Forex Blog: Currency Trading

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A absolute core facet to successfully trading the forex market and making a 6-7 figure income is to do your homework.

As Bill Lipschutz says in The New Market Wizards by Jack Schwager, the forex never sleeps and to plug in to the market is really essential.

Doing you homework means that before you even have switched on your charts to do technical analysis, you have already prepared fundamental & technical analysis, on paper, and you may even have formulated possible trading plans, before you’ve even gone to your charts.

I can’t really stress enough how important it is to do your homework. Creating just a few lines of your own fundamental and technical research, by calling upon different sources, such as your forex broker as just one example (if they provide good analysis for you) can give you an edge over the market.

Making it your daily discipline to prepare ideas each day before you start thinking about entering the market or looking at your charts can help you when you do start looking at your charts as well.

There is a psychological aspect to preparing for your trading day in this way. You will feel much more in control of the market, and also you will have effectively masterminded a plan using information from people who either trade accounts themselves or are paid to give ideas.

So, on the one hand, don’t rely too much on the ideas, and realise they are just ideas, but absolutely if different sources are similar in their opinions and so is your on-chart technical analysis, be aware that it is a strong sign for you.

The crux is to make the analysis your own. You are bringing together different nuggets of information that you deem is important, amalgamating it all and putting down key ideas.

I will give you an example of this in the next post. Make sure you have a good notepad or notebook that you can start a clean page with each day. It will also provide part of a valuable record for you in addition to being a killer forex learning tool.