How to Learn Forex Basics Wisely

In order to learn forex basics wisely, traders should not rush and should identify the objectives. The purpose of learning these basics is to be able to see market movements and trades in greater depth. It’s not about passing exams, or impressing others. New traders should not make assumptions that other traders and mentors know all about the markets. Or that their knowledge cannot be challenged. It is very commons for traders and mentors who learned mechanically, to make mistakes. And to offer parts of false, ambiguous education in their teachings. So beginner traders should not be afraid to ask questions about obvious things. Because upon scrutiny even the obvious can get very complicated. And it’s not about knowing all the different foreign exchange currency symbols well. Nor is it about memorizing some ridiculous, often false theory for trading the market news. Productive learning is about challenging the teacher, and asking difficult questions. Because to learn forex basics wisely, one has to start questioning all established opinions. This will help you as a trader not fall into the trap of using false indicators. Indicators that are made available on charting software due to popular demand. But these indicators have not logic and no proof whatsoever that they actually work at all. For example, there is no evidence that Fibonacci theory works in trading. There is no evidence that trading volume works either, at least not in the classic sense. The classic idea is that rising trading volume is supportive of market trends, but there is another theory, which is just as successful, which works the other way around. Lazy learners can fall into false assumptions very easily and develop confirmation bias. This will make them fail later on, in live trading, because many indicators simply don’t work. In order for an indicator to really work, it has to pass the random chance test, and it must outperform the predictive power of a coin toss. If it doesn’t, then it’s not a good indicator. If confirmation bias takes over, then even flipping a coin will seem as a market indicator which works.

learn forex basics
Consumers buy mostly out of passion, and not because of need. They buy on emotion, then justify with all the logic they can find. Take car drivers of average cars for example, they have developed confirmation bias that premium (super) gas gives them more mileage over regular gas. And that’s because they don’t know the basics of fuels. Higher octane ratings have nothing more to offer them. And yet, a public opinion poll would tell you that there is a difference. And as a result you would waste few dollars at every fill up. But in forex trading you cannot afford to make the same mistake and follow public opinion polls, because it can cost many $1000’s. That’s why you need to know the basics, and challenge established opinion as and when necessary.

Learn Forex Basics and Question the Obvious

Traders can learn forex basics, everything from definitions to market structure. This will allow them, to choose more suitable currencies to trade, and to trade them with more confidence and less wishful thinking. The idea of trading online made easy is only possible through wise learning and hard preparation. Also reading some day trading forex live review reports and opinions, by real traders. These can help you evaluate various indicators and trading methods. Some of these traders are veterans, and will know a thing or two, about what worked for them and what didn’t. Especially those who traded actively, will definitely know which indicators and methods are good, and which ones are not so good. Wise traders, veterans and newer ones alike, are willing to accept that they were wrong, and change their opinion. Just as long as there is sufficient evidence. Educators on the other hand, are less likely to change their minds about a conviction they might have. They will simply argue that they had many satisfied students who are happy with their course and the concepts taught. But as always, public opinion does not constitute real evidence. Especially when someone pays a lot of money to attend a training course. The very act of paying all that money does create confirmation bias in their mind. As consumers, we all think we are smarter than the other person, and that our decisions are better, but this is not true. There is always a wiser person out there.

The Best Forex Trading Info Charts and Sources

Forex traders need various kinds of forex trading info sources. Some prefer fundamental analysis, while others prefer looking at the actual price charts alone. Some technical traders believe that price charts contain all latest fundamental information, so there is no need to bother with things like economic reports and the like. Day trading forex live does require using various charts. All the forex trading info the day trader needs, is expected to be found in a couple of charts of different time frame. Usually the hourly and daily charts will suffice for doing all the basic work, and figuring out the trend for the entire week. Traders who take day trading forex live very seriously will also use 10 minute or 15 minute charts to better gauge live momentum. Fundamentals however can act in complex ways. In ways which can be deceptive. Because fundamental data can have a double impact on the markets. Such as positive in the first week, and an overall negative impact over one month or longer. So the technical charts can in fact give false or partially false signals from time to time.

