Currency trading is an old business, but very profitable now. Never before has the average Joe been able to make trades along side the biggest and most profitable banks. I’m often asked questions and here they are with my answers.

What’s the most important characteristic to watch for with a trade?

Often people think the price you pay for it is the most important, but they’re wrong. The most important characteristic is the exit price. Exiting is everything because the exit determines your profit. Entry doesn’t determine anything but the cost of your investment. There is no need to buy some cheap if you can’t sell it for a profit. Always be looking for the great exit because that is what makes you the money.

I end up making profitable trades, but I hang onto them too long and lose it all. When am I suppose to exit a trade?

A lot of people do what you do. They hang onto the currency to see how high it will go and often are so attached to the currency that they won’t sell when it goes down. You need to set an objective profit point for every trade and it needs to be obeyed, no matter what. This way you eliminate any form of emotion and turn a trade into a cold calculated move. Sell when you meet the profit point, it’s easy.

With all the currencies out there I’m not fast enough to identify trends, what can I do?

Get automated software like Forex Killer. It will go through the currency data on it’s own and find trends for you. With these trends you’ll know where the currency is going, so you can make much more profitable trades.

For more information on the Forex Killer software, check out Forex Charting Software.

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Submitted On April 30, 2008. Viewed 145 times. Word count: 288.