eToro – Forex Trading Forum

[ashokfor]

To become a successful Forex Trader I recommend the following:

Maximize Your Tools
It is of the utmost importance to know your tools. The varius brokers offers an array of tools that are used for trading the Forex markets. Be sure to test any demo accounts offered and use the opportunity to "learn" the tool.

[ashokfor]

Risk Management
Every successful trader should know how much risk he is willing to take, and what profits should result from the trade. This is the basis of every realistic trading strategy.

Two Ways to Trade
There are two types of traders, technical and fundamental. Both have a radically different approach to making trading decisions.

[ashokfor]

The Basics of Technical Analysis
All technical analysis starts with a few basic building blocks. With these as a foundation, you can start to make sound trading decisions.

Fundamentals Everyone Should Know
All Traders should understand why economic releases, interest rates, and international trade are important to movements in the currency market.

Psychology of Trading
The biggest enemy to most traders is not the market, but themselves. Study and learn all you can about Forex trading.

[djsheckie]

Thanks for the great posts Ashokfor! I think the overriding factor in a trader's success is their commitment to educating themselves. After all knowledge is power. I think a lot of us are overly eager to get started trading without taking the time to learn all the basics.

Aside from reading the lastest news and analyzing charts I think as you mentioned it's also important to sit down and come up with a level of risk they're comfortable with, and what level of profits and losses you expect. Once you set those you should commit to ONLY trading within your risk level.