What is currency trading? It is also known as Forex Trading. You may have exchanged money while travelling to another country and that was one form of currency trading. Most traders speculate on currency exchange rate on either it going up or down. If they get the direction right, they could make a lot of money through trading.
Currency trading is very risky; it is not something to get involved in without proper knowledge. There are many free educational courses available through online brokers if you want to understand and practice trading via their virtual platform.
No matter where you live, you can trade currency on line by registering with an online broker. Currencies are traded in pairs. The most traded currency pair is United States dollar either GBP/USD, EURO/USD, during the daytime and AUD/USD and USD/JPY during the SE Asia trading time.
The most traded currency pair is GBP/USD during the UK opening time and the most lucrative. You only need one currency pair to make money. You need to plan your daily target of pips. I recommend 20 pips a day and when you get your 20 pips, it is most important to exit and come back the next day to repeat the same process.
In currency trading, the most important thing is to keep the money you make. By getting in and out of the trades all the time, you will not learn any discipline and mostly end up losing your winning trades and almost all your trading capital.
It is very easy to get a sense of being on ‘top of the world’ when you are winning but it is short term and soon replaced by depression if you end up giving back all your gains. This habit is mostly associated with ‘gamblers’ who will probably wait for their next ‘fix’ for that elusive high.
In my training program, I try to focus on long-term success which can be achieved by understanding and following set criteria. Yes, it can be slow and not so exciting, but it will lead you to having a very successful long-term trading career.
Before you contemplate the thought of investing real money, learn as much as you can and most importantly, retain a Forex mentor who can help you cut through the learning process. A mentor is someone who has done all the mistakes, and can guide you with good moneymaking strategies which have stood the test of time.
You may find your own method of trading eventually, but it will be frustrating and costly. Learning through a good mentor is an easy way to accelerate your trading career and can save you a lot of money in the process.
Currency trading is like buying a brand new car but if you do not know how to drive it, then you may never get on the road. After all, you will not trust to drive it on your own and must have someone qualified to teach you how to drive in order to get your licence.
Currency trading is that ‘brand new car’ just waiting for you. Do not drive it without an experienced mentor by your side.