So you want to be a forex trader? Well, 95% of traders lose but if you follow the steps enclosed, you will get a head start in your quest for forex trading success.
Step 1 – The Net Has ALL the Info You Need
It's all free and you can get tips on how to trade and all the background you need – a word of warning though. There are a lot of sharks waiting to take your money selling systems, e-books etc. promising you un told riches do not believe them and pass them by.
They will ensure you lose – forex trading success for a few hundred bucks? – do not think so.
One of the first lessons you need to learn when forex trading is to make sure that you devise your own plan, which you can have confidence in – otherwise you will not have the discipline to follow it in real time trading.
Only you can give yourself success no one else.
Step 2 Devising a Method for Profit
There are lots of ways to trade forex but the simplest way is to use a system based on forex technical analysis.
This method will take you under an hour a day and you can pile up huge profits – if you have a good method.
So what is a good method?
Here are some tips:
Look up breakout methodology and support and resistance – Breakouts are easy to understand, easy to apply and work.
B. TRADE LONG TERM
Forget day trading (it does not work) and trade longer term and try and catch the big profits from the big moves.
C. LEARN HOW TO ENTER
If you are trading breakouts or into support and resistance mentioned earlier – make sure you learn momentum indicators, which will enable you to trade with price momentum on your side – If you do not learn about moment and do not use it chances are you will lose.
So read up about momentum indicators and in particular the stochastic and Relative Strength Index – which are the perfect momentum indicators.
Also remember keep your system simple – simple systems work better than complicated ones as they have fewer elements to break.
3. A Forex Trading Strategy For Profit
The hard part in forex trading is not so much devising a method but learning to follow it with discipline through losing periods – this is tough mentally and most traders simply can not do it.
If you want to do it then by building your own system you will have confidence which will make it a lot easier to follow through the bad times (if you follow someone else you will not) as you will understand how and why your system works and why it will eventually win.
So far we have shown you how to build a trading system for free, and not buy from vendors on the net.
However, we do recommend you buy some books from Amazon on the top traders – these are guys who have walked the walk, rather than simply talk the talk and we have in other articles outlined the best books – so look them up.
95% of traders lose because they do not do the basics and want to buy success from someone else.
If you learn the basics and devise your own system you have a far greater chance of achieving currency trading success – in fact it's the only way.
Have the confidence to follow your own path and you will be richly rewarded for your efforts