25th May 2009
FOREX Tutorial for beginners, part 2
In the previous posting I looked briefly upon the basics of FOREX trading. The most important skills you should master before starting trading is to be able to control your emotions, also knowledge is your best friends. You should also equip yourself with knowledge and understanding of how a countries economical situation might affect the currency. Most importantly is understanding how stable and constant stocks, and how political changes after elections might have affect on the currency. But educating yourself in understanding economics is important to be successful in trading.
You will most likely be using symbols and patterns for most of your trading; but do not make excuses for not learning and educating yourself to understand what you are doing and why you do as you do. It is not really many shortcuts to be successful within a field; knowledge and understanding what is happening and how your actions are compared to what you know is important.
To make money you should also create a set of rules to follow; rules for when to enter; and when to leave to minimize losses or maximize profits. You should have rules helping and saving you from losses.
Another important skill you should acquire is money-management. Chris Ferguson demonstrated how important rules and management skills are in poker; this is also valid for investing and trading. You should always keep a track of your investments, your losses and your profits and have strict rules on how to invest your total money on the market.
As I mentioned previous your psychology is really important. I return to this topic as it’s really important not to be caught by greed; or being caught by losses. You have to train yourself mentally to be a successful trader; to be as objective and neutral as possible. It might sometimes be more successful using computers to help make demission in the beginning to get a feeling of making emotionless trades. But keep in mind that computers do not have the expertise or knowledge you got; so you are a better trader by default; as long as you don’t get caught be human greed. The best way to prepare your-self mentally is to practice trading without using real money. You should behave as if any trade is real; but still distance yourself emotionally.
I think you shortly within your first trials will experience your mentality within trading; and please; listen and improve yourself. Do not only act without understanding yourself.
-Kentaki-
In the previous posting I looked briefly upon the basics of FOREX trading. The most important skills you should master before starting trading is to be able to control your emotions, also knowledge is your best friends. You should also equip yourself with knowledge and understanding of how a countries economical situation might affect the currency. Most importantly is understanding how stable and constant stocks, and how political changes after elections might have affect on the currency. But educating yourself in understanding economics is important to be successful in trading.
You will most likely be using symbols and patterns for most of your trading; but do not make excuses for not learning and educating yourself to understand what you are doing and why you do as you do. It is not really many shortcuts to be successful within a field; knowledge and understanding what is happening and how your actions are compared to what you know is important.
To make money you should also create a set of rules to follow; rules for when to enter; and when to leave to minimize losses or maximize profits. You should have rules helping and saving you from losses.
Another important skill you should acquire is money-management. Chris Ferguson demonstrated how important rules and management skills are in poker; this is also valid for investing and trading. You should always keep a track of your investments, your losses and your profits and have strict rules on how to invest your total money on the market.
As I mentioned previous your psychology is really important. I return to this topic as it’s really important not to be caught by greed; or being caught by losses. You have to train yourself mentally to be a successful trader; to be as objective and neutral as possible. It might sometimes be more successful using computers to help make demission in the beginning to get a feeling of making emotionless trades. But keep in mind that computers do not have the expertise or knowledge you got; so you are a better trader by default; as long as you don’t get caught be human greed. The best way to prepare your-self mentally is to practice trading without using real money. You should behave as if any trade is real; but still distance yourself emotionally.
I think you shortly within your first trials will experience your mentality within trading; and please; listen and improve yourself. Do not only act without understanding yourself.
-Kentaki-
Posted by Kentaki under 
Forex Tutorial for Beginners 
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