OUTLINE OF CURRENCY TRADING EDUCATION: THINGS YOU SHOULD KNOW ABOUT FOREX TRADING

Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who never got to the top. Now that we know it is not easy to achieve consistent profitable results, a must question would be, Why is it that some traders succeed while others fail to trade successfully in the currency market?

There is no hard answer to this question, or a recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think different. That’s right, they don’t follow the crowd, they are an independent part of the crowd. A few things that separate the top traders from the rest are:

Education: They are very well educated in the matter; they have chosen to learn every single and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong.

Currency trading system: Top traders have a Forex trading system. They have the discipline to follow it rigorously, because they know that only the trades that are signaled by their system have a greater rate of success. Price behavior: They have incorporated price behavior into their trading systems. They know price action has the last word.

Money management: Avoiding the risk of ruin is a primary subject to the best traders. After all, you cannot succeed without funds in your trading account.

Trading psychology: They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that every individual tradehas two probable outcomes, not just the winning side. These are, among others, the most important factors that influence the success rate of Forex traders.

We know now that it is not easy to make money trading the Forex market, but it is possible. We also discussed the most important factors that influence the rate of success of Forex traders. But, how much time does it take to have consistent profitable results?

It is different from trader to trader. For some, it could take a life time, and still don’t get the desired results, for some others, a few years are enough to get consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, it’s not something you can do in a short period of time.

Trading successfully is no easy task; it is a process and could take years to achieve the desired results. There are a few things though every trader should take in consideration that could accelerate the process: having a trading system, using money management, education, being aware of psychological issues, discipline to follow your trading system and your trading plan, and others.

Automated Forex Trading Robots Or Just Manual Trading?

There was a large amount of noise recently, or is it just lots of “loud” advertisers screaming about how good their “Forex trading robots” are, and how simply they can make you pot tons of cash on auto-pilot as you sleep or laze by the beach. Firstly, what’s a trading robot or expert aide ( EA ) as it is also called? An EA is programmed software, “artificial intelligence” coded electronically with a trading system or strategy, and when fired up it works precisely as it is engineered to do. It doesn’t have the power to make any logical or emotional choices whatsoever! I must be truthful and say that commonsense and judgment must overcome here, my opinion about these “Forex trading robots” is, yes I suspect that there are some very high quality EA’s out there, but how does one know which is the correct one for you, or compatible with your method and personality? Sure enough, a good trading robot will do everything from researching your trades, entries, stop loss and will adjust itself to assorted market conditions and eventually close out the trade, without any emotions! There are some trading EA’s, which you can program your own trading method into it, or adjust the perfect settings for the bots own built in methodology.

If I were ever to accept one of these electronic thinkers, I might first like answers to several questions – like how long has it been back tested, explanation and history of winners and share of losers, I would also take a look at the reputation of the seller or company making an attempt to flog it, what precisely is it able to trade? I’d be tired of claims like the robot can trade any thing and each thing in the markets, definitely Google it, and examine it on diverse blogs and forums.

On the other hand, I’m sure an EA would be “most” advantageous to a seasoned trader .

In fact, it would actually add to his trading systems and armoury of indicators to further confirm his trade analysis, it might actually be a confidence booster in deciding if he should “pull the trigger”, an emotional problem that many a good trader does battle with! I suspect that total reliance on an EA to trade my account, without human input, would in my view be “foolish and risky”. Let us take a look at this in a marginally different angle and apply this analogy – would you board an aircraft, if told that you are going to be flying absolutely on “auto-pilot”, and without any human pilot monitoring the flight? I know what my response would be. Remember, there are fully no guarantees that any of these foreign exchange trading androids will print money for you. Do not accept me? Then just read and re-read the sellers “Terms and Conditions” or “Disclaimer notice”, I believe it’ll talk for itself!