With the events of the day, more people are interested to invest their money to grow faster. The problem is that few people are willing to risk investment because of the risk, so some of them just leave the money in the bank routine. Not that there's something wrong with the bank, except that they have a low level and money is time to grow. If you want real money, you have to take risks. Get money for cash, the risk is always present, if you want money fast and high.

One of the largest sites where you can invest your savings is Forex. Forex trading has been around for decades, and is considered the largest financial forum in the world with approximately $ 3.1 billion in volume every day. Forex (Foreign Exchange) trading is open 24 hours and never sleep. Transactions conducted around the world via telephone and computer, money changes hands in their millions in a matter of seconds. Forex trading consists of thousands of individual banks and forex trading which oversees development around the world, developments that could affect the value of its currency. Forex trading refers to trading currencies from different countries. The idea is to determine the rise and fall of the value of certain currency and trade when he sees fit.

Forex trading for small operations, managed accounts are ideal, they care, because we engage in less risky. Here, you entrust your investment with other forex brokers have a reliable, honest and ethical. Forex broker uses extensive knowledge and long experience and the use of strategies to develop your money, for a price, of course.

With the advent of the Internet, Forex trading can be done at the click of a mouse. Money moving through space and children all the time. Computers have greatly helped in the growth of foreign exchange transactions can now be done anytime anywhere. Because someone at a certain time every day around the world, will never lose someone to trade.

There are two fundamental and important to analyze and evaluate the currency. There are technical analysis and fundamental analysis. There is a difference between the two. In fundamental analysis, analysis and Forex broker to consider the causes of market fluctuations. Causes may include the political status of countries, laws and regulations, financial policies, growth rates and other factors. Technical analysis of Forex trading involves graphs, charts and other methods for measuring past data to see the indication of the rise and fall of currencies. Get all the information they need and use it to calculate and predict the likelihood of a particular currency.

There is much to learn about Forex trading, even an experienced rider to learn something new every day. Forex trading involves substantial benefits at a glance if you catch the right time and transaction costs. But remember there is a risk, forex trading can be speculative, especially if you're a poor prognosis. Before investing your money in a company, try to learn about their history and their history in forex trading.

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Market knowledge and ability to understand further analysis in forex trading but without the courage to actively compete risking your own money in the process can never be a successful trader.

Large amount of money bet on the market is very sensitive to change is likely to cause a range of opposing emotions, fear, excitement and anxiety to name a few. Battling your emotions to complete a successful transaction is one of the biggest hurdles to overcome if you become the operator can reach an agreement and to obtain large amounts of money. If you can overcome or even to use emotions to make trades in Forex then a successful career can be exciting, but to do so will almost certainly cost you large sums of money and end the persistent desire to advance in the animated world of commercial exchange.

Early and close the trade at the right are the backbone of becoming a successful trader. If someone can not execute the agreement in a timely manner, psychological and financial damage can be overwhelming. Lost a major trend or sitting for a long time for a good price, can be a daunting experience, but many are in a career in forex trading.

Enter the time to do one thing correctly, but if you can not leave on time or keep them quiet during operation, the consequences are serious. Such as accepting a small loss before leaving the market can lead to terrible proportions a large margin of profit / loss. Just sit on the price of the currency is in free fall for too long can be financially crippling. Understanding the Forex market and have faith in your ability to assess trends will pay dividends if you hold your nerve, back at the wrong time could be disastrous mistake.

The fear generated by investing your own money is the main thing that must be addressed. Guilty of failure are so many stories of people who can not cope with their anxiety investing unwisely, pulling at the wrong time, the lack of overall improvement, all the results in a failure and is caused by fear. Acceptance of this fear and use it to its full potential will make you a stronger trader, able to trade freely and enjoy the excitement of change. Fight will get you nowhere, understanding and improvement are the best solution to this emotion-based.

