How To Learn Trading Relying More on Yourself

It is possible to learn trading by developing the skills to doubt market conditions. Instead of being a passive, momentum-following trader, lagging the market.

How to learn Trading the Hard… But Right Way

In order to learn trading the right way, you should get rid of all momentum based indicators, and only use them to confirm trends early enough in their development. Once a market trend has matured enough, all these momentum indicators become useless and misleading. All profitable trades who are really making profits from currency trading, without giving back much of the gains, rely on leading and peculiar indicators. Some momentum traders are actually profitable, but their currency trading is a tyranny. Because thy have to watch their trades every minute, thereby spending hours and hours at their desks, and incurring a lot of stress. Something which doesn’t seem very appealing when it comes to choosing a career. But even leading indicators are not like those prepackaged, easy to use indicators found on charting software. Leading indicators are complex, they follow the economic cycle, and their readings tend to have different meaning from one phase of the economic cycle to the next. Traders who made millions in the markets and who knew how to trade forex each and every day, were not day traders. In fact, they do not define themselves as being any kind of trader, swing trader, day trader etc. They focused on quarterly analysis first, then narrowed down their trading to each specific week.

 Learn Trading
Learning to question and fade a trend, is the key to successful trading. Also the margin for profit is much better in those trades.

Why You Cannot Learn Trading Based on Momentum

You cannot learn trading the forex market profitably on momentum, because momentum lags the driving forces that move markets. And you will be a step behind these forces, around 70% of the time. Momentum trading techniques are boring and lack the excitement of discovering new things. Momentum cannot predict reversals, and that’s where most big losing trades occur. Momentum is the result of the combined trading actions of many traders, it does impact markets in the near term, but the fundamentals always catch up sooner or later. In fact market momentum is so often wrong, that it creates all these false breakouts seen on the charts. This is the same as saying that following the trend is wrong, and most of the time it is! Trend faders on the other hand use a different logic, which is based on clues and leading indicators that the rest of the market participants are totally oblivious to. CFD commodity traders are among the most momentum fading traders, they do follow general trends, but only if the data is good. A CFD sugar trader or example, is happy to see sugar price plummeting, on momentum, and they feel happy buying a new low. Because the market fell on unforeseen circumstances, but the demand for sugar will not go away at that stage. Moreover their CFD trading platforms allow them to linearly hedge such trades, even for the brief period where they will have to keep open losing trades.

What is Forex Trading For Small Speculators

All new traders want to know what is forex trading all about, and adjust to the market’s requirements accordingly. Beyond big promises and ridiculous claims.

What is Forex Trading to the Average Serious Person

All new, but serious traders, usually cynical people who don’t fall for all the marketing hype and big promises, think beyond the obvious. They ask the question what is forex trading, and where it stands relative to all those big promises of easy and effortless money. They have figured out that all profitable traders really do earn their money out of trading forex. There is no easy way to trade, and they also know very well that trading is not for everyone. Trading currencies is not that different to any other kind of financial trading. It comes with risks and rewards that few people can understand and handle well. The reason why the internet is flooded with adverts promising big easy money out of trading, is because adverts are created by marketing specialists. And these specialists know people’s passions and irrational behaviour when it comes to spending money. This doesn’t mean that the actual forex industry is bad, but it simply doesn’t suit all kinds of people. Everybody needs to earn some extra money on the side, and these misleading adverts seem to have the answer for these people. But actually, profitable traders are wise people, who do control their greed. While greed is good, it has to be kept under control when trading, and not let the necessity for earning a second income, take over. Trading decisions are about buying and selling currencies online, on a global market. These decisions, when made by wise traders, are all about the market, and not about boosting their income. All traders, both winning and losing ones, are actually addicted to the market one way or another. Addiction is not necessarily a bad thing, as all professionals, in all kinds of jobs, who love their jobs, are addicted to them.

What is Forex Trading
Wise traders, even if they are new to the market, know what is possible and what is probably not possible. And one of the paradoxical things that are actually possible to achieve, is for a young trader to outperform an investment bank trader, and make millions. The complexity of the market allows for this to happen! And yet it is not possible for thousands of amateurs to trade few hours per week, and pay their mortgage. This is because these amateurs trade on momentum, don’t dare to fade or question a move, and they lack boldness.

What is Forex Trading to Determined to Win Traders

To the very determined trader, forex trading is about personal vindication first, and then about money. Except that this trader wants to make serious money. And they know that if one is successful enough so as to make little money on the side, trading each month, then that trading can be safely scaled up for making serious money. So apart from knowing what is forex trading, they also know which promises are realistic and which are not. That is the difference between thinking, rational people, and those who are taken for a ride by ridiculous adverts. And then comes the part of dealing with trading methods, forex signals, and interpreting forex news. The wise trader once again deep down knows. They know that all popular methods do not really work. What does work are peculiar and non popular methods, which sometimes are based on simple currency charts and chart patterns. Finally, there is a misconception about market momentum, so that it seems logical to follow trader recommendations seen in the media. As long as that trader is working for some established investment bank. But even that is the wrong way to trade your own money, because in the long run these recommendations perform badly. The only useful information an investment bank trader can provide is fundamental analysis on the running quarter, but that’s about it. Ordinary traders can often match or exceed the trading skills of many of these investment bank traders. Just remember that trading recommendations seen in the media cannot be dependable for scaled up trading, because even these people use primitive analysis methods, that anyone knows. There is no edge, no advantage over the market.

