When I first started out as an investor, I was innocent enough to believe every money making scheme touted by a self-proclaimed financial guru. After a long period of trial and error with these schemes, I lost a bundle and found myself heavily in debt. I was able to find my way out of this difficult situation because I found a good mentor who was willing to part with his knowledge without demanding a financial compensation. Some of you may not be lucky to find someone ready and willing to teach you the right way to trade currency. You may succumb to false promises made by dozens of unscrupulous vendors on the net. The products that newcomers to the Forex market are most likely to be persuaded to buy are Forex signals.
Wrong! In the current economic situation, retirement may be closer than you think, and by that I mean forced early retirement. As for the nest egg you’ve been working so hard to build up. Let’s not get into the looting of the 401Ks, housing market crisis, credit crunch, stock market collapse, investment fund scandals, trillion dollar bank bailouts with your future tax dollars rewarding ivory league white collar (I’ll let you fill in the blank). To sum it up, the general economic meltdown. And lets not get into finger pointing over who authorized corporate subsidies to export your livelyhood to China.
In its simplest terms, you can buy a pair or sell a pair, depending upon whether you feel the pair will increase or decrease in value. In turn, the change in value of a pair can occur to a change in value of either currency in relation to the other. A review of available tutorials to make certain you understand the concept is critical in making good trading decision.
You need to be selective with the breakouts you choose – but the advantage of a long term breakout system is it only takes 30 minutes or less to execute a day and it can pile up huge profits in reward for your effort.
Don’t fall for the lazy way of trading. By lazy, I mean plastering a bunch of indicators on your charts, and expecting them to tell you when to buy and sell or letting a Devisenhandel einfach erklärt robot do all the trading for you.
Next is money management. This is sadly a topic that hasn’t been covered enough in any forex literature. Many traders are given a knife and told to charge, but they forgot to equip some good armor and a shield. When the market turns on them, that where many traders find that they have over leveraged themselves or taken positions too large to handle. This leads to the untimely death of your account.
How to choose a good Money manager? The thing you should be certainly aware of is his trading history; it means profits and the equity curve shape. Everybody is interested in earning a lot of money as safely as possible; therefore, forex money managers should use a sophisticated system of Money and Risk Management and cooperate with several traders to ensure good diversification of the account for each client.