Real World Reflections on Forex Trading

Before you can begin to differentiate the trading style and method that works best for you, give some real thought to what assets you have accessible to back your trading. As with many of life's undertakings, when it comes to financial-market trading, there are two main possessions that people never seem to have enough of: money or time. Deciding how much of each you can really allocate to currency trading helps to form how you follow your trading goals.

If you're a full-time trader, you have loads of time to allocate to market analysis and essentially trading the market. But because currencies trade around the clock, you still have to be attentive of which session you're trading, and of the daily heights and lows of activity and liquidity. Just because the market is always open doesn't mean it's essentially always a good time to trade.

If you have a full-time job, you will need to allocate time to catch up on the charts or economic data reports. That means you'll have to use your free time to do your market research. Be realistic when you think about how much time you'll be able to dedicate on a regular basis, keeping in mind family responsibilities and other personal situations.

When it comes to your money, we can't make the point clear enough that trading capital has to be completely risk capital and that you must never risk any of your money that you can't afford to lose. The customary explanation of risk capital is money that, if lost, will not substantially affect your ordinary way of living. It goes without saying that borrowed money is not risk capital - you should never use borrowed money for speculative or any other kind of trading for that matter.