Apply fundamental and technical analysis.

At the beginning of my trading I relied only on the money management on which I wanted to base my strategy and saw no sense of these analyses. But money management which is still very important doesn't worth omitting them. You can forecast the direction of the market basing on your technical and fundamental strategies to see their effectiveness.You'll be able to make forecasts of price movements by applying the past data of the prices and graphs to the technical analysis methods. You can predict future prices with the level of accuracy dependent on your technical analysis skills using the graphs of the rates you observe.Trading with some brokers you can see technical indicators along with the graphs. You can apply it to your demo account and estimate your prediction skills necessary for planning trading decisions.It is impossible to choose the most effective indicator among lots of various ones. Each trader has to decide for himself which indicator is best for him. You can't find any magic formula; you just see the graphs, make your forecasts and find out whether they come true seeing the values in the news later.Your decisions form this formula along with your knowledge that occurs out of the practical experience. Starting trading with an online broker it's best for you to trade with yourself on the sheet of paper rather than invest real money at once.There are a lot of technical analysis indicators available but here are the ones which are the most wide-spread: the Moving Average Convergence Divergence (MACD), the Bollinger Bands, Pivot Points, RSI, Stochastic, Fibonacci, EMA, Elliot Waves.The broker's software will automatically make all the necessary calculations when you add the technical analysis indicator to the graph so that you'll see some facts which are unavailable without using these indicators. It is even possible for you to build your own technical systems basing on these indicators.Fundamental analysis is another tool that maximizes your profit and minimizes your losses on the trades. There are some traders who prefer only one kind but the majority prefers both.Fundamental analysis means trading following the news, e.g. telling about the economies or unemployment rate in the countries of the currencies you trade. They can also tell about the events that can have a strong influence on the currencies' exchange rate.