Trading strategies will help you through the tough times and enjoy the good. Sometimes, just take a step back and accept the losses will be given the strength and knowledge to attack a currency with a new spirit, and make some serious profits. Accept that sometimes you lose, you should be able to take the punches and roll with the punches, there are no guarantees in the commercial market, to be able to move and start again is a very important skill to produce success.

Analysis and graphics can only go so far. First, you need to master these things, and can correctly interpret these figures to identify trends and make your move. But all that means nothing if you do not have the courage his conviction. If you are afraid to buy and do not know when to sell and then a successful career in market transactions is likely to run away. "The trend is your friend", but it has no meaning if the first one you can not see and others do not have the courage to save. Knowledge, and strategies to overcome the fear of maybe 3 to be the best way to open the door to become a successful trader. Without the 3 more often than not take off, to prepare, train and evaluate everything before taking the decision into the complex world of Forex trading.

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Despite the powerful U.S. dominates many markets most of Spot Forex is still traded through London in the UK. So for our next description we will use the time in London. Offering the best in foreign exchange transactions done on time. SPOT offers almost always due to settlement two business days later. This is known as the value date or delivery date. At that time, counterparties theoretically take delivery of the currency have been sold or purchased.

In Spot FX the most part the end of a business day is 21:59 (London time). The positions are open at this time is automatically extended until the next business day, which in turn ended in 21:59.

It is necessary to avoid the actual delivery of currencies. As Spot FX is predominantly speculative most traders do not want time to take delivery of the currency. Be informed to always clear the position of broker.

Many brokers are already automatically and in policies and procedures. Act to shoot the currency pair is called tom.next, which means tomorrow and the next day.

Only to talk about it, your agent will automatically rollover your position unless you tell them that you really want the delivery of the currency. Another thing to note is that most leveraged accounts can not actually deliver the currency as there is no shortage of capital to complete the transaction.

Remember that if you are trading on margin, you must apply for a loan from your broker for the amount under negotiation. If you have a property that the agent has advanced $ 100,000 despite not actually $ 100,000. Brokers usually charge the interest rate differential between two currencies if you rollover your position. This problem usually occurs only if you rolled over the position and if the positions are opened and closed on the same day.

To calculate the interest of the agent normally close your position at the end of the workday and again reopen a new position almost simultaneously. It opens a lot ($ 100,000) EUR / USD position Monday, May 15 at 11:00 in the exchange rate of 0.9950.

Levels fluctuate during the day and at 22:00, this figure is 0.9975. Broker closes your position and reopens a new position with a different value date. The new position is open from 0.9976 to 1 pip difference. Respect of a pip reflect differences in interest rates between U.S. dollar and the euro.

In our example, which are long and short Euro U.S. Dollar. As the U.S. dollar in the sample had a higher rate of the euro to pay a premium of 1 pip.

Now the good news. If you have reversed the position and were from dollars to euros in the short and long will the interest rate differential of 1 pip. If the first named currency has interest rates below those of a day in the second currency, then pay the interest differential if you bought that currency. If the first named currency has an interest rate higher than the second currency then you will get the interest rate differential.

To simplify the above. If you are long (bought) a particular currency and the currency has a higher interest rate that you get overnight. If you are short (sold) the currency with higher interest rates last night, you lose the difference.

I want to emphasize here that although we some depth to explain how it works, the agent calculates for you. The purpose of this paper is just to give you an idea of ​​how the forex market.

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Throw a baseball straight up into air. As the ball approaches the top of its projectile path it will decelerate to a speed of zero, and then reverse downward picking up speed as it approaches the ground.

Now imagine yourself drilling into a piece of wood. You suddenly hit a hard spot in the wood at which time bear down with all of your might to overcome the temporary resistance created by the knot in the wood.

When you penetrate the knot you surge forward and quickly poke through to the other side. These are two analogies to help explain the patterns of stocks as they transition between one move and the next move.

When a stock is completing a move, it experiences a period of deceleration, which is referred to by chartist as price consolidation.

Consolidation is one of the most important signals that a stock is about to begin a new move.

