Foreign exchangetrading has been growing rapidly among day traders since the 1990s, asday traders have seen the advantages that trading currencies can haveover trading stocks. However, since there are fewer currencies forbeginners to purchase over the large number of stocks available, FXtrading can be much more difficult for a newcomer to learn and master.Still, there are some basic principles that someone new to foreignexchange trading should learn, and these concepts may even be helpfulto the experienced trader.The first principle of FX trading is to understand that trading is aninvestment, not an income. If you are looking to constantly boom in Foreign exchangetrading, then you may need to do a reassessment. FX trading, like otherforms of trading, allows you to make a good return on your initialcapital annually. However, during that year you need to expect some upsand downs in your foreign exchange trading. You could even have severalmonths where you have consecutive losses. It is probably in your bestinterest to have another source of income while you do FX trading.Another area where beginners sometimes find themselves frustrated isthat they try to predict the foreign exchange trading markets.Thousands of traders have influence over the FX trading markets, alongwith politics and economic events, so there is no way to predict whichway the market will move. There are some types of analysis that mayprovide an educated guess into market flow when doing FX trading,but they are not always reliable. Do not be discouraged, though, by thefact that you may lose on more trades that you gain on, as using soundmoney management can help you be successful with foreign exchangetrading.Making money from FX trading means that you need to make enough tocover your losses and gain profit to increase capital. When FX trading,you will need to allow your money-making trades ride while knowing whento cut your losses as soon as possible. foreign exchange trading meanslearning some finesse, as there can be a fine line where you will wantto wait a little for the market to turn in your favor on your losingtrades and also making sure you do not take your profit to soon on yourbetter trades.One way to handle your FX trading is to use a tested system and a money management strategy.There is no room for emotion when foreign exchange trading, so you willneed to use a business-like approach that has been tested on marketdata. Using a tested approach will save you a lot of stress whenforeign exchange trading. Also, using a sound money management strategywill allow you to use your capital in the best way when FX trading sothat you can maximize profit and avoid major losses.