How to Trade forex and Be Successful

Trading is hard and time consuming to learn, but the rewards finally come to those who persevere. How to trade forex the right way boils down to determination.

Determination is the key in all endeavours in life, trading is no exception. Learning the fist steps usually starts on some online forex forum or through a forex trading course, or with the help and guidance of a mentor. These are only the first steps so as to entice the new trader to learn more about this exciting market. Explore the different ways to analyse and trade this market. Failures always happen in the early stages, and we all learn from failure not success. But it is true, successful results tend to make us all feel confident and stop questioning things.

Trading Requires Thinking Outside the Box

Many courses on learning to trade the forex market teach so much about discipline and rigid rules, that the new trader thinks has to follow. But the real world doesn’t work on rigid rules and absolute discipline, if there’s no flexibility and exceptions to rules, things go wrong. As with all missions and endeavours in life, the more rigid one’s plan is, the more likely they are to face something completely unforeseen and unpredictable. Great thinkers are great because they push things beyond the obvious, and question established opinion. Especially established opinion that lacks substantial proof. So approaching the markets with an open mind is a good start for all traders in order to learn how to trade forex successfully. Educational materials are still good, despite their lack of methods and trading tips. If one combined the best elements from various different sources, they can be way ahead in the trading game. Traders also need to accept that indicators, even the best out there, are bound to be false around 50% of the time. This is because they only lead the market for a while, then they need to spend as much time readjusting, and during that time they make no sense. So the trick is to believe that they are bound to be wrong half the time and try to distinguish leading phase from lagging phase.

Traders use divergences formed between market price and indicators to figure out price direction. Market price usually will go in the direction that the indicator hints. But notice that as one indicator shows a divergence, another indicator may be in its own lagging phase. So one cannot rely on one indicator only, non stop. But rather they have to shift from one indicator to another and look for the latest divergences formed.

Implementing Few Simple Strategies without the Pressure to Be Successful

Everyone wants to trade to make money. But the very necessity to make money there and then, sabotages traders and makes them stressful, unable to look at market charts with an unbiased mindset. So traders who have a long trade on for example, tend to see all kinds of buy signals, and yet somehow downplay all bearish signals on their minds. So a good chart reading starts with an unbiased mindset, which requires having no trades on, and ideally when markets are closed. Finding a good forex broker is also essential, as different brokers have different platforms and trading tools. Ideally one needs a broker that makes them feel comfortable and whose trading platform is easy to use. Things such as leverage, pip size stop loss order etc, should be easy to handle. The first steps in trading should be simple and the trader should find trading activity as a enjoyable task. If there’s too much pressure, too much stress and routine involved trading becomes difficult.