TOP Secrets of Famous Currency Traders

Famous currency traders are not on top just because of nothing. They are on top because they found the right ingredients to make success just within their reach. 

If you want to be like them too, you have to know that the foreign currency trading market thrives on changes and be able to adapt in the times. You need to be able to shift yourself accordingly and you need to be flexible when it comes to changes.

Famous Currency Traders Learn Nonstop

Although they have accomplished quite a lot already, these traders know that one success alone does not give them license to rest. It should only motivate them to do better and find ways to become more successful. 

The best and the brightest understand that they cannot be complacent especially in an industry where tough competition exists. They find ways on how they can boost their knowledge and gain more expertise in their area.
There are plenty of ways in which you can learn forex. There’s the usual course of signing up for extra studies which are often flexible too because they are being done online. Then there’s also the way of learning through various online means such as article directories, forex websites, and even online forums. It’s up to you which ones would be most convenient for you.

Famous Currency Traders Have an Established Professional Network
Currency traders understand that they need to have some public exposure in order for them to sustain their business. They need to create some sort of familiarity and buzz about their names. They do not necessarily need to be a media hog or pay all that much for public relations to happen for them. Establishing a credible network of professional colleagues is already enough to do the work.

There are plenty of conferences and engagements happening in the forex market. Some of them are for free while some come with a fee. You can try to invest on some of these events and make sure you keep a tab on free ones even if they are just informal gatherings. These are valuable places where you can meet and get to know a wider population of professionals in the forex industry.

Famous Currency Traders Use Technology
Gone are the days when trading is done manually. With the help of the internet, everything is fast and more efficient these days. You don’t have to be a techie geek to be able to use technology in forex. Most of the automated systems being deployed these days are WYSIWYG (what you see is what you get) and user-friendly. You would not find it hard to operate them on your own.

You just need to remember to carefully read the specifics of these programs. It would also be best to peg a specific budget before you look at your purchase options. Customer service support is also a very important aspect to consider. You need to make sure that the company would be able to attend to your inquiries especially when you need them answered as soon as possible.

Forex trading styles

       When trading currencies online, there are several trading styles that forex traders can profit from, the following is a list of the most common trade types complete with a brief description of each style of trade.

Scalping

A style of trading that is designed to capitalize on small moves, it involves the rapid and repeated buying and selling of currency pairs, the typical objective for a scalp trade is 4-15 pips. The best scalping opportunities are found when the currency market is very active (Euro open till European Close) or during News Events. Scalp setups are typically found using charts in smaller intraday timeframes such as a 1, 5, and 15 minutes. 
 Scalping requires a lot of market understanding and is not for the beginning currency trader. The professional scalper uses a specially designed trading platform, for example Currenex or a forex broker which allows scalping .

Day trading

A day trade is a position initiated and closed out the same trading day (before 5PM NY time), the typical objective for a day trade is 15-100 pips. The best day trading opportunities are found during the EURO and US sessions. Day trade setups are typically found using intraday charts with medium length timeframes such as a 15, 30, 60 and 240 minutes. Most online currency traders are day traders and typically, they use technical analysis (support & resistance, chart patterns, indicators,..) to set up their trades.

Swing Trading

The main difference between a swing trade and a day trade is the length in holding the open position, typically, swing traders will hold their open position(s) 2-5days looking for 100-250 pips profit potential. Trade setups are typically found using daily charts and most common, swing traders use technical analysis (support & resistance, chart patterns, indicators,..) to set up their trades.

Position Trading

The main difference between a position trade and a swing trade is that position traders will normally have a longer time horizon than swing traders for holding a position in a currency pair, typically, position traders will hold their open position(s) 5-50days looking for 250-1000 pips profit potential.
Trade setups are typically found using daily, weekly and monthly charts , normally, position traders use both technical analysis and fundamental analysis to set up their trades.

Long – Term

Trading Long term currency traders usually hold positions for month or even years profiting from a long term trend. They usually use both fundamental and technical analysis to make trading decisions.

Advantages of Forex Trading over Stocks

Advantage	Forex Market	Stock Market
Trade Around the Clock	Yes	Limited
Pay No Commissions	Yes	Limited
Market Information Easily Available	Yes	Yes

Trade Around the Clock

The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers forex trading from Sunday, starting after 5:15 p.m. ET, until Friday, 4:55 p.m., ET (FXCM Client Service is available 24/7). Orders placed prior may be filled until 5 PM (ET). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.

Pay No Commissions

In the forex market costs are generally confined to the bid-ask spread. FXCM charges no commission and is compensated through a mark-upwhich is added to the spread it receives from its liquidity providers§ via the FX Trading Station.

Forex Market Information Easily Accessible

Information about stocks is abundant, but so are the stocks. Finding a trade opportunity in the equities markets may mean sifting through data on thousands of stocks, while the forex trader has only six major currencies to research. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private, and sometimes subject to fraud, deception and insider trading. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.
We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.

Forex Trading is a High Risk Investment

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.