Lets take the analogy of a cricket team. There are 11 players in each team in the match. All players are talented and super fit. Everyone can throw and catch the ball. Everyone is a hard hitter. However some are more skilled at balling. Others are more skilled at batting. Not many runs will be made and the match will be lost if the baller is going to do the job of the batter. Not knowing what type of a trader you are can make or break your trading career. Determining your trading style is very important right from the beginning.

You should focus on the non-commercial participants rather than on the commercial participants when you look at the COT report. You would ask the reason for ignoring the commercial category. Commercial participants are mostly trading forex futures for hedging purposes. They keep on rolling on their positions from month to month for hedging even though they maybe taking losses. This way they are hedging the foreign exchange risk for their business transactions.

Many forex traders choose the currency pair for trading without much study. Many traders make the mistake of forming their opinion around only one currency in the pair, ignoring the other currency in the pair. Right choice of the currency pair is essential for making good returns.

How do you measure the currency market sentiment? The mood of the currency market depends on what the majority of the traders are thinking about the present market situation. By reading reports of analyst and financial journalist in the news wires, you can get an idea of the overall market sentiment. You can also join online trading forums to see what other traders are thinking about the current market situation.

Harness racing is a category of horse-racing in which the horses race each other at a precise pace. They habitually drag two-wheeled carts that are called sulkies.