While many people will tell you currency trading success is easy to achieve – its not and that's why 95% of all traders quickly lose all their money. The good news though is currency trading is a skill that can be learned and for those willing to put in some time and effort the rewards can be enormous.

Your on Your Own

Don't go the route most traders do when they start trading currency online and choose a cheap Forex Robot, if you do you will lose. If these systems really did make money the majority of traders would win and of course they don't

You have to take time to learn the basics and learn a currency trading strategy you can have confidence in and this should only take you a few weeks but you must do your own research.

Simple Strategies can Lead You to Success

You only need a simple currency trading strategy to lead you to success and don't fall into the trap of over complicating your system and cramming it with to many indicators. If you do this you will make your system to complicated and it will have to many elements to break.

A simple technical system which uses support and resistance and a handful of indicators is all you need.

Beware of Leverage

Most traders use to much leverage and trade the maximum their broker allows which is sometimes up to 1,000 to 1 but if you do this expect to lose quickly. Not only will volatility kill your account, it will also suffer commission impact and on heavily leveraged positions you will need to cover 10% or more just to cover your transaction costs.

If you are new to currency trading on the Internet, keep your leverage below 20:1 and don't worry you can make a lot of money on this amount of leverage and at the same time, keep risk reward at manageable levels.

Money Management and Stops

You need to accept losses and keep them small and then run your profits. If you don't like being wrong, don't trade currencies because you will probably lose the majority of your trades.

This doesn't matter if you run your profits but if your losses get out of control you will wipe yourself out. The key error made by novice traders is to hold losses and hope they turn around and despite how much is written about the importance of keeping them small traders make this fatal error.

Mindset is the Key

You can have a system which can make money but its up to you to ensure its potential is turned into profits and this means trading your system with discipline. Always keep in mind, if you can't trade a system with discipline you don't have one.

If you learn a simple currency trading strategy you have confidence in and you keep your emotions out of your trading you can enjoy success trading currencies on the Internet. Anyone can learn a system which can win and if you choose the right mindset you can make a great second income trading global currency markets.