Sunday, November 25, 2012
Forex trading 'Guru' ?, cut the crap and make some money now.
By Greg Stone
If you read any of the popular forums, you will get the impression that everyone is making money in Forex except you. There is no shortage of "trader gurus" sharing their cryptic trading advice with you, but how many people actually go beyond the cliches and share something substantial? In my experience, there's precious little useful information being shared by genuinely successful traders.
I've been exactly where you are. I wish I could say that there's a "magic" blueprint that I could offer you, or a tried and tested 'winning' trading system that you could just plug in and get rich, but in reality it's not that simple. You are going to make mistakes along the way, lose some money and feel like quitting. It's a completely normal part of the process that every trader has to go through before they start making any money at all. That said, there are a few things that I've learned over the years about trading that I'd like to share with you, to help you to start making money in Forex a lot faster than you otherwise would.
Before you lose (and you will) some real money trading the Forex markets, you should strive to learn the basics of technical analysis (TA). Some 'gurus' say that technical analysis does not work, but TA is a study of historical prices and how they flluctuate every time, without prices then what else do you have to base your decision on? To me, technical analysis can be as simple or as complicated as you want it to be.
Are you thinking "What the hell has all this to do with making money in Forex?" Well, how else are you going to decide what position size to take, when to pull the trigger and what are the potential win/loss scenarios? . Even if you're just going to follow someone's recommendation, normally they will have done their own technical analysis, so you'll be able to understand their reasoning behind calling a trade and know when things aren't going as predicted so that you can get out with your money intact.
You are probably asking now, "What the hell has all this to do with making money in Forex?" Well, how else are you going to decide what position size to take, when to pull the trigger and what are the potential win/loss scenarios? . Even if you're just going to follow someone's recommendation, normally they will have done their own technical analysis, so you'll be able to understand their reasoning behind calling a trade and know when things aren't going as predicted so that you can get out with your money intact.
Keep your losses small, or die.....
Once you've decided that you're ready to start trading real money (as opposed to trading a demo account), then obviously you choose a reliable broker and deposit some funds into your trading account. A word of caution here, make sure that you don't overleverage your account. That means that you should keep your leverage between 1:50 and 1:100, otherwise you may get frequent margin calls or have your account wiped out prematurely. Most beginners make the mistake of focusing on the big returns in their hurry to start making money in Forex, and not realizing that big risks come with those returns as well.
As you get more experienced, and as you improve yourself as trader, you will see that your losses start getting smaller and less frequent, and your wins start getting bigger and more frequent. Once you have achieved consistency in your trading, then you are finally ready to start making money in Forex. Until then, keep working at the basics, which are technical analysis, money management and most importantly, your mindset, above all, educate your self
As you get more experienced, and as you improve yourself as trader, you will see that your losses start getting smaller and less frequent, and your wins start getting bigger and more frequent. Once you have achieved consistency in your trading, then you are finally ready to start making money in Forex. Until then, keep working at the basics, which are technical analysis, money management and most importantly, your mindset, above all, educate your self
I've been exactly where you are. I wish I could say that there's a "magic" blueprint that I could offer you, or a tried and tested 'winning' trading system that you could just plug in and get rich, but in reality it's not that simple. You are going to make mistakes along the way, lose some money and feel like quitting. It's a completely normal part of the process that every trader has to go through before they start making any money at all. That said, there are a few things that I've learned over the years about trading that I'd like to share with you, to help you to start making money in Forex a lot faster than you otherwise would.
Before you lose (and you will) some real money trading the Forex markets, you should strive to learn the basics of technical analysis (TA). Some 'gurus' say that technical analysis does not work, but TA is a study of historical prices and how they flluctuate every time, without prices then what else do you have to base your decision on? To me, technical analysis can be as simple or as complicated as you want it to be.
Are you thinking "What the hell has all this to do with making money in Forex?" Well, how else are you going to decide what position size to take, when to pull the trigger and what are the potential win/loss scenarios? . Even if you're just going to follow someone's recommendation, normally they will have done their own technical analysis, so you'll be able to understand their reasoning behind calling a trade and know when things aren't going as predicted so that you can get out with your money intact.
You are probably asking now, "What the hell has all this to do with making money in Forex?" Well, how else are you going to decide what position size to take, when to pull the trigger and what are the potential win/loss scenarios? . Even if you're just going to follow someone's recommendation, normally they will have done their own technical analysis, so you'll be able to understand their reasoning behind calling a trade and know when things aren't going as predicted so that you can get out with your money intact.
Keep your losses small, or die.....
Once you've decided that you're ready to start trading real money (as opposed to trading a demo account), then obviously you choose a reliable broker and deposit some funds into your trading account. A word of caution here, make sure that you don't overleverage your account. That means that you should keep your leverage between 1:50 and 1:100, otherwise you may get frequent margin calls or have your account wiped out prematurely. Most beginners make the mistake of focusing on the big returns in their hurry to start making money in Forex, and not realizing that big risks come with those returns as well.
As you get more experienced, and as you improve yourself as trader, you will see that your losses start getting smaller and less frequent, and your wins start getting bigger and more frequent. Once you have achieved consistency in your trading, then you are finally ready to start making money in Forex. Until then, keep working at the basics, which are technical analysis, money management and most importantly, your mindset, above all, educate your self
As you get more experienced, and as you improve yourself as trader, you will see that your losses start getting smaller and less frequent, and your wins start getting bigger and more frequent. Once you have achieved consistency in your trading, then you are finally ready to start making money in Forex. Until then, keep working at the basics, which are technical analysis, money management and most importantly, your mindset, above all, educate your self
About the Author:
Before you waste any more money in Forex courses and self called gurus, make sure you check this website that offers excellent tips on avoiding Forex scams, and offers real Forex training advise.
Posted by AppleFanatic at 1:11 AM
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