Here we will look at some essential Forex education which if you understand the points enclosed, they will give you a head start in your quest for trading success and help you join the elite minority of winners, when 95% of all traders lose money.
95% of all traders lose money and its pretty obvious from this fact that to win you need the right education but many traders simply want to follow sure fire systems, make no effort and lose. Forex trading is a business and just like in any business you need to get an education in terms of the basics and learn skills.
The good news is that Forex trading is easy to learn and the best Forex trading strategies are simple. The reason simple strategies are best is – they are more robust with fewer elements to break.
You can quickly learn the basics and a simple strategy which can win in a few weeks. The best way to trade is by using charts, because all you need to do is follow price action and you don’t need to know the news. You are interested in reacting to price change and locking into trends, by doing this you are trading the reality of price trends and not trying to work out opinions.
The above education shouldn’t take you long and you can put together a system which can make money and now we are going to come to the hurdle which stops most people making money and its their mindset. You need to trade with confidence and discipline to win and most traders simply cannot do this – so why do most traders lack discipline?
The reason is they don’t like losing and when they do they get angry and want to run losses or vary from their system and of course, if you cannot trade a system with discipline you simply don’t have one. You are going to lose for periods and the market will wring foot you and make you look stupid and if you can’t accept this the market will crush you.
You need to respect the market as all powerful and take your losses and keep them small – your aim is to hold onto equity! When good trends come around, you will be able to take advantage of them and make a profit on your account. Accept your losses, take them quickly and keep them small! If you understand that to win, you only need a simple system but the key to making money with it is to trade with discipline, then there is nothing to stop you enjoying currency trading success.