The Key To Success in Online Forex Trading

The Key To Success in Online Forex Trading
In our highly connected world today, trading the foreign
exchange (forex) market over the internet is one of the
coolest ways in the world that I know of to make a living.

Anybody who tells you that forex trading is a quick and
easy path to riches either A: is a total moron and is
trying to make a quick buck selling erroneous information,
or B: has a vested interest in seeing you fail as a trader.

However, anybody who tells you that it is impossible to
make alot of money through forex trading is also sorely
mistaken. Yes, it is possible to make a large, almost
obsenely large, amount of money through trading the forex
market using only a laptop, but it is not easy to get to a
point where you can consistently place profitable trades.

I could go on and on about how sucessful forex trading
takes time, education, emotional control, and experience,
but there is one single thing that I have found is much
more important than all of these things if you want to have
a successful forex career. And that one thing is...

.......... (Wait for it) ..........

Your MINDSET, and how you perceive trading the forex market.

This is the hardest part for most people to truly
understand and use with their own trading, but if you can
fully harness and implement the following information into
your forex trading, you will experience unprecedented
success and you will become one of those people who can
travel anywhere in the world and answer to nobody.

(Just as a sidenote, if you do get to this point, I
recommend checking out something called an 'economic
citizenship program,' where you can become a citizen of a
place like Panama by investing in certain organizations.
You can get a new passport so that you can go anywhere in
the world, anytime you want, and no longer answer to a
draconian government that seeks hegemonic control over its
citizens.)

The problem is... most people who have had difficulty with
their forex trading view the market and their trading
platform only as a way to make money, and they become
emotionally attached to the money in their trading account
and subsequently, each trade that they make with this money.

The key to success in online forex trading is to view your
trading platform as a GAME that you play, where the
objective is to collect or capture pips. The more pips you
gather, the better you are at this forex game.

Now this is easy to say, but it can be different when you
are really at your computer making those trades. The one
thing I must empahsize is that when you adopt this new
mentality and you view forex as only a 'pip collecting
game,' the biggest change that you make is that you are now
completely emotionally detached from your trading. For
this reason, you can view your winning or losing trades
from an objective, outside perspective, and it will be
easier for you to devise a winning strategy since you are
no longer blinded by emotion.

---Exercises For Developing The Proper Forex Mindset---

There are two things that I recommend doing if you want to
slowly change your perception to where forex trading is
nothing more than a game where you win by getting pips (and
few games in the world can be as profitable as this one).

First, I will introduce to you something that I call 'risk
capital.' In short, risk capital is money that you would
like to grow, but if you lost it then it would not have a
big impact on your financial situation. You want to make
sure that the only money that you ever put into a live
trading account is risk capital, which is just extra
disposable income that you do not need to pay the bills.

Second, you want to make extensive use of trading demo
accounts. If you already have a broker or a trading
platform that you prefer and are comfortable with, the best
thing to do is to open at least one demo account with this
same broker.

As you should see, trading your demo account will look and
feel EXACTLY the same way as your live account will. The
only difference it is not big deal if you lose money in
your demo account, since it isn't real. What you want to
do is get to the same point after trading your demo account
that you feel the same way about your live trading account,
where it is no big deal if you lose money.

Spend enough time trading your demo account on the same
platform that you trade your live account on, and your
subconscious mind and a part of your brain called the
visual cortex will begin to associate seeing this forex
trading platform with 'Oh, a demo account. No big deal, its
just fake money after all.'

This is where you want to get, and it will become nothing
more than a game for you. It just so happens, though, that
this game will fund your next month long trip to Monaco,
and will elevate you to the status of a High-Net Worth
Individual (net worth exceeding $30 million USD) and
beyond. I suppose it is ironic that the less you care
about how much money you are making, the more you are
actually positioned to make.

Godspeed.

----------------------------------------------------
My name is Marcus Masters, and I hope you can use this and
other information to make a ridiculous amount of money in
forex. Read more about successful forex trading at
http://www.Forex-Prosperity.com

Basics of Forex trading

Basics of Forex trading
This article gives an introduction about the basics of
trading Forex online, a brief explanation of the markets
and the major benefits of trading forex online. Foreign
exchange or forex are all terms used to describe the
trading of the world's many currencies. The forex market is
the largest market in the world, with trades amounting to
more than 1.5 trillion dollars every day. The foreign
exchange market has no central clearing house or exchange
and is considered an over-the-counter (OTC) market. Forex
traders are generating incredible wealth day after day from
the comfort of their home. Foreign exchange is normally
traded on margin. A relatively small deposit can control
much larger positions in the market.

Forex trading takes place directly between the two
counterparts necessary to make a transaction, whether over
the telephone or on electronic brokerage networks all over
the world. This is a trade that includes simultaneous
buying of one currency and selling of another one. There
are two reasons to buy and sell currencies. About 5% of
daily turnover is from companies, and governments that buy
or sell products and services in a foreign country must
convert profits made in foreign currencies into their
domestic currency. The other 95% is trading for profit, or
speculation. The currency combination used in the trade is
called a cross (for example, the Euro/US Dollar, or the GB
Pound/Japanese Yen.).

The market is called the spot market because trades are
settled immediately, or "on the spot". One of the major
benefits of trading forex is the opportunity to trade 24
hours a day from Sunday evening (20:00 GMT) to Friday
evening (22:00 GMT). Unlike stock trading, currency trading
on the Forex market is not cut short at the "close" of each
day's trading. The benefit of Forex being a 24 hour a day
market is that there are little or no gaps in the market,
meaning there is no chance that prices will close one day
and reopen the next day. The fact that forex is often
traded without commissions makes it very attractive as an
investment opportunity for investors who want to deal on a
frequent basis.

Since the market is always moving, there are always trading
opportunities, whether a currency is strengthening or
weakening in relation to another currency. When you trade
currencies, they literally work against each other.
Different currencies pay different interest rates. The
interest rate differential doesn't usually affect trade
considerations unless you plan on holding a position with a
large differential for a long period of time. This is one
of the main driving forces behind foreign exchange trends.
You can have both a positive and a negative interest rate
differential, so it may work for or against you when you
make a trade. It is inherently attractive to be a buyer of
a currency that pays a high interest rate while being short
a currency that has a low interest rate. Fortunately, there
are no daily limits on foreign exchange trading and no
restrictions on trading hours other than the weekend. This
means that there will nearly always be an opportunity to
react to moves in the main currency markets and a low risk
of getting caught without the opportunity of getting out.

A forex trading method with a high winning percentage is
rewarding psychologically, keeps your morale high and is
enjoyable to trade. A string of profits will build your
confidence. Losses have to be kept small and wins should be
larger than losses. You can make big money working only a
few hours a day or week on your computer. You can trade
from anywhere in the world where there is an internet
connection.

----------------------------------------------------
Andrew Daigle is the owner, creator and author of many
successful websites including ForexBoost at
http://www.ForexBoost.com and
http://forexboost1.blogspot.com , Free Forex Training
Resource for the Novice and Advanced Forex trader.