By Mark Slater – Forex for beginners products are usually filled with crazy levels of hype about the huge profits you can make trading forex. It’s common to hear that a newcomer can go from scratch to millionare status by using nothing more than a cheap bit of software, which continues to trade even while you watch tv.
Needless to say these suggestions are simply marketing tactics.
Yes, you can make a lot of money from forex but if you are a forex beginner then you must be aware of the following essential trading facts.
1. There is no such thing as a free lunch, in life or in trading. As a beginner you will come across a lot of adverts for forex robots which promise amazing profits. Unfortunately, most of these systems are useless. If you want to make regular profits in the forex market then you need to study a trading system that will teach the basics and help you design your own trading approach.
2. The great news is that currency trading is not rocket science. In fact quite the opposite, the best traders will explain to you that their success is the result of the ability to ‘Keep It Simple’. Many newcomers to the forex markets think that the more complicated their trading system or the more fancy screens and flashing indicators they use then they will have a better chance of success. This is a common and costly error, profitable trading comes from the sensible combination of only a few simple factors: when to start a trade, when to exit and how much capital to risk. Anything more than that is just padding.
3. Managing your risk is key to your long term profitability as a trader. Unfortunately, this aspect of trading is overlooked by new traders who are generally more excited and seduced by the latest graphic indicator or automatic trading tool. However, managing the amount of capital you have at risk at any one time (money management) is a critical element of any successful trading approach. Particularly as a forex beginner you need to protect your trading funds as you improve your trading proficiency.
4. The emotional impact of trading is also instrumental in the long term success of any trader. Again, most leading professional forex traders will tell you that they spend more time improving their emotional armoury and money management than they do refining their trading system.
If you embrace these four trading home truths then there is no reason why you cannot achieve fantastic results from your currency trading. Ignore them however and you are very likely to join the bulk of forex traders who never devote the time to study their craft and fail to make any money.
About the Author
If you want to understand how to include these factors into a profitable forex for beginners trading method, then visit www.beginnersforex.org which includes a step by step trading plan explaining how you can profit from this exciting market.
