Sunday, February 13, 2011

Forex for Beginners

This section is all about Forex trading for beginners and will give the basics of getting started in online Forex trading. Most beginners in Forex lose money because they are looking to make money with no effort and follow others or they simply cannot get the right mindset needed for success. Forex trading is a business and needs to be taken seriously and requires you learn to trade correctly and also adopt the right mindset.

Winners and Losers

The main difference between people who are successful in life and those who aren't is that those who are successful, possess the ability to take focused action. Having knowledge doesn't mean you will be successful - knowing how to apply that knowledge successfully is the key and this is very true in Forex trading.
If you hear from anyone that making money in Forex is easy, do not believe it It's not true, that's why 95% of all Forex traders lose money.

Don't Work Hard Work Smart

Being profitable in Forex trading does not require hard work, you don't get rewarded for the amount of hours you put in so work smart and learn the right info and you can learn Forex trading quickly. It's a fact anyone can learn a simple Forex trading system but to make money requires other traits which include - dedication, discipline, a knowledge of money management and an understanding of the psychology of the market. The real problem New Forex traders have is - they either believe that Forex trading is easy or they are mentally unprepared for the reality of trading a market.
Anyone can learn a Forex trading strategy which gives them the potential to win but very few traders are able to execute trading strategies with discipline. These traders soon end up losing money because they allow their emotions to dictate their trading but always keep the following point in mind:
If you can't trade a Forex trading strategy with discipline, you simply don't have one!

A Trading Strategy for Success

The reason anyone can learn a winning Forex trading strategy is because all the best ones are robust and simple, rather than complex. If you use a complex system it will simply have to many elements to break.
If you use Forex technical analysis and simply follow chart action, you will have a simple and powerful way to make money. You don't need to know the news or anything, about the economy of the country's currency you are trading – You are not interested in the causes of the moves, you just want to follow price action and lock into trends when high odds trading scenarios present themselves to you.

Getting the Right Mindset for Success

This is by far the hardest part for most novice Forex traders and despite the fact traders are told continually of its importance, they still fail to trade with discipline and let their emotions rule their trading. Despite all the advances we have seen in Forex trading systems and technology the fact is that the same ratio of traders lose today as they did 50 years ago and the number is a huge 95%. Can these traders learn to trade successfully? Of course they can but they fail to adopt the right mindset and lose.

So What is the Correct Mindset?

The correct mindset is one which is humble and is not frightened of taking losses. In fact, taking losses and keeping them small is the key to making money longer term. If you want to feel smart and clever and win all the time, don't trade Forex because you won't be able to win the majority of trades. This doesn't matter though and its a fact, many of the worlds best traders, make huge profits winning just 30 50% of the time and this is because:
They have the discipline to cut their losses and keep them small and the courage, to hold their winning trades to cover them and give them a huge overall profit.

Achieving Success – You Can Win!

The most important point we need to make in terms of Forex trading for beginners is this:
You can learn a simple system which can make money, anyone can do this BUT you must adopt the right mindset to make it profitable. The good news is getting the right mindset is a choice and if you make the right choice, there is nothing to stop you achieving a great second income from home trading global currency markets for profit.

34 comments:

  1. Ugh, economics have always made my head hurt.

    ReplyDelete
  2. Whenever I change money, I always get the worst deal. Not sure if I'd be cut out for FOREX trading.

    ReplyDelete
  3. Sounds a bit like stocks, but a bit... more interesting.

    ReplyDelete
  4. hmm never heard of this forex thing. need to check it out

    ReplyDelete
  5. even after reading this i'm not sure i understand what forex is still

    ReplyDelete
  6. I just made 2 accounts for went the A+ report comes out on the first friday of every month.. one account was short for a limit of 65 pips and a stop of 30 and the other was long with the same limit/stop.

    ReplyDelete
  7. I got to say this was certainly an interesting read. I myself have dealt within the forex market and haven't come to much success! Thanks again!

    ReplyDelete
  8. Very interesting article, appreciate it man. Ive wanted to get into Forex for a while, but always found it to be too risky.

    ReplyDelete
  9. Really interesting post. I always hear people making it big using "forex" trading. But no doubt many losers as well. Always interested in economics. Thanks for posting. Following.

    ReplyDelete
  10. Great read, really was a good read, didnt skip bits of a blog for once xD

    Im really interested in Forex trading, gonna look up simple strategies and see if I can understand the way it works basically

    ReplyDelete
  11. The best way to trade without emotion is to have someone else stake you. A lot of firms are willing to do this, but some also make you sign a paper saying that if you lose money then you owe them! Buyer beware.

    ReplyDelete
  12. Wow this is great stuff. I was always interested in Forex and stocks. Now I think I have a better understanding of Forex so onto stocks!

    ReplyDelete
  13. thanks for turning me onto forex, it's actually the first i've heard of it but this post makes me want to look into it further.

    ReplyDelete
  14. im so bad with my money it just burns a hole in my pocket

    ReplyDelete
  15. Interesting read, I hadn't heard of Forex up until this post, gonna check it out.

    ReplyDelete
  16. Going to eur for a class trip soon, going to keep this in mind, follow me back.

    ReplyDelete
  17. Thanks for these tips, il bookmark this so i can follow them later

    ReplyDelete
  18. helpful, for some people, not me though

    ReplyDelete
  19. great advice and interesting topic!

    ReplyDelete
  20. interesting, but this is too complicated for me ha

    ReplyDelete
  21. There used to be a forex app that let you trade for free although you never cashed anything in it gives you an idea on how it works, good fun

    ReplyDelete
  22. Wow you really put a lot of time into this!

    ReplyDelete
  23. Interesting stuff, this can definitely come in handy.

    ReplyDelete
  24. Good advice... thank you for sharing!

    ReplyDelete
  25. Being in the US I guess puts me in a crappy place initially for currency trading, huh? But still I'd like to give it a try, thanks for the advice.

    ReplyDelete
  26. Thank you for your advice, great read.

    ReplyDelete
  27. Awesome post my friend. Very informative. I've never heard of Forex but I guess if I follow your advice it shouldn't be too hard, just keep the right mindset right?

    ReplyDelete