Trade Forex Online As a Career

In order to devote heavily and with motivation to the task of learning to trade forex online in a career long mission. One has to know the odds of success.

How to Decide If You Should Trade Forex Online

To decide whether or not to trade forex online in a long career mission, one has to be a doubter of public opinion and an original thinker. The forex market is not for passive learners, rather it is meant for active learners who can think outside the box once in a while. If passive learning was the key, many brilliant students would have become first class millionaire traders. But because it isn’t, all of these brilliant students find that the forex market doesn’t care about this or that training course, and what they learned from them. Online trading requires some innovation once in a while, and making some changes in one’s plans. Factors impacting currencies are dynamic and strange, changing behavior from year to year, and creating confusion. Correlations among currencies are also dynamic and changing, so there is no sure fire way of figuring things out between two currency pairs. Trading volume also doesn’t mean much in today’s markets, and it is possible for low volume currencies to dictate direction to EURUSD. Which has one third of the entire trading volume in the forex market. So those training courses tend to focus on one thing or another, as if the world is black and white, but the world has millions of colors. This is why believing too much in one theory or technique is wrong when it comes to trading. So when one embarks on a trading mission, they have to realize that they will be dealing with uncertainty and loosely defined problems which no one has the answer to.

Trade Forex Online
Traders are connected through their common charts. Can you spot any patterns on the above USDCAD chart and the indicator? There are two early warning divergence patterns warning of declines.

Determining If You Should Trade Forex Online Or Not

In order to trade forex online for many years to come, one has to test their ability to handle uncertainty and solve unexpected problems. If you are the type of person who believes that money is everything and buys everything, good mentors, books, seminars and third party knowledge, then you will fail down the learning curve. If you believe in perfect trading techniques and that perfect traders exists, then you will also fail down the learning curve. But if you believe in original ideas, and that good overlooked trading strategies exist. Then you have a realistic chance of becoming a sustainable profitable trader. If you believe that a single mind can out-think an entire team of people, and solve problems that no one solved before, then you might well succeed in trading. Traders are only connected through their common forex charts, but they all think differently more or less. It is fashionable to use popular techniques, to use that Fibonacci forex calculator, and all kinds of cool methods. But they are all products of a peer syndrome class of people, and they don’t really work. What does work, is the peculiar, the unusual, the one nobody talks about.

Basic Of Forex Trading

Some of the basics of forex trading, focus on the principles of the global exchange rate mechanism. And the key factors that may impact any exchange rate.

Important Basics of Forex Trading

Some important basics of forex trading are the ways through which an exchange rate fluctuates up and down, as economic activity, supply and demand change. In order to learn forex trading the right way, one should pay less attention to trading methods focusing on day trading and intra-day technical analysis. Instead, they should focus more on the fundamental side, and not even on interpreting the economic reports and news the way that seems most convenient. Currency rates change because they are in a state of motion, and sometimes in a state of complicated oscillatory kind of motion. And this is because the forces of supply and demand are themselves in such states of motion. Various economies around the world are going through a continuous cycle of growth and economic slowdown, a never ending cycle. This economic activity impacts other countries that the countries in question trade with, and as a result their currencies fluctuate so as to reflect supply and demand. Sometimes currencies move on speculation and expectation, such as the US dollar often does on expectation of higher or lower interest rates. Such speculation cannot be predicted, as the market moves today and this week, pricing in events that will happen months later. So making sense of the fundamentals, is not a simple task by any means. And especially on the US dollar which is a safe haven currency, and this is one more factor which has often nothing to do with economics and a lot to do with geopolitics. But other currencies are more predictable, and the mere economic activity between the two countries involved in that currency pair, is a lot easier to figure out.

Basic of Forex Trading
Market charts cannot provide an in-depth view into supply and demand, and tend to lag behind the events. That is why there is so much volatility. If charts were efficient and right, markets would hardly make a move at all. However, they can help reveal how other traders are bound to react, when fundamentals hit the markets.

The Basic of Forex Trading and Global Markets

The basics of forex trading hardly ever mention the role that the stock market, commodities and the global markets overall play. Sometimes, the most seemingly unrelated factor, such as a commodity or an event in the stock market, can impact a country’s currency. Currencies of oil producing countries for example tend to decline a lot when crude oil declines, and vice versa. And when there is a stock market trend under way, the local currency may either rise or decline depending on the phase of the economic cycle. These are all overlooked factors, that many forex traders either ignore, or believe that will be fully reflected on the charts. But charts represent momentum, and tend to lag behind these underlying factors. These factors develop slowly and quietly overtime, and suddenly hit the market, leaving technical traders surprised. Because the charts did not warn them. Technical traders rely too much on tools and indicators, such as a forex calculator for figuring out Fibonacci levels, and they are all provided by forex brokers, to make trading easier. Some brokers even provide fundamental analysis, but it’s all too vague and ambiguous to be useful for making trading decisions. The real fundamental forces work in silence, and tend to impact markets in ways that charts cannot usually reflect. If the charts were correct, there would be no so much volatility on them.

