Learn Forex Blog

Newbie asked:


I am new to the forex market and am looking for a good trading system that actually works. Can someone point me in the right direction please?

NEVEU

Kelly Price asked:


If you want learn forex trading, you need to get the right Forex education and work smart and you will be able to join the elite 5% who make big profits and avoid joining the losing majority. Let’s look at how to learn Forex trading the right way.

1. You are Responsible

If you think that someone can sell you an e-book or forex trading system and make you rich think again. While you can get good forex education from some sources you can’t follow it blindly.

Successful trading comes from within and means having a forex trading strategy you understand and have confidence in, so you need to do some homework.

If you don’t understand EXACTLY how your Forex method works, you won’t have confidence in it and you won’t have the discipline to follow it through losing periods.

2. Avoiding Common Pitfalls

Many traders put in a lot of effort but get the wrong forex education and try methods that are never going to work.

Here are the two most common errors you can make:

Day trading:

This method makes me laugh, you can’t win and its obvious why - all the data is random. 95% of forex traders lose but this increases to 100% in the case of day trading.

Predicting:

Many traders think they have to predict where prices are going to win - but predicting is really hoping or guessing and you won’t make money relying on hope. You need to act on confirmation and I will come back to this later.

Also many traders fall for the markets move to scientific theory - rubbish! They don’t. If markets moved to scientific theory, we would all know the price in advance and there would be no market.

There the two most common mistakes and there are many more - they are mostly believed by lazy traders who think trading is easy.

3. A Forex Trading System For profit

You can build one easily and it only needs to be simple and your all set to trade for profit.

If you learn Forex trading correctly you will see why - simple trading systems are more robust and have fewer elements to break.

Use Forex technical analysis and charts and ignore the news. If you do it based upon charting you will be able to simply follow price trends and lock into them.

A simple currency trading system that trades support and resistance is ideal - you either look for it to hold or break and go with the potential move. What you need to do is CONFIRM you’re trading signals before entering.

Most traders like to simply buy into support and hope it holds and predict.

What you really need to do is wait for support to hold, by watching price momentum turn up – You are then trading with the odds. If you don’t know about momentum indicators look them up.

If prices break above resistance learn to go with the break and learn breakout methodology. Most major moves start from new market HIGHS not lows - so learn to go with the breaks based upon momentum.

That’s a simple system outlined that will work just support resistance and some momentum indicators.

4. Deal With Risk and leverage

Leverage is what makes Forex trading so lucrative and also destroys novice accounts because they can’t handle it.

You need to learn to take calculated risks when the odds are in your favour and employ strict money management. Don’t make the mistake of trying to restrict risk to much as you will simply create it and guarantee you will be stopped out.

It’s a balancing act you need to take risks but make sure the odds are in your favour when you do

5. A Plan For Profit

In any business you need a plan and Forex trading is no different, set a target and work towards it.

If you were to compound 100% per annum you will be up there with the best traders in the world.

Be patient in reaching your goal – good high odds trades don’t come around everyday, so trade sparingly.

I know traders who trade just a few times a year and compound 100% or more!

Keep in mind in forex trading you get paid for being RIGHT not the amount of times you trade.

If you want to be professional Forex trader you can, if you learn Forex trading the right way and get the right Forex education.

Most traders are too lazy, or think it’s easy to win and while it’s not difficult, you do need to take responsibility and work smart in the right areas.



BEEDY

Kelly Price asked:


Anyone can learn to trade forex and anyone can get the right education but the fact is most people fail at forex trading and 95% wipe themselves out. This is mainly due to believing myths and not having the right mindset. Here we will give you some tips on getting the right forex education to win.

First things first!

If you don’t like risk, don’t trade forex. You will here a lot about how you can cut risk and you can but it still remains highly speculative.

You also need to take responsibility for your actions - no one else is going to make you rich, success comes from within.

So ignore all the vendors who tell you they have secrets and can make you rich. Reputable ones can help you by teaching you the right tools but you need to apply them - the rest is then up to you.

The fact remains that most traders fail because they lack discipline, to apply their methods. The only way you will acquire discipline is - to have confidence in what you are doing and this comes from forex education and knowing how and why your system works.

Also, don’t believe any of the myths below, there all guaranteed to make you lose and nearly every forex trader that loses, believes one or more of them.

- Day trading works

- Markets move to scientific theories

- You can predict in advance what will happen

- Complicated systems are best

- The more you trade the more you will make

- You can trade the news and win

- The more effort you put in the more profits you will make

All the above are dead wrong and will see you lose.

We don’t have time to go through every point in detail here - but there all covered in our other articles - so banish the above thoughts from your forex education now!

The way to make money in forex trading is to work smart NOT Hard.

You don’t get paid for effort and you don’t get paid for how often you trade you get paid for being right.

Use a simple forex trading system. It will be easy to understand and apply and you will get confidence and discipline.

Make sure you don’t predict prices - prediction is another word for hoping and guessing and that’s not the way to make money in any venture and certainly not forex trading.

Act on confirmation of price momentum - if you know nothing about it learn it now.

To keep disciplined the best method is a simple method based upon forex charts.

Don’t pay to much attention to news stories.

Sure, they sound convincing but their stories and the majority lose and news reflects the majority!

Working Smart To Win

If you want the perfect example of working smart and not hard then you should read the story of the turtles.

In 1983, trading legend Richard Dennis taught a group of people to trade - to prove that anyone could win at forex trading, with the right forex education.

None of the group he picked had ever traded before and they were from diverse backgrounds, of all ages and of both sexes.

In 14 days he taught them and then set them off to trade - the result?

They made him $100 million and many went on to become trading legends.

This shows you what the right forex education can do and while you may not become as rich as the turtles, it’s a fact anyone has the potential to trade successfully.

Success Comes From Within

Trading is a deeply personal experience and you not only need the right skills you have to have the right mindset to apply them - if you don’t, you have no method in the first place.

This is why most traders fail - they can’t accept responsibility and they don’t gain inner confidence. If you can , the potential from currency markets is mind boggling and the rewards can be life changing.

The real question is do you have the desire to succeed and will you learn forex trading the right way?

If you do then - welcome to the world of forex trading, the worlds most exciting and lucrative business opportunity!



STAIGER