Currency Trading Basics - 4 Critical Points to Consider Before Trading

Currency Trading Basics - 4 Critical Points to Consider Before Trading

by kelly Price

Here we want to look at currency trading basics and some points which will answer the question: could you win at currency trading? There are 4 points to consider and if you think you can master them, you can enjoy currency trading success.

1. You and Profits

Only you can make yourself successful no one else can.

Sure you can get knowledge from others - but you must learn and apply it by creating your own forex trading system.

A word of warning:

You will see numerous mechanical forex trading systems sold on the net, with simulated track records and none of them will make you money - they all lose. So forget them. The track records are meaningless as they have never been traded - don't be tempted to try them!

You're on your own - but that's the only place to be, if you want to enjoy currency trading success.

2. Working Smart

You don't get paid for effort in forex trading you get paid for being right with your trading signal and that's it.

You can learn all you need to know in about 2 weeks and you're done. It's a fact everything about successful forex trading can be specifically learned by anyone.

This was proved by trading legend Richard Dennis, who taught a group of people to trade in 14 days and they went on to make $100 million! Yes, forex trading is a learned skill - so where do you get the best education?

Well you can get a ton of free info on the net and you should also take a look at some books by the great traders from Amazon.

The best way to trade is to use a simple system, based upon forex charts but keep in mind - nothing complicated!

Simple trading systems work best, as they are more robust in real time trading with fewer elements to break.

Learning a trading method yourself is essential, as you will know how and why it works and this will give you:

3. Confidence

If you do not have confidence in what you are doing, you will never acquire the vital trait all traders' need - discipline.

Most traders who trade don't have confidence in what their doing - they follow news stories or other traders systems and when they hit a few losses, they throw in the towel.

You need confidence to allow you to accept short term losses as a natural part of making big longer term profits. No trading system is perfect, so you need to have confidence when you hit a bad spell.

4. Discipline

Confidence will give you discipline the vital trait all successful traders have.

To be successful you must follow your currency trading system with discipline and execute your trading systems to the rules of the system- through good times and bad.

If you don't have the discipline to follow your trading system you don't have one!

Finally ...

Forex trading is 25% method and probably 75% attitude.

The reason most traders fail is they simply cannot accept responsibility for their actions and blame everyone else - from their broker, to the wife for putting them in a bad mood!

If you are not prepared to accept responsibility and create and understand a framework of rules, you have the confidence to follow with discipline, then you need to forget forex trading and do something else.

Forex trading has huge rewards and is a big boys game and not for cry babies.

So if you understand the above and what you need to do and you're up for the challenge, then welcome to the world of currency trading!

We hope our quick review of the currency trading basics above help you on the road to currency trading success.