As like many before you, when you first start trading on the Forex market you will soon realize that a lot of the traders lose money rather than gain. So if you do not want to end up in the same situation as many before you, here are some tips in relation to Forex currency trading online that can help you gain more and lose less.

1. Forget the Hype

Too often you will see sites that are promoting ways in which you can get rich through Forex trading as long as you purchase their book for $100. However, instead of spending your money on something that is probably completely worthless, all you need to do is spend some time searching the internet and you will soon discover everything you need to know and all for free.

If however you really want to learn what the top traders are doing and obtain advice from them, there are plenty of good quality books that you can purchase through such online stores as Amazon.

2. Day Trading - Forget It

Unfortunately a lot of people starting out in Forex trading have often heard that you can make good money through day trading. This is simply not true and those that have listened to this have soon learnt the hard way.

Ask any reputable vendor online and they will soon tell you that the only way you will be able to make any money and real profits in forex currency trading online is over the long term.

3. Be Smart

When it comes to Forex trading you need to be smart so it is important that you learn as much as you can about the subject as possible. Look at the various tools and systems that are available and soon you will discover that you are able to trade on the markets much more easily after just a couple of weeks.

4. You need to be a risk taker

Unfortunately with any form of trading there are some risk involved and so if you are not prepared to take any risks then forget about getting involved in Forex trading. Only those who are willing to accept the risks and be prepared to make some loses are going to be successful when it comes to Forex trading.

5. Find a simple system

Simple Forex trading systems work much better than the more complicated types. Certainly when first starting out,it is best to use a system that uses both support and resistance practices as well as breakout methodology. Plus a system that uses confirming indicators also. By keeping your system as simple as possible you will find it much easier to understand and learn everything you need to know to ensure that you maximize your gains but minimize your losses.

If you include these few tips to any plan you are devising for your Forex currency online trading then you should soon be on your way to making some decent money.

Forex Trading - Do not jump into it until you are successful in Paper Trading

What is paper trading? Paper trading is where you receive an imaginary amount of money, for example $100,000, and pretend to trade it as though it were real. Most forex brokers will set you up a demo or dummy account where you can practice trading with all the benefits and features of a real trading account.

This serves two very important purposes. The first is to let you get familiar with your brokers trading platform and how all the various orders are placed. Many beginner traders underestimated this. Whenever you learn a new set of software or trading system, there is always a learning curve. You do not want to be on that learning curve with your own money. Next, it will let you practice the method without risking any of your own money. You will feel a lot more confident about this or any other trading method if you have actually practiced trading with it and made money. Practice makes Perfect.

It is highly recommended that new traders spend at least three months paper trading before they even think about going live, using real money. In reality not many people have the discipline to do it. That is why so many beginner traders lose money in the forex market.

There is a good argument that - no amount of paper trading will ever put you through the emotional turmoil a real trade will. This is absolutely true. There is no substitute for the emotional roller coaster your first few live trades will have on you. Studies have shown that traders who spend more time paper trading in the beginning tend to handle the emotional situations better and make better traders.

Things To Consider - Trading Psychology

Before you can master any trading system you must have some kind of mastery of self.

If you do not have control of your personal emotions, then you will have no control over your trading.

You will come to realize that trading is a business just like any other ventures. It may be fun and more interesting than most businesses but it is still a business. You would never consider betting your business based on luck, yet many traders lose control and trade without self discipline.

Take your time, the markets will be there for as long as we live. Get used to the trading system by paper trading first. You will find a list of brokers in the internet who will give you a free account to practice. Only once you have paper traded for some time and are showing profits should you even consider live trading using real money.

If you find yourself wanting to jump in quickly before you have fully tried and tested the trading system then you need to ask yourself if you are taking control of yourself. Forex trading is a profession, and it can give you whatever you want, but just like everything else in life there is a price to be paid.

Plan your trading career well. Education with sufficient practice ( paper trade ) will eventually lead you to trading success.

There is more than one strategy for trading the news. Some news traders have discovered a device for regularly adding to their profits during and around news trades. They are using something called the box option strategy. This article introduces traders to this relatively rare technique.

Options as a product for trading have been around for quite a while. Not all brokers are set up for this strategy. You may have heard of options within the context of stocks and futures, for example. A box option, however, is not a real option in the technical sense. Rather, it is a simple agreement between the Forex broker and the trader. The latter literally constructs a box on a chart at the broker’s online trading platform with the hope that the price movement will cause the graph line to either hit or miss the box, as desired.

If the trader’s assumption is correct, the trader wins a pre-determined amount of money, the calculation of which is derived from algorithms set in the broker’s computer. On the other hand, if the trader’s assumption proves incorrect, the trader loses the total amount invested and gets paid nothing, unless the trader resells (typically at a discounted amount) the box to the broker prior to the expiration of the box.

It is important to note that, because the option, in a sense, is trading against the broker and not against another trader somewhere else in the world, the broker will get paid whatever amount the trader invests, whether or not the trader wins. Therefore, the entire amount of the investment may be viewed in a way as paying for the privilege of participating in this kind of trade. The incentive for participation by the trader, of course, is winning an amount which exceeds the amount invested by two or three times.

As with regular options, the box is constructed to last a certain period of time. The duration, however, would be in terms of minutes—or hours at the most—rather than weeks or months as with regular options. In addition to its time component, the box also covers a certain price range between the upper and lower borders of the box. Although, the trader chooses which time period and price range will apply to the box, the broker alone determines what payout will result from the settings utilized by the trader.

Although the box option, like other devices, involves risk, there are proven ways to help manage such risks. One such way would be to trade when there is a high probability of major moves. This, of course, would include trading when certain news reports are being released. This strategy does not have to be mutually exclusive where another strategy may be contemplated. Indeed, traders are using this along with other profitable strategies. Besides, who ever said you can only make money one way?

Welcome to the exciting and often very profitable world of foreign exchange trading or FOREX for short. Forex trading is the trading of different foreign currencies against one another, taking advantage of their ever fluctuating values to make very nice profits.

Forex trading, or currency trading, used to be out of the reach of the everyday investor until recent technological advancements took Forex out of the hands of large banks and institutional traders, and put it right in front of anyone with a computer and internet connection. Now there are dozens of Forex trading platforms available from a wide selection of brokers. Now anyone can learn to make money trading the currency market!

Although the major focus of the investment world appears to be on stocks and bonds, the currency market is the oldest and largest financial market in the world. The FOREX is a world-wide market, therefore, it is open 24 hours a day, 7 days a week. This eliminates the closing/opening gaps you see with traditional stocks ever morning. The Forex market trades approximately $1.2 trillion every day, making it a very liquid market, you'll never have a problem filling your buy or sell orders.

Forex trading is done with pairs, that is either buying or selling one currency against another currency. You profit from Forex trading when you take a position in a currency that you appreciates against the currency it is paired against. The great majority of daily Forex trading involves four major currency pairs. Currency trading usually involves the British Pound against the US dollar, the Euro against the US dollar, the US dollar against the Japanese Yen, and the US dollar against the Swiss Franc.

These four pairs are displayed on the FOREX as: GBP/USD, EUR/USD, USD/JPY, USD/CHF.

One major benefit of trading the Forex market, is leverage. Because of the liquidity of the Forex, most brokers offer the option to trade on margin with a leverage ratio as might as 400! Providing you with the opportunity to invest with a much small amount of capital and still pull in substantial profits.