With the advent of online trading, the Forex markets are no more off limits to retail traders. In the past, Forex was the domain of prominent financial institutions, banks, and multinational corporations. However, the Foreign Exchange trading scene has been transformed from being what it was in the past and individual investors are jumping on to the Forex market with enthusiasm and anticipation. Even first time investors are looking to gain profits through currency trading; indeed, this has begun to interest more and more newcomers to the market.
95% of traders lose but its a fact that to win you don’t need a college education, or to work hard you just need to work smart and get the right mindset. First lets look at the key errors most traders make and then the skills that can get you in the elite 5% of winners.
It’s true that if you want to devote yourself to studying forex candlesticks you could spend a lifetime on it. It’s also true that to be an effective and profitable trader, you just need to master a handful. The trick is knowing which ones to master and how to use them effectively in day to day currency trading.
A system doesn’t make money on its own, you have to apply the rules as they are set out to realize it’s potential. now, you might think this is easy but if you do, you probably have never traded Forex markets! Its hard and the reason it is, is simple – your going to hit periods of prolonged losses. This however will not stop you making big gains, providing, you keep your losses small and stay on course. To do this, you must keep your emotions in check and this is hard for most traders.
There are numerous myths but the major one traders fall for is markets move to science or some higher force and the way to make money is to predict in advance – prediction is just guessing because markets cannot be predicted instead, you should focus on trading the reality of price action. If you want a simple strategy that works, trade breakouts, we have covered this timeless way to make money in other articles so look them up.