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Benefitting from international currency exchange is not a new concept but all do not make it straight to success. They have to face failure many times to taste success just once. Still there are many who are able to get through from the first step itself. Yes, it is possible to taste success in the first step itself and mind it, it is not because of luck but because of proper planning, analyses and taking the right foreign currency exchange decision at the right time. The first step to success in international currency exchange is to follow the market minutely and analyze, strategize and diarize day to day market conditions. Plan your trade policy based on the findings. Planning perfectly is not a sure shot success formula but following the plan in detail all the time can lead you to success each time. Few pieces of advice for the step can be listed as below: 1)Carefully select currency pairs. If your risk factor is high then you can select currencies which fluctuate a lot on one single day. However if you are less interested in taking risks then select currencies which show gradual increase in value. 2)Decide in advance the number of minutes, hours or days you wish to hold your positions. 3)Currency exchange rate change every time. Decide at what price you will be interested in selling your currencies so as to make a decent profit. Accordingly use your stops and limits option. 4)Carefully follow the Forex rates for your selected currency. You can use Forex news or Forex charts for this purpose. Forex charts will cost you little but you will be able to earn the money spent if you use the chart efficiently to place your international currency exchange bid. Following Forex News is a less expensive and instant way to keep an eye on the foreign exchange rates. On News channels you can also benefit from expert advice with reference to foreign currency exchange. 5)Keep a track of what you do, how you do and what were the results. This will help you avoid mistakes. The second step to success is to learn to manage risks perfectly so that you are not affected by them. The best players in the foreign exchange market are not the ones who take the most profitable positions but are those who manage risk and always stick to the strategy. You can use the limit orders and stop/loss orders option to minimize loss and maximize profits. They form the core of a well planned trading strategy. Third approach to success is to use the right approach to your international currency exchange. Market for foreign currency exchange follows two basic approaches 1) technical analysis and 2) fundamental analysis. In technical approach price movement from historical data are studied to predict the future price changes. This is primarily done using charts. Fundamental analysis relates to the study of demand and supply of foreign currency due to the changes in the economic, political and social conditions. Which approach you should use will depend on your interest level, however most of the people prefer to use technical analysis. We will refer to other three steps related to successful international currency exchange in part 2. Still then keep reading and watch out for our next post. There is risk, profit, loss, success and failure still foreign currency exchange based on the currency exchange rates is the most exciting thing to do.
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