| The opinion about how easy it is to learn forex | | | | proclaimed loser traders? The trick is not to turn |
| trading seems to have two sides - while some | | | | yourself into greedy, money-hunting Uncle Scrooge, |
| resources claims that 90% of traders don't make it, | | | | constantly dreaming about the "deserved" itsy-bitsy |
| others provide arguments regarding the possibility of | | | | slice of the several-billion-a-day-forex pie. Focusing on |
| mastering forex and earn the living. Which source | | | | money is bound to affect the decisions and the |
| should you trust? Is it so black and white? Or it is | | | | quality of your trading. |
| rather gray? Do you have a chance to become a | | | | Instead, your ultimate goal is to brush away the |
| professional trader? | | | | thoughts of soon-to-be-obtained millions in your bank |
| In general, learning the basics of forex trading | | | | account and year-long holidays in Bahamas, and to |
| shouldn't be a problem. You don't need to have a phd | | | | concentrate on becoming rather mechanical in your |
| in economics in order to figure out the essence of | | | | trading, analyzing and profit calculating. |
| currencies. The vital parts that every beginner needs | | | | The most difficult part of it all is to chance your |
| to know by hard are: | | | | perception about profit-loss. It is in human nature to |
| 1. Technical and fundamental Analysis (yes, both of | | | | feel guilty, ashamed and hopeless when we find |
| them, since in order to see the whole picture, you | | | | ourselves in the loss situation. The trick is to turn the |
| need to use both analysis). | | | | loss situation into a lesson, write it down in your |
| 2. Charts and time frames | | | | trading journal and try not to make the same |
| 3. Candlestick | | | | mistake again. With one lesson learned, you are one |
| 4. The double P (pivot points)! | | | | step closer to unlock the profitable trader in you. |
| 5. Fibonacci | | | | Another worthy tip - keep it simple! Do not use all |
| 6. Support and Resistance | | | | the indicators possible and do not overanalyze. By |
| 7. Price movements | | | | thinking too much you block yourself from focusing in |
| 8. Money and risk management | | | | order to make decisions! |
| 9. Position sizing | | | | Lastly, stay away from overtrading. Fear it as you |
| 10. Trading plan, discipline and daily trading journal | | | | fear the tsunami, the apocalypses, the global |
| Once the basics are covered every trader realizes | | | | earthquakes, demons, cockroaches, graveyards - |
| that there is more to trading then just the theory, | | | | whatever makes you squeal! I personally have a huge |
| because even if you know it all by heart, you are still | | | | poster right above my computer saying " Don't |
| most likely to lose money. | | | | Overtrade Today, Stupid!" and it honestly helps! |
| So what is the solution? Is there a magic trading | | | | In case you cannot define overtrading, here are |
| strategy that assures success? Can you follow what | | | | some examples: |
| other successful trader does? | | | | · Putting on trades outside your rules / trading plan. |
| The problem is much deeper than you might think - | | | | · Putting on more trades than you can effectively |
| trading is all about emotions and here is where most | | | | manage. |
| traders fail. While your trading decisions are majorly | | | | · Scalping in and out of the market when holding a |
| influenced by your feelings and emotions, you are | | | | trade would have produced better profit. |
| most likely to stay on a loser's bench. | | | | · Feeling the need to get the lost money back |
| There is no one universal solution to forex, since it is | | | | RIGHT NOW! |
| dynamic, flexible and rather complex. In order to | | | | · Searching frantically for possible trades without |
| become profitable, it is necessary not only to be | | | | any reason for it. |
| top-notch analyzer, but also be ready for radical | | | | To summarize, yes forex is difficult but with the right |
| changes and fast logical decision making. | | | | set of mind you can earn the living with it. Becoming |
| What can possibly go wrong, even if you know it all?! | | | | in a way robotic and much less emotional will |
| Hesitation, fear, greed and envious frustration are | | | | tremendously help you not to freak out and cry over |
| well known pullbacks in trading. Every time a trader is | | | | the spilled milk, but rather move on to the next |
| attacked by these poisonous and destructive | | | | challenge. And no, the challenge is not about getting |
| feelings, most likely the poor decision will be made | | | | those lost money back. NO! The challenge is to follow |
| and, not only will the possibility pass by, but there is | | | | the plan, start over the next day and find the best |
| a big chance of significant money loss. | | | | opportunities. |
| So how to stay focused and not join the 90% of | | | | |