The Day Trade Forex System Foundations

Before we begin looking at the specifics of the Day Trade Forex System and how it works, let’s look at 4 building blocks that I believe to be foundations to the Day Trade Forex System:

1. Foundation #1: Currency Trading is not a Get-Rich-Quick Scheme.

Currency trading is a SKILL that takes TIME to learn. Skilled Traders

can and do make money in this field, however like any other occupation or

career, success doesn’t just happen overnight. Here is a great formula’

for success:

Practice + Patience + Persistence = Profits

As they say, there is no substitute for hard work and diligence. Practice

trading on a demo account and pretend the virtual money is your own real

money. Do not open a live trading account until you are profitable

trading on a demo account. Stick to the plan and you can be

successful.

2. Foundation #2: I highly recommend that you follow 1 or

maybe 2 major currency pairs.

It gets far too complicated to keep tabs on all four. I also recommend that

traders choose one of the majors because the spread is the best and they

are the most liquid. The Euro/USD is the most commonly traded pair and

usually has the best spread’ because of its liquidity. The USD/Swiss Franc is

usually the most volatile and moves the most during the trading week. The

USD/Yen moves a lot on the news out of Japan and normally the Pound

Sterling/USD is more stable in it’s moves than the other three.

3. Foundation #3: Follow and understand the daily Forex

News and Analysis of the professional currency

analysts.

Even though this system is based solely on technical analysis of charts, it is

important to get a birds-eye view of the currency markets and the news that

affects the prices. It is also important that you know and understand what the

key technical support’ and resistance’ levels are in the currency pair that you

want to trade. Support is a predicted level to buy (where currency pair should

move up on the charts), resistance is a predicted level to sell (where the

currency pair should move down on the charts).

Fortunately, all the best Forex news and analysis is offered free on the

Internet. Here is what you should do first:

*While you are reading the daily news and technical analysis, write

down on a piece of paper what direction the analysts are saying

about the major currency pair you are following and the key support

and resistance levels for the day.

A. Go to www.forexnews.com and you will find 24hr news and analysis on

the spot FX markets. The site will give you the big picture of how the

economic calendar and central banks affect the currency markets. A

great resource.

B. Then go to www.fxstreet.com and click on the Top Forex Reports’. Here

there is a wonderful listing of all the major daily currency analysis and

forecasts with support and resistance and direction forecasts.

C. Click on www.currencypro.com and go to Today’s Market Research’ and

there you will find more excellent analysis on the Major Currency pairs.

Another great Forex Portal.

4. Foundation #4: Learn how to use the technical

indicators in this course and always trade with stop

losses!

It is worth your time to be patient and learn how to use the technical

indicators on the charts that you will be reading about shortly.

It is important when you are trading Forex, to be disciplined and to stick to

a plan. Don’t just trade your gut’ feeling. Use the technical indicators

outlined and always enter in stop losses on every trade. Remember that

everyone who trades has a different tolerance for losses. Depending on

your risk capital, and strategy, set your stop losses accordingly.

Byline:

Erol Bortucene and Cynthia Macy are co-authors of The Day Trade Forex System: The Ultimate Step-By-Step Guide To Online Currency Trading’.

Visit:

http://www.daytrade-forex.com

for examples of actual trades using The Day Trade Forex Trading System. Learn how easy it is to learn to trade the lucrative forex market from your home pc.