By Vytautas Zilenas
A newbie that comes to the Forex market expecting to make millions in a matter of a few months usually gets disappointed quite quickly. If he/she spends just a few weeks on a demo account and rushes to open a real one, the chances are that his/her real account will be shattered within a few weeks, hopefully a few months. Financial markets present lots of opportunities to make money, but even more to lose it. From my own experience I can say that the only way you are going to become successful in Forex is by learning it the hard way, making mistakes, trying and losing, trying again and losing again and finally arriving at conclusion that Forex is not for you, or by finding some good forex trading strategies and following them with a sound money management system and proper discipline.
Understanding of conditions is the first step to success
My favorite author on investing and speculation is Jesse Livermore. He lived, traded and wrote in the beginning of last century but his great experience and tips are still valuable today as they were one hundred years ago. Jesse used to say that if you want to be successful you need to understand market conditions, which means: you have to see if the market is in a range, a trend or it goes sideways. Then, you have to be able to use an appropriate strategy for those market conditions. If you neglect this and continue trading spontaneously jumping from one strategy to another without any plan and methodology, you will definitely ruin your account. Blowing up your account is not necessary, but unfortunately it happens till traders learn to see market conditions and act accordingly on the knowledge they have gained.
You have to develop your own trading strategies and systems
Learning from others is very good; however you should develop your own trading strategies and systems in order to be successful. People are different and they create different trading methods that best suits their personality. My trading style might not be very good for you as you are a unique trader you’re your unique goals and expectations. If I risk 5 percent on my trades, it does not mean you have to do the same, because your monthly or annual targets might be different from mine. Having that in mind I can say with conviction that buying signals from some signals’ provider is a temporary strategy. Why? Well, what would you do if something happens to that signal provider? What if he starts giving you bad signals? And are you going to become a professional trader by following somebody’s signals? I guess not. I do not mean to belittle the usefulness of those companies and traders that provide forex signals, I just want to stress the point that if you want to be a professional trader you have to use your own head. If you just want others to trade for you or suggest you how to trade, then forex signals are for you.
About the Author
There are many more tips that could be given but I am going to do it in my future articles. If you want to find out more about the subject you can read how forex trading system can be applied under different market conditions reading about basic forex trading strategies and by watching a video about application of forex signals.