The move can be a continuation in the same direction, or it can be a reversal in the opposite direction.

The area of consolidation represents a battle zone where the bears are at war with the bulls.

The outcome of the battle often defines the direction of the next move.

As short-term traders, it is important to identify these areas of consolidation and enter a trade just as the new move is beginning.

During the consolidation period or 'battle zone', traders, both long and short are patiently waiting on the sidelines watching to learn the outcome of the battle.

As these winners emerge, there is often a scramble of traders jumping in with the winning team.

The candlestick patterns gives the trader excellent clues on when this move is about to take place, and helps the trader time his entry so that he can get in at the very beginning.

There are four different consolidation patterns experienced by stocks, they are:

1. Bearish Continuation
2. Bullish Continuation
3. Bearish Reversal
4. Bullish Reversal.

The Bearish Continuation Consolidation Pattern

Several strong bearish candlesticks precede the Bearish Continuation pattern where the bears are clearly in control (Figure 12).

Figure 12

The bears and bulls then begin to battle by pushing the stock up and down in price in a tightly formed consolidation zone.

The narrowing size of the candlesticks toward a line of support indicates that the bears are winning the battle. The bulls finally weaken and allow the bears to penetrate the line of support, at which time the bears quickly conquer new territory by taking the stock to lower prices.

By recognizing the consolidation pattern the trader is able to short the stock just after the stock breaks the line of support, and profit from the sharp move downward.

The cause of the sharp sell off is fueled by the emotions of the traders watching for the outcome of the battle. Traders who bought the stock in the area of consolidation in hope of a rally off of support, are now scrambling to exit their losing positions.

Traders who are short from the period before the area of consolidation are realizing that their original entries were correct and are adding to their winning positions.

The Bullish Reversal Consolidation Pattern

Several strong bearish candlesticks precede the Bullish Reversal Continuation pattern where the bears are clearly in control (Figure 13).

Figure 13

The bears and bulls then begin to battle by pushing the stock up and down in price in a tightly formed consolidation zone.

The narrowing size of the candlesticks toward a line against upward resistance indicating that the bulls are winning territory from the bears.

The bears finally weaken and allow the bulls to penetrate the line of resistance, at which time the bulls quickly conquer new territory by taking the stock to higher prices.

By recognizing the consolidation pattern the trader is able to buy the stock just after the stock breaks the line of resistance, and profit from the sharp move upward.

The cause of the rally is fueled by the emotions of the traders watching for the outcome of the battle.

Additional traders who jump in to buy the stock now that its strength has been confirmed fuel the sharp upward move.

Traders who are currently short the stock in the area of consolidation waiting in hope of a breakdown, are now scrambling to cover their short positions.

This buying action also fuels the fire pushing the stock to higher prices.

The Bearish Reversal Consolidation Pattern

Several strong bullish candlesticks precede the Bearish Reversal Continuation pattern where the bulls are clearly in control (Figure 14).

Figure 14

The bears and bulls then begin to battle by pushing the stock up and down in price in a tightly formed consolidation zone.

The narrowing size of the candlesticks toward a line of support indicates that the bears are winning the battle.

The bulls finally weaken and allow the bears to penetrate through the line of support, at which time the bears quickly conquer new territory by taking the stock to lower prices.

By recognizing the consolidation pattern the trader is able to sell short the stock just after the stock breaks the line of support, and profit from the sharp spike downward.

Additional traders who jump in to short the stock now that its weakness has been confirmed fuel the sharp sell off.

Traders, who are currently long the stock in the area of consolidation waiting in hope of a breakdown, are now scrambling to sell their long positions.

This selling action also fuels the fire pushing the stock to lower prices.

The Bullish Continuation Consolidation Pattern

Several strong bullish candlesticks precede the Bullish Continuation Consolidation Pattern where the bulls are clearly in control (Figure 15).

Figure 15

The bears and bulls then begin to battle by pushing the stock up and down in price in a tightly formed consolidation zone.

