F X trading or foreign exchange trading is a great place to earn a second income. I'm going to share with you some of my favorite tips that I have used to help me generate a good amount of quality trades that have let me make a decent sum of profit.
- Select The Right Broker For You: There are hundreds of brokers that you can use, both online and offline. Since there is an abundance of choice, this can be a difficult task. You face one particular challenge that comes with the internet and that is determining the quality of a broker business. Anyone can put up a website on the internet. You don't know if this is a large reputable business or someone running this out of their parents basement. The best place I've found to get unbiased views on brokers are at forex forums. These can be easily found with any search engine. Traders get together and talk with each other. Often the most hotly talked about topics are brokers. You'll hear everything, from the good, bad and ugly.
- The News Has Free Information: Have you ever wanted a mentor to tell you what is going to happen in the market, well, you won't really get that advice for free, but the news is the next best thing. It won't tell you what will happen in the currency market, but it will give you economic news that you can figure out how it will affect the currency market. Most economic news is released at scheduled times, typically in the morning. Basically, if the news is "good" and good for the economy it is good for currency. If it is "bad" and bad for the economy, it is bad for currency.
- High Volume Times: The best time to trade is during the high volume times. There is on simple reason for this: no manipulation. Since so many people are trading and there is so much money moving around, you won't see a big bank make monster trades that can cause currencies to go in a completely different direction. Everything typically moves with market forces at this time.