What is the best forex trading approach for you?

What is the best forex trading approach for you?  I hope you are asking this question before you have started trading.  It is imperative that you have a trading plan and that you follow it.  You must understand what “type” of trader you are.  This will help you manage you funds, manage your risk profile and maintain sanity as you learn how to trade successfully in the Forex Markets.

Here are some things to think about:

1.  How much capital do you have? —  If the capital you are spending is some of your “play money”, Forex Trading is pretty easy to master.  You are not under undue strain and pressure.  If you are working with your “emergency money”, and are trying to make a big splash very quickly, you actually need to be much more careful in your setup and approach to trading.  Only you know what your status is.  You need to manage your capital very carefully.



2.  How much risk can you handle? –  Can you lose your current capital in your account without it destroying your finances?  I hope the answer is yes.  If you have some type of money buffer and can afford to lose some of your capital when you are learning, it will actually help with your learning curve.  You will not always make money on every one of your trades.  Forex Trading simply does not work that way.  Know what your particular risk situation is, and factor that into your trading and leverage plan.


3.  Do you worry a lot about your money? —  If you are a person that worries about money a lot, you want to start out very slow with Forex Trading .  You want to spend a couple of months in a training account.  You want to feel secure that you know what you are doing before you start to trade live.  You do not want to be worrying about your funds when you are trading.  You want to be worried about the mechanics of trading.

Best Forex Trading

4.Why are you entering the Forex Market? What is your “Why”? —  If you clearly know your “why”, you can manage your Forex Trading Portfolio much better.  If you have realistic money and timing goals, it will allow you to avoid taking excessive risk when trading.  Excessive risk almost always leads to lost capital.  Make sure you keep your goals realistic, and keep them in front of you as you trade.


5.  How much time do you have to spend actually trading? —  You are going to have to spend some time learning how to trade.  You are also going to have to spend time trading.  Make sure you have “quiet time” set aside to do your trading.  You will not be able to successfully trade if you are getting interrupted all the time.  You need to give Forex Trading your undivided attention when you are actively trading.


6.  Are you a quick learner? —  If it takes you a while to pick up things, do not plan on mastering Forex Trading in a couple of weeks.  It takes several months to get really good at it.  Make sure you provide ample time in your schedule and budget so you can learn thing “right the first time”.  You do not want to rush and develop bad trading habits.  They are very hard to break.


7.  How do you like to learn?– If you are a visual type of person, you will want to get some Forex Training that shows screen captures of a trading expert actually reading charts and making trades.  If you are better at book learning, you will need to find some quality websites and training courses that allow you to learn about the system before you start practice trading.  You know how you learn best.  Get the correct type of training so that you give yourself the best chance of success right off the bat.


8.  How well do you follow a plan you set up? —  Make sure you are willing and able to follow the instructions that are given.  The best Forex Training in the world will do you no good if you do not follow it correctly.  You must be willing to set up a plan and work it.  This will give you the best odds for making good money in the Forex Market.