Over time, you'll learn that a market like Forex is fairly self-explanatory, in terms of how it operates. The difficulty comes in attempting to predict how well your trades will do against another currency. This is where proper information comes in. In this article Yee Kok Siong will help you gain a clear understanding about how the market and different currencies function.
If you understand numbers and how software works, you do not have to rely solely on a Forex trading program to calculate different trade probabilities for you. Of course, you will still need to use your software platform to make the trades, but you can keep stock of facts, figures and predictions on another program.
If you are having a hard time with forex charts because they can be so complex, you should at first rely on analysis from brokers that you trust. Compare their analysis with the chart and try to understand their perception and judgment. You should be able to read charts by yourself once you understand how brokers do it.
Avoid the "set and forget" robot products for handling your trades. People will always try to profit off of making your trading "easier" with "foolproof" automated systems. If these magic products worked, why would these sellers want to share them? Taking your decisions out of the equation through "get rich quick" robots only profits the seller.
The best trading tool for Forex is a good education. The first thing you should do before investing in Forex is to learn how to do your trading correctly. Otherwise, you could end up in a whole lot of trouble. Forex is a complex and risky business so you should practice trading successfully on your demo account for 3 months before trading live.
Practice with a demo account before putting in real money. Forex trading can be risky and complicated. Using a demo brokerage account will allow you the time to get over the learning curve without risking your skin. Use the time in the demo to test your ideas and skills and see what really works.
Set up a demo account or, if you must be aggressive in the beginning, a miniature account with minimal capital. Learn the ropes of trading, understand the trends and evaluate your currency pair. If you do this you will keep your losses to a manageable amount and let you enjoy the learning curve.
You should look for real time data to find the best charts. Many charts will offer an analysis based on the whole week or the whole day. These charts give you a good overview of general trends on the market. But, when you make a decision, you need to know what is going on at the exact second.
As we touched on previously, the market itself is easy to figure out in terms of how it operates. The real challenge is making it work for you on a consistent basis. Use the advice made by Yee Kok Siong in this article to build a strategy so that you can be ready to capitalize on opportunity, anytime it presents itself.