Obviously when anybody starts trading forex, their
main goal is to be able to trade it successfully so they can make a
living. Unfortunately, most people never get to that kind of level. In fact
over 95% of forex traders end up losing money. So, statistically, the odds
are against you. But if you take a different approach than what the
majority of traders are doing, your chances
First off, don't have that "shortcut" mentality that so
many new traders have. If you are planning on trading, you are going to be doing this
for the long haul. You'll have wins and you'll have losses. As long as you do it right, at the
end of every year, you'll have a profit.
Also don't become an "indicator junkie". This
is a trap that many traders fall for. An "indicator junkie" is someone who is always on the
lookout for new indicators that they can slap onto their charts.
When I first began to trade, I was just as guilty of
this. I thought that if you couldn't use indicators, you couldn't trade.
But eventually I found out how ridiculous that idea
was. It all started when I cleared out my indicators and started to understand price action.
Price action is a rather simple concept to
understand, once you start thinking outside the box. The whole idea behind price action is to
use the movement of price, and study its patterns to predict where the future price is
The truth is anybody can do this. But you have to
start ASAP. This means clearing out your charts and looking at a simple bar or candlestick
chart. I know that this may not sound exciting, especially if you are so used to having
stochastics, MACD, or moving averages on your charts. But once you see the market in all its
glory, you won't believe what you have been missing all this time. Learn this and money management and you've got it made.