If you're like most investors, and you've graduated from buying mutual funds and individual stocks ( Though you may be forced do this in your 401(k) or IRA accounts), your inbox runneth over from investment newsletters and stock pickers advising the next great trade.
However, to be successful as a trader, and specifically as a Forex trader, you need to assess several factors that will allow you to discover a trading style that will work for you.
Once you know what your trading style and your habits can support, you can develop a trading plan.
Once you have your trading plan, then it's basically a matter of executing your plan.
Do you want to make or keep more money trading Forex? One of the keys to success in the Forex market, like trading in any market, is to have a trading plan a trading plan is a blueprint, a strategic guide to how you will do fine opportunity, your rules for entering a trade, how you stay in the trade, and a specific criterion for exiting the trade.
In addition, the plan should include a review cycle so that you can look at the prior trades and develop lessons learned.
Questions to answer:

Timeframe

Something to consider here is your desired time frames that you will trade in.
When you enter a position, are you looking to close out that position in the same day ( short term), or at the end of the week ( medium term), or do you intend to hold the position for a much longer time frame? It's important to know what your objectives are in order to see potential opportunities.

Specific Currencies or all Currency Pairs

What are the currencies that you intend to trade? Do you intend to search out and leverage only opportunities related to a specific currency pair, or is your view of opportunities much wider? This also goes to the question of your level of commitment.

Level of Commitment

But we know you're committed to a successful outcome that's not really what we're talking about here.
The level of commitment we're talking about has to do with the time you have available for research as well as trading, which also has ties to your timeframe as well as the specific currencies or pairs that you can trade.

Analysis ( Technical or Fundamental)

What method of analysis will you use to pinpoint trading opportunities? What rules or guidelines will you employ and howl of these come from your analysis methods? Many people use technical or fundamental analysis as trading guidelines.
Technical analysis usually consists of identifying trends or patterns which indicate the potential direction of the currency.
Fundamental analysis consists of analyzing current or past economic data or economic trends, comparing them to other or previous trends in order to predict the likelihood direction of the currency.
Trading without a plan is a surefire recipe for disaster.
Some things to consider about trade execution:

• Determining an opportunity
• Determining position size and leverage
• Interpreting the market
• Understanding speculation and liquidity

As you develop your expertise with Forex, you will create plans that will guide you through the above mentioned trading elements.
It's important for you to keep good records of your previous trades, the specifics of the trade, what opportunity you saw, what Your analysis told you to do, how you determine the ideal entry and exit points, your evaluation of the risk and how you managed that risk.
If you're not ready to invest with real money, consider opening a trial account where you can "paper trade.
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