Learn to Trade Forex - How?
In the 4 years I have been online helping others learn to trade Forex I have seen most of the other Forex courses, Trading seminars, Forex Trading systems, Forex Charting Software, Automated robots, expert advisors, and so on that everyone offers as "must haves" to be able to trade the Forex Currency Markets.
Whilst some do have some merit, most are completely unnecessary and many are actually a hindrance to profitable trading. I too, have been guilty of this. I provided a Forex Trading Course that explained a little about the How's of trading the markets and then offered a fairly mechanical way to trade specific Forex Markets.
Too narrow an education by far.
I then expanded the education with another course that was pure Forex Trading Education. No system or method included. Many who took the course enjoyed and appreciated the "facts" at last being explained but asked "so how do I trade the Forex markets?"
They needed a framework to trade within which was later provided.
I've always felt that to truly understand and be able to trade forex, or any market for that matter, you need a full education that teaches the correct syllabus, and is broad enough and yet also in-depth enough at the same time; I also believe that the days of just selling a eBook, a Forex Course, or Trading Seminar are over.
People need to be taught to trade the markets in the same way that anyone would learn a new skill, trade, or profession. It's my belief that a much better approach is to actually train people to trade the markets by being interactive with them. By being involved with their progress, understanding what they have "got" and what's still causing them a problem – and then focus on correcting that.I also believe that if my trading training is good enough then I ought to be willing to risk my money, and not theirs, on the actual trades a trainee takes. Until finally the trader is completely ready and equipped to trade forex or any financial market that suits them and their circumstances.
Let's go back and look at how most people, in my experience of having taught a few hundred people to trade, get to be successful.
This is the course of events that summarises most people's route to trading:-
They see an ad. or hear something about "trading" and how it's an easy route to making a ton of money.They read a sales letter or visit a website that has lots of pictures of sandy beaches and sports cars.They read, over and over, about how trading is just sooo easy and you can get started here now, right away with this $97 eBook, or course, or robot, or…(you get the picture!)
They're hooked! No surprise that it doesn't work!
However they have had a glimpse of what trading could offer and they like it. Ok. They've also read that 95% of would be traders end up not "making it" and lose money – but they'll be one of the 5% won't they.They just need to find the "secret" or that special indicator, or that new charting software or watch that amazing guy trade in that forum….And so the search for the Holy Grail starts.This may take a few months but can well last years.
The would be trader eventually either gives up or stumbles across one of the few good training websites and actually learns what they actually need to know to be able to trade successfully.They finally trade profitably but realistically – maybe making 20% profit a month steadily and consistently.
It's nothing like they first imagined and were led to believe but "It works"!.
You need to think of Trading, be that day trading a 5 minute forex chart, or swing trading a daily equities chart, as a business. Your initial account is your "start-up capital" and is spent on the basics like premises, equipment and the first of your stock. You've only got started in this business because of your extensive market research and planning. You've been on courses and "invested" in yourself to equip you with the necessary knowledge and skills to be able to run this business.If only more people took this approach with trading then the 95% failure rate would most likely reduce to less than 50%.
Trading IS A BUSINESS and you need to progress through these stages:-Beginner, Junior, Intermediate, and Advanced
Beginner
A broad understanding of the Forex Market, how its traded, trade opportunities, brokers, software needed2 Having some free charts to get started 3 Getting the charts to look the right way4 Phases of the Market5 Basics of Indicators - what they tell you and when to use them6 Fibonacci and Elliot Waves7 Basic trading strategies8 Put it into practice on a demo account.
At this level you will still be making some basic errors in your trades.
________________________________________
Junior
Market Price patterns2 Support and Resistance3 The Maths of trading - it's all a numbers game4 Risk/Reward -v- Percentage winners5 A "systematic" approach with a pre-defined set of rules to apply
By now there should be some glimmer of hope with trading around the break-even level.
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Intermediate
By now you should understand more advanced concepts such as multiple timeframe trading, improving the overall Risk/Reward, Trade management, Trade Psychology.
Your trades would maybe still be somewhat inconsistent but would finally show a 50% on your account.
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Advanced.
Fully understands all the concepts of trading, risk/reward, psychology of themselves and the market, the mathematics of trading, support and resistance, trade management, momentum, indicators… and so on.They would be able to consistently achieve a profit expectation per trade of around the 40% level allowing them to double their account every 100 trades or so
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You need to learn by not only reading and watching videos but by having a professional trader assess your progress at every stage, and of course by actually trading. Trading is not a spectator sport!
Far too many people trade with money they can ill afford to lose and place all their hope in being able to trade successfully so as not to lose their money. This leads to a completely wrong attitude and if you can trade with someone else's money then there's a much improved chance that you'll develop the correct psychological relationship with your own account when you come to trade it.
Of course finding someone who'll let you trade their money is no easy task but it is a feature of a few training organisations and well worth searching for.
I urge you to be risk-averse, careful, and sceptical in your search for Trading Success.
All the best
Matt
Questions and Answers
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