Attitudes that help you to trade successfully.

Everyone might have noticed that the value of a currency fluctuates every day, but merely everyone knows that there is a forex market which is used to trade currencies from your home.

You no longer need to be a millionaire or big trader to get involved in the forex market, you and I with a substantial knowledge about the market, a straight forward mindset, and some experience can yield ample profit. Technology enables you to trade from your home at any foreign exchange market around the globe, which has made forex markets more accessible and has earned them with unprecedented growth over the decades. There are people who have earned billions through this trading. George Soros is a testimony for the profitability of this market as he earned a billion dollars in just a days trading. But on the other hand people also loose a large part of their investment in trading due to some miscalculations or bad luck – if you have faith in destiny.

As you may be wondering how does a forex market differ from a traditional stock market? I can give you some significant differences. Forex markets are opened around the clock and you can dictate how and when to trade. Also you can focus on picking from a few currencies rather than from thousands of stocks. You also have the opportunity to trade on leverages, but it will amplify your profit and your losses. The main and the most attractive characteristic of a forex market in my point of view is you don’t require a lot of money to get started. So ordinary masses like you and I can be part of the forex market.

The way of trading in the forex market is very similar to that of a normal market. The only difference is you sell one currency and buy another, just like exchanging goods.

This makes it clear why currencies are quoted in pairs such as EUR/USD, EUR/JPY. EUR/JPY rate represents the purchase price between the two currencies, how much Japanese Yen could be bought with 1 euro. The principle of trade in a nutshell can be described as below. If you feel that the Euro is going to increase in value in the future you spend you Yen and buy Euro. When the value of Euro escalates, then it’s your chance to sell them and make money. It’s simple as that. But you should also be aware that there is a high risk involved in this business.

Why demo trading is so important

The best piece of advice that every novice forex trader would give to a new comer in the forex trade is to train your self in a demo account before stepping into the actual world.

The purpose of using a demo account if you are new to Forex trading is to get you comfortable making trades and to help you become familiar with the brokers trading platform. So you can trade and test your strategies without risking your actual money. This makes demo accounts good for a brand new trader who just wants to see how trading works.

A free forex demo account is a great way to experience to trade in the market without risking any real money. The opportunity for you to learn, or to train your trading skills is one simple registration away. In order to register for a free forex demo account, you could just simply please fill a form and start practicing trading in forex demo accounts.




Using a free forex demo account you could learn to trade as it was real, learn the correct behaviors of the market, and begin to build the correct foundation for your next real trading.

Once you have made your decision on which broker you like the best, it is time to open a demo account. Most brokers will offer at least a 30 day trial of their trading platform giving you a chance to trade on the platform using play money. Using a demo account is a good opportunity to make sure that you feel comfortable using the broker’s trading tools. You would not want to trade real money without being fully comfortable with the trading platform. A demo account will not only help you get a grip on how to use the broker’s trading platform, but also trading the market in real time.

Forex demo accounts come with all of the features as the real accounts, including advanced charting and order types, market news, indicators and much more.
Forex demo accounts are a fully functional version of the award-winning software, which includes real time rates, professional charts, news and commentary, as well as other important tools for traders.

Forex demo accounts can be used on any computer. The platform can also be installed on multiple computers, so whether a trader is at home or on the road, he will always have access to the markets.

Why 95% of the forex traders lose their money when they first trading?

As I mentioned in the earlier article forex trading can be done with ease by anyone without a huge investment, but there is significant amount of risks involved in it. It’s common in every aspect of any business, the more risk you take, the more you earn. But make sure that you take a more calculated risk so that you don’t become one among those failed 95% debut traders.

The first advice that I would give is that don’t get carried away by the attractive advertisements in the internet. “90% accuracy, earn 20 pipes a day, earn regular income from home” Perhaps you might have come across some of them. Most of these advertisements are made by cleaver salesmen and not by good brokers. Once you come across this illusion you may have to consider these facts.



Patience is a key index in foreign exchange. If you are a nervous and impatient person, I’m sorry that you are not a suitable person for this kind of trade. Sense of anxiousness which will overrule your best judgment, desire for revenge etc will lead you down the lane for a crash. Experienced traders don’t get carried away by short term volatility and they wait in anticipating bigger profits.

People who think themselves as smart fail in forex trading in most occasions. Cleaver people over elaborate their trading with much complexity. The golden rule is to keep your trading as simple as possible as forex is 80% mindset and 20% method. While trading, don’t hesitate to grasp the fact you were wrong, you took the wrong decision, because it’s the market that is going to rule and not your decision. So don’t argue with the market price. Once you know you were wrong regarding the anticipation of the market price be gentle enough to rectify it to avoid further losses rather than being stubborn in your decision.

