CURRENCY TRADING & FOREX TIPS

Know the Language
In Currency Trading, traders often use technical language that can be intimidating when you're just starting out. When you see a word you don't understand, you should refer to the Commonly Used Forex Terms. As you familiarize yourself with the language, you'll find that your understanding of Forex concepts as a whole will improve.
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Technical Analysis
To develop a strategy, traders use a variety of tools and techniques. Some traders perform Technical Analysis by using Currency Charts to study the market. This technique assumes that past market movements will help predict future activity. The effectiveness of Technical Analysis makes it a very popular trading technique.

Fundamental Analysis
Other traders use Fundamental Analysis for their trading strategy. They follow the effect of economic, social and political events on currency prices. Reading specialized Forex News can help keep you in touch with the Forex community to find out how events might affect currency prices.

Practice makes perfect!
Every trader makes mistakes, so it's a good idea to familiarize yourself with a trading environment before you invest your money. To improve your trading skills, try opening a free demo trading account with a Forex company. FXCM, for example, has professional traders on-hand 24 hours a day to answer any of your questions – even during your free trial, so make the most of it! They even have an online FX Powercourse that costs less then 20 dollars; but don't let the price fool you. You get live 24 hour access to professional traders that can teach you advanced skills that can make you a better trader.

Know the Risks
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. Remember, you could sustain a loss of some or all of your initial investment, which means that you should not invest money that you cannot afford to lose. If you have any doubts, it is advisable to seek advice from an independent financial advisor.

MORE RELATED TIPS

	Keeping Expenses Low Keeps Spreads Tight
	One of the most important considerations for the forex trader is spread. In order to provide you with tight spreads for 1K lot sizes (as little as 15 cents per lot for EUR/USD), we control expenses, such as costly support services. Instead of providing these services to you by phone or IM, we have innovated extensive self-help sections so that you can find immediate answers on our Web site. Of course, you will receive a personalized response via e-mail for anything related to your account, and you can log on to our interactive forums for trading- and service-related questions. To avoid the expense of administrative overhead, FXCM Micro offers only self-trading, individual accounts.
	FXCM Micro Execution Instead of No Dealing Desk Execution
	We believe that No Dealing Desk execution is best for forex traders. However, No Dealing Desk execution involves back-to-back trading execution with some of the world’s largest banks and financial institutions, and, with very few exceptions, these banks do not trade in microlot sizes. In fact, of the nine global banks with which we trade at present, only two offer microlots. Offering No Dealing Desk execution for microlots could invite less consistent spreads and poor execution. Under the No Dealing Desk execution model, FXCM offsets each trade with one of its liquidity providers. Because individual FXCM Micro trades are not directly offset, FXCM’s trading desk manages the aggregate risk of the total net FXCM Micro trading positions. FXCM Micro acts as a counterparty in FXCM Micro transactions and, therefore, acts as the buyer when you sell and the seller when you buy. Please note that FXCM Micro, in its discretion, may place accounts on the No Dealing Desk execution model and may or may not offset individual transactions. FXCM Micro execution offers you many of the benefits associated with No Dealing Desk execution. For instance, FXCM Micro uses a price feed derived from the prices streamed to us by multiple global banks. Accordingly, FXCM Micro execution seeks to provide consistent, tight spreads, 24 hours a day, with rapid order execution. Therefore, when you select a price, and the price is available, the trade is executed.