The foreign exchange market – also frequently called Forex – is an open market that trades between world currencies. For example, a person who is investing in America who has bought 100 dollars of yen may feel like the yen is now weak. If this person is correct and decides to trade yens for dollars, he or she will generate a substantial profit.

Removing emotions from your trading decisions is vital to your success as a Forex trader. Doing this will prevent poor decision making based on emotional impulses, which decreases your chance of losing money. You cannot make your feelings go away, but your forex trading will be more successful the more you ignore them and concentrate on being rational.

Thin Market

Don’t trade in a thin market if you’re a new trader. The definition for thin market is one that is lacking in public interest.

Do not chose …