If you follow an expert’s advice and don’t do your homework to learn the logic behind their method, you are more unlikely to follow their method when you hit a losing streak. Always make sure you stick on to a systematic method, or else you get lost and hit a dead end. Internet bears all the details you need, so make sure you know what you are doing and learn about the market before you enter it, which assures you confidence in your decisions. Forex markets are risky, but approach them with discipline and some effort to succeed in long terms

What you should know about forex before trading?

As mentioned in the earlier article forex trading is one of the riskiest but a money pouring trades in the world. So before you enter this world make sure you know the things you ought to know.

The first and foremost rule is to run on your profits and cut your losses as early as possible. The wiser men always layout a plan and stick to it apart from their overwhelming emotions to go loose from their plans. People get carried away in situations where they go through a winning streak.

The simplest rule in forex trading is the most difficult one to implement and it’s the reason for most of the trader’s demise. Many traders violate their predetermined plan and take their profits before they reach their expected profit margin as they feel extremely uncomfortable sitting in a profitable situation. The same traders will easily sit on loosing position allowing the market to move against them, and loose hundreds of points anticipating the market to turn around. When you trade always predetermine the amount of loss you can absorb and ensure you put a stop when that target is hit.

Do not over trade. The common mistake that most traders do is, they leverage their account too high by trading for much larger amounts than their accounts could withstand. Just because one currency needs 10 000$ as minimal to trade, a trader with 50 000$ should trade a 5 lots. The golden rule at these situations is not to use more than 10% of your account at any time.

Good anticipation and execution is yet another aspect that everyone should consider. The profitability of your decisions and anticipations are not counted in one of your trades, but from your overall trade. So keep in mind the fact that you make profit or loss in the previous trade is not important at all.

So how should you start a day’s trade? Make preparations for at least 15 minutes as an elite athlete makes preparations for an event. Sit in a comfortable position, make yourself relaxed and breathe deeply. Exclude your mind from all thoughts, consciousness, and body sensations. Maintain your all your consciousness only on your breathing which enables you to get rid of others. Forget all your worries about your past and future trades and reach a point of threshold which enables you to surpass boredom and attain a clearer mindset. This might take around 15 minutes as average, but may be more for some people.

Introduction to Forex

Foreign exchange is the term used to illustrate the exchange of a currency of a certain nation to the currency of another. It is the largest market in the planet and its average daily turn over exceeds 3.2 trillion US$. Foreign exchange (FOREX) is also termed as currency exchange.




There exists always a fluctuation in the relative values between currencies. First and foremost two reasons for this fluctuation can be mentioned. The first reason, put in simple terms, when a foreigner comes into a country and wishes to buy things, or invest; he is compelled to change his money into local currency, which drastically changes the demand for the currency. The second reason is speculation. When a buyer or seller feels that the currency acts strongly or weakly he buys or sells accordingly, which stimulates the fluctuation of the value of that currency.

FOREX is said to approximate a perfect market than any other market in practice. According to international statistics foreign exchange markets have continued to grow for the last few years. It had a drastic growth in 2007 as it had a 38% leap between 2006 April and 2007 April. London occupies the cockpit of FOREX as it consumes 34.1% of the total market turnover; New York comes in second with 16.6% and Tokyo with 6.1%. FOREX markets operate round the clock 24 hours a day excluding weekends. While the Asian FOREX markets put up the shutters at the end of the day, American markets open and then continued by European markets, which explains the phrase ‘FOREX markets operate round the clock’. Foreign currency exchange rates do not hang on to a fixed rate all around the globe; they do not have a unified market, but rather have different prices. But since the London market dominates the FOREX industry, London exchange rates are considered to be the reference, although the trading takes place in New York, Tokyo, Singapore, and Hong Kong.

No other market in the world is as fragile to the world events as the foreign exchange market. Foreign exchange rates simply depend upon the demand and supply of that currency. There are ample factors that affect the demand and supply of a currency. They can be classified as economical, political and market psychological factors. Considering the economical factors, budget deficits provide a negative impact on the currency value. Greater the deficits, the weaker become the currency. Consistent trade between nations demonstrates the demand for goods, which eventually pushes the demand for the country’s currency to perform the trade and eventually the currency’s demand gets boosted. Inflation is yet another economical factor that affects the value of a currency. Inflation weakens a country’s demanding power and consequently abates the value of currency.