Choosing your Trading Style

Before you get involved in actively trading the forex market, take a step back and think about how you want to aproach the market. There is more to currency trading than meets the eye, and we think the trading style you choose is one of the most important determinants of overall trading success.

Finding the Right Trading Style for You

The forex market’s trading characteristics have something to offer every trading style (long-term, medium-term, or shortterm) and approach (technical, fundamental, or a blend). So in terms of deciding what style or approach is best suited to currencies, the starting point is not the forex market itself, but your own individual circumstances and way of thinking.

Give some serious thought to what resources you have available to support your trading. As with any business there are two things that are never enough: money and time.

If you are a full time trader you will have enough time to analyze the market. But because currencies trade around the clock you should decide which session will you trade. Just because the market is always open that doesn´t mean is a good time to trade.

If you have a full time job your boss will not appreciate you take time to analyze the market and charts. You will need to do that in your free time. Be realistic you should also consider family time and circumstances.

When it comes to money, we can’t stress enough that trading capital has to be risk capital and that you should never risk any money that you can’t afford to lose. The standard definition
of risk capital is money that, if lost, will not materially affect your standard of living.

When you determine how much risk capital you have available for trading, you’ll have a better idea of what size account you can trade and what position size you can handle. Most online trading platforms typically offer generous leverage ratios that allow you to control a larger position with less required margin. But just because they offer high leverage doesn’t mean you have to fully utilize it.

The key here is to use all the help you need to manage money and time. When you don´t have enough time is a good idea to use the help of experts that will analyze the market and charts for you. Antoher great idea is to automated your account with Forexmegatrion or Fx-megaforex. Just remember the key in here is to increase your Forex account without overworking.