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Learn FOREX Trading in 6 Simple Steps
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Successful Trading – Establish Your Risk Level
Before you embark upon a journey of trading stocks or futures, and before you make any trades, you MUST determine and establish your risk level. Traders that fail to do this are usually doomed from the start. The fact is that most trading accounts that go bust are because of the failure to determine at what point the trader will cut their losses and move on to the next trade. Rookie traders are...
Learn FOREX Trading in 6 Simple Steps
This article is for anyone who wants to learn FOREX trading
with the view to making big profits.
It’s a well-known fact that anyone can learn FOREX trading
- but very few traders make big profits.
Here we are going to show you how to learn the basics and
apply them with the right mindset to succeed.
The Six Steps:
1. Attitude
Firstly, it’s a well-known fact that the traders who make
the money, approach FOREX trading with the attitude they will
do what it takes to succeed. This means they don’t listen to
guru’s or read tip sheets - they do it for themselves.
Too many novice traders think they can follow someone else
and be successful - but the only person who can give you success
is you!
2. Method
If you are going to trade FOREX, you need a method - and
this does not involve day trading - it involves long term trend
following. The big currency trends last for months or years
- and your aim is to lock into these currency trends, and make
big profits.
The best way to catch these long-term trends is to use a
breakout method - this is a PROVEN way to make money, and breakout
methods form the basis of many top-trading systems.
Good software is available form such vendors as Omni trader,
Trade station, and Supercharts – any of these programs will
allow you to test a method, and then when you’re confident,
trade it.
3. Discipline
By developing a method you are confident in, means that
you will be apply to apply it to the markets - and stick with
it, even through loosing periods.
Most traders who follow gurus and tip sheets can’t do this
– and as they haven’t developed a method themselves, they soon
throw in the towel and discipline goes out the window.
4. Knowledge
You can learn a breakout method very quickly - but you still
need to overcome the psychological pitfalls of trading. Read
some books that focus on this area - some of the best include:
· Jack Schwager’s Market Wizards and New Market
Wizards
· Edwin Le Feurve’s Remisenences of a Stock
Operator
Also, any books by: Jake Bernstein and Larry Williams.
These books are motivational, and will keep you focused
on the your task.
Trading is all about applying a trading system with discipline
- and these books will help you achieve this.
5. Taking a Risk
When learning FOREX trading, most traders try and restrict
risk above all else. However, they do it to such a degree, that
they end up taking losses as they get stopped out the market.
In many instances, the direction they chose was right – but
they just didn’t give the trade enough room on the downside.
If you want to make big money by FOREX trading, keep in
mind that with risk goes reward.
Taking calculated risks is quite different from being rash
- you simply need to wait for the right opportunity, and have
the courage of your conviction.
6. Trade in Isolation
Trade in isolation to stay focused - keep in mind that if
you are subject to the opinions and views of others, which may
differ from your own - it will put you off.
The fact that you may be doing trades no one else may agree
with, is good - Why? Simply, because 90% of traders lose - so
the mass opinion is not the one to follow.
Learn FOREX Trading
If you want to learn FOREX trading, and make big money -
you can do it. The proof is an experiment over two weeks, with
a group of novice traders. These traders were nicknamed the
“turtles” – and they went on to become some of the most famous
traders of all time.
If you want to learn FOREX trading, don’t fall into the
trap of believing that you can follow someone else. Get the
knowledge - and then take responsibility for your own financial
success. You will then be doing what 90% of traders don’t do
- and you can then enter the elite 10% of traders who pile up
huge profits consistently.
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Trading Analysis: The Big Mac
The Big Mac Factor... And What It Means to You
When "experts" say the dollar is "overvalued and about to
crash," what exactly is it that they're talking about? How do
they know?
It turns out, they don't know what they're talking about... as
the U.S. dollar is not undervalued or overvalued versus the
major currencies of the world, based on how much a dollar buys,
versus how much a...
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