Forex Trading Basics

12 days ago
2 Min Read
426 Words

Most of the people that get involved in the forex market lose money, 70%-90% of them. But there are some others that have been able to profit in a consistent way. I know successful traders have no special talents or skills; anyone can learn how to trade.

Many system sellers want you to think trading is complicated; their job depends on that. They say: "if trading is so easy why isn't everybody making millions?" And I agree with them trading is not easy; but it is simple. Just like saving money on a piggy bank it's not easy, but the concept behind it is very simple. Here are some basic ideas I want you to consider.

1. Learn to love your losses.

Not even the best traders of history have been able to win on every single trade. If you try to profit all the time you are going to lose. Learn to love your losses or, at least, accept that they are part of the deal. You should expect the occasional drawdown on you account from time to time. As long as your losses are under control, and your system has positive expectancy (makes more money than it losses) you'll be fine.

2. Find a good system.

To be a successful trader you need to find a good system. Having the right information is very important, Your decisions are only as good as the information on which they are based. Look for a system that operates in a mechanical way that has positive expectancy, and leaves nothing to interpretation.

3. Have enough money to trade.

One of the main advantages of currency trading is the minimal capital needed to open and fund your account. But you must be aware that having enough money to survive your losing periods is vital. Your bets should always have a safe size. If your trading capital is limited open a mini or a micro account. Every trade you make should be based on sound money management principles.

4. Consistency in execution.

To be a profitable trader is simple, as long as you are disciplined. You should follow your rules with consistency; never deviate. Don't let your emotions cloud your judgment. I know it's hard but the rewards are enormous.

I know trading the forex market can be a rewarding occupation. You could use, the forex market, to complement your salary or as your main source of income. Start-up costs are very low, the schedules are very flexible, the potential profits are very eye-catching. I hope this was helpful information!