It should be noted that there are no central niche for the Forex market; trading is instead reported to be conducted ‘over the counter’; it is not like stocks and then there can be 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 a number of different access points, speculators and hedgers can both find what they are searching for. 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 mainly because it pertains to retail traders (as you and I) could be the speculation around the price of one currency against another. For example, if you believe the euro will probably rise contrary to the U.S. dollar, you can purchase the EURUSD currency pair low and then (hopefully) sell it in a higher price to produce a profit. Of course, if you decide on the euro against the dollar (EURUSD), and the U.S. dollar strengthens, you will then be in a very losing position. So, it’s important to be aware of the risk involved with trading Forex, and not merely the reward.
Here’s a quick report on skills you will need to reach your goals in the Forex market:
Ability – to take a loss without becoming emotional
Confidence – to trust in yourself and your trading strategy, and to have no fear
Dedication – to becoming the most effective Forex trader you may be
Discipline – to stay calm and unemotional inside a arena of constant temptation (the market)
Flexibility – to trade changing market conditions successfully
Focus – to stay focused on your trading plan and to not stray off course
Logic – to look at the market 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 – never to think you will get rich quick and view the reality of the marketplace and trading
Savvy – to take benefit of your trading edge if it arises and know about what’s happening within the market at all times