Forex & Currency Trading

Forex & currency trading is a skill. And just like any other skills you acquire skills demand learning. In this post I will discuss how do you learn to trade currencies correctly. In short the correct way is by controlled trial and error.

There is a lot of good literature out on the web discussing various forex currency trading methods. However, each and every one of those methods is specific to its own approach: meaning to say, it's built around a certain logic. Now, logic is the fundamental cornerstone of forex trading, but, logic is only useful when it relays on things you can and cannot perform.

In the foreign exchange market the only things that matter are: what a trader can and cannot do! Or in other words which logic he can or cannot follow.

The above translates into the following: If a trader is timid and rational by nature, he or she will most likely feel better conforming to a long term and gradual investment in forex & currency trading. However, if a person is slightly more impatient he or she would most likely feel better conforming to a short term investment (such as scalping) where rewards come more frequently.

The point of the matter is: pick the forex trading method that is right for your own personality!

Then, follow the logic of your selected method and do not stray from it!

See if this method works out for you. If it doesn't, change it to another currency trading method, and test that method out. However, always stay within the confounds of your personality and the logic that is best suited for it (If you try to act not as who you are, you will eventually fall).

Forex & Currency Trading Resources
As mentioned above, there are many good sources to learn about forex & currency trading online. Is this section of my post I will try and give you some basic and useful resources to help you along your way.

The basics
It is not a shame, on the contrary, to start at the beginning. Here's a great resource of learning what foreign exchange is all about. It will give you a basic but insightful look into the foreign exchange market and currency trading in general.

From there you can proceed to this great resource which gives and example of a trend trading strategy from 2010.

A few tips:
Here are a few forex tips which will help you in deciding how to pick out your currency trading strategy:

If you are an immediate gratification type of individual you might consider testing out these forex trading strategies:

•  Scalping
• Day Trading

However, if you are a more conservative forex trader you might like to take a look at these strategies:

• Trend Trading
• Carry trade
• Swing trading

Remember, it is paramount that you feel right with the type of trading strategy you choose. That is the only option which will allow you to pave the way to becoming a successful forex trader. Once you find the way you are built to trade you can adjust yourself to any strategy which works best for you.

That is the only way to make your forex & currency trading experience a successful one.