Many traders ask me how to trade Forex, many have read a handful of books and articles, a few have bought into the current trend of automated trading engines.
What they all share in common is that they have lost a lot of money. Why? the reason is simple, trading Forex requires perseverance, patience and skill. Most of the would be traders I've spoken to, have none of the above.
The majority were told that it's simple and easy money, all you have to do is set up a trading platform with charts, plot some indicators and that's it, money in the bank. A few were sold trading robots, here they were informed; just get a Metaquotes (MT4) platform set it on auto trade and go to the beach, or play Basketball or whatever makes you tick.
Easy eh? Yep, an easy way to ensure you kiss your money goodbye. Why do trading robots not work? well some do, for a while, however, they need to be set up in a specific way, they need to kept in check and one really needs a good understanding of trading and some coding for that.
So, is your dream of becoming a decent Forex trader at all possible.
The answer to that will depend on entirely on you, are you willing to do the essential work, taking the required activities to become one?
If on the other hand, you can, then spend the time mastering exactly what it is about. Learn also, what it is not about. Here are some elementary details about Currency trading:
1. It is a large market and is primarily controlled by large institutional players working for financial establishments.
2. No matter how big you trade, you chicken feed compared to the big boys.
3. Currencies respond quickly and sharply to news affairs, undoubtedly the planned ones, like Interest rate, GDP, CPI etc, but can often also turn on a dime when some unforeseen news item hits the wire. This is specially true when some central banker or politician is commenting.
4. If no special news, currencies often trade in ranges, and it is very important to find out what they are.
5. This is a highly leveraged market, and leverage can work against you. Ensure you know how many Dollars per pip you are trading.
If you need any assistance, I am always happy to provide some assistance via the my facebook page or my blog.
Are you ready to invest some time and some money in a Forex trading education??
I have been trading and making a good living for 7 years now, I run a trading blog (http://tradeconscious.com) and a Traders chat room, so I can tell you that it is possible to learn and become a successful trader, are you available to take the needed Forex trading training?
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