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How You Can Make It In Currency Forex Online Trading

By plrprousers | April 21, 2009

Automation is in the world of Currency Forex Online Trading truly the lazy man’s way of trading the forex. And this is a smart way to do this. You may ask why? Because it does a great job in eliminating one of the greatest snakes in the grass, You!

After trading now for more than six years, I’ve had a bumpy ride with many ups and downs that FX online trading has to offer. What can you do if you are not interested in having all these experiences on your own? So what are the differences between the minority of successful traders and the majority of those 95% who lose money in the forex market?

To be successful in a swimming pool of sharks, you must digest and own some key concepts. So here we go:

What you should know to become one of the best Currency Forex Online Trading Experts
The 8 basic rules

1. If you cannot afford to lose the money you spend on the trade, then don’t do it. When you are in a trade, you don’t want to be on pins and needles in front of your computer. Hence don’t do it!

2. At any time, you should not invest more than 3% of the remaining balance of your trading account. Your Stop/Loss has to secure this under all circumstances.

3. Begin with a sample/demo account for a minimum of 30days when you are a new to forex or try something new out. Most  Automated FX Trading Software Systems require a minimum of 3-6 month testing time to get familiar with the software and the trading “habits” of it.

4. Don’t switch to real trading until you’ve seen at least a month of profitable trading. It ought to be a minimum of 20 trade transacations, with greater amounts being best. Remember, these are minimum requirements.

5. If you manage to find a good FX Trading Software that allows you to be consitently profitable, be sure to take a part of the profits out of the market and then trade along with the rest. My suggestion would be to take out half of what you’ve gained every month.

6. Keep a trade log. Always write down, or put your trading data in an excel file. A log file will be given to you by the MT4 broker in most cases.

7. Study the trade transactions of the trading software. That’s one of the most important parts to improve your understanding of the automated fx trading software. Frequently you will see similarities and patterns in the trading, which will provide a deeper knowledge of strengths and weaknesses of the systems. This is also a key aspect for manual trading by the way.

8. Stick to the rules 1-7. Believe me, this is the hardest part of all. Several traders have lost all their money since they neglected to adhere to these simple fundamental rules.

This is all that is needed in terms of the fundamentals to begin. If you only follow these simple rules you are well ahead of so many others who struggle in the currency forex online trading market. Get your homework done, stick to the basics and you are on your way to the top 5% who are making serious money with fx online trading.

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