The narrowing size of the candlesticks toward a line of resistance indicates that the bulls are winning the battle.

The bears finally weaken and allow the bulls to penetrate the line of resistance, at which time the bulls quickly conquer new territory by taking the stock to higher prices.

By recognizing the consolidation pattern the trader is able to buy the stock just after the stock breaks the line of resistance, and profit from the sharp move upward.

The cause of the sharp sell off is fueled by the emotions of the traders watching for the outcome of the battle.

Traders, who shorted the stock in the area of consolidation in hope of a sell off in the area of consolidation, are now scrambling to exit their losing positions.

Traders who are long from the period before the area of consolidation are realizing that their original entries were correct and are adding to their winning positions.

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From the previous section, we determined that price movements result from massive emotions of fear and greed regarding trader's position in the market with a given stock.

Recognizing the footprints of greed and fear is not difficult. Recognizing the signs that the rally or decline before it happens is the difficult part of trading. How many times has this situation happened to you: You enter a trade based on a bullish reversal signal, but then exit on a slight pull back only too see the stock rally to a new high after you exit.

Or how often have you held on to a stock that experiences a bearish pull back in hopes that it will turn around, only to see the stock plummet to new lows before you finally concede to defeat and exit.

Unfortunately, there is no system that can predict with 100% accuracy exactly where a greed rally or fear sell off begins. There are; however, techniques based on candlestick patterns that help us locate probable areas for these turning points. The rest of this section will explore the techniques in identifying those probable areas that properly managed will result in profits for the trader in the long run.

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Figure 7

A stock's price will adjust to higher or lower prices based strictly on supply and demand principles.

In Figure 7 is shown a diagram of a green candlestick. The green color of the candlestick indicates that the closing price of the stock at the end of the day is higher than the opening price at the beginning of the day.

As you will see, the candlestick's color and size provide very important clues regarding the TRADER'S SENTIMENT toward a given stock's future price.

Notice that 'trader's sentiment' is the key phrase here. In short term trading, it is critical for the trader to have a clear understanding of what other traders are thinking. As you will see, the most direct way to get that understanding is through proper interpretation of the candlestick.

Let's look at an example. In Figure 8 is shown a candlestick of XYZ Company, which opened at 25 and closed at 25 3/8.



Figure 8

The candlestick is green in color, which gives us a quick visual signal that the stock price has rallied higher during this period.

How can we use this information to help us understand what other traders are thinking? To answer this question, we will follow the candlestick's changes step by step to understand the mechanism which is driving the stock price to move higher.

In Figure 8, we see the stock opens at 25, and then quickly rallies to 25 1/8. The reason the price moves to 25 1/8 is because there is a high demand to buy the stock at 25 1/8, and a short supply of sellers offering stock at 25 1/8.

Once all of the stock available at 25 1/8 is snatched up, the next group of sellers steps up to offer their stock at 25 1/4. All of the 25 1/4 stock is quickly snatched up because there are still a larger number of traders willing to buy at 25 1/4 than sellers willing to sell stock at 25 1/4.

Once the 25 1/4 stock is gone, the next group of sellers steps up to offer their stock at 25 3/8. The 25 3/8 stock is quickly snatched up too.

This process will repeat itself until the buyers loose interest in buying the stock resulting in a reduction of demand.

The result of combining these steps is a green candlestick with an opening price of 25, rallying to a closing price of 25 3/8.

During the rally period; however, the astute candlestick reader will be able to observe the long green color of the candlestick, and deduce that buyer demand is high.

Figure 9

Now there is only one reason why traders would increase demand by stepping up to buy the stock, and that is because they think that the stock will go up in the near future. So by observing the candlestick color and size, the astute candlestick reader is able to deduce exactly what other traders are thinking, and that is that they think the stock price will go higher in the future.

In Figures 9 & 10 we show an example of how the same principle in reverse applies to the analyses of a red candlestick.

The red color of the candlestick indicates that the closing price of the stock at the end of the day is lower than the opening price at the beginning of the day.

