Forex trading is basically just an investment
As every other investment, there are always benefits and risks beyond forex trading. Many people/organization, particularly forex brokers, its affiliate and those who earn their income by providing some forex related services says that forex currency trading have so much advantages compared to other investments; Forex is easy, using its non-stop 24 hours market, its wide range adjustable leverage, its automated buying and selling platform, its offered better opportunity for income resource, and many more -- you name it around you want to...
Blinded by its 'beautiful dream imagination', many small/personal investors, especially for the new ones forgot that forex trading is basically nevertheless an investment program. Traders should never have a thought that forex trading is definitely an income resource.
Common Beginner Traders Scenario
Beginner forex traders are usually follow the trend of forex currency trading without preparing and providing them self with an adequate understanding about what's inside forex currency trading. Their common scenarios are:
1. Know about forex trading
2. Have a pursuit in forex trading
3. Looking for an easy and profitable forex providers
(Usually by looking for some services with less margin, high leverage, automatic trading platform, and less risk? - which is too good to end up being true)
4. Start gambling with their trades
5. Unable to achieve earnings as what their imagination
6. Repeating scenarios 3, 4 and 5
7. Duplicating scenarios 3, 4 and 5 again... and again...
8. Realizing that they're loosing too much or that their imagination along these days/weeks/months is wrong (i doubt it would reach years)
9. Give up and quit their trading for great.
Where did they do wrong in above scenario? Is that wrong to always trying to find a better service to back up our trade? In my point associated with view, there are no mistakes in that scenario at all. But it is just incomplete, and that's the most dangerous mistakes made by most newbie traders.
How to Overcome Traders Mistakes and Begin to Make Some Earnings in Forex
The facts are, there are just 5% of forex traders which successes using their trading. To become as they are, we should insert step 2. 5 within scenario above. This step will simplify above scenarios by eliminating the 4th and eighth and changing ninth step became TRADERS GOAL ACHIEVED.
2. 5 Preparing yourself having a solid basic knowledge of forex trading
- Know about the fundamental of forex currency trading
- Learn about what and how forex market really is
- Train you to ultimately getting familiar with the technical analysis in forex trading
- Learn how psychological factor affecting within the trading and define our best trading personality
- Be aware in the risk and money management
- Develop your most effective unique trading system depending on your knowledge.
We should keep in mind deeply that forex trading is definitely an investment. There is no way that we could be a master in certain investment that we've just dive in to for days or weeks. We must do it by the right way, and don't forget to eliminate your rush within the goal achievement. You will surely find your best trading system that you prefer, I guarantee that. But it would cost you some time for several learning from mistakes system testing while you developing your experience in forex trading.
By utilizing an analogical approach as a computer, forex broker is the application programs and operating-system. We do need them to make sure that all we need it's done, served and executed properly. But, how good the computerization execution speed and it is performance are depends on the basic computer specification, which analogically as a person.
How to Get Yourself Completely Forex Prepared
Learning and education materials tend to be world widely spreading around us.
1. The first and the most value added a resource of forex currency trading is through book reading. Forex and investing categorized books are availabe in countless numbers in several bookstore and online bookstore. You should pick some of them to become knowledgeable with valuable knowledge of the theory beyond forex trading.
2. Try to get involved with some traders forum to know more about forex trading and the marketplaces. Forex forum also a place to give you an information for predicting the crowd psychological factor to forecast the currency price movement by examining how do other traders react in some financial forex related world events.
3. Obtain a forex course. An expert forex traders or forex broker are offering this sort of forex educational method. The course are usually about the basic knowledge associated with forex, technical analysis technique usage and its tools, an expert trading advice or possibly in how to develop a particular tested forex trading system which profitable (if done right and backed because of your forex basic knowledge).
4. Forex magazine subscription. Some forex magazines are released weekly, monthly and others might be yearly. These materials usually give you information about the updated forex market behavior overview and analysis which may be use for the input of the fundamental analysis of your forex buying and selling.