There is no such thing as a secret approach to understanding the market. Take the time to develop a solid trading system and find out that the secret to trading success lies in hard work and constant learning.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

Learn to measure trading success by the end of the day, week and then month and year. Do not judge about your trading success on a single trade. To be successful traders don’t need to win every trade, they also don’t become rich in one trade — they need to be profitable in a long run.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

Using a highly leveraged account comes at a cost. It will, of course, give a trader more financial gear to trade into more profits quickly, but for inexperienced traders high leverage, and, in fact, any Forex leverage can be disastrous. When a trader signs up for a high leverage without knowing how to accurately use it to his own advantage, he simply signs up for additional risks that multiply.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

Always ensure that a signaling bar/candle on the chart is fully formed and closed before you enter a trade. A golden rule of trading: “Always trade what you see, not what you would like to see” is the best explanation here.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

Learn about Fibonacci levels and how to use them for trading. Fibonacci can be very helpful in trading, even partially using the study, for example, to determine the best exit, can bring traders to a new edge of trading.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

Choose the right day to trade. This recomendation is often wrongly taken as an optional thing, because everyone knows that Forex market is open 24 hours a day 7 days a week. Yet, choosing the time to trade can make a difference between successful and hopeless trading.
It’s proved and highly recommended not to trade on Mondays, when the market has recently awaken and is making first “probation steps” to form a new or confirm a current trend; and on Fridays afternoon, during the huge volume of closing trades. The best days to trade are Tuesdays, Wednesdays and Thursdays.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

Learn to use protective stops. Respect them and don’t move. Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further a trader increases his chances to end up with much bigger loss. When holding to a losing trade too long, and even if funds permit, traders as a rule are very reluctant to accept big losses.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

Go with the trend! The trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won’t “kill” a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

When in doubt — stay out. If it is not clear where the market will move — don’t trade. In this case saving present capital is and absolutely better choice than risking and losing money.

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.

For best Forex trading returns always try to pair the weakest currency with the strongest currency. Today that would mean shorting the EUR-CAD. EUR has been one of the weakest of 2010 and the CAD one of the strongest.

The EUR-CAD on the multi-year monthly chart has broken the most recent major low by closing daily below it’s 11-30-07 close and below 3-31-06 close double bottom of about 1.3500. If April month end closes below the above mentioned double bottom the next stop could be the next major double bottom monthly close low of about 1.2900 reached on 9-29-2000 and 7-31-2001.

I suggest layering in over three separate short positions only after a lower April monthly close of below 135.00

Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.