How to Trade Forex – If you want to know how to trade Forex, you need to follow the basic guidelines we will outline below.
The first point to keep in mind is you don’t need a complicated Forex trading strategy or to be intelligent to win at Forex; you just need to learn and apply a simple trading system. Many traders want to use complex systems and think mathematics can beat the market but a simple fact points to this not being true and it’s this:
A 100 years ago 95% of traders lost money and the same ratio lose today.
This is despite all the advances we have seen in technology and forecasting in the period – it hasn’t helped more Forex traders win. In Forex trading, simple strategies work best because they are more robust than complicated ones and have fewer elements to break.
If you work smart, you can learn how to trade Forex in just a few weeks and then your all set to seek Forex success. Now there is an important point to make and it applies to any Forex trading strategy and its this:
While there are many different ways to make money, all successful Forex trading strategies have good money management. The key to success in Forex trading is to play great defense first and preserve equity. All successful trading systems, will keep losses small in losing periods and not fall to far behind and when profitable opportunities arise, they will run their profits to cover their inevitable losses.
The best methodologies to make money with are:
Swing trading overbought and oversold levels or following long term Forex trends.
When trading Forex always be wary of trying to predict what may happen because if you try doing this you will lose. Prediction is another word for hoping or guessing and this won’t help you win in Forex trading! Trade the reality of price change, as you see it on a Forex chart and leave prediction to the losers. If you want a great way to trade the reality of price change, look to trade breakouts. You will find more information on breakout trading on this site and if it’s combined with a long term trend following methodology, you have a timeless way, to make long term Forex profits.
Forex trading is a lot simpler than many people believe, you don’t need to be clever or have a college degree, as we stated earlier. The real difference between winners and losers is simply mindset.
The winning trader, trades with no ego and is quite prepared to take his losses and keep them small, he knows if he does this, his time will come and he will be able to lock into and hold Forex trends and run them, to cover his losses and build wealth long term.
Forex trading is not a game of science or mathematical certainties, its a game of probabilities and that means you need to focus on trading the odds. Sure, you won’t be right all the time but that doesn’t mean you can’t make a lot of money, you can. In relation to this point it’s no coincidence that many of the world’s top traders come from a professional card playing background. It’s a fact that successful poker and blackjack players, make excellent traders and this is down to the fact they already have the mindset to achieve success:
These card players, cut losses when they have no chance of winning and have the discipline and patience to wait for the big payout and milk it for all its worth. If you want to learn how to trade Forex, you can learn a lot by adopting the mindset of the professional card player.
If you what to learn how to trade Forex successfully, there is nothing to stop you – its a learned skill and you only need a simple trading system. You then simply need a disciplined mindset to apply your system and currency trading success can be yours.