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Most traders, usually newbies, focus on things such as trading strategy, charts and indicators. Important elements, no doubt. But lots of forex “victims” miss a crucial point that literally kills their accounts in the first 3 months of trading - they don’t understand LEVERAGE. Leverage is the ratio between the actual size of the position and the amount of money the trader needs to deposit (or set aside) in order to control the position (margin). For example, if the position size is $100,000 and the margin is $1,000, the leverage is 1:100. It means that in order to “play” with $100,000 the trader needs to set aside only $1,000 for margin. If the leverage is 1:200, the trader will be able to control $100,000 with only $500 and so on. Some forex brokers offer leverage up to 1:400. But leverage can kill you. And that will be a quick and painful death.

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I want to help you develop your own currency trading strategy because it is essential to have your own technique and routine to be good in this business. This information is to help you develop good characteristics to help include into your strategies.

You need to be very critical of yourself and figure out if you’re one of those emotional people. I consider myself a very logical person, but I’m also emotional in some ways. You could be the type that gets “gut feelings” or you could be the type that “needs” to make a trade or you could be the type that gets frustrated. All these are emotional responses and you probably will end up experiencing at least one of these multiple times.

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I want to share with you daily currency trading habits that will help you develop a routine that will make you money over time. Each day, as a trader, shouldn’t be a new adventure. Routine is the key to developing long term success because it allows you mind to rest and allows your body to apply.

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I’m sure you’ve already heard of Forex trading.

Forex market is known to be the largest financial market in the world. It is one of the hottest topics around these days, and trading the Foreign Exchange market has been growing rapidly over the past several years with a latest average daily trade in the global forex markets of over US$ 3 trillion.

But what exactly is it and how can the average Joe make money in Forex?

Trading in forex is all about timing and money.

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Forex trading and currency exchange find they first roots in the Bretton Woods Conference of 1944 that aimed at putting into place a system of exchange rate management that, although did not become fully operative until 1959, as a matter of fact remained into place until 1971. The main feature of the Bretton Woods system was the obligation for each Country participating at the agreement to adopt a monetary policy that maintained the exchange rate of its currency within a fixed range; in addition, the IMF should have the power to bridge imbalances (temporarily). This is exactly what forex is not about: forex trading has at its base a floating currency exchange regime, that is, a model that uses a floating exchange rate at the base of its exchange rate system. How would it be possible to trade foreign currency (forex) imbalances if the rates were fixed or “pegged” against each other?

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There are many forex day traders whose aim is to make regular profits everyday and over time these small profits mount up. There are plenty of forex trading systems on the net to choose from - but how do you choose the best for this form of trading?

The fact is you can’t choose the best one because NONE of them work.

Fact:

It is impossible to earn money every day or regularly when trading and it’s impossible with day trading - because day trading simply doesn’t work at all.

The Reality

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