It should be noted there’s no central marketplace for the Forex market; trading is instead said to be conducted ‘over the counter’; it is not like stocks where there is often a central marketplace with all of orders processed such as the NYSE. The foreign currency markets (FOREX) have evolved from the humblest of beginnings towards the world’s largest market by dollar volume. With several unique access points, speculators and hedgers can both find what they are trying to find. Whether they only desire to hedge their everyday currency risk, or pursue a far more complex strategy, the FOREX markets provide the liquidity and instruments for trading in currencies.
Forex trading mainly because it refers to retail traders (as if you and I) will be the speculation on the cost of one currency against another. For example, if you believe the euro will probably rise from the U.S. dollar, you can get the EURUSD currency pair low and after that (hopefully) sell it at a higher price to generate a profit. Of course, if you decide on the euro up against the dollar (EURUSD), as well as the U.S. dollar strengthens, you will then be inside a losing position. So, it’s important to know about the chance linked to trading Forex, instead of exactly the reward.
Here’s a quick listing of skills you need to reach your goals within the Forex market:
Ability – to look at a loss of revenue without becoming emotional
Confidence – to trust in yourself along with your trading strategy, and have no fear
Dedication – to becoming the best Forex trader you could 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 also to not stray off course
Logic – to consider the market from a goal and straight forward perspective
Organization – to forge and reinforce positive trading habits
Patience – to wait for only the highest-probability trading strategies based on your plan
Realism – never to think you are going to get rich quick and understand the reality of the market and trading
Self-control – never to over-trade and over-leverage your trading account