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Currency Trading Basics
If you read any of the interviews with the world's top traders the most quoted character trait you need to achieve success will be discipline. Discipline is the ability to control emotions and follow a trading plan without deviating from it – sounds easy? It does but it's a very hard trait to achieve and most traders simply cannot acquire it and lose.
I often read about a trading secret in Forex which is revealed by someone selling a system and the most common ones are banks and hedge fund secrets for profit. The secrets of course are promoted by vendors of robots and other get rich quick programs and tap into the idea you can learn something from the big dog traders – you can learn something but its totally different to the myth promoted online.
Trading currencies is a business and to win you need to construct a trading plan which will lead you to success and will act as your roadmap to currency trading profits. Most traders have no set plan and think that currency trading can be done without one and their trading strategy soon fails due to a lack of long term planning don't make the same mistake – use the enclosed currency trading plan to lead you to currency trading success.
Is Forex trading gambling or is it a speculative investment? Many would content it's gambling because so many traders lose but the difference between gambling and speculating on currency trading prices is – in currency trading you can get an edge and this is not so in many casino games where the house always has an edge.
Here I will give you a typical trading day for me which although is very personal, I am sure there are many traders who follow a similar pattern. By professional trader I am not referring to banks or investment houses but a trader with a full time profession but who trades currencies professionally in their spare time. Lets take a look at, a typical day trading the currency markets.