It should be noted that there are no central niche for the Forex market; trading is instead considered to be conducted ‘over the counter’; it isn’t like stocks where there is a central marketplace with all of orders processed just like the NYSE. The forex markets (FOREX) have evolved from the humblest of beginnings to the world’s largest market by dollar volume. With several different entry points, speculators and hedgers can both find what they are seeking. Whether they simply want to hedge their everyday currency risk, or pursue an even more complex strategy, the FOREX markets provide you with the liquidity and instruments for trading in currencies.
Forex trading since it pertains to retail traders (like you and I) is the speculation about the price of one currency against another. For example, if you feel the euro will rise from the U.S. dollar, you can get the EURUSD currency pair low and after that (hopefully) market it at a higher price to make a profit. Of course, if you decide on the euro from the dollar (EURUSD), and also the U.S. dollar strengthens, you will then be in the losing position. So, it’s important to be familiar with the chance linked to trading Forex, instead of exactly the reward.
Here’s a quick set of skills you will need to reach your goals inside the Forex market:
Confidence – to trust in yourself and your trading strategy, also to have no fear
Dedication – to becoming the very best Forex trader you could be
Discipline – to be calm and unemotional inside a arena of constant temptation (industry)
Flexibility – to trade changing market conditions successfully
Focus – to keep focused on your trading plan and to not stray off course
Logic – to check out the market from an objective and easy perspective
Organization – to forge and reinforce positive trading habits
Patience – to wait for merely the highest-probability trading strategies based on your plan
Realism – never to think you’re going to get rich quick and see the reality of the market and trading
Savvy – to look at advantage of your trading edge if this arises and know about what’s happening within the market all the time
Self-control – not to over-trade and over-leverage your trading account