Learning Forex Essentials

If you want to be an engineer, lawyer, doctor, vet, architect or master any profession or skill, you need to put some time in, maybe months, even years, so why should anyone think they can walk into Forex trading and become a millionaire overnight. Plain daft in my view, however, it should take you a lot less time than studying to be an engineer or vet, provided you go about it in the right way, so don't be disheartened.

So what is the right way and what have I learned?

The Essentials

• Don't kid yourselves. Forex is considered High Risk, so if you are risk averse you may wish to reconsider learning how to trade it. However, if you can learn to manage yourself and your risk then you stand a good chance of succeeding. More often people lose money due to a lack of understanding, human error and lack of discipline. You can do something about all these aspects and thus minimize your risk.

• You need to be absolutely honest with yourself and with anyone who knows what you are endeavoring to do, with regards to your progress - success and failure, the latter is more important to be honest about - that can be tough.

• You need the patience of a saint and the self-discipline of a soldier and sometimes nerves of steel.

• If you don't have already, you need to develop an inquiring mind. Just ask, why, what, where, how, when!

• If you don't know something, then Google it, as it is probably out there in a free resource somewhere.

• Failure is normal and good, that's how you will learn - from your mistakes, just don't do it in a Live account!

• Around 90% of retail Forex traders fail to make any money. Probably because they don't plan their trades and thus plan to fail, they don't understand risk and money management and they certainly won't have a handle on their emotions when trading live money. If you have a comprehensive trade plan and stick to it, that will address most of the emotional issues of trading live.

• This is NOT a get rich quick endeavour! This IS a get rich endeavour in a steady and timely manner! By compounding your profits you can achieve financial freedom; however you must pay yourself every month from those profits.

• The markets are essentially driven by FEAR & GREED. These two emotions need to be controlled when trading Forex.

• Being able to decide when NOT to trade is as important if not more than deciding when to trade. Not trading in certain market conditions is a great trading decision.

• If you want to be an independent Forex Trader rather than a dependent one then write down why you want to be an independent Forex trader. Trading is a means to an end and not an end in itself, so what lifestyle are you seeking? What life goals do you have? Look at these goals everyday, that will keep you focussed when things aren't going to plan. Put the answers or a picture at the top of a draft Trading Plan which you can develop as you learn, this should maintain your focus when things are not working out.

• If you don't have any money for a trading pot start saving NOW! By the time you finish learning all the key things about Forex trading you should have sufficient capital to open a small (Micro) live trading account. How much? $1000, but preferably $2000 to $5000, should be sufficient for a Micro account, provided you are trading pennies or cents.

• Get yourself a laptop with wireless connectivity capability.

• Get yourself a decent broadband internet connection and if you can afford it a spare laptop or stand alone PC with an internet connection then get one as backup.

• Get yourself some means of hard drive back up, and do it regularly.

• DON'T open a live account on any account!!!! At least not until you have some proven and demonstrable competency trading in a Demo account. So DO open a Demo Account. Most Forex brokers offer a downloadable Demo platform. Make a note of your username and password.

• Buy some Forex books - for some suggestions and reviews go to my website at the link below.

• Research some good Forex websites, as lots have loads of free educational material:

• DO get yourself a Forex mentor but be choosy as you need to be able to click with them and they must have a good track record - however, this will be money well spent. They should teach, coach and support your learning and provide brutally honest but constructive feedback on your progress. They should provide you with a range of trading strategies. This will provide you with a faster track into Forex trading. For some ideas on Mentors go to my website link below

• WARNING: Forex can be addictive so try your utmost not to let it take you over completely and ruin your personal life, so beware and be forewarned. So pace yourself. If you don't trade today, no sweat as the markets will still be there tomorrow and the next day ....

That should at least get you started and there are lots more great tips and FREE resources available to help you at www.Forex-Crazy.com

I wish you all the best on your Forex journey. Let me know how you get on at my website Forum

To get your comprehensive FREE guide on 'How To Trade Forex Without Losing Your Shirt!' just go to www.Forex-Crazy.com where you'll find a plethora of FREE resources to help new and struggling Forex traders to get on the right Forex learning path, without losing their hard earned cash.

I hope that helps.

Martin S

www.Forex-Crazy.com

P.S. If your interested in finding a new trading strategy and making it your own then have a look at HERE or HERE.