Trading currency is not for the faint at heart. It requires a good mental attitude to be able to succeed. It is often said that the most successful traders are those that have the most patience and discipine. When you first start trading forex currencies, you will be intimidated and tempted to quit early on. Knoweldge is your key to success! Learn how Forex trading works and become familiar with the various tools that are availabe to assist you. In this article, we will explore some basic questions that you may have as a begginer.
What are some good points to consider as a beginner?
1. It's not necessary to have millions or even thousands of dollars in your investment account.
2. You should start out by practicing with a demo account. Almost all of the online brokerage services offer online demo accounts.
3. Be patient and practice, practice, practice!
4. Learn to read candlestick charts.
5. Develop a trading style that fits your goals.
6. Consider trading software only after you have developed your own trading style. This is important so the software will match you particular trading goals.
7. If you plan to use Forex Spread Betting, be sure that it is legal in your country.
8. Learn when to pull out of a trade.
How strong is the Forex market?
The forex market, represents an international network of currency exchanges in various nations around the world. The currency exchange market literally handles trillions of selling and buying transactions of major currency pairs. These pairs include but are not limited to: Euro, Yen, Canadian Dollars, Pounds and Australian Dollars.
Forex Market Hours - When is the market open and what are good times to trade?
The Forex Market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday. However, the time range between 8:00 am and 12:00 pm EST. are considered the "Power Hours" for trading. These are the most heavily traded hours each day. This is mainly because of the overlap between the closing and opening of the European/US markets. This overlap occurs when the US and European trading centers cross. So in a nutshell, when the US session is opening, the European session is closing. This is a very active, but small window known as the "Hot Zone."
So what are the best currencies to trade during this Hot Zone?
Generally, the following currencies make the largest movement in pips during this time:
•EUR/USD
•GBP/JPY
•USD/CHF
•GBP/CHF
•USD/CAD
Hopefully this information will answer some of your questions and get you heading in the right direction. In my next series of posts, we will discuss trading strategies, trading software, charts, indicators and Forex spread betting.
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