Five Things You Must Have For a Successful Forex System

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Are you interested in starting your own business? Do you want to be incredibly successful doing it? Empires are built by people just like you, they make sure they acquire the tools to give them an edge, and don’t rely on others. If you’re independent, you can decide what’s best for your business, without having other people interfere.

That’s true of investments, too, including foreign exchange trading, which is also called foreign currency trading or Forex trading. Forex trading is the largest market in the world today, with over $2 trillion (US) traded 24 hours a day, five days a week and is much larger than even the mighty New York Stock Exchange, which trades about $50 billion US every day. In fact, it’s greater than all the other equity markets combined around the globe.

Because the Forex market is so active and so wealthy, don’t you want to get in and grab your own piece of that $2 trillion pie? All you have to do is acquire the tools that will help you build your Forex business empire. Forex traders all over the world are trading with the sun, 24 hours a day building their own empires on their time and at their own pace, each following his or her own system.

Simply, if you want to make huge forex profits as a forex trader, you have to build your own forex system to become profitable. This system can bring you literally a limitless supply in revenues, all from forex trading, but again, you need the right trading system. You can find this system in the market, but you’ll also need to be independent and you’ll need to have your own Forex trading system in hand, so that you can achieve the goals you set for yourself.

Novice traders often have difficulty coming up with their own trading systems, since they don’t know a lot about the forex market. However, even if you’re new to forex, you can set up your own trading system that will fit your own personal preferences perfectly, and you can do so in just five steps.

Before we discuss those five steps, first, let’s talk about the three characteristics that make a Forex trading system successful. They are:

1. Simplicity. A Forex trading system that is successful is also simple. Get too complicated with too many rules, and you’ll simply be bogged down. Simple systems work much better than complicated ones do, and you’ll have a much better chance of success in the Forex market, despite its fast pace.

2. Run with your profits, cut your losses. A successful Forex trading system is going to minimize losses as much as possible and maximize profits at the same time.

3. Follow long-term trends. You can generate small profits when you just start out (and in fact, this is a good idea, so that you minimize your losses while you learn, too), but once you get going, you will want to focus on larger revenues. Keep in mind that the Forex system trades $2 trillion every single day. If you want a substantial piece of that pie, you’ll focus on long-term trends for the best results.

Now, here’s how you go about building that successful Forex trading system, in just five easy steps:

1. Keep it simple. Use as few rules for your system as possible and make sure they’re essential, and integrate a holistic and far-reaching investment management system at the same time.

2. Remember, go with long-term trends. Go for trends on a weekly basis, then look at daily charts and then, to time entry. Going for the “big picture” and then zeroing in on trends more narrowly will help you focus on and analyze them much more effectively.

3. Trade foreign currencies through the breakout method.

4. Watch for breaks and then note them on your chart; you’ll confirm these with bearish and stochastic divergence, crossed. This tells you whether or not it’s the right time to enter a certain trade.

5. You also need good time management. Design a trading system that is going to be efficient so that you can streamline your time spent to greatest effectiveness, which will help you generate greater profits.

In short, forget those complicated Forex trading systems. You don’t need them, the more simple, the better. Build a system that is simple and understandable, and one that’s efficient for you, and you’ll see how profitable it can make you.

Source by Bill Shur

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.