I Don’t Need a Forex Trading Tutorial?
by biz on 18/01/10 at 7:26 am
Before beginning a career in Forex investing or buying an expensive Forex currency trading system, it is recommended that you read a Forex trading tutorial, and probably several, and keep in mind all the advice provided. A Forex day trading system is a great way of investing your money and earning some extra cash, but it’s also an easy way to lose money if you are not careful or you don’t know what you are doing.
Do You Like Gambling?
First, you should know the basics. Forex investing doesn’t mean gambling, but trading after you have analyzed the data and made an informed decision. Second, you should never start by investing in a real Forex account if you are a beginner. You should practice for at least several months on a demo, practice or virtual account to improve your skills. Third, following the trend using a Forex online system trading non-volatile currency pairs, such as EURUSD, is usually a good idea. It is the safer and less complicated path to choose when investing as more complicated strategies, such as MACD divergence signals and Forex arbitrage, really should be left to more experienced traders. Fourth, you should never take high risks when trading because this is a sure way to failure. Be cautious in your investing at all times. Never trade with money that you cannot afford to lose. Utilize wise money management techniques to mitigate the chance for a large loss.
Emotions Run Wild
Also, a good thing to keep in mind is that you should NEVER base your trades on what you think is going to happen, or that you will get revenge for the loss on your last trade, or base your Forex trading on any emotions at all. If you don’t know what to do or if you are too excited about a previous trade, you should relax a bit and calm yourself down. You should always test any Forex system at least for several months in a practice environment, back test your strategy with price data using tools such as Forex Strategy Tester, and then follow your Forex system’s trading rules at all times.
Wait to Automate
Another good piece of advice is that while an automated Forex trading system may be great for a novice trader since you don’t need to learn as much, it also will be an obstacle to learning what you need to learn to get to a higher level of currency trading. Forex allows automated Forex system trading (robots) and there are many people out there selling automated systems that may or may not be good. At least at the start, I would suggest that you should keep it simple and invest based on your own judgment. Buy Forex trading books or complete several online Forex trading tutorials before using a Forex currency trading system with real money. There are both free and commercial Forex trading tutorial websites where you can get a great educations. One of my favorites is BabyPips.com because they have “school age classes” beginning at pre-school all the way to college courses. While you learn the basics of Forex in pre-school, you learn divergence and other more complicated lessons in college. For even the more experienced traders, you can find a knowledge level to take a course that will be beneficial to you. Forex clubs, Forex forums and other sites are great to learn from. Free sites (although they do have a paid-member sevice for about $12 per month) is Forex-TSD.com. You will be amazed at bot the knowledge of many of the traders on this forum and the many Forex indicators and expert advisors (EA’s) that you can download for free and attach to your Forex price charts.
Best Trading Days
The best trading days are Tuesdays, Wednesdays and Thursdays, so you should take advantage if those days when trading. Don’t blindly follow recommendations of other traders, but rather try to discover why they recommended certain trades to you. These are the days when there is increased volume and volatility. Volatility means that there are buy and sell opportunities and trends that are being created. The least volatile day is Monday, and Friday’s are usually poor trading days as traders liquidate their positions before the weekend so they don’t have to pay broker swap fees. Of course, the times when one of the three Forex exchanges overlap is the most volatile and best times to trade on Tuesday, Wednesdays and Thursdays, and you can read about those times in another of our articles on this site.
As you can see, Forex trading is a lot of analyzing and knowledge, but to be truly successful, you have to use common sense and be master of your emotions. You also have to be willing to take risks, but not lose yourself in trading as some do with gambling. The most important piece of advice is that if you don’t feel ready to start Forex trading, you shouldn’t – keep practicing on your demo account. It’s better to start winning later than to lose money early.
