Latest Articles

Is The FOREX The Market To Trade Your Way to Riches?
Ever watch the news and see the ending FOREX trades of the currency markets? They're usually based on how individual currencies traded against the dollar. FOREX is the abbreviation for the Foreign Exchange market. FOREX is a market where the...

Successful Online Forex Trading With A Mini Forex Account
Forex trading is one of the most highly considered occupations for many persons looking for an income generating activity that will allow them to set their own hours and live where they please. This thanks to its great advantages over other income...

Why You Should Trade FOREX Over Other Investments
Everyone has heard of stocks and shares, probably even the futures market, but trading the FOREX (Foreign Currency Exchange, or FX) market is a relatively new phenomenon. Until recently, FOREX was the domain of the banking fraternity (large banks...

A Day in the Life of a Forex Trader

Are you looking into breaking into the field of professional foreign exchange trading? Or are you already a forex trader doing it regularly? Either way, this article may be of interest to you. The forex trader is a different breed of human being. They utilize the markets to earn a living everyday. We have a look into the insight of a day in the life of a forex trader.

Any professional forex trader has the potential to make massive returns from their initial investment or on the nastier side any trader can make massive losses. It is not a game of chance, trading is a skill of emotional control and sound decision making. Traders have an understanding of market mechanics and their behaviour as a response of economic trends.

Traders makes their living from taking advantage of price differences between the buy and sell price of currency pairs and more importantly they make their money by following the market trend. If you yourself have studies forex charts you may notice how the price fluctuates - there are only three directions the price can do: rise, fall or stay the same. Currency prices only stay the same if the currency value is not floated and fixed to a certain value. Traders make their money on the difference on price so the trader can either buy long and hope the currency rises or sell short as the currency drops in price and still makes a profit.

The advanced forex trader waits for a new trade or rather waits for the right time to open a new trade by looking for the right indicators and signs to signal an entry into the foreign exchange market. There are two things that the forex trader can do at home to watch out for an entry signal: look at charts or wait for news. Traders watch for the right trending signals to enter a trade. And the primary rule for the trader is that 'the trend is your friend.' Stick to the trend and you won't get hurt. Secondly, traders also watch the news. They must know what economic data is coming out on which

days and what that data means to the future of the economy of the respective countries. If they don't keep track of these facts and economic data and indicators they may find that some currencies are especially volatile during these news announcement events and see the market jump. The forex trader must be ready for these economic announcements to ensure they can anticipate the increased market activity.

Once the forex trader has successfully entered into a trade, a trade that is going well the trader then simply rides the trend to completion, implementing a trailing stop to lock in profits as the price trends the way the trader wanted the trend to go. But if the trade goes sour, the forex traders needs to exit the trade with grace. The trader must cut their losses to succeed in the business of foreign exchange trading.

Hopefully this has given you an overview of what a professional forex trader does to make a living from simply taking advantage over the price difference. The technique is to enter a trade correctly using trend analysis or a news announcement and then follow the rules of "riding the trend" or the "trend is your friend" with "cutting your losses quickly."

This article "A Day in the Life of a Forex Trader" can be found in our Foreign Exchange (FX) Markets category.

About the author:

George Polizogopoulos is a staff writer for MyShareTrading.com , an information hub for traders: forex, shares, derivatives, CFD's. MyShareTrading.com also provides free blogs for traders who wish to share their market experiences.

You may republish this article on the condition that it is not edited and all html links to our website is kept intact. MyShareTrading.com © 2006
Written By: George Polizogopoulos




Globe and Mail


Globe and Mail

FOREX-Dollar rebounds broadly; AUD and CAD off highs
Reuters
... dollar yet after getting done with major central bank events this week," said Hiroshi Maeba, executive director of forex trading at Nomura Securities. ...
WORLD FOREX: Dollar Drops As Fed Kills Early Rate-Rise HopesWall Street Journal
WORLD FOREX: Euro Down Vs Dollar, Yen As Asian Equities WeighMarketWatch
FOREX-Dollar falls vs most majors; euro off 5-week highsReuters
Reuters -Reuters -Reuters
all 859 news articles »

istockAnalyst.com (press release)

Forex: Dollar falls further against European currencies
NASDAQ
Regarding the Federal Reserve decision on monetary policy, Nick Nasad from CMS Forex affirms: "All in all the statement lacked much in terms of surprise and ...
Forex - Dollar mixed against rivals after US PPI dataForex Pros
FOREX: US Dollar starts week strong. EUR/USD falls below 1.3700CountingPips
Forex: Dollar falls across the board as FED leaves rates unchangedNASDAQ
Forex Pros
all 180 news articles »

FOREX: US Dollar on the rise. Leading Indicators, Manufacturing rise. Jobless ...
CountingPips
EUR/USD Chart – The euro dropping today versus the US dollar in forex trading and breaking through the rising support trendline on the hourly chart. ...

and more »

France24


WORLD FOREX: Euro Up Vs Yen, Dollar On Hedge Buying; May Resume Fall
MarketWatch
TOKYO (MarketWatch) -- The euro rose against the yen and dollar in Asia Friday as Japanese short-term investors who have recently bet ...
Dollar recovers as markets look past Fed decisionChannel News Asia
The demand for the high-risk currencies increased again. The oil rate ...Stock Markets Review

all 20 news articles »

France24

FOREX: Dollar slides vs Majors. Fed holds interest rate, housing data declines
CountingPips
AUD/USD Chart – The Australian dollar today surging higher versus the US dollar in forex trading. The AUD/USD rose to its highest level since January 19th ...
Forex Market Bell by Ben BernankeNews Trends (blog)
US DOLLAR: NOTHING WRONG WITH BEING PREDICTABLENASDAQ
USD May Fall Further Following Bernanke TestimonyForexyard (blog)
AFP -FXstreet.com The Forex Market -CNBC
all 249 news articles »

Weak dollar helps forex kitty swell $1.3 bn
Economic Times
MUMBAI: India's foreign exchange reserves rose $1.3 billion during the week ended March 12, largely on account of revaluation of non-dollar assets. ...

and more »

Ecommerce Journal

Forex trends: dollar gains ground touching 2-day high vs euro
Ecommerce Journal
The dollar that closed Wednesday's New York trading at 1.0543 against the franc and 1.5327 against the pound is presently quoted at 1.0555 and 1.5312, ...
The Trader Advantage: Forex Heats Up- Swiss And Cad Rate QuestionsForexTV.com
Forex - USD/CHF climbs after mixed Swiss dataForex Pros
Forex: USD/CHF finds resistance at 1.0600NASDAQ
Daily FX -FavStocks (blog) -NASDAQ
all 102 news articles »

WORLD FOREX: Dollar Dips On Profit-Taking After BOJ Easing
MarketWatch
TOKYO (MarketWatch) -- The dollar fell against the yen in Asia Wednesday as as a widely expected decision by the Bank of Japan to further ...

and more »

Sign up for PayPal and start accepting credit card payments instantly.