With all the potential for profit and lifestyle there traders must also realise that success only comes with learning, consistency of approach and experience.

1. Price analysis
2. Trading account
3. Management
4. Methodology

FUNDAMENTAL ANALYSIS – The use of information gathered about news and events before or after they occur which have a causal effect on price movements.

TECHNICAL ANALYSIS – The use of mathematics, logic and or trend following techniques to study patterns and or trend momentum in price behavior.

Price analysis is not the only discipline to be addressed. There is no method which can possibly show currency trend changes successfully all the time. There will always be a significant percentage of losing trades. There will be alternate successful and not so successful periods. This is your “performance cycle.”

TRADING METHODOLOGY is the set of procedures you will use every time you trade, and it will require a great deal of thought. Method rules allow you to neutralize your personal psychology. One of the worst problems for traders is second guessing.
Method rules allow trading management to effectively manage growth. Trading management methods rely on consistency, mainly because the mathematics in them work on percentages. Selective trading is the practice of trading only a percentage of available trades based on criteria other than trading method rules, but it is important to remember that in trending markets, profitable and losing trades may alternate. Objectivity is an essential ingredient for successful trading. Your approach should be automated, scientific, free of emotion, and consistent.

Method rules allow you to incorporate your strategic plan with your trading. This is the blueprint you design for yourself which has all the details of your goals subject to all the constraints that exist in your situation. Your plan must consider all the inputs which will be necessary for you to achieve your trading goals.