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Currency trading was very difficult for individual investors prior to the internet. Most currency traders were large multinational corporations, hedge funds or high-net-worth individuals because forex trading required a lot of capital. With help from the internet, a retail market aimed at individual traders has emerged, providing easy access to the foreign exchange markets, either through the banks themselves or brokers making a secondary market. Most online brokers or dealers offer very high leverage to individual traders who can control a large trade with a small account balance.
You need to become an organized trader. If there is something that is the “glue” that holds all of the points I’ve discussed in this part together, it is being an organized trader. By organized, I mean having a trading plan and a trading journal and actually using both of them consistently. You need to think of Forex trading like a business instead of like a trip to the casino. Be calm and calculating in all your interactions with the market and you should have no problem keeping the emotional trading demons at bay.

The first method is speculating on the direction a currency pair is going to trade, and buying or selling this pair. Traders can do this scalping, day trading or swing trading. A traders goal is always to predict the market direction correctly. There will always be losing trades as I explain in forex help tip 6, but if we enter the right trades we give ourselves the best chance of succeeding in forex.


Confirmation bias is the one factor that is most common amongst professional traders. Looking for information that will support a decision you have made, even if it wasn't the best decision, is simply a way of justifying your actions and strategies. The problem is that by doing this, you're not actually improving your methods, and you're just going to keep making the same trading mistakes. Unfortunately, this can create an infinite loop in Forex trading psychology that can be difficult to break.
You need to become an organized trader. If there is something that is the “glue” that holds all of the points I’ve discussed in this part together, it is being an organized trader. By organized, I mean having a trading plan and a trading journal and actually using both of them consistently. You need to think of Forex trading like a business instead of like a trip to the casino. Be calm and calculating in all your interactions with the market and you should have no problem keeping the emotional trading demons at bay.
Challenge: Banks, brokers, and dealers in the forex markets allow a high amount of leverage, which means that traders can control large positions with relatively little money of their own. Leverage in the range of 100:1 is a high ratio but not uncommon in forex. A trader must understand the use of leverage and the risks that leverage introduces in an account. Extreme amounts of leverage have led to many dealers becoming insolvent unexpectedly.
Paul Tudor Jones II was born in Memphis, Tennessee. In 1976 he earned a bachelor’s degree in economics from the University of Virginia. He was accepted to Harvard Business School in the 1980’s but he did not enroll. PTJ was a commodities broker for E. F. Hutton & Co between 1976-1980. PTJ was mentored by cotton trader Eli Tullis. Tullis was a representative ...
A jump in the pound just before the Bank of England's rates decision was announced will be investigated by the markets' watchdog. The Financial Conduct Authority said it is "looking into" claims that some currency buyers might have known the decision before it was made public at midday on Thursday. Before the Bank announced its intention to hold rates at ...
The 2nd method is by performing a carry trade, where you can profit by buying a currency with a higher interest rate, and selling a currency with a lower interest rate. An example of this would be the USD/CHF (Swiss franc). If you buy USD/CHF, you are buying the USD, and their interest rates are higher than Swiss interest rates, so if you hold the position overnight, every day you hold the trade you will make money, and the money will be deposited in your brokerage account.

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