My Expert Advice to Forex Beginners

The thousands of individuals who have decided to enter the Forex market should know that they should educate themselves first before they start. It is important to know the basics of Forex trading to get into profit, but this knowledge is no guarantee. You need to know more than the basics to even have a fighting chance of being successful.

There are many methods to learn Forex trading. You can join online services, enroll in a Forex trading school, attend seminars and workshops, purchase an course online, join a trading group, or visit your local book store or library.

From experience it is always best for novice traders to get training from a mentor or join a Forex trading team. You are going to benefit from experienced instructors who are already trading Forex in real time. You can compare notes, trends, charts, buy / sell decisions and more. You can check yourself against other people who have more experience than you. In this way, you are familiarized with real market trading. You are given the chance to see the actual processes and decisions which you can later employ.

In the end you will come up with your own strategy and trading methodology that works for you and is suited for your own risk level, temperament, trading goals and trading experience.

Here are a couple of guidelines that new traders can follow to achieve success in the Forex markets.

You need to know proper charting and mapping. Most Forex brokers will supply you with a charting platform, but you need to know how those charts work and how to interpret them. You will need to be able to read Forex market charts.

Discipline yourself. Traders who are disciplined by strictly following their developed methods even when losing period’s strike, have a greater chance of making it in the long run.

Update your knowledge continuously. Successful traders are studying the Forex market night and day and are always looking for new advice and education all the time.

Trade in a team, this helps making decisions easier and could be the #1 reason you find success. If you are trading in a highly specialized team, you can measure yourself and your trading decisions against them and keep each other accountable for your trades.

Focus on what you do and do not jump around. This is probably the single biggest mistake that traders make. They jump from one opportunity and from one trading system to the next. They never stick with a single method and learn to trade that system well.

There are thousands of ways to trade the market with an infinite number of ways to combine signals, charts and trading methodologies. But do not try to trade and test each one of the thousands out there, stick with one that works and work it inside out until you can do it blindfolded. Once you are so familiar with it that you can do it in your sleep, you will start to learn when conditions for your system are right. You should be able to trade your chosen system with confidence and profit.

Jason Hamilton
http://www.articlesbase.com/currency-trading-articles/my-expert-advice-to-forex-beginners-673436.html

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About Matthew Anderson

Matthew Anderson is a 20 year veteran of the currency market, having worked as a senior trader and analyst at some of the world’s leading international banks. In addition to overseeing fundamental and technical research at Software-FOREX.org, Matthew is involved in the Software-FOREX.org blog and video blog. Matthew has also published numerous articles on short-term trading strategies and risk management.
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5 Responses

  1. where can i learn advanced forex trading strategies ?
    Hello all,
    first of all i want to say that i already know all forex beginners materials
    i know what pips means what moving average means, MACD , indicators, robots, experts, RSI, …. and all that stuff …

    now i still want to learn more advanced things
    to go one step farther
    to learn a real working strategies, step by step …

    from choosing a good currency pairs , to picking the right direction (bearish or bullish) to enter the market and where exactly to exit the market (where to place the Take profit or Stop loss orders)

    i’ll be more than glad if someone already passed those steps , already making a profit from forex with real account (not demo) and could just post a helpful link or advice to start from..

    i don’t care if the tutorial website you point is free or not
    i am ready to pay money for good advanced forex trading courses
    but i am scared to end up with a scam one, because as you know about 99% are scams and all they want is your money , and they don’t give you a real worth course …

    thanks all

  2. go read this book "Beat The Forex Dealer".One of the classic in Forex Trading.less then $50.
    References :
    http://www.youtube.com/watch?v=Qba5ahZV6oQ

  3. Don’t waste your time or money. If you are going to play in the forex market, I’d recommend trading Futures Contracts and protecting yourself with puts/calls. At the same time, I’d say you should make trading decisions based on fundamentals and not stupid chart monkey swings in prices that advanced trading tries to lure you into.

    For example, the BOJ is printing money like crazy because of this event. Long term, that spells inflation and weakness in the Yen. As such, shorting futures contracts many months out will make you very rich and you won’t have to worry about the minute by minute swings in the Yen.
    References :

  4. Many people told me that investing in curriencies is the hardest way of investing, because it doesn’t have clear direction. Bullish or Bearish is hard to detect. However, there was the two big crisis, 2008 global crisis and the EUR crisis mid of last year. Many people who traded forex frequently, made huge profits from trading Dollars, and EUROs, simply because last year they could buy year at a 10-Year record low.

    Now adays, all eyes are on the Japanese Yen after the Quake..
    So, i really give you advice not to trust any one in this kind of trading, because even proffessionals lose for unpredictible mistakes
    References :
    Investor

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