Thursday, March 13, 2008

Forex Trading: 3 Key Tips For Huge Forex Profits

Here we are going to look at the 3 key points you must consider if you wish to achieve forex trading success. Fail in any of these areas of forex trading and you will lose.

1. Get the Right Forex Trading Education

To make money at forex trading you don't need to work particularly hard - but you do need to get the right knowledge and learn forex trading. Most forex traders don't and fall victim to common forex trading myths. Here is a list of these common forex trading myths, believe any of them and you are guaranteed to lose.

- You can make money with forex day trading

- You can predict forex prices in advance

- You should buy low and sell high to make money

- You can trade off news stories

- You need a complicated forex trading strategy to win

- You can follow a simulated system from a vendor and make money

- Forex trading is easy

Believe any of the above and you can say goodbye to your equity.

If you want to get the right forex education and knowledge you need to spend some time learning the basics of trading forex and developing a strategy you understand, because this leads onto the next vital ingredient for currency trading success:

2. Confidence

Most novice forex traders simply think they can make money following someone else or trading news stories. They have no idea how and why the markets move and when they hit a few losses, they have no confidence in what they're doing and that's the end of their forex career and their equity.

Now let's look at the vital ingredient all traders need to succeed that flows from confidence:

3. Discipline

If you don't have confidence in what you are doing, then you will never have the discipline to sit through a period of losses and wait for winning trades to return.

One of the biggest myths of forex trading is that you can earn a consistent living and a regular monthly income - its rubbish you can't!

Even the best traders will spend weeks or months in periods of drawdown and you will too. Sure, you can make huge gains over the longer term - but they do not spread evenly across the year.

If you don't have the discipline to take short term periods of drawdown and still keep trading, you don't have a forex trading method at all.

If you want to win at forex trading the good news is:

If you work smart, you can learn to trade in just a few weeks.

If you avoid the myths and get the forex trading knowledge, you will be confident in what you are doing. From this understanding and confidence you will achieve discipline. You need the discipline to stay with your forex trading method through short term losses and stay with your system to achieve longer term success.

95% of traders lose and this group simply do not understand that to make big profits, you need to have a simple robust trading system; you have confidence in and the discipline to follow it.

If you understand the above you will be able to put the 3 building blocks of forex trading together and achieve forex trading success - it really is that simple.

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