In Figure 10, we see the stock opens at 25 3/8, and then quickly drops to 25 1/4.



Figure 10

The reason the price moves to 25 1/4 is because there are many sellers looking to unload there stock at 25 1/4, and a low number of buyers willing to buy at 25 1/4.

Once all of the buyers have bought the stock at 25 1/4, the next group of buyers steps up to bid for stock at the lower price of 25 1/8.

The desperate sellers quickly sell all of the stock at 25 1/8, and then the next set of buyers step up at the price of 25.

This process will repeat itself until all of the sellers have unloaded all of the stock that they want to sell, resulting in a reduction of supply.

The result is a red candlestick with an opening price of 25 3/8, falling to a closing price of 25. During the stock's price fall; however, the astute candlestick reader will be able to observe the long red color of the candlestick, and deduce that demand for the stock is low.

Now there is only one reason why traders would increase the supply of stock to sell, and that is because they think that the stock will go down in the near future.

So by observing the candlestick color and size, the astute candlestick reader is able to deduce exactly what other traders are thinking, and that is that they think the stock price will go lower in the future.

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One of the greatest values of the candlestick chart is the ability to read market sentiment regarding a stock. To illustrate consider the following example of a stock traded from the eyes of a Western chart trader and then from the eyes of a candlestick chart trader.

Western Chart Trader

At the close of the day's session you observe that the stock closed well above your entry price (2), which leaves you very content with your trade.

After the close of day 2, you open the financial section of the paper and check the closing price of the stock and observe that not only is your stock well above your entry price, but also has gained slightly (it is worth mentioning that most western papers only publish closing prices while Japanese papers publish both opening and closing prices).

On day 3 you open and the newspaper to check the close and notice a slight dip in your stocks price but you do not panic, because you are still well in the money.

You convince yourself that the stock has only dipped slightly relative to the entry day close (day 1), and should resume its up trend on the next day.

On day 4, you check the close and notice that the stock has fallen significantly relative to the prior days close.

You are now concerned about protecting the profits that you had previously bragged about just days before.

On the beginning of day 6, you call your broker (or logon to your online trading account) and place a market order to sell at the first opportunity.

At the day 5 markets open, the stock opens sharply lower and continues to fall.

Your order is executed at a price several points below where you entered.

You then shrug off the trade as an unpredictable misfortune, and move on to the next trade.



Figure 5

Candlestick Chart Trader

Now suppose you are a candlestick chart trader trading the same stock using a candlestick chart (Figure 6).

At the beginning of Day 1 you enter the stock based on a candlestick pattern entry signal (we will discuss proper entries in detail latter in this unit).

At the close of the day's session you observe that the stock closed well above your entry price (2) which leaves you very content with your trade, but also moves you into a state of caution for signs of a change in trend or reversal.

After the close of day 2, you observe the candlestick formed for the day and notice that the real body is small indicating that there was a tug of war between the bears and the bulls.

You also observe that the real body is read in color indicating that the stock closed lower than the open indicating that the bulls actually lost the tug of war to the bears.

Based on these observations you conclude that the bullish rally in the stock has ceased, and the bullish sentiment of the market regarding the stock is changing.

You decided to sell your position at the days close, or at the market open on the next day to lock in your profit.

If this were a stock in the midst of an overall downtrend, you may decide to short the stock under the low of the day 2 bearish candlestick.

As you can see the candlestick chart trader has the advantage over the western chart trader in that he can use the signals generated in each candlestick to help foretell the changing sentiments of the market regarding a stock.

The open to close relationship revealed in the candlestick is more effective than the close-to-close relationship commonly used by western traders.



Figure 6

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There are two types of ways to analysis the price of a stock, fundamental analysis, and technical analysis. Fundamental analysis is used to gauge the price of a stock based on the fundamental attributes of the stock, such as price/earnings ratio, Return on invest, and associated economic statistics.

Technical analysis deals more with the psychological component of trading a stock, and is influenced for the most part on emotionalism.

