Foreign Exchange Traders – 5 Tips That Will Keep You Ahead Of The Pack

specialise in making money trading in the forex markets but the job can be very arduous and demanding from a social and physical perspective.

To be successful you need to spend many hours sitting in front of a computer screen carrying out technical and economic analysis, refining your strategy and being constantly on the look out for new opportunities to improve your financial income.

Unfortunately, many traders find the stress too much for them and they start losing money because they can no longer concentrate fully on all the tasks they need to do to keep on top of the job.

If you feel you are slipping towards this situation where you feel you are losing your edge here are 5 tips to consider that will keep you ahead of the pack.

Tip #1. Take regular breaks

Sitting at a computer screen without regular breaks is not a good idea for either our bodies or our brains. Try to take 10 minutes off every hour, so that you work 50 minutes and then take a break. Use a kitchen timer to remind you when it is time for your break. During this time, walk away from the computer. You can fetch a fresh glass of water if you have nothing else to do.

If you are a forex scalper you will not want to leave the screen while you have an open trade, so in that case, you may prefer to take your short breaks after each trade, whether it is successful or unsuccessful. This gives you a chance to recharge your batteries before you go back to your charts with a fresh mind.

Tip #2. Mix with other people online

Most foreign exchange traders work in a very solitary environment. Families usually do not understand the process and can resent the time spent at the computer. It’s great to have someone who knows what you are talking about and can share in your triumphs or commiserate with your losses.

For most of us, this means joining one or two online forums. Don’t waste your whole day there but check out your favorite forum during a slow period or at the end of the day. You can pick up useful tips, make friends and maybe help others out too.

Tip #3. Keep a daily check on the economic calendar

Keep in touch with forex news and upcoming announcements by checking the economic calendar at the beginning of each day. Make sure you know what news reports are expected so that you can take account of them in the timing of your trades. This gives you a much better feeling of control than if you are constantly in danger of losing a trade because of some event that you did not foresee.

Tip #4. Exercise regularly

Starting your day with a workout or a run will get the blood circulating and help to keep the mind sharp. Taking a walk is another way to break up your day and give you fresh air.

5. Have a happy social life

Anyone who has been trading for any length of time will tell you that if you want to avoid burnout, you must have a life away from the screen. This means spending time with other people either at home or outside it, and leaving the house for whole days or even weeks from time to time!

Since there is no trading at weekends it should be easy to have a family and social life at that time, but it is easy to spend the weekend in forums or reading news and trading tips. Remember that you are in this for the long term and give yourself some time out.

Finally, watch your diet. If you find you are living on pizza eaten at your desk, it is time to make some changes. It is scarily easy for foreign exchange traders to drift into bad food habits that will soon take away your trading edge.

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Currency Fx Market Trading – Where You Can Harvest Rich Investment Potential

Currency fx market trading is a very vibrant opportunity where you can profit by investing in foreign exchange where pairs of currencies from different countries in the world are exchanged against each other.

Opportunities are abundant as there are so many currencies to be exchanged trading is always available somewhere around the world 24-hours each day.

This type of investment is very popular with fx market traders and provides many unique opportunities for online investors and in particular for those traders working from their own computer at home.

Three main advantages making so popular are flexibility, liquidity and transparency as discussed below:

Advantage #1 – Flexibility

The fact that the forex market operates all around the world means that it is a 24 hour market, five days per week. This has many advantages for the retail trader because it means that you can trade at a time convenient to you.

The busiest times and probably best time to trade is during business hours in the UK and USA but that already gives you a 13 hour day and you are not necessarily limited to these hours. Asian and Australian business hours cover the rest of the 24.

You are not limited to trading in your own currency, either. Of course, whenever you trade on the currency exchange market there will be two currencies involved.

When you trade stocks for example, you are exchanging stocks for money, but when you are trading forex you are exchanging one currency for another. So you are always dealing in what is called a currency pair.

Most traders begin with one of the major currency pairs which involve the US dollar, but you can trade cross pairs (two non-US currencies) if you wish. The other major currencies are the euro, British pound, Japanese yen, Swiss franc, and Canadian and Australian dollars.

Advantage #2 – Liquidity

There is just so much money in the forex market that you can always be practically sure of finding a trade. Daily transactions can amount to almost $4 trillion US dollars in value. This is partly because of the global nature of the market and partly because so many interests are involved.

The major players in the foreign exchange field are commercial and investment banks, corporations with investment funds, investment companies and brokers, non-bank currency change companies, and individuals who are known as retail traders.

Most of these bodies are hoping to make money on their transactions but even if currencies had fixed exchange rates so that there was no room for speculation, there would still be a lot of money changing hands.

This is because nations, banks and companies involved in international trade always need to do business with other nationalities and to do that, money must always be exchanged from one currency to another.

Besides that there are millions of individual travelers, both vacationers and business travelers, changing money for their personal use. So there is a very real market here.

Advantage #3 – Transparency

Finally, the forex market has the advantage of greater transparency than most other investment or trading markets. Unlike stocks, the value of currencies is affected by world and national events that are a matter of public knowledge.

Besides this, the markets are so huge that it is difficult to manipulate them. This makes insider dealing much less of a problem than it is on the stock exchange. You will not have that sneaking suspicion that other traders have some hidden advantage over you in your currency fx market trading business.

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