The problem lots of new traders to FX have is that they are used to single security trading. Like Gold, Crude, S&P. Looking at a chart is really the best way to trade those markets. But in FX, every trade is a relative value trade. So being long one currency and short one currency presents additional challenges to just looking for a setup on a chart. I can teach an 8 year old to read a chart. But to look for the best chart on a currency pair is the challenge. You need to consider your premise.

I hear it over and over again: “I was right about the market direction, but lost money anyway.” Sad but true. The main problem is that the average trader is always getting in at the wrong time and more specifically the wrong place. Most get in just before the countertrend rally that takes them out, and then the real move resumes without them.

Many people are looking at getting into day trading, and start with studying the Stock Market, and the different stock exchanges. What many don’t realize is that there are different markets and financial instruments that one can profit from. One market that has recently become available to the public to trade is the Foreign Currency Exchange, the FOREX. The foreign exchange market is the largest financial market in the world. It trades upwards of 2.5 trillion dollars per day, which is approximately 1000 times the volume of the New York Stock Exchange. Quite easily, the foreign exchange market dwarfs the stock market of any country.