The technical analyst is seeking to answer the question "how are other traders viewing this stock, and how will that effect the price in the immediate future".

As you will see, the candlestick chart is the most effective way to gauge the sentiments of other traders.

The Japanese were the first to use technical analysis to trade one of the world's first rice futures markets in the 1600s. A Japanese man by the name of Homma who traded the futures markets in the 1700s discovered that although there was link between supply and demand of the rice, the markets were also strongly influenced by the emotions of the traders.

Homma realized that he could benefit from understanding the emotions to help predict the future prices. He understood that there could be a vast difference between value and price of rice.

This difference between value and price is as valid today with stocks, as it was with rice in Japan centuries ago.

The principles established by Homma in measuring market emotions in a stock are the basis for the Candlestick Chart analysis, which we will present in this seminar.

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In the 1930s, Ralph Nelson Elliott, a corporate accountant by profession, studied price movements in the financial markets and observed that certain patterns repeat themselves. He offered proof of his discovery by making astonishingly accurate stock market forecasts. What appears random and unrelated, Elliott said, will actually trace out a recognizable pattern once you learn what to look for. Elliott called his discovery "The Elliott Wave Principle," and its implications were huge. He had identified the common link that drives the trends in human affairs, from financial markets to fashion, from politics to popular culture.

Robert Prechter, Jr., president of Elliott Wave International, resurrected the Wave Principle from near obscurity in 1976 when he discovered the complete body of R.N. Elliott's work in the New York Library. Robert Prechter, Jr. and A.J. Frost published Elliott Wave Principle in 1978. The book received enthusiastic reviews and became a Wall Street bestseller. In Elliott Wave Principle, Prechter and Frost's forecast called for a roaring bull market in the 1980s, to be followed by a record bear market. Needless to say, knowledge of the Wave Principle among private and professional investors grew dramatically in the 1980s.

When investors and traders first discover the Elliott Wave Principle, there are several reactions:

• Disbelief – that markets are patterned and largely predictable by technical analysis alone
• Joyous "irrational exuberance" – at having found a "crystal ball" to foretell the future
• And finally the correct, and useful response – "Wow, here is a valuable new tool I should learn to use."

Just like any system or structure found in nature, the closer you look at wave patterns, the more structured complexity you see. It is structured, because nature’s patterns build on themselves, creating similar forms at progressively larger sizes. You can see these fractal patterns in botany, geography, physiology, and the things humans create, like roads, residential subdivisions… and – as recent discoveries have confirmed – in market prices.

Natural systems, including Elliott wave patterns in market charts, "grow" through time, and their forms are defined by interruptions to that growth.

Here's what is meant by that. When your hands formed in the womb, they first looked like round paddles growing equally in all directions. Then, in the places between your fingers, cells ceased growing or died, and growth was directed to the five digits. This structured progress and regress is essential to all forms of growth. That this "punctuated growth" appears in market data is only natural – as Robert Prechter, Jr., the world's foremost Elliott wave expert and president of Elliott Wave International, says, "Everything that thrives must have setbacks."

The first step in Elliott wave analysis is identifying patterns in market prices. At their core, wave patterns are simple; there are only two of them: "impulse waves" and "corrective waves."

Impulse waves are composed of five sub-waves and move in the same direction as the trend of the next larger size (labeled as 1, 2, 3, 4, 5). Impulse waves are called so because they powerfully impel the market.

A corrective wave follows, composed of three sub-waves, and it moves against the trend of the next larger size (labeled as a, b, c). Corrective waves accomplish only a partial retracement, or "correction," of the progress achieved by any preceding impulse wave.

As the figure to the right shows, one complete Elliott wave consists of eight waves and two phases: five-wave impulse phase, whose sub-waves are denoted by numbers, and the three-wave corrective phase, whose sub-waves are denoted by letters.

