subject: Survival tips on trading the Forex [print this page] Survival tips on trading the Forex Survival tips on trading the Forex
There's a false myth out on the web with so many marketers trying to hype up Forex trading, they almost make trading the Forex sound extremely easy. Well, from my four years of professionally trading the Forex, it is not easy. In fact, it can be hard and risky.
I use to be a hot head when I started out. I didn't have much of a plan, I pretty much just purchased a trading system and followed its signals with my fingers crossed. I lost a heap of money there. Wouldn't want to go there again.
One thing I must tell you is that there is no short cuts. If somebody says there are short cuts, well they're either trying you con you into buying their products or they're an inexperienced lier.
From my four years of being a newbie loser to a part time winning trader, here are my tips to success:
- Practice
This is core principle number one. Without practice, you are doomed. This is a business where it demands skills and execution. Trading the Forex is almost like an art, you need to fine tune your skills in order to win. So practice makes perfect.
- Demand continual education, either technical or fundamental
Education is the prime key. Do not ignore it. You'll never know enough, because just when you do, you find out you don't. We learn something new everyday, and in this risky business you need to put yourself ahead of the time. Either join up communities or sign up to blogs, you need to always raise your education.
- Purchase a solid trading system (one that suits your trading personality)
Don't waste time on scammy $97 systems. Get yourself something that suits you and your trading style. Some people argue that pure price action is the way to go, others suggest a good trading system. I use both, but depend more on my experience and knowledge.
- Learn what you are doing wrong, and make sure you do not repeat it.
You'll quickly pick things up with more and more practice. Do not attempt to go live without at least 6 months of demoing.
- Draft up a solid Forex trading plan with goals and strategies
- Stick to your plan
- Practice
- Practice
- Practice
That's it. That's no magic formula right? You shouldn't be looking for a magic formula. You must think there is a magic formula because of all the shiny products out there. Well, from four years of trading the Forex, you slowly learn to filter out the rubbish, and the real deal boils down to just fundamental principles. Get these right and you are on your way to financial freedom.