Here we will look at Forex trading made easy and despite the fact the vast majority of traders lose you can win if you work smart and get the right Forex education…
You do need to make an effort to win and while the rewards are huge for your effort, you do have to do some work, most new traders however think they can get away with doing no work at all! They fall buy a Forex robot and think they can simply plug it in and rich but if Forex trading was this simple, a lot more people would win. These systems don’t work so don’t be tempted by them!
The first point to keep in mind is that the best Forex trading systems are simple and this means, anyone can learn a solid Forex trading strategy for success, you don’t need to work hard, you need to work smart and you can easily learn a system in a few weeks.
Most traders think that if they make a lot of effort or trade often they will make more but the fact is this is not true. Trade to often and you will end up taking low odds trades and lose. Instead of scalping or day trading, low odds trades, trade the big trends. If you look at any Forex chart, you will see them and they last for weeks and months. So you need to lock into them and hold them. If you follow long term trends you can make triple digit profits in 30 minutes a day or less.
Finally, you need to approach Forex with the right mindset and learn to take and keep your losses small, if you run losses and hope they turn around you will lose.
If you are long term trend following you can lose more trades than you win but because your profits, will be far bigger than your losses you can make huge gains.
If you want to win at Forex you need the discipline to cut your losses and the courage to run your profits and having this mindset is essential for success. If you learn Forex the right way and get the right education and mindset, there is nothing to stop you enjoying a triple digit annual income.
By: Kelly Price
Posts Tagged ‘New Traders’
Forex Trading Made Easy – A Simple Way to Make Triple Digit Gains
February 28th, 2010Lack Of Forex Education A Major Cause Of Failure
December 11th, 2009
Lack of thorough Forex education can be costly.
Some new traders open a mini-account and immediately throw $5,000 at it, jump in and get their feet wet. Within 3 months or less the account is finished.
What happened?
There is a lot of hype surrounding the Forex! The internet is full of claims that you can turn a few hundred dollars into tens of thousands within months or 1 or 2 years.
With the most rudimentary information, new traders are sometimes encouraged to begin trading long before they are qualified.
Regretfully, some get-rich-quick merchants merely teach a little technical analysis and basic concepts in the Forex education they offer and miss what amounts to the most crucial part of Forex education: Mental and emotional discipline.
Aspects Of Forex Education
So in brief, here is how the various aspects of a thorough Forex education could be prioritized in increasing order of importance:
1. Forex terminology and trading mechanics
2. Learning how to read charts
3. Learning how to use the online trading software
4. Learning a variety of technical indicators
5. Learning a handful of proven strategies employing those technical indicators
6. Practicing in a demo account
7. Opening a mini account (still viewed as a practice account)
8. Strict risk management
9. Developing mental discipline and control of emotions through experience
Let’s take a look at this list a little more closely.
Notice the items of lesser importance have to do with the mechanics of trading. Most Forex education packages spend ample time on the mechanics.
But the most crucial aspects, the factors that can make or break a Forex trader are the last two, items 8 and 9.
Risk Management
Forex education must include a detailed explanation of risk management rules to be of any value.
You need to know how to calculate risk reward ratios and which trades your equity will allow and which ones you need to avoid.
Estimates vary as to what is the optimal risk percentage on any one trade. Some very conservative traders may suggest no more than 1%. As a general rule, 2% seems to be a reasonable figure allowing for a series of losing trades without putting the account in jeopardy.
More liberal traders even suggest 5% but in my view that is dangerous. Image the hit on your mental energies if you get 5 or 6 losing trades in a row if you trade with that kind of risk.
An effective Forex education will devote a serious amount of time to discussing risk management.
Mental Discipline
There is a reason why this is the most crucial factor of all. Most traders fail, not because they don’t have a good trading strategy, but because they lack the mental discipline to follow it.
The Forex can take an undisciplined trader on an emotional merry-go-round and empty the account at the same time.
That is why any Forex educational package of value will spend considerable time offering strategies and guidelines on how to keep mental focus and emotions in check.
Some Forex education package are put together by individuals associated with online brokers who don’t actually trade themselves. Avoid them.
Go With Professionals
If you are going to invest in Forex education, go to the professionals. Do a little research and make sure the people teaching you are seasoned traders themselves, preferably with years of experience.
So when contemplating the Forex, don’t be in a rush. Take your time, research, identify a good mentor, and be thorough in your Forex education. Eventually, you may be in the small percentage of traders who make a substantial income from currency trading.
By: Michael A Jones
Emini Education – What You Should Know Before Trading Emini Contracts
November 20th, 2009
Trading the emini index futures contracts has grown in popularity over the past few years since margin requirements are substantially lower compared to the full-size contract. Emini index futures trading is now available to people that in the past could not afford to meet the account minimum requirements for the full-size contract. Unfortunately, many new traders have opened futures trading accounts without first acquiring the necessary knowledge to become successful at futures trading, with many blowing out their brokerage accounts within the first few weeks.
Successful futures trading with emini index contracts requires preparation and careful implementation of a system that is mechanical in nature with total eradication of emotion. Mechanical trading systems are preferred since they use indicators and chart patterns along with pivot points, support and resistance levels as part of the system. A profitable trading system also includes guidelines for proper money management, a very important part of any trading system.
Money management or protection of capital is suggested by many successful emini traders as the most critical part of a mechanical system. A majority of seasoned traders with experience in the futures market concentrate on cutting bad trades short and letting the winning trades run. The importance of stop losses cannot be stressed enough and an experienced trader will know exactly where to terminate a trade should it go against him before he ever initiates the trade.
Although mechanical systems are designed to remove the emotional aspect of the individual trader using the system, the system does capitalize on the impact of emotion in the market with range, trend and price development. The markets are driven by insiders and emotionally charged packs of investors and traders which pushes the markets up and down offering trade set-ups that mechanical systems recognize and alert the trader.
By: Doug Fisher
