Mindset Archives

Forex Training Works. The Only Way To Succeed.

Forex Training Works, No Arguement.

You may well have heard of people who have made a fortune trading the Forex markets. You may also have heard of people who have had their trading bank wiped out in a very short time too.

The only difference between the two camps is the likelihood that the successful traders had been properly trained.

Forex training works and there is no substitute for it if you wish to succeed. Yes, you have to study, take in information and act upon it but whoever said having a successful trading career was just going to happen without any effort on your part?

I once heard a quote along the lines of ” How do you make a small fortune?” the answer, ” Start with a big fortune” That can easily be the case if you venture into Forex trading without the proper training behind you. You should have lots of questions answered before you even consider becoming a trader. I will attempt to answer some of them here.

Why Do I Need To Learn How To Trade?

In many different spheres of life we are able to sort of muddle along meeting with a bit of success here and there while going on instinct and teaching ourselves along the way.

Take some of my own examples:

I am a keen runner. I can have good days and bad days but I have reached a certain level of success on my own. Once I joined a club and began getting proper training however my performances improved dramatically, when I am prepared to put in the effort that is 🙂

Golf is another sport where enjoyment can be found up to a level but if it is sustainable improvement you are looking for then the correct training and tuition is what is required.

Away from sport, pick almost any hobby you like and you are pretty sure to be able to find plenty of tuition on the internet in the form of videos and information to download which could take you to the next level and make the whole experience more enjoyable for you.

Attempting to start out by finding your own way before seeking out proper training is not the way to go when considering dealing in trading Forex.

Firstly, although the actual mechanics of trading Forex are quite simple and straightforward there are a lot of potential pitfalls lying in wait for the unwary trader.

Fear or, potentially even worse, over confidence.

Incorrectly interpreting what the market and trading charts are telling you.

Using tools and strategies which complicate your trading activity without adding benefit, just because somebody somewhere said it was the way to go.

Which from the array of currency pairs quoted should I be trading in?

USD/GBP or GBP/EUR or USD/EUR or JPY/CHF or USD/CHF????????

The list is endless but I hope you get my point.

Forex training works and is essential if you want to have a long career in the trading environment. Of course success is never guaranteed even with the best training because individual decision making will always play a part. Having the right training behind you though will certainly eliminate a lot of the opportunity for failure.

What About The Thrill Of Taking Risks?

There is no doubt that for some traders the thrill of risk taking and proving everyone wrong ranks very highly on their list of priorities, that is an individual choice and does not mean that it is the correct approach for everyone.

Done properly there is plenty of excitement to be had in the Forex training arena anyway. What greater thrill could there be than to research your chosen market, decide on your trading direction, place the trade and monitor it as required then close it out successfully at or above your anticipated profit margin.

Just make sure you contain your emotions during the trade and leave any celebrations until after you have closed it. Remember, never let emotion infiltrate your actual trading activity when you are live.

So, Where Can I find Forex Trading Training That Works?

That is a very good question and one which I intend to answer right here.

When I first started I looked into lots and lots of courses, some good, some not so good, some ridiculously expensive and some so cheap it didn’t make sense. Finally I discovered a step by step approach which claimed to guide a complete beginner through the minefield which can be Forex trading.

That course was called Trading The Easy Way and you can find more about it right here.

I really hope that this has not put you off the thought of trading the Forex market. It can be such a rewarding and fruitful way to earn additional income and does not have to be scary or expensive if you do it in thew correct manner and get the right training under your belt.

To you future trading success.

Getting it right from the beginning.

Getting the right Forex trading mindset is probably the most important part of the entire trading puzzle. It is the piece which holds every other part of your strategy for trading together.

Unless you can trade with focus and discipline, which is easier said than done by the way, all of the other bells and whistles available to you will be pretty much worthless.

The first mistake that can prevent you from getting the right Forex trading mindset is to view the Forex market as being an entity with feelings. It is not and never will be!

Yes, at times you will feel like the market is personally doing everything it can to ruin your chances of success, for example:

Your stop loss gets taken out just before the market reverses back in the direction you were trading.

Your trade is a couple of points short of your profit target then moves sideways for a while and you do not know whether to take less profit or hold out for your target.

You close out your trade happy with hitting your profit target then watch as it suddenly shoots off in the right direction moments after.

 

Trust me, we have all been there and it can often feel as if it is just you and the market and the market holds all of the aces. This is just plain daft. There are so many other players in the market each of them holding different views and trading positions at any particular time. For every winner there is a loser and the Forex market could not care less which way it goes as it is just a tool for traders to set a price between 2 currency pairs. Nothing more! 

There is no place in Forex trading for emotion.

If you are trading properly, and if you are not you will not be trading for very long, you will have taken all emotion out of your trading decisions. You will have taken into account all of your analysis regarding the current state of whichever currency pairs you are considering trading. If you are using Fundamental Analysis you will have reviewed any upcoming announcements which may affect the market price during the period you will be trading. If you are using Technical Analysis then all of your charts and tracking data will be up to date and reflect which way the market looks like it will be moving.

Next you will have worked out your anticipated profit target in pips and committed whichever % of your trading bank to this particular trade. As you will already know I firmly suggest that this will be no more than 5% of your current bank.

You will also have worked out your risk/reward ratio to determine whereabouts your stop loss order will be set, taking into account recent highs and lows of the market price depending on which way you are considering placing your trade.

You are now just about ready to place your trade and hit the button to make it live.

You will have noticed I sincerely hope that at no stage during this process did I mention anything other than studying the facts. Doing your research of exactly what the market is saying. Making a trading decision based on factual information and your understanding, through proper training, of what the trading charts and all of your tools are telling you.

At no stage were any of these steps treated with emotion.

You did not think which way the market was going to move.

You did not try to guess where to place your stop loss order.

You did not wonder if everyone else was wrong and you were going to make a killing by going against what the charts were telling you.

You did not use your gut instinct regarding how you were going to trade.

Everything you did was based on factual information right in front of you. There is no other way to successfully trade the Forex market.

I really hope that I have got this message over to you loud and clear. At no stage ever during your trading career will you let emotion or feelings play any part in your trading mindset.

Every time you consider placing any Forex trade you will only do so after careful consideration of all of the facts your trading tools and strategies are showing clearly.

Everything you need to assist you in being successful is right in front of you. You do not need to guess.

One final and very important point.

If you have reviewed all of the information laid out in front of you and you cannot see enough information to allow you to place a trade then don’t! There is no rule which says that you must trade every day. This is once again an area where emotion and feelings can kill your trading operations.

You can always look at a different currency pairing as long as you do your thorough research.

You can come back later to see how the market has developed, if at all.

You can make the rational decision that today is not a day for you to trade and come back tomorrow and start your research all over again.

Never, ever enter a trade because you feel that you ought to.

I hope that you have found this information useful and that you will put it into action once you begin your Forex trading career.

As always, please leave a comment or question below and I will reply as soon as possible.