3 Secrets To Successful Forex Trading

Do you want to know some secrets to successful Forex trading, so you can make a lot of money?  To do this one must at least have a basic understanding of Forex markets and trading approaches.  If you have a genuine interest in trading Forex, you need to devote time and energy to learn the basic secrets to successful Forex trading,

Enough of the ominous introduction.  Trading Forex and making money is not that difficult.  However, you have to do a little research and decide the course you want to take.

1 Your Plan.  Do you really want to make some money trading Forex?  How much? How fast? How will you get it?  Everyone wants to make a lot of money.  So why do only about 5% make a good living?  The simple answer is planning, approach and execution.

Forex Markets are not that difficult.  But what is your plan?  This is where many people go wrong.  They open an account, invest a little time learning a broker provided trading program, start trading, lose money and quit.  About 95% of people are in this basic category.

This may sound simple but most do not establish a reasonable plan that includes learning the basics from those that have been successful in trading Forex.  The successful traders have a reasonable plan and stick to it.  They look for small but consistent profits that add up over time.

2 Your Approach.  Are you going to learn and do everything yourself or are you, at least initially, going to use an automated Forex trading system.  You can be successful at either.  Each requires a different amount of time, effort and knowledge to be successful.

Most successful Forex traders, who generate consistent profits, use proven trading systems to provide ideal trading conditions, regardless of their individual ability as traders.  There are two basic approaches to take.  One requires that you spend hundreds of hours and possibly thousands of dollars learning the markets, trading patterns, software programs, techniques and practice.  The second uses a proven Forex trading system or software that can significantly decrease the time and money needed to successfully trade Forex.

3 Your Execution.  As mentioned above, there are two basic methods to execute your plan.  One is to do it all yourself and one is to have or purchase a trading system.  Within the system approach, there are signal systems that still require you to place the order and there are automated Forex trading systems that do trade setup identification and place entry and exit orders without your presence. 

Fully automated Forex trading software is a rapidly growing area.  Most people, if they are honest with themselves, intuitively want this approach but are hesitant because of the perceived simplicity, lack of control and image.  However, there are only a few programs that have proven themselves over time.   This approach requires the least amount of time, money and effort initially.  Good software can consistently provide 10-20% per month returns.