Contrary to what you may have read, there are no formulas that make you an instant millionaire. You can make things as likely as possible for you to succeed by formulating your own Forex investment plan that will also to some extent protect you from potential accidents.

As you plunge into the Forex market, you have three basic time frames to preserve your currency. Short, medium and long term. Each particular term has its advantages and disadvantages.

1. The short-term trader (dealer) deals with very fast trades, where they often buy and sell currency several times a day. Leverage is required to make money and also to protect your investment.

2. The medium-term operator retains the coins between one day and up to one week's time. The big advantage of the medium-term operator is that profits can be made with the least invested amount. This investment term is the type that people who are new to Forex trading usually want to start because they have fewer risks involved. The profit can be increased by leverage.

3. The long-term operator can keep the coins from weeks to months and even years. There is also a need for leverage here as well as short-term trading, both for profit and to protect your investment.

Whatever plan you decide to use, keep it. Do not try all three at once, as this will certainly cause confusion and cause loss.

Technical analysis is a perfect tool to use in your Forex investment plan to help you break the Forex market. Following trends through statistical analysis can lead you, the investor, to make decisions that will be profitable.

The technical analysis can be used to monitor many indicators as well as the important price activity. As you learn more about your personal needs in the Forex market, you can get programs that collect large amounts of data that you want to include in your analysis. You can customize and organize your plans for your personal investment strategy.

The investor has the potential to isolate himself from major changes in the Forex market because the market is open 24 hours a day, not including weekends.

A Forex investment plan should include a stop / loss order and take profits. Basically, the stop / lose order will allow you to leave the trade before things really hit the fan. It can be set when you place the order at a certain level and when the currency falls below this point, it automatically stops the order. For more information visit this website http://themichaelbai.com/

The order to take profits is the same as stop / loss, but it will stop the order once it has reached the set level to reap the benefits. It's a dilemma because you don't want to slow your earnings by placing a profit on your order, but unless you observe your account all day, the currency can fall like a rock and you can lose everything. It is better to drink a little and often.

The best thing about the Internet era is that you can get demo accounts created by Forex trading companies before you start in the real market. A Forex investment plan should include demo accounts as they are a great resource for learning how things work and for formulating your Forex investment plan. They are free and you get a certain amount of "dummy" currency to play.

Author's Bio: 

As you plunge into the Forex market, you have three basic time frames to preserve your currency. Short, medium and long term.