Find out what steps you should follow to start making money with Forex. Do not waste time creating a crazy strategy that would never work or think will make money without doing anything. Just Start!
If you are interested in learning how to trade in forex successfully, then the most common way to become an aspiring professional trader these days is search the Internet for information and immediately apply in your real trading account.
Sure this is a great way to learn forex trading online for free. The problem is that this search often leads you to other destinations where there are several promises, bad ideas, negativity and an obsession with indicators.
Many of digital books that are now available for sale are full of recycled concepts or incomplete strategies that the authors do not use. Many authors do not make money with forex, but earn a living by selling forex traders books to beginners.
This easy access to the forex world makes people think it is too easy to make money. Who gives you this image giving you wrong message. At the end of the day, what these gurus say is a wrong idea of ​​what a life trader is like.
Trading in Forex is easy, all you need is a trading account with money, then begin to open and close of BUY or SELL positions. It is very simple! However, to become a Forex trader it takes a lot more work.
Understand your place in the forex market – is important to understand that you are a small fish in a big ocean. In the Foreign Exchange market, the bulk of liquidity comes from big banks or institutional investors. These big fish’s move the market. You have to learn to move like a great fish to take the same currents and win.
Learn to read the Forex charts and understand the market – Many novice traders believe that professional traders have access to a secret trading strategy or use a set of secret indicators, but the truth is that there is no secret. These Forex heavyweights use simple analytical techniques, but that work. The most common are the technical analysis, the analysis of trend lines, support and resistance, Fibonnaci, among others.
Money management – It is crucial that you understand how a novice trader in forex that the emphasis is not on how much money you can earn on forex, but to manage what you have. This is the biggest mistake beginners do. It is very common to see traders risking most of the bill in one or two positions. This trading style is not sustainable and professional traders do not trade this way.
Focus on the market – Beginners open the trading platform and activate your most popular bookmarks and beautiful to find good places to open positions. The most certain is that this trading style is not successful for too long. When these indicators fail to generate gains, traders will quickly switch to another set of indicators.
You should focus on understanding what the indicators tell you, so you can choose the occasions where the probability of making money is much higher.
Plan your position and negotiate your plan – This is a very common saying that it looks like the novice traders forget. It should be the goal of any trader make pips on each trade as well as in your plan. Forex traders should treat each position as a business decision to calculate risk and to define points of exit and entry. Those traders that do not define these virtual values ​​will end up losing a lot of money when a position goes awry.
Your mind is the strongest asset and weakest link – Several books have been devoted to the subject of psychology and its relation to the trading. This does not mean that all these books will help you, but you should see this as a sign that you should not ignore. First, you must understand what the weight of psychology in trading is. You must learn to understand that his personality will affect the way we invest money.
Understand that the forex market is always right – The forex market is an interesting place, but there is one thing that all traders must learn. Always expect the unexpected and do not set at past successes. No matter what your charts or indicators tell you. Sometimes the market will simply do the opposite. To finalize in the next weeks I will prepare an learn forex trading pdf for you.