Forex traders should have a macro view of the market. Bretton Woods conditions make international currencies dependent on the Dollar and the United States. Developing this macro view is an essential part of your trader s business. Learn about central banks buying and selling of currencies to influence the exchange rate and interest rate. They also use the jawboning tactic to influence exchange rates. Ultimately, you must learn how to read the charts and understand them.

One of the most common misconceptions about the Forex market is that brokers will hunt your stops and trade against you. This is a common myth among aspiring traders, but it s important to remember that the high leverage effect makes most retail traders trade with stop losses, which means they could be forced out of the market. The good news is that most retail traders use stop orders and trade with stops. In the Forex market, stop orders always correspond to buy and sell orders.