Saturday, December 16, 2006

Forex easy success

When i started trading, i had two months in a row when i made about +20% on my capital every single month. I thought i was already good at trading, but i didn't started to trade real money because i remembered the old rule: you need at least two years to get good at it, and that was a great decision because next months brought me nothing but loses.

Despite i made a lot of (virtual) cash i didn't learned a thing, i was just enjoying my profitable trades and thought to myself how good i am at this. Don't make the same mistake i made, try to learn from all your trades.
Think about:
- why you made a trade
- what market did
- what you should do next time when similar event will occur.

I keep all my positions open for at least few days, so it is not a problem for me to remember them, but if your trading style requires you to make several trades a day then you should start a journal, you may think they are for 13 year old girls but they are not, all highly successful people write and update their journals. Alternatively you may try starting a blog it is free and you can share with other traders your ideas, thoughts and what you are doing. People are generally nice and will be happy to help you with trading.

I also realized that effortless success is worthless success. It may be good in a short run but in the long run, the problem is no one ever learned from easy success. After few good trades people tend to think: hey i know this stuff, and they start to bet big bucks and what they bet on is nothing more then luck.

Some time ago i knew a guy who took 10 000$ loan from bank to trade on forex, when i first met him he had only 4 000$ left. He told me then that he read an article on internet about a man who made millions on stock market and he thought that trading is a fast and effective way of making money. So like i said he borrowed cash and started trading. After just two months he lost 4 000$, so he decided to buy automatic system ("magic pill") which will trade for him. First month of robot trading was great, he recovered some cash and everything was going straight, but the disaster was still to come, suddenly out of nowhere robot started losing, poor guy didn't knew why and what to do with it, because he bought this robot and let it work, without looking into sophisticated algorithm robot was built of, the only thing he knew was: robot is losing. When he finally decided to turn off automatic trader, he was already down additional 2 000$ and of course profits that this robot made were also gone.

When you first look at this story it seems there is no "easy success" embedded, but i assure you there is. It's an article about a guy who made millions from stock market, but often it can be short sentence like "You can make easily 200$ a day by trading forex market".

I am not saying that making big cash on forex is impossible, i am merely saying that road to success is not as easy as it looks like. You have to make a lot of trades loose cash (better to start with virtual money), learn from your trades, analyze them, search for patterns on charts and develop your own style which will feet you, not your need of money.

The most successful forex traders i know are not the ones who made money very fast, but those who lost their deposits twice before they started to make money month by month and yes it took them about two years to get there.

But again don't get me wrong on this, you don't have to lost 20 000$ to start making money. I am just saying you should be prepared for it, trade for at least six months on demo account, then when you will get comfortable with trading demo, start trading real cash with oanda, marketiva or fxsol. This are brokers who will let you trade with small amount of units this also means small deposit, as low as one for oanda and marketiva


youtube said...

Great article

I hope everybody read this article



Lucila said...

It's easy to learn Forex trading, you just need to browse in the internet and you will get it. There are many pages that you can find, for example CentroForex it's a site where you can find information about it.

MRC said...

Very Helpful Article . There is nO Short Cut for profitable forex trading . Only by Practice and Obseravation.

johnmartin.1982 said...

? It's very easy to trade in forex market, but its toughest task to make money from forex market.

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Digital Equity said...

Forex do promise about easy success and i really appreciate the possibility Forex market has. Forex market is the biggest market in the history of mankind and day by day it getting much larger in volume and trader quantity. But choosing a good broker over thousands of broker is a nightmare for maximum traders. I suggest to be one of the best forex broker with less spreads, most reliable execution and which is also fastest as of my experience, good customer support and overall great trading service.

Rahim Sterling said...

There are many rules to become successful in forex trading. But rules depend on what kind of trader you are. That’s mean rules need to be match with a trader trading style or nature. Although there are some basics of forex trading which can make this easy. And the first is proper knowledge. Without knowledge nothing can be easy to treat or to do. So, at first you need to learn then join a broker like ECNCAPITAL who could help you with your trade.

Md Torikul said...

Forex is easy to the old traders because they have knowledge as well as proper experience about trading . There are some traders who have some pairs an used to trade with only those pairs. They have much knowledge about those pairs. Knowledge is really important for every Forex trading. Forex is easy to them who have knowledge about Forex market. If one has knowledge then if he has short capital he can make a big amount of capital through trading with this short capital. But all brokers do not allow small investors.Trade12 allow small investors and having initial deposit. They also have high security level.

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Mustakin Raja said...

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Md Torikul said...

If we have knowledge and strategy then success will be easy for us. I trade with EURUSD, GBPUSD, XAUUS because this are polish currencies. Strategy is the main point of earning profit from Forex. It is must necessary to have for a Forex trader. Like I use moving average strategy to make profit from here. It’s a nice strategy I am following for long one year. It works better. I used to trade with Trade12 having flexible high leverage like 1:400, quick execution, low spread, no dealing desk and reqoutes, high security level and initial deposit.

Ebrahim Mamsa said...

Forex will be easy for them who enter this business with proper way, by learning forex. And finding a good quality broker can make your currency trading easy. This is the largest financial market in the world. And currency trading is going all over the world. Without preparation its seems to you very confusing. I am trading with ECNCAPITAL who helped me to understand forex trading thoroughly and now I am earning good money.

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Md Torikul said...

Success from Forex is really easy. The more knowledge you can gather the more you can earn. To make a nice strategy is too much necessary to have. Even strategy is the key point of earning through Forex market. Much patience, knowledge, painstaking are needed to be built up in a trader. After passing many years I am earning more right now. And all this credit should go to my broker Trade12. They are really active in providing support.

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