Learn Forex Trading – 7 Essential Points you Need to Consider
June 29th, 2008
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Kelly Price asked:
If you want to learn Forex trading, then you need to consider the 7 facts enclosed or you will end up in losing 95% of traders. So here are the 10 facts that are essential part of your Forex education.
1. Forex Trading Requires Effort
It amazes me how many people think they can buy a forex trading system from a vendor and make huge amounts of money, following someone else - and only paying a few hundred dollars for the privilege!
If you fall into this category, change your view quickly or lose – life is not that simple. When there are big profits to be made, you need to take responsibly for your actions.
Success relies on you. The good news is that in terms of the effort you have to put in, the rewards are huge.
2. Forex Trading Requires Self Confidence & Discipline
The reason you can’t buy a Forex trading strategy from anyone else is, that you need to have confidence in what you are doing and this only comes from an understanding of what you are doing.
Confidence is vital, as it leads to discipline and you need discipline, to apply your currency trading system. If you don’t have the discipline to apply it, you don’t have a system.
This simple point is one most novice traders ignore – but it’s impossible to follow someone else’s system or one you don’t understand – that’s why you have to do your homework.
3. Forex Trading Doesn’t Take Long To Learn
You hear a lot of people telling you that knowledge is essential to forex trading success – its not.
You need the right knowledge and that doesn’t take long to acquire.
You also here people talking about, how you should analysis each trade after the event and why it won or lost – What’s the point of that? If you have a system you follow and it trades the odds it will lose and win, there is no point in wasting time looking at further.
Once you have a logical system you understand, you execute it and that it.
Don’t waste time learning knowledge for knowledge sake, or pouring over what might have been.
4. Forex is an Odds Game
Forex is a game of probabilities not certainties – ignore anyone who tells you that markets can be predicted by scientific theory – they can’t.
If they could we would all know the price in advance and there would be no market. Forget theories such as, Gann, Elliot wave and Fibonacci – leave them to the far out investment crowd and learn ones that can make you money.
5. You Don’t Need To Spend Much Time Trading
Your trading, should take about 30 minutes a day that’s it.
You only need to work of closing prices and forget day trading (it doesn’t work) which is great, as you don’t have to do any intra day monitoring.
Don’t spend more time than you need to on trading.
You Only Need a Simple System
Simple systems work better than complicated ones and that’s a fact.
Why?
Because - they are more robust in the face of brutal market conditions, with fewer elements to break.
6. You Will Have Periods Of Drawdown
They will last for weeks or even months and you can’t avoid them - so make sure you’re prepared for them and have the patience and discipline to ride them out
7. You Need to Know Your Trading Edge
Before you start trading ask yourself one question:
What’s my trading edge – why should I be a winner when the vast majority of traders lose?
If you don’t know the answer, you don’t have a trading edge and are 100% guaranteed to lose, so make sure you have one, understand and what it is before you trade!
There you have it some simple points to think about.
If you approach forex trading in the right way it can make you more money than almost any venture in terms of the effort involved.
Keep in mind though that it’s not as easy as most traders think and that’s why they lose. Hopefully, the above points have given you something to think about which will help you learn forex trading in the right way and to enable you to get the right forex education.
ORGILL
If you want to learn Forex trading, then you need to consider the 7 facts enclosed or you will end up in losing 95% of traders. So here are the 10 facts that are essential part of your Forex education.
1. Forex Trading Requires Effort
It amazes me how many people think they can buy a forex trading system from a vendor and make huge amounts of money, following someone else - and only paying a few hundred dollars for the privilege!
If you fall into this category, change your view quickly or lose – life is not that simple. When there are big profits to be made, you need to take responsibly for your actions.
Success relies on you. The good news is that in terms of the effort you have to put in, the rewards are huge.
2. Forex Trading Requires Self Confidence & Discipline
The reason you can’t buy a Forex trading strategy from anyone else is, that you need to have confidence in what you are doing and this only comes from an understanding of what you are doing.
Confidence is vital, as it leads to discipline and you need discipline, to apply your currency trading system. If you don’t have the discipline to apply it, you don’t have a system.
This simple point is one most novice traders ignore – but it’s impossible to follow someone else’s system or one you don’t understand – that’s why you have to do your homework.
3. Forex Trading Doesn’t Take Long To Learn
You hear a lot of people telling you that knowledge is essential to forex trading success – its not.
You need the right knowledge and that doesn’t take long to acquire.
You also here people talking about, how you should analysis each trade after the event and why it won or lost – What’s the point of that? If you have a system you follow and it trades the odds it will lose and win, there is no point in wasting time looking at further.
Once you have a logical system you understand, you execute it and that it.
Don’t waste time learning knowledge for knowledge sake, or pouring over what might have been.
4. Forex is an Odds Game
Forex is a game of probabilities not certainties – ignore anyone who tells you that markets can be predicted by scientific theory – they can’t.
If they could we would all know the price in advance and there would be no market. Forget theories such as, Gann, Elliot wave and Fibonacci – leave them to the far out investment crowd and learn ones that can make you money.
5. You Don’t Need To Spend Much Time Trading
Your trading, should take about 30 minutes a day that’s it.
You only need to work of closing prices and forget day trading (it doesn’t work) which is great, as you don’t have to do any intra day monitoring.
Don’t spend more time than you need to on trading.
You Only Need a Simple System
Simple systems work better than complicated ones and that’s a fact.
Why?
Because - they are more robust in the face of brutal market conditions, with fewer elements to break.
6. You Will Have Periods Of Drawdown
They will last for weeks or even months and you can’t avoid them - so make sure you’re prepared for them and have the patience and discipline to ride them out
7. You Need to Know Your Trading Edge
Before you start trading ask yourself one question:
What’s my trading edge – why should I be a winner when the vast majority of traders lose?
If you don’t know the answer, you don’t have a trading edge and are 100% guaranteed to lose, so make sure you have one, understand and what it is before you trade!
There you have it some simple points to think about.
If you approach forex trading in the right way it can make you more money than almost any venture in terms of the effort involved.
Keep in mind though that it’s not as easy as most traders think and that’s why they lose. Hopefully, the above points have given you something to think about which will help you learn forex trading in the right way and to enable you to get the right forex education.
ORGILL
