Trading forex for the beginner
Hi Guys
If I can give you my 2 cents worth for what it's worth.
I've been trading forex for a few years now and like most traders went through a tough time in the beginning.I think the most important thing in trading, for me at least, is to know yourself before you start on a path of emotional pain.
I don't normally recommend or endorse any vendor but of all the rubbish out there you occasionally do find something that seems to actually help you.
When I started out I went on every course I could find as well as buying a complete liabrary of books and cd's.I would meet traders from all over and network with all these great people, and get so confused listening to each ones input about what they do or don't do and where they think the market will go, I put myself through alot of stress and emotional pain.
At the end of the day I think your going to pay for tuition sooner or later! I'm sure alot of people would agree that if you just jump in to this profession without having a good solid idea of what your doing, your going to burn up - Either emotionally or financially...or BOTH!
I think the more people you speak to as a novice trader the more chance your going to get more confused! I think that's because each person is very different to the next, and each persons belief about trading is a reflection of his/her emotional make up?
Like I said I don't normally recommend any particular vendors/courses but of the tonnes of rubbish out there I would say if your going to spend money on courses/books, have a look at Mark Douglas' book "Trading in the Zone". Read it as many times as it takes to get the mindset of how a trader needs to think. Once youv'e attained the right mindset, then set out on your quest for more knowledge on technical and Fundamental analysis.
Another very good book, which has absolutely nothing to do with trading is Eckhart Tolle's book "The Power of Now", it's quite a difficult book to read and will also need to be read a few times.It basically teaches you how to stay in the present moment.Which is really important when trading as most traders seem to live or die by their last trade!
And finally of all the courses on trading forex - Chris Lori's cd "Pro Trader Advanced FX Course" is one of the best I've seen.It is quite expensive costing about $600 for the 12 cd set.What I really like about the course is it's not focussed on indicators!! It focuses on price! The one thing every professional trader seems to have in common is they focus on price action first and indicators are second. Please note I do not endorse any of this material and please note this is only my input. At the end of the day it's up to each trader out there to go through the process of becoming consistent on his own.
If you can find a mentor who knows what he's talking about and who will not hold back information from you then that's even better.
I hope this helps someone. Remember it's a very difficult profession to choose and only ten percent of the crowd seem to make consistent money on the longterm, so don't beat yourelf up about not knowing what to do. Start really small - I like a broker that offers micro lots for beginners which is alot better than trading a demo account as your emotions wont go on a roller coaster ride everytime you click the order entry when trading a dem
nce you have your emotions under control you will be miles ahead of the competion.
Good luck on your road to consistency and be careful out there!