If you are interested in learning to trade forex successfully, then the most common path for an aspiring trader these days is to search the Internet for information to apply immediately to their live forex trading account. The problem is that their search often leads them to destinations where there are plenty of false promises, bad ideas, negativity and an obsession with indicators. Many of the EBooks on sale today are filled with recycled concepts or incomplete strategies which the authors themselves do not use. Many authors do not earn money from forex trading but they earn their living by selling these EBooks to the novice forex trader.
This easy access to forex guru’s who fuel the idea that forex trading is the holy grail of easy money, then financially feed off those same people they have sold this idea to. At the end of the day what many of these forex guru’s sell is a gross misrepresentation of what it takes to trade forex for a living.
Forex Trading is not easy. You can become a good forex trader though dedication and by treating forex trading as you would any other skill. The reality is that it is hard work and must be treated with the same amount of seriousness as you would any other career.
The effect of all these gurus is that many forex traders start off overly optimistic with unrealistic goals. Whilst there is nothing wrong with a positive mental attitude but this positivity must be built on strong foundations and realistic expectations.
New forex traders normally start their career by purchasing some secret set of indicators and they are quickly punished for their naivety. Many of these forex traders then purchase a different set of secret indicators until they become disillusioned and then quit trading.
In fact, many forex traders that are now successful went through this learning process, including myself. This is only a problem if you refuse to learn from your mistakes. You need to break from this cycle of reliance on secret indicators and guru methods to be successful. online gaming merchant account providers
You help yourself in the beginning; by learning to think for yourself and understanding that whilst anyone can trade forex, to be successful, you must learn to BE a forex trader.
To BE A Forex Trader
To trade forex is easy, all you need is a forex trading account with money in it and then you enter the foreign exchange market and start trading.
To be a forex trader is more work. You need to grow from the starting point of having very little knowledge to the stage where you have a trading plan, understand the concepts and behaviour of the forex market and be able to trade with a cool head and understand that wins and losses are all part of being a Forex Trader.
Learning How to Trade Forex by thinking like a Forex Trader in Seven Steps.
1. Understand your place in the Forex Market
This is very important you must understand that you are very small fish in a big ocean.
In the Foreign Exchange Market the majority of the liquidity is coming from big banks and experienced institutional traders. These are the big fish. The big fish will happily enjoy you as a little snack.
You are only fooling yourself if you think it will be easy to take money off these big forex traders.
You have to learn to swim alongside these big fish and catch the same currents they do. Swimming against them just marks you as prey and sooner or later you will be eaten.
2. Learn to read the Forex Charts and Understand the Foreign Exchange Market.
Many novice forex traders believe that these big forex traders have access to some secret forex trading strategy or use a secret set of indicators, but the truth is this is just not the case.
These major forex players are using simple, but proven technical analysis techniques – most commonly horizontal support/resistance, identification of trading ranges, Fibonacci these are then coupled with fundamental themes.
Begin by accepting that the other major participants are highly experienced in the market and they make money because of experience and by a complete understanding of the core skills and not because they hold a holy grail of secret indicators.
3. Money Management
It is crucial that you understand as a novice forex trader the emphasis is not on how much you can make from forex trading but on how you manage what you have.
This is the most common downfall of all novice traders. It is common place to see a starting trader risk the majority of their account on one or two positions.