How to be good to trade both side of the forex? i mean ups and downs?

I cannot figure out how to trade the downside of the forex because i too dicipline with the up-side only.. what kind of psychology do you need in order to be able to trade both side of it

You need a system, and a trading plan related to that trading system. No amount of trading psychology would do you good on either side... of the trade...

Alot of traders consider themselves better buyers or sellers of the market. The short side can make you alot of money! The psychology is simple. If it's weak then sell it! If you're uncomfortable with being short then trade the spreads.

Unlike equities or futures, trading the downside in forex is not the same. For example, if Yahoo stock looks like it's going to decline, you'd short the stock, wait for prices to fall and then cover your short and take your profits. Or you could buy put options on Yahoo and cash in that way.

In forex, you're trading 2 currencies simultaneously. What that means, is when your trading a currency pair, you are buying one currency and selling the other at the same time. I'll give you an example, let's take the EUR/USD pair.

When you are looking at a price chart of the EUR/USD, and you see prices going up, you are only seeing 1/2 of the equation. What the price chart is visually showing you is that the Euro is going up in value, but what you don't see, and you need to build an intuition of, is that the USD if falling in value. So, in this case, when you see the EUR/USD chart advancing and you buy the pair, you are actually buying Euro's and simultaneously selling dollars. On the flip side, if you see prices declining and you sell the pair, you are selling Euro's and simultanously buying dollars. So, in reality, you are long on one currency and short on the other at the same time.

I still can't figure out why people can't get past making money on the downside - no offense to you I hope. The object of trading is to make money. Not to get a thrill or have fun, not to boost your ego - there is one and only one reason someone should be trading and that's to make a profit. So, if one can make a profit from the decline in the value of an asset, why would they not. Professional traders have no market bias, they don't care whether the market is advancing or declining. If there is a trade opportunity, they take it.

Hi Slash4gunners,
My wife and I came across your question and would suggest that you check out the FreedomRocks strategy. We've been using it on our live accounts for the over half a year and its the best investment choice we ever could have made. This is not directional trading, the system is not trying to guess which way the market is going to move. That鈥檚 why most people end up loosing all there money within the first 60 days. This is a long term investment strategy for the Forex market that takes the guesswork and emotion out of trading. If you would like some more info feel free to contact us and we would be more than happy to share our experience with you.

Best Regards,

Yo & Jaime
www.smartforexinvestor.com

Actually you are already trading the short side already. What do i mean ? Everytime you exit a long position, that exit is a sell order right ? What did you recognize about the situation for you to sell ? Well in the simplest form everything is in the reverse. Instead of buying say when the stochs are bottom sell when its at the top. Secondly, say when you are long a position what are your criteria to exit the position ? Those criterias are sell signals aren't they ? For more reversal techniques use Japanese Candle Stick.... http://www.geocities.com/lcming/Forexboo...

Trading in the Forex marketplace requires that you think a little differently than a normal investor. There is no real upside or downside. What you are seeing is actually the relationship between two different currencies. The price of the EUR/USD is actually the relationship or value of the Euro and the US dollar.

This relationship is influenced buy a number of factors. Government policies or interaction, consumer sentiment, industrial activities, economic conditions within respective countries...even the weather can have an impact on the production of goods and thus the value of a countries currency.

There are Forex strategies that are based on forecasting the future movement of a currency's price base on past performance. There are also strategies in which one currency pair is "hedged" or balanced against another pair making it less important if an individual currency price were to move up or down.

I would be happy to answer any additional questions which you may have.

pupp52@yahoo.com