Things That Every Beginner Traders Should Know Before They Start Trading in Forex
Forex trading is basically just an investment
As any other investment, there are always benefits and risks beyond forex trading. Many people/organization, especially forex brokers, its affiliate and those who earn their income by providing some forex related services says that forex trading have so much advantages compared to other investments; Forex is easy, with its non-stop 24 hours market, its wide range adjustable leverage, its automated trading platform, its offered better opportunity for income resource, and many more -- you name it as much as you want to...
Blinded by its 'beautiful dream imagination', many small/personal traders, especially for the new ones forgot that forex trading is basically still an investment program. Traders should never have a thought that forex trading is an income resource.
Common Beginner Traders Scenario
Beginner forex traders are usually follow the trend of forex trading without preparing and providing them self with an adequate understanding about what's inside forex trading. Their common scenarios are:
1. Know about forex trading.
2. Have an interest in forex trading.
3. Looking for an easy and profitable forex services
(Usually by looking for some services with less margin, high leverage, automated trading platform, and less risk? - which is too good to be true).
4. Start gambling with their trades
5. Unable to achieve profits as what their imagination
6. Repeating scenarios 3, 4 and 5
7. Repeating scenarios 3, 4 and 5 again... and again...
8. Realizing that they are losing too much or that their imagination along these days/weeks/months is wrong (i doubt that it would reach years)
9. Give up and quit their trading for good.
Where did they do wrong in above scenario? Is that wrong to always searching for a better service to back up our trade? In my point of view, there are no mistakes in that scenario at all. But it's just incomplete, and that's the most dangerous mistakes made by most beginner traders.
VIDEO :best way a beginner can trade forex
How to Overcome Traders Mistakes and Begin to Make Some Profits in Forex
The facts are, there are just 5% of forex traders which successes with their trading. To become as they are, we should insert step 2.5 in scenario above. This step will simplify above scenarios by eliminating the fourth and eighth and changing ninth step became TRADERS GOAL ACHIEVED.
2.5 Preparing yourself with a solid basic knowledge of forex trading
- Know about the fundamental of forex trading
- Learn about what and how forex market really is
- Train yourself to getting familiar with the technical analysis in forex trading
- Learn how psychological factor affecting in the trading and define our best trading personality
- Be aware in our risk and money management
- Develop your most effective unique trading system based on your knowledge.
We should keep in mind deeply that forex trading is an investment. There is no way that we could be a master in some investment that we've just dive in to for days or weeks. We have to do it by the right way, and don't forget to eliminate your rush in the goal achievement. You will surely find your best trading system that suits you, I guarantee that. But it would cost you some time for several trial and error system testing while you developing your experience in forex trading.
By using an analogical approach as a computer, forex broker is the application programs and operating system. We do need them to make sure that all we need its done, served and executed properly. But, how good the computerization execution speed and its performance are depends on the basic computer specification, which analogically as you.
How to Get Yourself Completely Forex Prepared
Learning and education materials are world widely spreading around us.
1. The first and the most value added a resource of forex trading is through book reading. Forex and investing categorized books are available in countless numbers in many bookstore and online bookstore. You should pick some of them to educate yourself with valuable knowledge of the theory beyond forex trading.2. Try to get into some traders forum to know more about forex trading and the markets. Forex forum also a place to give you an information for forecasting the crowd psychological factor to forecast the currency price movement by examining on how do other traders react in some financial forex related world events.
3. Get a forex course. An expert forex traders or forex broker are offering this kind of forex educational method. The course are usually about the basic knowledge of forex, technical analysis technique usage and its tools, an expert trading advice or maybe in how to develop a particular tested forex trading system which profitable (if done right and backed by your forex basic knowledge).
4. Forex magazine subscription. Some forex magazines are published weekly, monthly and others might be yearly. These materials usually give you information about the updated forex market behavior overview and analysis which can be use for the input of the fundamental analysis of your forex trading.
Where to Learn Online Forex Trading? Strictly for Newbies
Forex trading has gained a lot of popularity and momentum in the investment industry for the past decade. With the Internet and technology available these days, traders could easily trade Forex online from their comfort home without hassle. There are many ways for a newbie to kick- start his trading journey. Each of the advices highlighted in following article should be considered seriously by any beginner that wishes to be profitable in the Forex trading business.Learn from Books
Traditional books or e-books from reputable authors are one of the cheapest ways to learn the basics of Forex trading. You can obtain good books from any bookstores near your areas or popular e-bookstore from the internet easily.
Traditional books or e-books from reputable authors are one of the cheapest ways to learn the basics of Forex trading. You can obtain good books from any bookstores near your areas or popular e-bookstore from the internet easily.
Learn from the Websites or Forums
Websites and forums on Forex trading are grooming these days and it's very useful and one of the fastest ways to find a solution or answer towards any newbie's doubt. There are lot of independent bloggers share their trading experiences via their daily blogs and you can certainly benefit from these blogs as well.
Websites and forums on Forex trading are grooming these days and it's very useful and one of the fastest ways to find a solution or answer towards any newbie's doubt. There are lot of independent bloggers share their trading experiences via their daily blogs and you can certainly benefit from these blogs as well.
Attend Trading Courses
For newbie that could afford to pay for trading courses, it's one of the fastest ways to have someone to guide you to start your trading journey. However, you must carefully evaluate the courses carefully as well as research on the background of the trainer.
For newbie that could afford to pay for trading courses, it's one of the fastest ways to have someone to guide you to start your trading journey. However, you must carefully evaluate the courses carefully as well as research on the background of the trainer.
Learn from Forex Robot
Forex Robot has been receiving quite a bit of unfair criticisms and I personally feel that it has been a bit too harsh. You can actually use a Forex robot as a 'virtual trainer' by learning how the robot trades. Forex robot is an automated trading system for traders that wish to have a 'virtual assistant' to either trade on behalf or provide trading signals as guideline. However, once again, you must not fully rely on Forex robot and must evaluate the performance of the robot before committing huge capital on it. One good way to try out the performance is to demo trade using the robot and assess the performance over time. Newbie can benefit from how the robot trades and learn manually by demo trade online at the same time.
Forex Robot has been receiving quite a bit of unfair criticisms and I personally feel that it has been a bit too harsh. You can actually use a Forex robot as a 'virtual trainer' by learning how the robot trades. Forex robot is an automated trading system for traders that wish to have a 'virtual assistant' to either trade on behalf or provide trading signals as guideline. However, once again, you must not fully rely on Forex robot and must evaluate the performance of the robot before committing huge capital on it. One good way to try out the performance is to demo trade using the robot and assess the performance over time. Newbie can benefit from how the robot trades and learn manually by demo trade online at the same time.
You will need a lot of persistence, patience and diligence to be successful in online Forex trading. Invest in the education, demo trading, money management, forex automated system are key criteria that any newbie need to learn in order to be successful in this business. It looks tough but all you have to do is just to learn one thing at a time and make sure you take immediate ACTION in whatever you want to do!
