Keep reading to learn the exact factors you need to take into account if you want to make money trading forex. It's common for beginners forex trading to underestimate these factors and waste a lot of time getting frustrated with useless strategies and trading systems.
Let's face it, to the beginner forex trading can seem very confusing - it's very different to the stock market which most people are familiar with - the forex market is different. The easiest way to think about it is that each currency is a sort of "vote" as to how well a country's economy is performing i.e. if the Japanese economy is doing well then the Yen should be strong.
The reality unfortunately is not that simple!
Currency prices actually move around for many different reasons and because the daily turnover in the global forex markets can be as much as $3 trillion its is virtually impossible to try and rely on "guessing" how currency rates are going to evolve - there are just too many factors to consider and you can become paralysed by indecision.
To avoid this beginners forex trading MUST use a reliable trading system. A proper system removes the element of guesswork from your trading and puts the odds of success in your favour. Unfortunately not all systems are created equal and if your experience has been anything like mine then you have probably come across a few systems that failed to live up to the advertised promises.
However, i can assure you that there a few training programs that do actually work and the good news is in many ways the simpler the better when it comes to forex trading.
If you read what the great traders have to say they ALL adopt the same philosophy: Keep It Simple - find a proven course, stick to it through the ups and downs, work on your emotions and don't go looking for the holy grail because in trading there is no such thing. It is vital that beginers forex trading understand this - our natural urge in most things is to think that the more complicated the better. Not when it comes to forex trading!
Forget all those fancy software programmes, i know they look exciting but your goal should be to make money - if you want excitement then try shark diving.
A successful beginners forex system will have the following charcteristics
- Follow the existing trend
- A clear entry set up and action trigger
- A stop loss methodology
- Rules on money management.
These 4 simple tips will put you way ahead of 90% of other traders, ignore them at your peril.
By Mark Slater
