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.

EUR/USD

The greenback rose against the yen and euro today after data showed that initial US weekly jobless claims decreased by more than expected to a 2.5 year low.

The euro slipped against the dollar today as doubts over a lack of concrete policy measures to tackle the euro zone debt crisis hit sentiment and pushed peripheral debt yields up. It looks as if the market has got a bit ahead of itself with the euro as concrete policy measures to address the debt crisis are unlikely to materialize before the end of March. The single currency was down 0.6% against the US dollar at USD1.3650.
Sterling was down 0.1% against the dollar at USD1.6077 ahead of the Bank of England interest rate announcement at 1200 GMT. The currency fell briefly after the Bank of England's monetary policy committee decided to keep interest rates on hold while UK March gilt and short sterling futures edged higher. Sterling fell to a session low of USD1.6017 soon after the announcement from around USD1.6055. It recouped those losses, but was still 0.3% down for the day.

EUR/GBP rallied today to a European session high of 0.8519 in a knee-jerk reaction to the Bank of England's 12:00GMT decision to keep Bank Rate at 0.5%, with an approximate 31 pip drop to an intra-day low of 0.8477. A large 0.8475 option strike rolls off at today's 10am Eastern Time NY cut (15:00GMT).
The Swissie was soft versus the dollar and euro today ahead of Swiss consumer price data as investors' grew more confident about the global economy and invested less in safe haven currencies such as the franc. The franc was 0.3% weaker against the dollar at USD0.9607 per dollar. Swiss consumer sentiment data published today highlighted once again the healthy state of the Alpine economy as the confidence index rose to 10 points in the January from 7 points in the previous quarterly survey.

Ongoing demand for shorter dated USD/JPY upside strikes has seen 1 week 25 delta reversals paid up at 0.75 for the JPY puts this morning from 0.5 yesterday. We have also seen 1month 25 delta reversals slip back to the more familiar 0.25 for JPY calls from rates nearer 0.4 at the start of the week. The U.S. Labor Department reported that initial state jobless benefit claims fell to 383,000 in the latest week. Markets were expecting claims of 410,000.The dollar rose to 83.15 yen after the data from around 82.92 yen prior to the release.

source: http://www.fxstreet.com