It should be noted that there are no central niche for the Forex market; trading is instead considered to be conducted ‘over the counter’; it is not like stocks and then there is often a central marketplace with all of orders processed much like the NYSE. The forex trading markets (FOREX) have evolved from the humblest of beginnings towards the world’s largest market by dollar volume. With several unique access points, speculators and hedgers can both find what they are looking for. Whether they want to hedge their everyday currency risk, or pursue a much more complex strategy, the FOREX markets provide the liquidity and instruments for trading in currencies.
Forex trading because it refers to retail traders (like you and I) is the speculation around the price of one currency against another. For example, if you think the euro is going to rise contrary to the U.S. dollar, you should buy the EURUSD currency pair low and then (hopefully) sell it with a higher price to produce a profit. Of course, if you buy the euro contrary to the dollar (EURUSD), and the U.S. dollar strengthens, you will then be in a very losing position. So, it is critical to be familiar with the risk associated with trading Forex, rather than merely the reward.
Here’s a quick report on skills you will have to reach your goals in the Forex market:
Ability – to look at a loss of profits without becoming emotional
Confidence – to believe in yourself and your trading strategy, and have no fear
Dedication – to becoming the very best Forex trader you will be
Discipline – to keep calm and unemotional inside a realm of constant temptation (industry)
Flexibility – to trade changing market conditions successfully
Focus – to stay focused on your trading plan also to not stray off course
Logic – to consider the market from an objective and self-explanatory perspective
Organization – to forge and reinforce positive trading habits
Realism – not to think you are going to get rich quick and comprehend the reality of the marketplace and trading
Savvy – to take benefit of your trading edge if it arises and know about what’s happening within the market at all times
Self-control – to not over-trade and over-leverage your trading account