Forex Trading - The Insider So Called Secrets How The Pros Make Consistent Profits

by Nigel Banks

I am going to be up front with you and say that in Forex trading - as in most things in life - there really are no secrets. I know that may sound boring, but it is true.

If you want something startling and "NEW" please point your browser to Amazon and buy the latest book on Forex trading. As for the rest who know better please read on and see what the real secrets are to Trading The Forex Like A Pro

Success Secret #1: Can I Get A Little Understanding...

The first thing you should strive to achieve is a solid grasp of how the markets work and why they move. This is the basics of being able to make intelligent trading decisions.

It is this intrinsic understanding of market forces and construction that allow you to visualize the entire problem and make a decisive conclusion. It is why doctors spend a majority of medical school learning biology and the construction of the body so that they can visualize the "why" behind the symptom.

Spend your time wisely and learn how this whole thing works.


Success Secret #2: Pick A Philosophy and Stick With It...

Once you have a grasp of the who what when where and why behind the Forex markets you should now pick a trading philosophy that best makes sense of it all for you. Read that again, the one that best makes sense of it all - FOR YOU.

Fundamental Forex Traders Philosophy

For instance some people are fundamental traders.

Fundamental forex traders will look for an overview of currency movements and a broad picture of the economic conditions.

Fundamental traders study the market strengths and weaknesses by knowing and understanding underlying factors that affect the market movements. Due to the global environment of the Forex, Fundamental Analysis is largely focused on news catalysis's than the strengths and weaknesses of the currencies themselves. Though more detailed Fundamental traders will want to understand the global economy as well as the affects of news on the markets.

The Philosophy of Technical Forex Traders

Technical traders by contrast base their trading upon the belief that the market follows a predictable set of patterns which have been well established over time. Because of this fact Technical Forex traders believe that future movements in the market can be predicted by analyzing and charting historical data to produce a series of models which can be used to predict future patterns.

In other words technical analysis is a method of predicting price movements by looking at purely market-generated data instead of economic influence, or news events.

Technical traders' tools include real time charts, and graphs. Their objective is to read specific chart patterns to see where they think the market might go next. There are known patterns and tools, like Fibonacci studies, that traders use each day to analyze these price movements.

Secret #3 Money Management The Fountainhead Of Profits...

The last critical factor to trading like a pro is money management. It has been said that if you knew nothing other than money management you could succeed even with the worst trading system in the world. This may be a bit of an over statement but it is close to the truth that managing money is a critical component to success in Forex trading.

Forex money management is a way of life for the prudent investor. Practice money management and you just might be one of 5 out of 100 that will be in a position to make money from Forex Trading.

Forex money management is all about taking calculated risks at the right time and defending your cash on hand. It is about managing risks versus rewards and adjusting market position size in relationship to account equity.

Forex money management is part and parcel of any good trading system. The performance of a forex trading system, in terms of profits, draw down, or any other parameter you would like to measure, depends on both the trading system itself and the money management rules it follows.

Forex money management forces a consistent monitoring of a trader's position and to accept the losses when necessary. Most traders quite honestly completely overlook this aspect of trading. And that is sad because it is the one thing about forex trading that you have complete control over, as compared to the markets themselves.