Forex Trading can be a difficult business. In fact it is a ruthless business. Many have venture into forex only to find themselves losing money. In order to be successful in forex, you need to have the right kind of personality when trading. Changing your personality while trading can get you ahead of the race in forex.

So, why do you need to change your personality when trading forex? Let's look at forex, it is ruthless, unmerciful, does not care who you are or who your father is. So if you are a kind person, doing a hundred good deeds everyday, do you think forex will let you profit from it? Surprisingly, no.

Here's my point, to trade forex, you need to keep all of your emotions in a box, locked it and throw away the keys. You need to be another person when trading forex. Emotions can make you lose money in forex. Let's look for example, you are on a losing trade, you know you should cut your loss short, but something tells you, that it will be okay, the market will have a reversal or something pretty soon. So you leave your trade losing in the hope of it will turn and eventually make you a profit.

Another example is, you saw this candlestick was moving really quickly all of the sudden, then something tells you to catch a ride on it, and you need to hurry or you'll miss out. And so you enter the market, only to find yourself looking at a reversal and eventually your trade turn to loss.

That is why it important to keep those emotions locked. You need to be a robot when it comes to forex trading. And most people cannot achieve that because as humans, we are born with emotions.

If you find it hard to lock your emotions up during trading, then don't trade at all. You will lose money. Do what most elite trader do, use an automated trading system. Most elite forex trader find it easier to make money in forex using an automated trading system, because it does not involved human emotions.

There are many automated forex trading system out there, but only a few that is capable in making consistent profit. For a complete guide to help you in finding a profitable trading system
By Dylan Jonathan

These are the forex trading terms which every trader needs to know before he or she even starts the first trade. Quite simply, if you do not know them, then the forex trading game may not be suitable for you. Why? Because they are the essentials!

1. Currency Pairs

Every transaction involves a pair of currencies since a trade is basically the selling of one currency and buying of the other.

2. Major and Minor Currencies

There are 7 major currencies traded online. They are USD, EUR, JPY, GBP, CHF, CAD and AUD. The rest are all minor currencies. Amongst these, some of the more frequently traded ones are the South African Rand (ZAR), the Singapore Dollar (SGD) and New Zealand Dollar (NZD).

3. Base Currency

The base currency is the first currency in the pair as a measure of its value against the second currency. For example, a GBP/USD = 1.7100 means that 1 GBP is worth 1.7100 USD.

4. Quote Currency

The quote currency is the second currency in the pair. Any profit or loss is a measure of this currency.

5. Cross Currency

A cross currency is a pair which neither of them is the USD. These pairs often experience intricate price movements because each trade actually involves the buying and selling of 2 different currency pairs. For instance, when buying a EUR/GBP, you are actually buying a EUR/USD pair and at the same time selling a GBP/USD pair. The transaction costs are often higher for such trades.

6. Pips

What is a pip? 1 pip is the smallest unit of price for any foreign currency. Most currency pairs consist of 5 digits and the pip represents the smallest change in the fourth decimal place, ie 0.0001.

These are the core forex trading terms that all professional forex traders should get familiar with. Since each trade cannot depart from them, it does make sense to find out more.

Learn everything about forex trading from Davion's wildly popular Forex Trading Made Easy blog - from mastering the basics of foreign exchange trading to discovery of new trading tips, strategies, tools and more.

If you are not making as much money as you would like from your forex trading or want to get a great tip before you start, learn this simple rule and make it part of your forex trading strategy for bigger profits...
The rule is the 80 / 20 rule and it applies in many areas of life and that includes forex trading. This simple rule states that 80% of your income comes from 20% of your efforts.
Its used in business for example, where 20 % of clients very often give 80% of the income - so how does it apply to forex trading?
Simple - cut your trading frequency to high odds trades only!
Many traders take to many trading signals - but there is no correlation between how much you trade and your profits. Your judged on the accuracy of your trading signal and that's it.
The fact is the big forex trends and high odds trades don't come around that often.
For example, I know traders who trade less than 12 times a year yet make over 100% annualized gains.
These guys are not looking for 20 0r 30 pips there after 1,000s.
FACT
The big profits come from the big trends, that last weeks, months or years and if you want to make money, focus on these not the low odds trades.
If you consider how many people day trade and try forex scalping you will understand what I mean.
These are lots of low odds trades and day traders and scalpers lose. They try hard and lose, sad but true. On the other hand the patient trader who hits high odds trades spends less time on his or her trading - but makes a lot of money.
Never confuse how frequently you trade with how much profit you will make.
Take high odds trades only, show patient and you will have higher profits, with less stress and spend less time on your trading.
Long term trend following is the way to make money don't trade often but aim to make a lot when you do, understand this and you can enjoy currency trading success.By Monica Hendrix