Forex—how Can I Put The Odds In My Favor?

How does an investor set themselves up for success when thinking about a market as large and volatile as the Forex?
Also known as the Foreign Exchange market, the Forex allows
investors to speculate on the movement of currency exchange
rates between different countries. It is impossible to
accurately predict the movements of the market all the time but
many of the top investors maintain that there are ways to
increase your odds of anticipating market fluctuations and
capitalizing from them. Here are just a few ways to enhance
your chances for success with Forex technical trading:

1. Only trade at end of day
2. Avoid over-trading
3. Do not read FX reports
4. Backtest, backtest, backtest!

All investors are tempted to believe that they must constantly
be "in the know" or risk getting caught out of position. Thus,
these dedicated investors may sit in front of a computer screen
all day and monitor their investments for fluctuations. For
those living in North America, the end of the business day is 5
p.m. EST or 2 p.m. on the West coast and this really is the best
time to consider trading—and note the word consider!

At the end of the business day, there are two factors in your
favor: First, traffic tends to be down so there are fewer
chances for price fluctuations. Second, if you wait until the
end of the business day, then you can look at information
flowing in from the East to help guide your decisions.

Over-trading is basically like going back and back to a casino
thinking your odds are actually improving—because they are not!
Over-trading increases your chances of jumping into a position
too late and getting burned or out of position too early and
missing out on profits. Put stops in place that can safeguard
you from losing more than you can afford—and then let them
alone and relax!

Reading what someone else says about the outlook on the market
is going to do one thing: cause you to question your strategy.
None of us are going to get it right every time and no one can
predict the future so reading those reports can only harm, not
help, once you have purchased a position. If you are going to
read those reports, do so before buying in—after that, just
leave them be.

Investors buy and sell positions based upon their theory of the
market and where a particular currency pair is headed. While
you should not change your stops while already having a
position, you can certainly continue to test your theory by
backtesting. People capitalize in the Forex market by
identifying trends and buying a position on that trend and
riding it for as long as possible. Continuous backtesting
helps investors hone their theory and better identify trends
quickly and take advantage of them for profit.

The Forex market may be the largest and most volatile—but it
also holds the greatest potential for profit. The few tips
listed above will help ensure your success in Forex trading and
they will greatly enhance your odds of success. Be sure to
review them carefully!

About The Author:
Article by Kent Douglas, author of "The Simple Forex Solution: The Easiest Currency Trading System Anywhere." To learn how you too can succeed in Forex and Currency Trading, please visit
http://www.SimpleForexSolution.com

John V
Introduction to Forex Trading.
*Why Forex Market is Unique
*Advantages of Forex over Futures or Stocks.
*How to choose the right Forex broker.
*Brokers whom you should avoid.
*How to predict a currency's long-term trends.
*How analysts judge price-trends.
*How Forex spreads operate
*34 powerful tips you MUST read before entering the Forex Market

Just Click Here for more information.

John C. Vincent/CEO/The Opt-In Magic System
http://LawOfAttractionSite.blogspot.com