Jared F. Martinez (The FX Chief™) is an author, forex mentor, educator, market analyst and entrepreneur, as well as the founder of Market Traders Institute, Inc. (MTI). Click here to learn his strategies.
Forex trading made easy can be a reality if you follow the simple steps enclosed. The basic tips we will look at in this article can get you on the road to currency trading success quickly, so let’s take a look at them in more detail.
If you understand and apply all these tips, then currency trading can be much easier to learn.
Take Responsibility and Learn the Basics
If you want to make money in life and Forex trading, you need to accept responsibility for your financial destiny; the good news is if you want to win at Forex trading, then you have a chance to do so, as anyone can learn the basics for success.
Work Smart, Not Hard
You don’t get rewarded for the hours you put in like you do in a 9 – 5 job, you get rewarded for being accurate with your trading signal. It doesn’t matter whether it took you years to learn a system or if it only took weeks, the profits you make are the only criteria you are judged on. If you work smart, you can learn a trading system in just a few weeks without needing to look at the daily news or know much about economics.
Use Technical Analysis
The best way to learn to trade is to follow price action on charts and simply follow price trends. When you do this, you don’t care why prices are moving, you just want to lock into trends when they do. Learning to spot chart setups that offer high-odds trading opportunities is a specifically learned skill which every trader should aim to master.
Trading Systems Should be Simple
Forget those gurus who tell you that trading systems need to be complicated to win, it doesn’t need to be and the reason why is; the best systems are simple. The reason simple systems work better is because they have fewer parameters to break.
A simple, robust system can consist of chart patterns and just 2 or 3 confirming momentum indicators and also makes you a lot of money – so don’t work harder than you need to.
Finally, you should always trade the reality of price change and not try to predict where prices will go in advance. A great methodology to help you to do this is trading breakouts, which we have discussed in other articles.
Learn to be a Disciplined Trader
Most traders lose money and they have since trading began. It doesn’t matter how many technological advances we see over time, the majority of traders will still lose because human nature is constant.
Most traders lack discipline and cannot keep their losses under control, but to win you must stay disciplined; you need to keep losses small and let your profits run to achieve long-term success.
If you want to feel clever and win all the time – don’t trade Forex. If you want to win trades more often, you need to be humble, accept your losses and if you are humble, the market will always reward you with great trends that you can run for an overall profit.