More Sources of Useful Forex Trading Info

Forex traders rely extensively on candlestick type charts. These are the most information-rich charts. Making sense of the candlestick patterns is confusing and difficult. But oftentimes a very clear signal will appear on candlesticks, which will not appear on other types of charts. So candlestick charts are the way to go. Traders who view their trading as a forex trading business opportunity keep on evaluating their information sources. There are many popular information sources, such as contrarian indicators and investment bank reports, which are not very reliable. Contrarian indicators work only once in a while. While various investment banks never seem to agree on the trend of a currency pair. All of these reports are used in trading. But traders need to be careful, since it’s a proven fact that these reports will often be wrong. If these reports were very reliable, then one could make millions trading on their advice alone… But just because an investment bank publishes a report, it doesn’t make them good forex forecasters. They are just as likely to be wrong, as any retail trader.

The best Forex Trading Info Sources
Being selective in chosing your information sources is absolutely important. And it’s about being selective on your own judgment, based on your logic and the feedback provided by the few who know best. Not based on the feedabck left by the 1000s who themselves are not selective and realistic.

Profitable Forex Traders are Selective

Profitable forex traders are wise and selective. They won’t place a trade unless they understand at least to some extent what made market price move. Whereas traders who trade on rumors and media stories are simply momentum followers. And this kind of short lived momentum is suicidal to follow. Because it leads to to many losing trades. And not only that, but it also doesn’t teach the trader anything useful, so as to improve their judgment. Any information source that doesn’t sharpen your judgment on the markets, should not be used at all. Unfortunately, many day trading forex live review reports are full of positive comments about such counterproductive information sources. What really matters in evaluating these reports, before you even think about reading them. Is who provided the feedback. The feedback left by 5 real, large size traders is way better than the feedback of 1000 traders who trade randomly here and there. So selectivity goes a long way in evaluating forex trading info sources. And selectivity eventually pays.

How to Learn Forex Trading for Beginners

Many new traders want to learn forex trading fast, so as to make money and pay their bills. While necessities of life are good to think about, one has to be careful and not to rush. Trading is very tricky, and so is the education surrounding financial trading of all kinds. This is not about the best forex trading strategy nor is it about impressing other traders. Wise education has to have depth. As well as unique interest on the part of the learner. As opposed to just learning concepts and ideas in a mechanical way. Students who attempt to impress others with good exam results and fast learning, are not the best thinkers. The best thinkers are the ones who are curious and ask challenging, intelligent questions. Currency trading strategies require knowing how to deal with confusion and the unknown. The average trading course out there trains students on how to think and act in a disciplined way. Because that is what defines an orderly trading system. But sooner or later these traders will find themselves facing intimidation. As the market will behave strangely, and two of their best indicators will be in conflict. So what do traders do when their best indicators and methods are in conflict with one another?

Learn Forex Trading Differently

You as a new trader, can learn forex trading in a wiser way. You can learn forex trading by breaking out of the bonds of disciplined trading theories and methodologies. In the case of conflicting indicators, which is an almost everyday occurrence in the markets, you have to dig deeper. By using fundamentals and chart patterns first, you immediately gain an advantage over the disciplined, ultra-safe trader. Some very good currency trading strategies are possible to develop when one digs deeper. Fundamental analysis itself is a very strange kind of analysis. Since it takes into account investors’ fears and sense of uncertainty. The average market typically stops rallying when uncertainty is in the air. So there might be few days of downside, intimidating downside. But once the air is clear, and the uncertainty is gone, the market rallies again. Even certain, bad news, of limited impact helps remove uncertainty and the market rallies on such news. And the average trading course cannot teach such analysis methods because there are thousands of cases and different combinations of events, each one being totally unique! A good fundamental analysts however is able to figure out these events, at least 60% of the time.

