If you want to win at FOREX trading you need the right education. The fact is 95% of novice traders lose all their equity quickly, that’s not because they don’t work hard or can’t win - they simply put their efforts in the wrong area.
Let’s look at how to achieve currency trading success by learning forex trading the right way.
Use the Internet
You can get all the Forex education you need for free on the net, you simply have to look in the right areas, which we will explain in more detail in a moment.
A fatal mistake
Is to think you can buy success from a guru or mentor on the net.
Most of the information sold is junk or available free anyway.
Many traders are duped by attractive advertising copy, claiming that you can make huge regular profits by buying an e-book for $100 or so, but the reality is:
If the information was so good it would not be sold; these vendors would simply trade for themselves and the fact is they don’t.
They make money from selling you forex education NOT trading and their forex trading systems simply don't work.
If you can find a trader with a real time track record of profits, their information may be worthwhile, but trust me, there are not many who can provide this.
The best way is to do it on your own and you can get it all the Forex Education you need for free.
Working smart not hard
Trading is very different to many other ventures in life, in that the effort you put in has no relation to the money you make.
You get paid for getting market direction right not how much effort you put in.
You should as beginner either start with long term trend following strategy or try swing trading – NEVER attempt day trading.
Forex day trading simply doesn’t work, as the data is to short to be reliable and is meaningless.
More novice traders start with forex day trading than any other method and they lose – don’t fall into this trap.
Long term trend following suits the patient trader, while forex swing trading suits the trader who likes to trade a bit more and is less patient.
Basics
To start get an understanding of support of resistance and technical analysis.
Next, you need to integrate a few indicators to confirm price momentum into support and resistance levels and see the odds of them holding.
Below find some indicators that are great for triggering forex trading signals and determing price momentum:
Stochastics, Relative Strength Index (RSI), Average Directional Movement (ADX)
Below find some indicators to determine help you spot support and resistance (in addition to trendlines) and determine targets and strength of the trend.
Bollinger Bands, MACD and moving averages.
If you learn about all the above indicators, support and resistance and also how a breakout strategy works, you will have ALL the forex education you need.
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