Monday, November 2, 2009

Being Prepared

FOREX Planning will Keep You from Losing Money

With a little FOREX planning you are prepared for every situation you may face in your trading. This FOREX planning helps to ensure you’ll be consistent in your trading no matter what happens. To make sure you cover everything, your Forex planning should consider:

* Rules for entering, adding to, and getting out of your positions.

* An action plan in case your trading computer, internet connection, broker, power, telephone etc. break down, or fails to be of any real use.

* What you will do if you are unable to trade.

* What you will do if you lose a certain percentage of your account

* What you will do if all the markets are closed and you can’t get out of your current positions.

Unless you have answers for all these scenarios, you stand a good chance of losing money and should invest in some FOREX planning. With the answers, and discipline you’ll be able to tell if you trading system needs to be tweaked, or if it’s just the markets

Finding t FOREX Broker

It’s not always easy to know what to look for in a broker in any market, much less a market as complex as the FOREX. But, if you want to trade in FOREX you need a FOREX broker. While it might be tempting to simply ask the FOREX brokers what they can do for you, you can’t always depend on them to give you a straight answer. Here are a few things to consider when choosing your FOREX broker.

You will want a broker that has low spreads. Since FOREX brokers don't charge a commission, this difference is how they make money. Low spreads will save you money.

Along with this, you should be looking for a broker attached to a reputable institution.

Unlike equity brokers, FOREX brokers are usually attached to large banks or lending institutions. The broker should also be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC).

Once you’ve narrowed your choices down to brokers that won’t cost you too much, and that are reputable, consider the trading tools that they are offering you. FOREX brokers have many different trading platforms for their clients, just like brokers in other markets. These often show real-time charts, technical analysis tools, real-time news and data, and may even offer support for the various trading systems.

Before you commit to any one broker, request free trials of their tools. Brokers generally provide technical as well as fundamental commentaries, economic calendars, and other research to help you make good trades. Shop around until you find a broker who will give you what you need to succeed.

About Forex Trading Signals

It is in the year 1997 that forex was first introduced and started working. It is the biggest currency market of today, involving millions of traders and nearly two trillion dollars. It is risky and fast, requiring from you to be smart and able to take fast decisions. Every day new and new people are deciding to start their own forex business. Before you begin trading, there are a lot of things you have got to know. You can not just venture into forex trading without knowing at least the bas

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