By Mark Slater – Most forex for beginners articles and forums concentrate mainly on automated forex trading robots guaranteeing that you can make huge sums of money without doing anything more than using a simple and cheap software program.
Just think about that for a moment – if these programs are so successful then why would the creators want to sell them, particularly for less than $100? The reality is that to make money trading forex you do need to do a little work and practice your skills. Typically, forex robots are designed to deal with a single type of market condition during which they might be profitable but as soon as the underlying market price action alters your profits can vanish.
The great news is that learning to trade the forex without using an automated system is not as difficult as many people expect! You can easily learn to trade the forex markets and make a big second income or even earn your living from trading once you have gained some experience.
This is because the rules of trading have barely altered since merchants and farmers began trading centuries ago. Financial are 100% driven by humans and as such they regularly repeat the same characteristics and if you have learnt how to recognise these then you can take advantage of the opportunities on offer.
In general, forex markets and other financial markets are either moving in a steady direction or exhibiting more random behaviour and this is why a properly trained forex trader can outperform automated forex systems – you can adapt to the prevailing market environment. If the market is moving in a clear trend then you need to adopt a certain trading style, if it is choppy and exhibiting more “noise” then you need to adapt your trading approach or avoid altogether.
Any professional forex for beginners training program will acknowledge this fact and teach you the tools you need to operate in different market conditions. Central to the system should be 5 core modules: how to spot the trend, a precise entry technique, a protective stops method, money management rules and an explanation of trading psycholgy. These last modules are often misunderstood or ignored completely but any professional forex trader will tell you that if you get these things right then you can make money even with only an average trading system.
Once you have studied a comprehensive beginners forex course you will need to find a broker and learn how to use charts. Thanks to the internet this is now a very simple task and learning to recognise chart patterns is also great fun and very rewarding. You will then open a practice or “demo” account and apply what you have learnt before going into the market with your own money.
Follow these simple guidelines and you will make money trading forex. Get a robot and you will endure endless frustration as you buy one after another that don’t live up to the adverts.
About the Author
Mark Slater has been trading the financial markets for over 20 years. If you want more forex for beginners tips and examples of what you should study in order to become a profitable forex trader then check out the resources and comprehensive beginners toolkit at www.beginnersforex.org