Currency Trading Survival Guide

If you want to find a profitable trading system then you basically have two options. You can either devise your own or find an existing system from elsewhere.

An easy way to access a profitable trading system is simply to buy one of the many systems currently being sold on the internet. The only problem with most of these systems is that they are often nowhere near as profitable as they make out to be on their sales page.

A better way to find a profitable trading system is to simply find a professional forex trader who can mentor you and teach you how to trade. You can either ask them or offer to pay them in return for them coaching you and revealing the profitable trading system(s) that they use to trade the markets.

An alternative is to simply visit one of the many forex forums where the top traders hang out. A classic example of such a site is Forex Factory. Here you will find many professional traders, and you will find that some of them will be more than happy to share their profitable systems with the rest of the forum for free.

If you want to be independent and find your own trading system, then you should be prepared to put a lot of work in. It can take several years before you find a system that actually generates consistent profits.

Many people use technical analysis to come up with a potentially profitable system so your first task should be to educate yourself about technical analysis.

There are lots of different technical indicators you can use but the most widely used ones are generally the most effective. These include indicators such as MACD, moving averages, RSI and Stochastics.

You should also learn about pivot points and determining areas of support and resistance. This will help you identify areas on the graph where you should and should not be trading because price reacts in a certain way around these key areas.

If you're going to stay in the game and actually make money from forex trading then you need to employ strict money management rules. This means only risking a small percentage of your capital on any one trade, ie no more than 2 or 3%.

You should also employ a strict stop loss policy. This will help protect your capital and is vitally important because if you don't use stop losses you risk being wiped out completely when a trade goes badly wrong.

Finally I want to finish this lens with a few other forex websites you may find useful.

The first of which is Baby Pips. This site will teach you all the basics about forex trading and is targeted speficially towards new forex traders.

The second site I recommend is The Forex Articles, which is an excellent forex trading blog. This site offers lots of free forex tips and strategies on a regular basis and also offers you the exact same system that the author uses himself to trade the markets.

(UPDATE: You may also be interested in the Forex Profit Accelerator course by Bill Poulos. This contains 4 separate forex trading systems that you can use to trade the daily charts. Click here to read a full review of Forex Profit Accelerator.