Forex trading is one of the best ways to earn a living online. It's quick. It can be learned by almost anyone. And it can cook your lunch if you're not careful. If you want to learn to successfully trade in the forex financial markets, there are a few basic rules or commandments that you need to keep in mind. Carve these rules into the side of your pc before you ever make a single trade, and you'll save yourself not only a lot of grief but also a lot of financial pain. Here's just three to get you started:
Commandment #1: Thou shall not trade in the forex market if all of your trading decisions come via the advice of a robot.
Basing any type of decision especially one that can involve considerable sums of cash on a forex robot is a huge and I mean huge mistake. Here's why: almost every forex robot out there in the market today is a scam. Did you really think that a $97 piece of software was going to master one of the toughest financial markets in the world just because some two bit hustler online tells you that it does. Will he give you back your money after it's all gone? Furthermore, these forex robots with their phony stats and deceptive marketing ploys never live up to their hype. If you're the type of person that's easily convinced or who falls prey to con artists all the time then the sellers of these forex robot trading systems will be lining up at your door. Take my advice: don't fall for their lies, and you'll avoid a lot of future frustrations, plus you won't get stuck with a receipt for the Brooklyn Bridge.
Commandment #2: Thou shall learn to accept losses from time to time if you want to learn how to survive in the forex trading market.
Yes, I'm afraid this is the one thing that most forex gurus fail to tell you time and time again. Guess what? If you trade in the forex market, especially as you start out, you will have losses. Surprise, not everyone wins every time. In fact most will lose. But there is a solution for this.
Learn How to Control Your Losses Before They Happen
One of the first things you must master before ever seriously becoming involved in the financial markets is the "stop-loss" method. In this method, similar to investing in stocks, you will set a predetermined level at which your broker will issue a sell order. By doing this, you are in control of the situation and any potential losses should they occur. You can also set a "moving average stop-loss" on your trades, and it will rise as your profits do. As you trades move up, so does your "stop-loss" keeping you out of serious danger, but at the same time maximizing your chances for big profits.
Commandment #3: Thou shall find a trading system that works for you and thou shall stick with it.
It's very important with all of the different methods out there that one can use to base your ultimate trading strategy on the one that makes you feel the most comfortable. It's also important that you stick with it - no matter what. There will be bumps and bruises along the trail but that's a fact of life that we all have to deal with from time to time. A system is what you need, and it's a system that's going to make a difference in your overall trading success. Don't jump from one system to another one. The easiest way to fail and to never learn forex trading at all is to scatter and confuse your perception of what to do and when to do it. Stick with one method of trading or system for the long haul, and in the end you'll do just fine.
These are just three of the commandments that you MUST follow if you want to learn forex trading the right way. Follow them like Moses on the mountain. Good luck and much success in your future trading life.
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