The Top 10 to Trading Currency

The Top 10 to Trading Currency

1. Always combine fundamental and technical analysis to arrive at your best trading ideas.
2. Always use the pyramiding method of building up a position in a currency pair. Use the same pyramiding method when you are closing out the position.
3. Go long commodities currencies and short safe-haven currencies when the overnight markets are up big.
4. Use carry trades to reduce risk and capture a steady stream of income for your overall investment portfolio.
5. Use your smart phone or iPad to keep on top of your open trades and account balances.
6. Learn to walk away from your trading desk after a really good day (or week) in the currency markets.
7. Learn to read between the lines and see what the central bank websites are really saying about their currencies’ future prices and interest rates.
8. Always trade your currency portfolio at the same leverage ratio; use the same one that your demo account is set at and you are used to managing.
9. Know that it is okay not to trade during times of market upset, as these times can be very difficult to trade and make a profit in.
10. Use diversification of different currencies even if your overall FX account is aimed toward the same overall market direction.