TECHNICAL ANALYSIS DOES NOT WORK!.. (Here Is The Missing Piece To The Puzzle))

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‘Best Friends for Life’ – Isn’t this a little cheesy for an article which focuses on helping people understand the mysteries of the Forex markets? I agree, it is but I just couldn’t find a more holistic phrase to express this relationship.

Knowing what novice traders lack with regards to trading skills is very useful, but it can be even more interesting to know the common qualities forex traders who actually succeeds on the market! Let us analyze what are those qualities that actually make a trader successful and differentiate him from the others.

Social Forex trading has become a growing phenomenon, with several brokers offering the opportunity to copy successful traders. This makes it easier to earn Forex profits, but traders still need to keep some tips in mind.

There are many ways to trade forex, depending on the time horizon. One of these ways is scalping, which involves taking multiple positions within a very short timeframe. Scalping involves a high level of adrenaline and the opportunity to make significant and rapid profits. However, beginners should not be allowed to play, and even consider Scalping as a possible goal, unless they have obtained the necessary skills and experience.

Creating a Forex Trading Journal, means to list all your positions in the forex market and their criteria. With this method, you will not simply lose your money but instead you will learn from your mistakes. We strongly recommend that you use a trading journal in your forex trading, especially if you feel that you’re still in the "acquisition experience trader" phase.

Technical analysis is the study of the financial markets, which involves the analysis of what has happened in the past. Based on market (past) charts, the investor tries to determine what will happen in the future. The analyst, tries to spot some recurring patterns in the past and use the knowledge of these patterns and apply them in the current market. This tool is one of the most basic and vital tools for just about any trader.

Why the euro stands generally better against the dollar in the Forex market? It is indeed a question that we are entitled to ask, since the economic situation and growth prospects have generally been better in the United States throughout the years than in Europe.

The economic context of a country influences the appreciation or depreciation of the currency in the Forex market. All traders should have a thorough knowledge of all the elements affecting the global economy to be in the position to feel the market and by following the trend make the right and profitable decisions that will lead them to success.

To be profitable in Forex, it is vital to consider the economic and political global events. Factors that influence the currency rates are unemployment, the trade balance, GDP and the development of the sector of goods and services. All these indicators are used to determine precisely the tendency of a value in the short, medium and long term. Remaining up to date can make the difference between a losing and a successful trader.

Before entering into any transaction, you should know your pain threshold. The best way is to make sure that your losses are controlled and that you will not enter a trade for emotional reasons. Investing in Forex trading is difficult; there are many more losses than successful transactions and if you do not abide to these ‘Golden Rules’ the results can turn out to be quite bad!

Virtually anyone can get lucky some time or another and make a profit in the forex market by trading only a few times because there are moments in which the exchange of currency pairs moves up or down and by following trends and entering in the right moment one could easily generate profits. However, if traders do not abide to these 3 basic principles the results could be devastating!