Page 41 - Ultimate Guide to Currency Trading

Review Before Each Trading Session

You should begin each trading session with a fresh perspective as to all of the FX pairs that you are
trading. You should also get into the habit of looking at the FX pairs that you are thinking about getting
into with the thought that the market might have reacted to news developments since the last time
you evaluated such pairs.

For example, you might have closed out all of your trades late on Thurs-day afternoon after a
profitable week of trading. Looking at your profit and loss statements, you decide that while the week
wasn't spectacular, you still earned enough in your account from the last two weeks of trading to
make a withdrawal and issue yourself a paycheck. You have met your goals: you have realized enough
gain in your account to earn a living. You have deter-mined ahead of time how much you need to earn
in order to make a living that is equal to working a full-time job.

You go to the screen in your account that is labeled "Withdraw Funds" and place an order for
your FX broker to use the Automated Clearing House Network (ACH) to credit you your predetermined
paycheck amount. This action will leave enough of the previous two weeks gains in the account to
allow it to grow organically, which means the money in the account is able to grow on its own,
building on its profits. You decide you've done well in the last two weeks, and especially well in the
last two days. You give yourself permission to take a four-day weekend, starting Thursday at two in
the afternoon. After a weekend trip spent cross-country skiing with your family, you come back to
your home office early the next Tuesday morning.

When setting up your Forex trading account for the first time, choose your method of
funding the account carefully (wire, ACH, PayPal, or check). This is because some Forex
ALERT brokerage firms will only allow one method of funding and only the exact same method
for you to with-draw your funds.

Review Your Currency Pairs

In this scenario it is best to perform a systematic review of all of the currency pairs that you regularly
trade. You might start off with the Anglo currencies, such as the GBP, the NZD, and the AUD. You
should then move into the other big players, such as the Japanese yen, the euro, and the Swiss franc.
Spend some time going over these currencies' central bank websites first. You would be surprised as
to how in tune you can get with a currency if you spend a few minutes looking at the website of the
bank that is issuing that money. You can also use the little secret of looking at the part of the central
bank websites that discuss the current designs of the paper-based currencies you are trading. This can
help you get a feel of that money beyond the electronic trading screen, as you can use the pictures to
see what the inhabitants of those countries hold in their hands and use to buy an espresso and a
newspaper at the local hangouts in Budapest, Zurich, Oslo, and Paris.

Always Check News Reports After this, move on to any brokers' reports that have been issued
over the weekend, and search the Internet for any news that has developed over the past twenty-
four- to forty-eight-hour period. This can be done by going to www.google.com and typing in