What R.N. Elliott set out to describe using the Elliott Wave Principle was how the market actually behaves. There are a number of specific variations on the underlying theme, which Elliott meticulously described and illustrated. He also noted the important fact that each pattern has identifiable requirements as well as tendencies. From these observations, he was able to formulate numerous rules and guidelines for proper wave identification. A thorough knowledge of such details is necessary to understand what the markets can do, and at least as important, what it does not do.

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The buying and selling of the major global currencies in the Foreign exchange market or the Forex trading business has seen a new high in the last couple of years. Being recognized as the worlds largest cash flow market where the trading volume has multiplied tremendously, this business has acquired rapid pace in the recent years. The result has unfolded in terms of trillions of dollar exchange each day throughout the world.

Trading Forex is not as simple as it seems! To tread the path successfully you need to resort to superior Forex trading strategies. The problem lies in finding some of the best strategy to help accomplish the trade. A trader must remember that while formulating a Forex trading strategy one needs to emphasize on the formula of buying low and selling high in a particular market situation at a particular moment.

The internet is flooded with plenty of Forex trading strategies, most of which are just trash. To be precise, its only a handful which can deliver satisfactory results to the clients. However, one thing is sure, that is if you want to achieve success in Forex business, along with your own skill and dedication you must take the help of some Forex trading strategy. Else, you have to bear a lot of luck and Gods grace to reap profits.

Strategy developing packages along with good literature found in the internet can surely help the new traders a great deal to devise their own strategies. But depending blindly on a strategy without putting your own inputs may never yield good results. Developing your own Forex trading strategy needs lot of devoted research and effective trading.

Categories of Forex trading strategy

A simple and easy way is to classify the Forex trading strategies into three main categories. They are:

• Simple strategies- Simple Forex trading strategies must have a disciplined attitude towards risk minimizing. There methodologies needs to be simple and easy and simultaneously should have the ability to get the best out of any favorable market moves.
• Complex strategies- Similarly complex strategies are about taking a steady approach taking the help of several Forex trading tools and platforms, such as indicators and moving averages. Traders might take some time to adjust to them.
• Advanced strategies- The advanced Forex trading strategies have a more theoretical as well as a logical base and are generally used by veteran traders who have mastered the expertise of the Forex trading business. These Forex trading strategies which they use take into consideration various combinations of indicators and moving averages.

Another practical Forex trading strategy is using support and know-how through technical analysis. This can be very well used to get the much desired basis for the trade along with a resistance development. In formulating this kind of Forex trading strategy one must have a positive mindset about markets being trading over their support and beneath their resistance levels. If this level is broken at any point of trade then the traders can assume that markets are likely to follow that trend from that particular moment.

Every trader has their individual functioning style. Therefore it is not mandatory that the same Forex trading strategy which works for one will also work the same for others. Eventually each trader wants to gain profits but in this endeavor their Forex trading strategies will have to differ. It is upon the individual trader to play the game in their unique style making use of some good Forex trading strategy to move in the direction of returns.

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How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.

Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.

Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don't consider trading to be an easy task. But, is it harder to master any other endeavor? I don't think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top.

Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the Forex market? There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That's right, they don't follow the crowd, they are an independent part of the crowd.

A few things that separate the top traders from the rest are:

Education: They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.

Forex trading system: Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success.

Price behavior: They have incorporated price behavior into their trading systems. They know price action has the last word.

Money management: Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.

Trading psychology: They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual trade has two probable outcomes, not just the winning side.

These are, among others, the most important factors that influence the success rate of Forex traders.

We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results? It is different from trader to trader. For some, it could take a life time, and still don't get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it's not something you can do in a short period of time.

Trading successfully is no easy task; it is a process and could take years to achieve the desired results. There are a few things though every trader should take in consideration that could accelerate the process: having a trading system, using money management, education, being aware of psychological issues, discipline to follow your trading system and your trading plan, and others.

About the author: Raul Lopez is a full time Forex trader; his trades are based on a price behavior approach. Raul is also founder of http://www.straightforex.com a high quality Forex training company.

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