| London Currency Exchange Market | | | | How do you know what times of the day to trade, |
| In recent years there has been an explosion of | | | | what currencies to trade and how to recognize a |
| interest amongst private investors in the Forex or | | | | break of a trading range? Simple; you have a trading |
| currency trading market. However because of a lack | | | | system that has been developed using historical data. |
| of intricate knowledge in the way money markets | | | | In other words a system using set guidelines that |
| operate most investors lose their initial stake less | | | | have proven profitable in the past. |
| than 6 months after opening an online trading | | | | A trading system is a set of rules that govern all of |
| account. | | | | your trades. At a particular time of the day you look |
| This is largely due to a lack of understanding in how | | | | at the charts for the particular currency or currencies |
| currency markets operate. Most beginning investors | | | | you follow, apply your system and if the criteria you |
| spend their time trying to foresee whether a | | | | have preselected are met, place a trade. If not |
| particular currency is going to rise or fall. This is an | | | | WAIT TILL TOMORROW. This last point cannot be |
| almost impossible task. | | | | stressed enough. Most beginning traders over trade |
| The experienced currency trader does not try to | | | | and lose money because of this. |
| predict this for he or she will make money whether | | | | Many experienced traders have automated their |
| the price goes up or down. Instead they watch for | | | | systems so that they can be away from their |
| times of the day when currencies tend to trade in a | | | | computers during the trading times, this prevents |
| narrow range and wait for a breakout of that range. | | | | them from over trading and allows their systems to |
| Which direction the currency breaks out of the range | | | | make the trading decisions. |
| is not important, only that it does. If the currency | | | | One of the most widely traded currency market |
| fails to break out of the range the experienced | | | | breakouts happens just before the London market |
| trader just sits on the sidelines and waits for the | | | | open. The London market is the largest currency |
| next opportunity, usually at the same time the next | | | | trading market in the world, and as such many big |
| day. London Currency Exchange Market | | | | moves occur during that session. |