The 4Ms of Trading
MARKET
Due to its volatile market Forex is affected by an incredibly diverse amount of factors. These market fundamentals are the key pieces to determining when a currency is going to rise in value and when it is going to drop. Trading news is the study of events and economic statistics to determine trading opportunities. These traders pay close attention to change in economic indicators like interest rates, employment rates and inflation. By assessing the relative trend of these data points, traders analyze the relative health of a country’s economy and whether to trade its currency in the future.
MONEY
Money management in Forex is one of the important factor for consistent profit. Forex market is risky and managing money is important for success for both novice and experienced traders as well. Even if you find the best forex strategy, it will not help you if you do not use stop-loss orders or trade too aggressively.
METHOD
The method includes the trading plan. The trading plan is important to become a successful Forex trade. Many traders do not even use their trading plans however is a good idea to make one plan and come back to it.
MYSELF
Getting the analysis right will you confidence in your entry and exit levels and help you decide if the market is right or wrong.