Trading Currency For a Living

Trading currency for a living is a level many traders want to reach. But it comes with a long and often costly, very tough learning curve, which few can afford.

Trading Currency For a Living and Keeping Things under Control

Trading currency for a living and keeping things under control, so as to maintain profitability, is what all traders want. The forex market offers great flexibility and many opportunities, though not necessarily in the popular pairs. Many traders who failed to make any profits trading stocks, turned to the forex market, and some of them were able to finally succeed and trade for a living. This is because stock trading is full of marketing hype and empty promises, especially when it comes to day trading stocks. The fact is, stock day trading along with stock option trading are extremely difficult. And the level of complexity is such that it is mathematically certain that the average trader will lose all their money in a matter of weeks. The forex market is risky and tough, but it’s diverse and more interesting. This is because the global forex converter mechanism offers flexibility, and not all currencies go up or on at the same time like stocks do. Moreover, there are currency pairs which for several hours of the day, are really predictable. And follow patterns spanning from Monday to Friday. Trading through any good forex broker, and especially CFD broker, can make currency trading enormously flexible for those seeking to make a living trading.

Trading Currency
Market risk and reward can be made to be asymmetrical in the forex market. So that a losing trade scenario in EURUSD will automatically trigger a larger profitable trade in another US dollar cross. This cannot be done with stocks, at least not by the average trader.

Trading Currency to Recover Losses in Stocks

Trading currencies in order to recover losses in stocks and stock related investments is a good idea. Usually, all investors and traders want to recover their losses in the same market where these losses occurred. Simply for vindicating themselves psychologically and feeling good. But a better way, is to be open minded, accept defeat in the stock market and turn to the forex market. Remember currencies are one against the other, when one falls another one is rising. Risk can be managed better, and generally there is no need for having concentrated risk on one asset or direction. And CFD contracts make things even easier, anyone who knows what is CFD trading, knows the unique benefits. Some forex strategies are about sideways trading and multiple trades, as opposed to riding solid, long lasing trends. But even long lasing trends do exist in forex, and yet not so much in stocks. Stocks come with the promise of company-specific analysis and opinion, but they their trend is determined by ETF money and large institutional trading. This makes stock trading volatile, in the most unpredictable way and hard to trade. Currencies are less confusing, and even when wrong on the trade one can have protective contingent orders set up on another correlated or semi-correlated currency. This cannot be done with stocks, except for hedging the downside through CFDs.

How to Trade Forex for Beginners and Former Losers

Some mentors teach how to trade forex for beginners. Their techniques and methods are just right for being introduced to the forex market, encyclopaedically.

How to Trade Forex for Beginners and Former Losers

Advice and education on how to trade forex for beginners is not different to that needed for former losers, and most learners are actually former losers anyway. Former losers tend to believe that they did some things wrong and that their mentors will help them turn around their trading. Whereas pure beginners, are all curious, and want to listen a lot, without arguing much about what they might think. Some training course do in fact provide very good guidance, but it is nowhere near enough to enable a beginner to start live trading. Psychological aspects can never be covered and dealt with properly in a short course. While other very good, limited seating courses cost too much to attend, usually many thousands of dollars. Former losing traders can afford even expensive training courses, because they see great value in those, but beginners very rarely can afford them. An important thing to keep in mind here, is that completing any single course, is in no way guaranty for starting to trade profitably. All a training course does, is help familiarize beginners with the use of forex charts, trading platforms, and few basic trading methods. The global forex converter mechanism is usually not covered at all, unless the course covers Carry trading and fundamental analysis techniques. The fundamentals are where the best clues and most leading indicators can be found by all kinds of traders, especially by former losers seeking to gain an advantage. For that, a trader may have to attend as many as three totally different courses. If the beginner trader feels comfortable enough to start live trading, and they feel impatient to, then they could start trading a small live account.

How to Trade Forex for Beginners
Training courses are only the first, solid step towards becoming a profitable trader.

How to Trade Forex for Beginners and those Totally New to the Market

All the new traders have to do is find a course which deals with how to trade forex for beginners, total beginners that is. Then they can trade a small live account, see the real world of trading, and start making changes to their strategy. Usually, most new traders fail, but the failure rates are not as bad as public opinion claims. It s believed that 90% of traders actually fail, and they fail within 6 months. But the reality is not that bad, actually most brokers indicate that as much as 40% of their clients do make money in the long run. Some make little money and just manage to survive the tough market volatility, while others make very big money, anything from $50,000 to a quarter of a million per year. And those who do win, do so because they have developed better and better strategies. Which are not found in any training course, and which possibly might be impossible to teach. While training courses are good, and form the base for learning more new things, they are limited to basic information. Usually most training courses teach you how to sport simple, very simple buy and sell signals, and how to use a forex calculator on the trading platform. And all this knowledge is a far cry from the level of complexity of trading strategies that big forex winners use.