Forex

Here are some basic points to keep in mind.

We have explored each point in greater detail in other section of the site – but here we will review the most important points.

Let’s get started and look at the basics of learning currency exchange for profit.

Work Smart NOT Hard

The first point to keep in mind is you don’t need to have a college education and you don’t need to be smart or clever to learn currency exchange and win.

You don’t get paid for being clever in forex trading you get paid for being right, so you need to work smart rather than hard.

There is a famous example when legendary trader Richard Dennis, taught a group of traders who had never traded before to trade in just 14 days.

The result?

They went onto make $100 million for him!

Using Technical Analysis Correctly

This will allow you to take into account the forex fundamentals and investor psychology and see and act on the price as it is – no predicting, hoping or guessing, you act on the reality of price changes.

There are many ways of using technical analysis and forex charts.

Using them is very much an art and not a science. You can’t be right all the time and you cant predict prices in advance but you can trade the odds and if you do this correctly, you can make a lot of money.

You need to keep in mind that currency trading is an odds game – NOT A game of certainties.

You should use a long term trend following or a shorter term swing trading system as the basis of your forex trading strategy and avoid day trading at all costs.

Forex day trading, is simply a way to lose you cannot get the odds in your favor and therefore cannot win. It’s a good story - but stories don’t make money – steer clear of it.

The final point to keep in mind when using technical analysis is:

Always keep your currency trading system simple.

Simple systems are easier to understand, easier to apply and more robust than complicated ones, in the face of ever changing brutal market conditions.