Forex Trading Rates and Foreign Exchange Rates

Forex is easy enough to be profitable. There is huge profit potential in buying and selling currencies with a small amount of capital. For beginner traders there are many Forex tips online, but the best option is to let a broker trade for you. Why is currency trading better than stock, futures trading or real estate? The benefits of currency trading are its speed, liquidity, commission-free trades, safety, short-term trading and big profits to be made. Let us take a further look at the benefit listed above of Currency Trading.

Forex is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers. More about currency trading basics.

Here I am going to give you 10 simple tips which are needed to enjoy long term trading success and if you understand them and follow them, you can join the elite 5% of traders who make big gains trading Forex. I have put the number of tips in no particular order of importance - you need to follow them. Work smart not hard. I always read it takes years to learn to trade and you continually need to learn - this is rubbish. Forex trading is simple to learn because simple systems work best and you can learn all the basics of success in a few weeks. You don't get paid for working harder in Forex trading, you get paid for being right so no need to do extra work for no reason.

Understand volatility and draw-down. I see numerous traders who think they can day trade and scalp with 10 to 20 pip stops but they soon lose their money. This because they have no understanding of volatility and it impact and if you want to win, you need to understand all about it. Use low leverage. Brokers will give you 200:1 leverage but use this amount and you will lose. For a novice trader 10:1 is the maximum you should use and don't worry you can make triple digit gains on it and still have tight risk control.

It behooves you to go out and look at what is on offer from Forex trading websites and learn more about the global currency markets after you have read this article. Some sites are listed in the resource box at the end to start you off. Trading Forex online then presents challenges. The rest of this article will address those challenges. In order to trade effectively, a Forex trading guide is needed for the initiate in to the Forex markets to be able to learn online Currency Trading, understand trading risk management and how to manage money, discover technical and fundamental analysis, how these types of analysis of the market differ and how to apply them in creating a Forex trading machine. More about trading in Forex market,  online Forex trading and  software for Forex trading.

Discipline discipline discipline. In Forex trading, the best traders in the world make money around 50% of the time but the makes huge gains by having the discipline to keep losses small and run profits. Most novice traders think they are going to win the majority of the time so they run losses and this leads to a wipe out. They refuse to admit their wrong bit if you want to win at Forex trading, forget about being right all the time and focus, cutting losses and running profits. I hope you enjoyed the above tips and if you understand them, you will see why you can big gains trading Forex.