Successful professional traders do many things that amateurs often forget. They plan a trading strategy, they follow the markets, and they diarize, track, and analyze each of their trades. Reasoning of the trade: Why buy or sell? Which pair? Documentation and analysis of the results. Timing of the trade: Why now? Before economic news releases or after? Day or night? Money management. Trading objective: What is the take profit target? What is the stop loss?
The forex market is the largest and most liquid of the financial markets. Daily activity often exceeds $4 trillion USD a day, with over $1.5 trillion of that conducted in the form of spot trading. It is the existence of volatility within the forex market that enables trader’s to take advantage of exchange rate fluctuations for speculative purposes.
Forex spot trades consist of a contract to trade a given amount of a currency pair with a market-maker, at the advertised buy / sell price . Traders must be aware that greater volatility also means greater risk potential. It is important to understand the correlation between liquidity and market activity. the most successful Forex traders are people recognized for their humility and discipline. These qualities are acquired trough experience and accepting some simple realities of the Forex market.