Find a system that has proven to be successful and stick with it.
Here is the system that we use:
Always enter your primary trades on Wednesday. Wednesdays pay triple the amount of interest than any other day of the week. As long as you get in before 5pm est on Wednesday they will pay you the interest for Monday, Tuesday and Wednesday - how sweet is that!
When is the most active time to trade?
The really active trading begins at 10 am because the US and London markets are open.
How can you minimize your risk and increase profits?
Trade in pairs. There are certain currencies that have a fairly close correlation. One usually moves up while the other is moving down. By buying these pairs you minimize the amount that you could lose. One will usually go up more than the other goes down so your chances of turning a profit are higher.
Analyze the interest rate ahead of time.
Look at the pairs that you are about to buy and the number of shares that you will buy for each. Hint. You should be buying more of one set than the other based on the current price.
Then compute the daily interest rate that you will be paid. Some pairs will actually cost you interest on your account, so you eliminate them based on risk and find a more acceptable daily interest rate.
Now I know that this sounds complicated, which is why we use an automated system to place trades. This system computes daily averages, gives you trading pairs that have the highest correlation, and even tells you the exact number of lots to buy of each trading pair.
The final decision is yours and the amount you are willing to risk is up to you but the rest of the decision making is calculated for you.
Can you lose money? Yes but this system really helps to minimize that risk and maximize your profits.
It even calculate exit and entry points as the market changes.
Whichever system you decide to use remember - use it consistantly. Emotion is your greatest enemy when trading.
1) Choose an automated system that you can set and forget.
2)Make sure that it has a way of sending alerts to your cell phone so that if you do need to enter or exit a trade, you will know it without being stuck to your computer 24 hours a day.
3)Make sure that it takes into account the level of risk that you are comfortable with. This is your money, invest it wisely.
