Many people are looking for the "holy grail" of successful trading. Let me tell you that there is no such thing. With that Said, let me also state that there are "KEYS" that will help you become a more successful trader.
One of the things I like about the currency market is the ability the currency pairs have to trend for long time periods. This give us a distinct advantage over the stock or options market, in that we can jump aboard and catch a ride with what the "big" guys are doing. Therefore, the number 1 key in successful currency trading is to be able to identify the TREND of the pair you are trading.
KEY #1: Identify and trade the trend
A trend is simply defined as the general direction the currency pair is moving. If the pair is making higher highs and higher lows, it is trending up. If it is making lower highs and lower lows, it is in a down trend.
In the chart below, you can see an uptrending currency pair and circled you can see the points you would look to buy the currency pair. You would do the opposite if the stock was trending down.