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If you make the mistake enclosed you will lose at Forex trading and here is the mistake that causes the demise of more new accounts than any other. If there is one lesson for currency trading for beginners that you need learn…

Most traders believe that currency trading is simple and they reckon they can follow a guru, expert advisor or forex robot with a back tested system and delight in currency trading success and of course, they lose their money. If you could win by buying $100 buck robot the amount of traders who lose wouldn’t be so high.

Know This!

Forex Trading is NOT simple. That’s why 95% of traders fail to make money and get wiped out. That’s a huge percentage of losers but:

The Excellent News But is

If you know that huge gains don’t come without effort, you are prepared to get the right forex education and the right mindset the gains can be life changing – but you need to make an effort and get the knowledge you need, to give you confidence to trade with discipline.

Why You can Succeed

You wouldn’t expect Forex trading to ne simple with the huge rewards on offer – but you can succeed as forex trading as it’s a learned skill.

You don’t need to have a college education and you don’t need to work hard – you need to work smart, get the right Forex education and you can win.

Anyone can learn currency trading in a few weeks and make money in 30 minutes a day. The effort you make will be well rewarded just simply know the following combination for currency trading success:

Knowledge + Discipline to Do the Knowledge is the Key to Success

Knowledge by itself is not enough to make money.

Having a logical robust forex trading system, needs to combined with the discipline to do it.

You need to have the confidence to keep putting in your trading signals and ride out losing periods where the market is hurting your ego and giving you losses and your emotions are trying to tell you to veer of course.

Losing periods are part of trading ( don’t believe anyone who tells you otherwise) and they can last for weeks and you must say on course until you hit a home run.

If you don’t do your signals though these losing periods with discipline, you have no system!

Success Comes From Within

Success comes from within. Someone can give you the knowledge and education and even though it may be sound education, it’s your discipline and mindset which will turn it into profits.

In forex trading many traders get the incorrect education and lose and many others simply cannot trade with discipline and lose. In conclusion the trader doesn’t get beaten by the market he gets beaten by himself.

Know this and You can be a Winner at Forex

Know Forex trading is not simple and success comes from within and the pillars of knowledge, confidence and discipline and you are on the road to a fantastic second or even life changing income.

No other investment offers you such fantastic profits in terms of effort to profits, it’s not simple of course – but know the above and you can win and your efforts will be well rewarded.

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In the video I talk about my news trading method. I also mention one new thing. I started writing for hubpages. My first article is about news trading method. Be sure to check it. I provide my basic rules for trading news there and in the video I give an example about my trading news method with eur/gbp pair. The article is here: hubpages.com

A daily video highlighting technical developments in the overnight session of trade with DailyFX Technical Currency Strategist Joel Kruger.

FOREX trading means basically nothing other than direct access trading of different types of foreign currency. Foreign exchange trading was traditionally limited to institutional traders and large banks. Nowadays, it is open to many more people and small traders have flocked to take up the challenge. It is made simpler by technological advances which have placed online trading platforms within reach of pretty much anyone.

World currencies are on a floating exchange rate, and are always traded in pairs. There are a few major currency pairs which constitute about 85 percent of all daily transactions. These are Eur/USD (Euro/US Dollar), USD/JPY (US Dollar/Japanese Yen), GBP/USD (Pound Sterling/US Dollar), USD/CHF (US Dollar/Swiss Franc) and EUR/CHF (Euro/Swiss Franc).

But, trading isn\\\’t restricted to these pairs. There is a healthy market in minor currency trading as well.

Each transaction in foreign currency trading is simultaneously a buy and a sale. If you reckon one currency is going to appreciate against another, you buy the first currency with the second. Then, when the value of the second has fallen against the value of the first, you reverse the transaction and buy back the second currency by selling the first.

Say, for the sake of argument, one pound is currently worth one dollar.

If you reckon the pound is going to rise in value against the dollar, you might buy £10 for $10 (effectively, you are \\\’buying\\\’ pounds and \\\’selling\\\’ dollars in the one transaction).

Say your prediction was right, and the pound doubles in value against the dollar, your £10 is now worth $20.

You then sell the £10 for $20 (you are effectively \\\’selling\\\’ pounds and \\\’buying\\\’ dollars in the same transaction) and you have doubled your dollar equity.

In FOREX terminology the two transactions are referred to as opening and closing a position.

In reality time frames are very small and the fluctuations in relative value are very small, but this serves to illustrate the basic principle.

These FOREX transactions are performed on your behalf by dealers at major banks or FOREX brokers. FOREX is really a huge part of the world money market, and it is carried on around the clock around the globe 24/5 (there is small trading at the weekend.)

If you want learn how to delight in currency trading success, this article is for you and the way to do it is not the way most traders believe, as 95% lose. To win at currency trading you need to know this article…

The first place we are going to start is to compare Forex trading success, to a game of chess. Why? Because the way you succeed in Chess, is similar to the way you succeed in Forex.

Chess is a simple game on the surface (just like Forex) you have a set number of pieces and simple rules now consider how a game unfolds. Every game has the same rules but every game is different. There are literally billions of different outcomes to a game of chess but the rules the game are played in remain constant – so what does that prove you may say?

Well consider Forex trading in comparison – most traders spend time looking for an underlying order to the markets and trying to predict what will happen next but this never works. You can’t predict how Forex prices will unfold exactly but if you know the rules of the game you can react accordingly and win.

