Many people want to trade Forex successfully and in fact one Forex advisor explains that in order to be successful at trading Forex you should do Forex Technical Analysis and follow a system. Forex or Foreign Currency Exchange traders suggest that having a system in place and choosing a Stop Limit is very important. Analysis has also shown that once you have chosen a Stop Limit you should shut your computer off and go do something else since the market will take over from here, and there will be either a profit or a loss awaiting you next time you log on to your computer to look at your Forex trade.
It is amazing to note that only 30% of Forex investors make money in this currency their wrong decisions based on emotion and without using any form of Forex Technical Analysis. The Forex or FX Market was first established in 1971 and is the world’s largest currency trading market; conducted around the clock 5 days a week. It is so popular that it has put the Stock Market in second place. The trading is done online or by phone these days with one of the major Forex centers which are based out of Frankfurt, New York, Tokyo and London.
Forex Technical Analysis is about educating oneself, since only you can be responsible for a profit or a loss. There are average daily turnovers of almost $2 trillion in the Forex market and you can do the technical analysis and learn the great opportunities available to you to make money trading these currencies. The trades take place on a daily basis twenty four hours a day on a minute by minute basis, especially when traders respond to the changes in the economic or political situation of that week.
When you do Forex Technical Analysis you will notice that there are precise rules that need to be followed and by which you have to abide. These rules can be ones which you have studied, analyzed and made, or are rules and procedures that are online and have been tested and accepted by traders.
It is best not to enter the Forex market based on emotion and successful traders are aware of specific entry points as well as when it is best not to get into the Forex market. Everyone has their own system and it is well known that the odds will be on your side if and when you follow the system you have chosen. One of the ways to implement the system you choose is to get into the market at the same time every day.
Stay with and do not deviate from the rules and system even if you change your mind and regardless of how much money you may be losing at that particular moment. The worst is to make a judgment-call based on a hunch, feeling or emotion verses sticking to and following a system you have chosen.
A rule of thumb is to figure out how much money you want to put on a single trade taking into consideration that you may lose it all now, and gain it back later. You need to do Forex Technical Analysis in order to know exactly how much this trade will cost you, especially prior to increasing your lot size. The key is to be steady and controlled and to stay with the same lot size for at least 15 to 30 days.