Basic knowledge of forex

The purpose of this article is to add our knowledge, preparations before we enter the Forex world which is very dynamic and volatile.

Let's start with four basic foundations that we need before we enter forex.

Forex trading is not a way to make us rich

Time needed to study the science of Forex trading, a successful trader don't come up with a formula in one single night. What is needed are: Practice + Patience + Persistent = Profit

Only take one or two pairs of currency

It will be complicated if we take up the four main currency because we will have difficulties controlling it.

Watch for Forex News and Forex analysis

Although forex system is based on chart analysis, we must also pay attention to the latest news that will affect price. Knowing exactly whether it's support or resistant, and analysis whether a news can drive the price to support or persistant.

Only use techniques that you master

Make it habit to use only one method you master in playing forex. Before mastering other techniques it is better to understand and master fully one forex trading method.

Also remember that once we enter the forex, we must have a good strategy. Putting stop loss in every trade because every trader have a certain level of tolerance in losses that he could take and depend on the capital that one has.

* Try virtual trading before going to the real world
* Trading is what you see not what you think
* Win or lose is common things, the most important things are trading formula and discipline.
* 90% failed because they are indiscipline, 10% then broke.
* Money management is very important, taking up a lots of gain must be put out of your head.

The advice is to use money that won't affect our financial if we lose it. Prepare ourselves the best before entering the market. Do not underestimate something because it looks easy. Buy in low price, sell it on its top then we'll get profit from it and profit that we might not get in other business. It's very sweet but 90% traders failed and 10% of them broke.

Slowly but sure. This kind of mental is had to find in traders' mind. They all want big profits but what the get is only the other way. Don't always follow your passion, remember always to buy at low price and sell it while it's on its top.