Advice for Successful Forex Trading
In This Chapter
Identifying your own trading style
Viewing the market — and your trades — dispassionately
Doing your homework
Keeping risk in perspective
Sun Tzu, author of the ancient The Art of War, a book of military strategy, observed that every battle is won or lost before it even begins. That same rationale applies to trading. And just as an army must know its strengths and weaknesses to succeed, you have to get to know yours, too. This chapter looks at various forex trading styles, provides tips to develop trading discipline, and offers a practical plan for analyzing markets with an eye to spotting trade opportunities. It also takes a hard look at risks beyond just losing money, so you can be prepared for bumps in the road.
Finding a Trading Style That Suits You
The forex market's trading characteristics have something to offer every trading style (long-term, medium-term, or short-term) and approach (technical, fundamental, or a blend). In deciding what style or approach is right for you, the starting point is not the forex market ...