Category Archive: forex training

How to Get Great Forex Training and Education

Are you constantly surfing the internet looking for a forex trading strategy?  Are you confused as to what course to start with?  When you want to get involved with Forex trading, you have to figure out approximately how much money you would like to commit to trading, and then find a low cost course which will educate you to get started.

If you want to get started in trading really soon, one way is to buy a course online that teaches a specific method of trading, such as using Fibonacci ratios, Elliot waves, or other indicators that gives you a high probability of placing a successful trade.  Then, you need to study and test the method on a demo trading account until you are profitable.

Here are two rules to always follow:

Rule #1:  Paper trade, Paper trade, Paper trade.  Please don’t jump into the market with real money until you are confident and totally comfortable using the trading method.   One surefire way of losing all of your money is to jump into the market too soon, before really testing a trading method.

Rule #2:  Plan your trades, and trade your plans.  As traders, the only way to test a trading method is to stick to it religiously.  Therefore, it’s imperative to write down your plan or method for finding a trade, and stick to it.  Just like anything we do in life, proper practice through paper trading will make you able to enter the markets with confidence and will ensure you don’t lose your trading account.

Things to look for in a Forex Training Course:

When purchasing a course, check to make sure that it doesn’t cost more than you have to invest in the market.  If you have $1000.00 to invest, then spending $800.00 on a forex course isn’t such a good idea, because you need $300 to open an account.  Try to spend less than half of the money you want to start investing with on a Forex course.

Next, make sure that the course teaches you to trade independently without the need to subscribe to a service.  Some courses just teach you how to use their trading system, which requires a paid subscription.  Many times, the subscription trading systems don’t reveal the method that they use to determine when to enter and exit a trade.  So, if this subscription service goes out of business or their system stops working, then you are back to square one, without the knowledge of how to enter or exit a trade.  As a trader, it’s important to know the method you are trading with.  As my mentor told me, “It’s never a good idea to put your fate in someone else’s hands.”

If you find a course that meets the above criteria, then go for it, start your education today.  Lastly, take your time.  The market is always there.  The more you practice, and educate yourself, the more profitable you will become.

Forex Training: Deadly Forex Mistakes That Assure Failure

Before venturing into your trading journey there are some things you need to be aware of, otherwise you could succeed on your trading adventure, and we don’t want that to happen, do we? This Forex training guide will help you track the most costly mistakes Forex traders do.

First of all, make sure you don’t have a trading system. Having a trading system might increase the odds of your success. If you have a system, you will have an objective way to get in and out the market. When traders create their trading systems they think objectively since there is no position to be taken at the moment. If there is no position to be taken, there is also no money at risk, if there is no money at risk, we do think objectively and are open to every possibility, thus we are able to find low risk trading opportunities. So make sure you don’t have a system and trade based on a randomly approach.

If you have already created your system, then don’t follow it, be undisciplined. If you follow your system, there is a possibility that you can profit from the Forex market based on the trading opportunities you have found. If you want to fail on your trading, be sure to be undisciplined.

Don’t get educated. Most successful traders are very well educated in the market they trade (stocks, Forex, futures, etc.) If you get educated, you might acquire the knowledge and experience you require to master the Forex market. Don’t read about the Forex market, don’t enroll into Forex training programs and don’t even look at historical charts.

Don’t use any money management technique. The purpose of money management is to avoid the risk of ruin, but at the same time it helps you boost your profits, allowing them to grow geometrically. For instance, by using no money management techniques, there is a possibility that in loosing 10 trades in a row you could empty your trading account. On the other hand, by applying simple money management techniques you can avoid it. So make sure, if you want to fail, don’t even consider money management.

Forget about psychological issues. You need to get every trade to win. Successful traders know that they don’t need to win every trade in order to profit from the market. This is one characteristic that is hard to understand and really apply. Why? Because we are taught, since kids, that any number below 70% is a bad number. In the Forex trading environment, this is not true.

Don’t even consider using a Risk-reward (RR) ratio greater than 1-1. If you use a RR ratio of 1-2 (willing to make twice the amount risked in one trade) then you only need a system that is right around 50% to make money. If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1.

By applying every point outlined in this Forex training guide, you will almost assure your failure in your Forex trading journey. Do the opposite, and you will have the possibility to achieve what every trader is looking for: consistent profitable results.