In Forex trading the simple rules you adhere to are these:

1. Never predict always react to the reality of price change

2. Whatever happens limit your losses

3. When you get a profit hold it and maximize it

There are many traders who follow junk robots and sure fire trading systems which claim to predict price movement and they all get turned to dust by the market. Your trading system can be simple, as simple systems always work best, as they are more robust than complex trading systems. The vital criteria to base your forex trading strategy on is you must the trade the reality of price change and not predict.

A excellent example of trading the reality of price change is to use a breakout methodology which you can look up in our other articles, it works and will always get the odds on your side. If you trade the reality of price change with your Forex trading system, you will have the odds on your side and win.

If you reckon about the logic of the above piece of Forex education it leads you to a compelling conclusion:

A simple set of rules and the ability to trade on the reality of price change, can allow you to delight in currency trading success.

Most traders lose and the amount is a huge 95% so what do you need to do to enter the 5% of elite traders that win? Let’s take a look at the 4 steps to currency trading success…

If you follow the basics below, you could soon be making huge gains after just a couple of weeks and in under 30 minutes a day – here are your 4 basics for success.

1. Acceptance of Responsibility

If you look online you will see lots of Forex robots and Expert Advisors offering you financial freedom for 100 dollars or so – forget them none of them work. If they these systems did work, a lot more than 5% of traders would win and they don’t. You have to accept that to win at Forex, you have to place in effort and learn skills; if you are not prepared to do this don’t trade Forex.

2. The Right Forex Education Work Smart Not Hard

Forex trading is all about working smart not hard. You need to avoid the myths and just get a solid Forex education. If you want to know how long it takes to learn to trade consider this:

Trading legend Richard Dennis, taught a group of traders to win in just 14 days and they made hundreds of millions of dollars! You may not get as rich as them but you can see what can be achieved, if you get the right education.

3. A Simple System is all that’s Needed

You don’t need a complicated trading system, just a simple one, because Forex markets are odds based and don’t go to certainties therefore, a simple system will be more robust with fewer elements to break.

If a simple system is combined with robust money management, you are all set to trade and now we will look at the toughest part of Forex trading.

4. Trading with Discipline

The toughest part of achieving currency trading success is to trade with discipline. All traders will have losing periods and it’s in these periods, you have to keep going and keep your losses small, as the market takes your money and makes you look a fool. If you reckon it’s simple, you haven’t traded!

Discipline is what separates winners from losers. You need to know that to win long term; you have to lose small term. Most traders have egos, reckon their clever and can beat the market and cannot trade with discipline. These traders fail to keep their losses small and lose.

If you want to win accept you are not perfect but you can make money long term, if you always trade with discipline.

Final Words

Anyone can win at Forex, as it’s a specifically learned skill but most traders lose due to the incorrect education and lack of discipline.

If you want to win and delight in success keep the above currency trading basics in mind, you will then be on your way to trading like a pro and making some fantastic long term gains.

Currency trading education is all about getting the right information but most traders believe myths or base there trading strategies on logic which is not right and lose. Here we look at some common mistakes, you must avoid to delight in currency trading success…

One of more of these mistakes are made by the majority of novice traders so lets take a look at them, there in no particular order of importance to avoid – there all vital!

1. Forex Robots and Expert Advisors make Money

You have seen them advertised, promising to double your money each month with no effort and all you do is pay a hundred dollars or so for an income for life.

They don’t work and if you use one these systems you will lose very quickly. If making money was as simple as the robot vendors claim, no one would work and everyone would trade for a living.

2. Day trading and scalping Work

All small term volatility is random and there is no way you can get the odds on your side and win because of this. Trading small term moves is a loser’s game – it looks low risk but you are guaranteed to be wiped out.

3. Markets can be Predicted

Prediction is hoping or guessing and you won’t get far doing that in any venture in life and that includes Forex. The far out investment crowd like the theories of Elliot and Fibonacci which claim they can predict the future – but if they can do this, why do they ever get a trade incorrect? Never predict, trade the reality of price change and you will have the odds on your side.

4. You can Trade breaking News Tales

News is discounted by the market instantly.

The news itself is not vital it’s the investor’s view of the news which is and everyone may see the same facts but they all draw different conclusions from them. Markets always fall when the market is most bullish and rally when it’s most bearish so never trade news tales.

5. Working Hard or Being Clever Guarantees Success

Forex trading suits a simple approach as it’s an odds based market. Over complicate your trading and your Forex trading strategy will have to many elements to break. Don’t work hard, work smart – effort may make you more money in a normal job but not in Forex.

6. Leverage is the Key to Huge Gains

Yes it is but more novice traders wipe themselves out due to over leverage than any other reason. You can get 200:1 leverage with any broker now but novices should start with NO leverage at all, until they are comfortable with there trading and use no more than 10:1 after that.

Work Smart and Win

The above are all common and avoidable mistakes, so if you want to delight in currency trading success, avoid them and get a excellent solid currency trading education which is based on sound logic and avoids the myths of Forex.

www.myfirsthomeblog.com What are *PIPS* ? Currencies are traded on a price/ point (pip) system. Each currency pair has its own pip value. When you see a FOREX price quote, you’ll see something listed like this: EUR/USD 1.2210/13 Explanation: a) If you want to BUY the EUR/USD ( meaning you BUY EUROS and SELL US$ ) you buy 100000 EUROS and you SELL 122130 US$, or in other words you receive 122130 US$ for 100000 EUROS. B) If you want to SELL the EUR/USD ( meaning you SELL EUROS …

www.informedtrades.com — A look at the technical and value-added features (like news, charts, ability to trade from the web, etc) that currency traders should consider when choosing what forex broker they select.