Friday, October 12, 2012
Learn Forex Trading--Trade Forex And Make Money
Many people have the ambition to trade currencies in the Forex market and to become very wealthy. Many people have indeed become very wealthy by trading on Forex. However the vast majority of new Forex players lose money steadily. Don,t ever think that currency trading is a fast and easy way to a fortune--it simply is not. Too many people step up to the plate in the Forex market without doing the necessary homework and preparation, which is essential if they are to have any chance of making money.You really need to take a Forex trading tutorial to get started.
As a new trader you are in a market which has many professionals trading all over the world, and many large funds and institutions which you will be competing against. These professionals have years of experience and know the nuts and bolts of the market completely. Even they don,t always win but they make enough winning trades to show a huge profit over a period of time. To enter this market "on a wing and a prayer" without a thorough grounding in the principles of trading currencies is simply asking for trouble and lost money.
To begin trading successfully you must read all the books, ebooks and literature on the subject which you can find. Participate in forums, and follow blogs related to Forex trading. During your studies you will learn the procedures you must use to determine the right buy or sell points for the currency pair you are trading.
Use market fundamentals, technical analysis of charts, and market news to make your trades.You can then register for a free demo or practice account, and use your new knowledge to trade with "play money". Use this make believe money as if it was your own money, and guard it jealously against losses by making only trades which are well considered and planned from study of the market. Don't ever trade wildly because you have no real money to lose. You will learn nothing if you do that. Treat every trade as if it were a real money transaction.At Forex school You will find information about how to trade Forex profitably and avoid losses.
Your trading should never involve guessing and depending on luck. Every trade should be based on facts and figures and market news. Every trade you make should be analysed afterwards to see why you won or lost, and should add to your store of trading knowledge. Becoming a regular winning trader does not ever involve depending on luck. You may indeed win some trades due to a lucky break but you will also lose when you have a stroke of bad luck.When you make a winning trade based on well considered information it's a great feeling--pat yourself on the back. When you lose don't feel too bad because even the best traders have many losing trades. But do analyse the losing trade to see where you went wrong, and make a note of this for future application. Write down your study of this bad trade and analyse it fully. Apply the new knowledge to your future trading and benefit from your experience.
Analyse every trade you make whether a winner or a loser--this can't be emphasized too much. In this way you will get a clear picture of your progress as a trader. You can trade with a practice account for as long as you want to, and you should do this till you feel competent, even if it takes a year or more. Only then should you move up to a mini or micro account where you will deposit a small amount of money (around $50 to $200) and start to make real trades involving just a few dollars.
The transition to using real money, even in very small amounts, will sharpen your trading mindset. Winning (or losing) real money is a lot different from the play money experience. You should trade with this micro account till you feel that you are trading confidently, and making enough good trades to show a profit over a period of time. Only then should you even consider moving up to a full account where you will be trading in much larger sums of money.At Forex school you can learn how to trade successfully and avoid losses.