By James Woolley
Currency trading is now becoming fairly mainstream thanks to modern technology. These days anyone who has an internet connection and at least a small amount of capital can start trading the markets. However it’s not as easy as it sounds, which is why you need to think about how you are going to make money.
Your main focus should initially be on finding out what kind of trading style suits you the best. Once you’ve established that, you can then start developing your own trading method which incorporates this trading style.
To expand on this point a little further, it’s important to note that every trader is different. Each person has their own way of trading, and every individual will also have their own unique mindsets, philosophies and attributes, which will all affect their trading in some way.
For instance a person with a very analytical mind will probably approach forex trading with the goal of generating profits from longer term positions. They may try and come up with a strategy that enables them to successfully trade the daily, weekly or monthly charts based either on technical analysis or fundamental analysis, because both are valid on these long term charts.
Conversely a trader with a low attention span and an eagerness to make money on a regular basis may turn to short-term trading. In which case they will probably be focused on trading the 1 minute, 5 minute or 15 minute charts. This style of trading is a lot harder to master, but it is still possible to generate profits trading this way.
I myself like to trade the 4 hour and daily charts and do pretty well on the whole. I have a system that generates a handful of trades each week, and this suits me fine because I can take my time finding decent set-ups, and because I work from home I have plenty of time to watch them slowly unwind until my profit targets are reached.
Anyway the point I want to make is that if you have ambitions to become a profitable forex trader, you should think about developing a trading strategy or two which suits your own trading style. Sometimes you only find out about yourself once you start trading, but even if this is the case at least then you have the knowledge and the experience to develop more suitable strategies in the future. Once you know which time frames you are most suited to, it’s then a lot easier to come up with a winning strategy.
About the Author
Click here for more information about a forex trading course that will teach you all the basics of forex trading, and to read a full Forex Nitty Gritty review.
