Learn
FOREX Trading in 6 Simple Steps
by Stephen Todd
FOREX
is a serious game. Play it with the pros
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This article is for anyone who wants to learn
FOREX trading with the view to making big profits.
It’s a well-known fact that anyone can
learn FOREX trading - but very few traders make big profits.
Here we are going to show you how to learn the
basics and apply them with the right mindset to succeed.
The Six Steps:
1. Attitude
Firstly, it’s a well-known fact that the
traders who make the money, approach FOREX trading with the attitude
they will do what it takes to succeed. This means they don’t
listen to guru’s or read tip sheets - they do it for themselves.
Too many novice traders think they can follow
someone else and be successful - but the only person who can give
you success is you!
2. Method
If you are going to trade FOREX, you need a method
- and this does not involve day trading - it involves long term
trend following. The big currency trends last for months or years
- and your aim is to lock into these currency trends, and make big
profits.
The best way to catch these long-term trends
is to use a breakout method - this is a PROVEN way to make money,
and breakout methods form the basis of many top-trading systems.
Good software is available form such vendors
as Omni trader, Trade station, and Supercharts – any of these
programs will allow you to test a method, and then when you’re
confident, trade it.
3. Discipline
By developing a method you are confident in,
means that you will be apply to apply it to the markets - and stick
with it, even through loosing periods.
Most traders who follow gurus and tip sheets
can’t do this – and as they haven’t developed
a method themselves, they soon throw in the towel and discipline
goes out the window.
4. Knowledge
You can learn a breakout method very quickly
- but you still need to overcome the psychological pitfalls of trading.
Read some books that focus on this area - some of the best include:
· Jack Schwager’s Market Wizards
and New Market Wizards
· Edwin Le Feurve’s Remisenences
of a Stock Operator
Also, any books by: Jake Bernstein and Larry
Williams.
These books are motivational, and will keep you
focused on the your task.
Trading is all about applying a trading system
with discipline - and these books will help you achieve this.
5. Taking a Risk
When learning FOREX trading, most traders try
and restrict risk above all else. However, they do it to such a
degree, that they end up taking losses as they get stopped out the
market. In many instances, the direction they chose was right –
but they just didn’t give the trade enough room on the downside.
If you want to make big money by FOREX trading,
keep in mind that with risk goes reward.
Taking calculated risks is quite different from
being rash - you simply need to wait for the right opportunity,
and have the courage of your conviction.
6. Trade in Isolation
Trade in isolation to stay focused - keep in
mind that if you are subject to the opinions and views of others,
which may differ from your own - it will put you off.
The fact that you may be doing trades no one
else may agree with, is good - Why? Simply, because 90% of traders
lose - so the mass opinion is not the one to follow.
Learn FOREX Trading
If you want to learn FOREX trading, and make
big money - you can do it. The proof is an experiment over two weeks,
with a group of novice traders. These traders were nicknamed the
“turtles” – and they went on to become some of
the most famous traders of all time.
If you want to learn FOREX trading, don’t
fall into the trap of believing that you can follow someone else.
Get the knowledge - and then take responsibility for your own financial
success. You will then be doing what 90% of traders don’t
do - and you can then enter the elite 10% of traders who pile up
huge profits consistently.
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Article Source: http://EzineArticles.com/?expert=Stephen_Todd
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