The final, and by far one of the most important factors to your success is money management (sometimes also referred to as position-sizing).

You should trade forex in an environment that is conducive to trading, not in the middle of your bedroom or family room where other members of the family are interrupting. The workstation should allow easy scanning of the markets. Many traders have multiple
screens. You don’t have to get carried away.

Like many professions where risk is encountered, taking forex trading seriously requires ongoing training. The airline pilot flies in simulation many hours before actually flying passengers. The simulation tests reactions to scenarios that enable practice of risk management. Similarly, a demo forex trading account can become a major tool for
improving your trading skills.

It’s always a good idea to test your knowledge on evaluation of forex markets. Adding to your core skills is an on going activity. In this chapter and in our web support, we provide chart challenges to stimulate your thinking.

It’s useful to assess price action with a moving average crossover. The concept is to use a longer moving average period against a shorter one - for example the 55-period simple moving average vs. the 5- period simple moving average. When the shorter moving average, crosses above or below the longer averages it may signify a change in direction.