Forex Currency Trading Beginner

I have read this article and I think the article is good for the forex currency trading beginner. I'm going to take the time to share advice for a forex currency trading beginner. This can be quite a difficult market for new people. It is very uncompromising and indifferent to the fact that you're new. It's very easy to jump into, but very easy to lose all your money if you're not being smart. This requires you to get the right information when it comes to starting out. I'm going to share a little about the lessons I learned when I first started out and they should be able to help you. Watch the news before you start trading You wouldn't believe the times that I got burned because I didn't watch the news in the morning before I started trading. Typically the market doesn't care about the news, but there is always some sort of financial news or report being released that the market pays particular attention to. The main one to watch out for is the Federal Reserve and any announcement about interest rates. I started to notice that on the days the Federal Reserve would be announcing things, the market would be very calm until the information was released and it goes erratic. This isn't good to be in the middle of a trade when this happens. Cut Your Losses I think it is very important to understand why you have to cut your losses. A lot of people repeat the same things to me, "but it will go back up". That is a 100% correct statement, but it misleading. The fact is that it could take a year for a currency to make it back up. If you've been holding onto the US dollar since it went down, you might not see it for another decade. By cutting your losses, you get your remaining money back and you can reinvest it in a profitable. This is a very important thing for a forex currency trading beginner to understand. credit:ezinearticles