Discover how to to trade the forex market. 3 Steps to Success
Online forex trading is quickly becoming the avenue a lot of people are taking to earn money from home. It is the largest, most liquid market in the world. However, new and inexperienced traders are being led to believe it is easy to start making big money immediately. The real story is, in fact, the opposite. It is easy to lose money quickly. So why trade in the forex? Because big money can be made, however, there is no magic; it is just like any other investment vehicle available to individual traders.
Traders or those wanting to be traders can get a roadmap put together by a trader and research team. The three critical items all build to success, which can be simple, however, as stated above, easy money is different than simple money. Easy denotes that a trader can jump in plug in a “black box system” and become wealthy in a week. Simple denotes that a trader can learn and apply real world techniques and become very successful.
Here is the outline of the system, 1) Learn the basics of trading such as the terminology used and basic tools that are used to become successful. 2) Follow the teachings and mentorship of a teacher that has become successful. 3) Use a trading platform that will support your growth in trading. It is as simple as that.
What is a “ black box system”? Anybody that try’s to tell a new trader his or her system is so simple that you can be earning $6502 (or some other claim) this time next week by simply purchasing the “system” and plugging in. We all know that if it sounds “to good to be true” it probably is “to good to be true” never the less the guys make big money selling their systems.
If a new trader runs across a website the says that “we have a 95% success rate in trading or no losses in 23 trades, be very careful. A new trader will experience losing trades; it goes back to learning the basics and using fundamental techniques. Let’s take a closer look at losses. Lets say you have 100 trades, 25 losses and 75 wins. You average losing $100 per loss, on your wins you average $150. At the end of the day you have made a profit of $8750.
Can I just buy the trade signals and forget learning this stuff? To answer that question, the individual trader has to know the pit falls. Trading signals that you purchase should only be done, in the event, you are trading long term such as a weekly or monthly basis and holding those trades for a week to several months. There are services that offer to sell you the trade signals such as what trading pair to buy/sell, what target entry and exit price to execute. Lets use this example, I am using a one hour trade window, and I spot a good trade and its 1:00 PM in the afternoon I send you the details of how I am trading this pair, your at work. You get home and see the signal and find that trade closed out and made $500 bucks. Very disappointing, or worst yet, you get the signal and at 1:30 you get in to the trade, you may have missed the biggest part of the move, along comes 2pm and the government releases a report, trade turns around and you lose. Second pitfall of buying signals is the large amount of money needed, those wanting to start with a small deposit could be wiped out on a temporary downturn and then the market turns and goes in the expected direction of the trade, this will make a sane person crazy.
Go with the Steps to Success , do it the right way.
