How much do you have to learn about Forex trading to be successful? Well you do need to put in some time, practise and gain experience before you can see some good returns. But it’s like anything practise makes perfect and yes you can learn Forex trading.
OK – here’s how.
Firstly, let me explain some fundamentals.
It is the most trending and therefore tradable market available for you and me – the retail trader. The Forex has only been available for you and me to trade over the last 12 or so years making this market in its current form still in its infancy.
You can learn Forex trading through books, trading tips and strategies written by professionals and/or book on to a course to show you the way.
Most people see the vast profits made by traders and want to make the same levels of profit right from the start. Yes there are considerable profits to be made from Forex trading but you do need to learn Forex trading so you do see that profit sooner.
So what do you need to know?
In it’s raw form Forex market is a conversation between buyers and sellers. This conversation and volume of market sentiment can be seen directly with the use of live charts.
You need to have a trading note book to write down your trades. Even if you do book on to a course, you will need to keep a log of your trades so you can see your progress and be able to identify if there are areas in your strategy which could be improved.
You need to be able to understand chart patterns and ideally use the candlestick chart type because this chart is much more visual and therefore easier to see the volume of buyers versus sellers.
Next in order to learn Forex trading you need to have identified a good strategy and have a good trading plan. This plan should be back tested so you prove to yourself it works! It’s your strategy and knowing it works will give you the confidence to trade it!
After having a good, solid back-tested strategy, this should be paper traded first so you are good at recognising all the elements in the plan. After a couple of months of consistent successes only then should you move on to the next stage of opening a demo account with a Forex broker and trading with a ‘virtual’ account. This will get you to know your broker’s account in preparation for trading with your own money.
Once you have mastered trading the demo account I would suggest using a small amount of capital to trade live. Believe me this is when it gets interesting! This is the part almost all traders find the most difficult – so if you do then you are in the majority! The bottom line is you need to cut your losses early and let your profits run.
You learn to get good at Forex trading when you give yourself the time and resources to become knowledgeable and experienced. When you learn Forex trading, never under-estimate the effect your mindset can have on your trading success. If you can plan your trades and trade your plan, control your emotions, be detached from your trades and always think objectively then you will become a consistently successful trader.
Anyone can learn Forex trading, you just have to do it in the right way, like any other new career path.