Forex Practice Trading (Part III)

Your success depends on your forex trading system.You should have a good understanding of what the market is expecting in terms of event outcomes to anticipate how the market is most likely to react. One important thing that you should not lose sight of is that forex markets are highly integrated with the other financial markets.

You need to develop the habit of looking at what’s going on in other markets and trying to anticipate the fall out on the forex market. Forex markets function alongside other major financial markets like stocks, bonds, futures, commodities (particularly gold and oil).

There are important and psychological relationships between these markets and the currency market.Evaluate your trading results after each trade, regardless of the outcome. How did you identify the trade opportunity?

Was it based on technical analysis, fundamental analysis or a combination of the two? Look back over the whole process to understand what you did right and what you did wrong.