“Have you ever been trading the FOREX early in the morning, let’s say around 2am EST and out of nowhere the market either spikes or tanks? Then all of sudden you get margins called and the market retraces back to its previous spot? All you were trying to do was capture a few pips and you ended up blowing up your account.”
How to trade with your head and not your heart (the introduction to the FMT):
“When trading currency, you need to take yourself away from the platform
and look at your trades in actual bills not just numerical values on a computer
screen. For example, let’s say you short the USD/JPY for a 50 mini-lot
right before a data release and it tanks. The USD/JPY goes down about 50 some
odd pips and now you’re up $2500 in about thirty seconds.” click
here for more (PDF)
How to locate a trustworthy broker:
“There are plenty of reputable and legitimate brokerage firms out there. The trick is finding the correct one for you. When choosing a broker you must find one that suits your needs and trading style. If you trade the news, you want to find a broker that has fixed spreads. It’s difficult to trade a news announcement when the spread widens. If you’re an analytical trader you need to find a broker that offers a great charting package.”
A step by step successful trading strategy:
“I experimented with many different FOREX strategies. I practiced strategies that were highly dependent on analytical data and indicators. I tried strategies that required indicators, charting, trend analysis, software… etc. But it was one day that I was just messing around when I discovered a simple, but effective method to capture pips at a minimal but consistent rate.”
