The current forex market is not only reserved for experienced elite traders with large capital anymore. Today, by utilizing the internet, leverage system, and automated trading software, literally anyone, from high school kid to retired employee, can learn to trade forex and gain significant income from the forex market.

If your aim is to earn long term steady profits from the forex market, you should focus on learning how it works and various methods to gain profits from it; so leave the automated trading system for later and start master the basic first. These are a few things that you need to know as a novice trader:

1. Familiarize yourself with the basics first
Before you start pouring your money on the market, learn to recognize how the game being played here and the rules that binds it. Over the years, anyone who charges into the forex market blindly after reading a couple of fantastic claims about it always end up miserably.

A suggestion that comes to mind is starting your learning with a dummy account where you’ll get a trading platform, thus you can test various things here. First, familiarize yourself with your platform’s interface, then try to implement some basic technical analysis strategies by using common indicators. Also learn about news and events and how they can affect the market movement. Visit training course for forex trading for free forex trading course, it is a good place to start with the basic.

2. Start with friendlier currency pairs
You’ll find that there are numerous currency pairs that you can trade, but you must realize that each of them has different characteristics and difficulties. My top recommendation currency pair for novices is EUR/USD as this one is known as a stable currency and has proper daily range. Another popular currency pairs are GBP/USD and USD/JPY. Just avoid currency pairs with high spread like EUR/CAD or EUR/AUD.

3. Keeping your investment from total loss
Risk management and money management are necessity skills when you trade forex as it is very important to protect your investment. Make yourself familiar with take profit, trailing stop, and stop loss order; learn how to use them in your every trade to cut your losses and claim your profits. Also make sure that you don’t put all your money on the line when you are placing orders.

4. Having a credible forex broker
Learning to trade forex doesn’t limited to strategies and trading systems. You need to realize that the forex trading world is fierce and many people/companies will eat you alive if you trust them easily, especially if you’re looking a forex broker to place your money.

Take your time in selecting one, do your research on the company, make sure it is registered within an official financial authority, and ask anything that you want to know on the live support before opening an account. This is your right and if they can’t give you satisfying answers, don’t even bother to try their services. Learn more about my top recommended forex broker at a review of AvaFX .

There are a lot of traders that quit halfway after trying to beat the forex market by themselves for a while; avoid being one of them by arm yourself with knowledge or lessons from a real experienced trader who really live by trading forex. I recommend that you read further about a forex course by Dean Saunders at forex wealth builder review.

From DailyFX

US Dollar May Be Setting Stage for Advance

Fundamental Outlook for US Dollar: Bullish

-    US advance retail sales fell 1.5% in September, led by contraction in auto sales
-    Fed meeting minutes indicated that Bernanke & Co. were open to expanding MBS purchases in September
-    US inflation reports continue to give mixed signals, with headline CPI at -1.3% and core CPI at 1.5%

The US dollar was one of the weakest major currencies last week, with the Japanese yen beating the greenback to being the biggest loser, as market sentiment reflected increased risk appetite. This was probably best exemplified by the media’s euphoric response to the DJIA’s test of 10,000 on Wednesday and close above on Thursday, but with extreme optimism comes the risk of reversal.

Looking to the week ahead, US dollar event risk will start to pick up again on Tuesday as US housing starts and building permits are projected to have risen for the second straight month in September to 10-month highs, with starts anticipated to hit 610,000 from 598,000 while permits may rise to 590,000 from 580,000. While the unemployment rate is still in the process of rising, the federal government’s tax credit for first-time home buyers of up to $8,000 is likely to remain supportive of demand through the end of the year. However, if the program expires as planned on December 1, the growth we’ve started to see in the housing sector could start to wane.

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