Currency trading risk is something very important to eliminate from your daily activities in this market. Everyone seems to be blinded by the fact that there is three trillion dollars a day moving around. Even though there is this huge benefit out there for individuals, that benefit comes with risk. Many people have jumped right into the market and had all their money lost because they weren’t prepared to deal with the risk associated with it. I’m going to share a little about what I learned over my years of trading.
You’re going to have basically two times of trading, the business hours and the late evening/overnight time. There is one time that contains the most risk. It would appear that late evening/overnight would be calm and easier to trade because it isn’t busy. Even though that is true, there is no balance in supply and demand. This cause erratic currency behavior from someone trading. That isn’t good for you and doesn’t reduce your currency trading risk. The best thing you can do is stick with the business hours. Businesses trade at this time, so there is obviously money to be made.
My last piece of advice on reducing currency trading risk is by taking the necessary time to learn how to view currency graphs. You’re going to see them mainly in candlestick format, so it is important to learn how to properly view them in a quick and competent manner.
Forex Candlesticks Made Easy is an excellent book on learning how to read candlestick graphs. It works on the philosophy that you should just understand the graphs, rather than memorizing dozens of scenarios.
Learn more at Forex Candlesticks Made Easy.