It should be noted that there is no central niche for the Forex market; trading is instead considered conducted ‘over the counter’; it isn’t like stocks where there is really a central marketplace with all orders processed like the NYSE. The forex trading markets (FOREX) have evolved from the humblest of beginnings on the world’s largest market by dollar volume. With several different entry points, speculators and hedgers can both find what they are trying to find. Whether they want to hedge their everyday currency risk, or pursue a more complex strategy, the FOREX markets provide the liquidity and instruments for trading in currencies.
Forex trading as it concerns retail traders (just like you and I) will be the speculation around the cost of one currency against another. For example, if you think maybe the euro is going to rise contrary to the U.S. dollar, you should buy the EURUSD currency pair low then (hopefully) sell it off at a higher price to generate a profit. Of course, if you purchase the euro up against the dollar (EURUSD), as well as the U.S. dollar strengthens, you will then be in the losing position. So, it’s important to be aware of the chance linked to trading Forex, instead of only the reward.
Here’s a quick set of skills you will have to reach your goals inside Forex market:
Confidence – to believe in yourself as well as your trading strategy, also to have no fear
Dedication – to becoming the most effective Forex trader you may be
Discipline – to be calm and unemotional inside a arena of constant temptation (the marketplace)
Flexibility – to trade changing market conditions successfully
Focus – to be targeting your trading plan and not stray off course
Logic – to look at the market industry from a goal and self-explanatory perspective
Organization – to forge and reinforce positive trading habits
Patience – to hold back for only the highest-probability trading strategies as outlined by your plan
Realism – not to think you will get rich quick and view the reality of the market and trading
Savvy – to look at benefit from your trading edge in the event it arises and be aware of what exactly is happening within the market always
Self-control – to not over-trade and over-leverage your trading account