How to Learn Forex Trading
There is a misconception that discipline is good, and that disciplined people will win any battle. That is not true. No amount of training can fully prepare soldiers going into the unknown. The unknown has to be handled in any kind of way possible. So many battles were actually won exactly because the soldiers in the field disobeyed their superiors. This misconception is taught in many forex trading courses as the basis of learning to trade. If it was really so simple, then nobody would fail in trading. First and foremost, wise traders have to disobey at least one good indicator, once, on any day. They expect things to be so, because confusion is what makes the markets work.

Taking Wise Risks Pays and He Who Dares Wins

The wise trader who knows a thing or two about fundamental analysis, has the courage to place a long trade when the market retreats temporarily lower, on uncertainty. The ultra-safe, disciplined trader on the other hand sees a market price below some support level. So they close all losing trades and get out of the market. But that’s not how battles are won in real life, the ultra-safe trader should have known that life is not perfect, and confusing events are bound to occur. So by avoiding risk in this case, they end up missing out on some very profitable trades. The wise trader, especially the kind of trader who trades using CFDs and trades throughout the day. Knows that day trading forex live is all about risk and confusion. And that half the indicators will be wrong at any one time. So they know first hand, that discipline is not going to get them anywhere. Only digging deeper into the markets will.

Pursuing the Perfect Day Trading Forex System

Creating a better day trading forex system is always possible, for many traders. Much like business success, different personality traits are needed. The people who make it in the business world are not the ones having the best university degrees. But rather the ones that are bold in taking new risks. A good day trading forex system is not that different to a new business challenge. The creator of that system has to be bold enough to break barriers and look beyond the obvious. Many other traders fail to develop such systems because of lack of confidence. Even though they are educated, they are simply afraid to take unknown risks and handle the day trading pressure. Wise forex CFD traders take day trading very seriously, but lightly at the same time. They are capable of developing CFD trading systems of extremely high dependability. The whole purpose of having such a system is to feel safe and comfortable. This is their first concern. And because dependable day trading systems treat each trade as unique. They are the closest one can have to a perfect system. Generic systems on the other hand only scratch the surface of the markets. And they fail far too often, as market volatility fools them very easily into giving the wrong signal. There is no unique way to figuring out the best forex trading strategy. Many different concepts and methods of analysis may lead to identical trading signals. This is because there is an underlying truth in the market charts. And this truth is hard to find just by looking at the charts through a simple, naive mindset.

Profitability of a Good Day Trading Forex System

Any good day trading forex system typically focuses on very few currency pairs, and is not generically used on all pairs. A system expected to predict 20 different currency pairs, through the same methods of analysis, is bound to be a generic system. And it will be defeated by the markets sooner or later. An efficient day trading system focused on a single currency pair can be very selective. And hence very profitable. Not because it will have many winning trades, but because many losing ones are cleverly avoided. That’s how the best forex trading strategy can really be made possible. It’s far more important to focus on avoiding losers, than on picking more and more new entry points. The profitability of such systems and strategies can be so big. That it is practically possible to start with a $5,000 CFD forex account and make over $100,000 in just over a year.

A Perfect Day Trading Forex System
Achievement requires being an expert. All successful professionals are specialists in one field. Traders are not different. If a forex trader is enough of a specialist, earning $100,000 a year is a perfectly realistic goal.

Traders Need to Pursue Realistic Goals

Traders need to define their goals well. And doing so requires clarification of facts, as to what is and what isn’t realistic. Traders who learn forex basics dream about making $100,000 in their first year. The money figure is not totally unrealistic, but their judgment on the markets and their skills, probably is. While, for a slightly more experienced trader, one who has traded for 2 years or more. The goal of having a very profitable year, reaching $100,000 in profits may be realistic. What differentiates realistic goals from pipe dreams is the gravity of the trading system. This alone reflects many key skills that the trader will have. Profitable forex trading systems have huge complexity, which varies from day to day. But if the trade is too hard to figure out, complexity can run in great depth. Poor trading systems on the other hand are generic, simple, and fail to handle the huge complexity of the markets themselves.