I'm sure that most traders who are just entering the
market could use some forex trading advice. After all, there is an incredible amount of
misinformation being written on the internet. So hopefully this can provide some kind of help
to a lot of traders.
1) Be realistic. It never ceases to
amaze me the kind of ideas that new traders have. They think that the forex market is so
simple that they will be a millionaire by the end of their first week. Stop thinking
They are completely stunned when they have the first
loss. "They think how can this happen to me?"
Ok...these are the kind of traders that need a big
dose of reality. Take a look at this statistic: 95% of forex traders end up losing
I didn't write that to put a damper
on your dreams. I just don't want you to think that forex trading is some
kind of shortcut to riches. It's not incredibly difficult to make money forex trading, but it's also not a cakewalk either. So enter the
market with a level head, and try to keep your head from going to the clouds.
2) You don't need to spend an arm and a
leg. For whatever the reason, many newbie traders think that they have to spend
hundreds, if not thousands of dollars on trading platforms. This is ridiculous. There
are plenty of trading platforms that are perfectly free, like
It's not the tools that make the trader, its the
knowledge that they have. What I mean by this, is that the truly great traders don't really
need the bells and whistles. They truly understand the market.
3) Don't fall in love with
indicators: This is very common with new traders. They have this need to fill
their charts with their indicators. I was the same exact way when I first started. Somehow
traders think that you have to use indicators in order to
trader. Nothing could be farther from the truth.
Instead of using lagging indicators to tell you what
has already happened, you should be looking at price action trading to tell you
where the market is headed. This concept is as old as trading itself. The faster you
start learning it, the better off your trading is going to be.