How to learn Forex?

How to understand and learn Forex? Stages to be a good Trader

Perhaps the title may seem very pretentious, since I don't think; "there is only one way to learn to operate in the foreign exchange market" (FOREX). However, if I think (conviction) that there are steps and stages that a trader (I mean the operator) must go through and in many cases back to repeat that part of her unconscious at the time of operating decisions.

This article spend so many new traders that I see are increasing every day (that feel me great), but yet they often operate without preparation and end up destroying their accounts or those of others (which is worse).

To start, I would say that if these operating real and still not sure of your system and even more so your psychological control to operate then I recommend you stop operating the real and do so only in the demo. Only in this way you will avoid (for the time being, continue punishing your real account). A Council, someone who won and lost money and know what you talking about. No point entering the market if you're not sure. If someone had luck in some operations, but it knows that it is not sufficiently prepared I would say that retain their enthusiasm and take advantage of their "good luck"... because it was only that. And good luck does not last for life.

There are no magic recipes. I am very sorry when some people write me discussing me that they have acquired a magic strategy that will return them millionaires. Friend, look no further with the Forex be "millionaire in a year". Look for consistency.

Stages that you must undergo in order to be a good Trader

Stage 1.

Take courses of Forex, which teach you technical analysis, fundamental and psychological. It is better to perform a consistent and serious preparation. This is not to say that you don't can learn in a self-taught way, also it is valid, however for those who are not familiar with statistical analysis, economic and financial it may be more difficult and tedious understand on their own. I do not recommend any specific course (it would not be ethical), also there are many charlatans and people offering their programs as if it were the solution to all the problems of the world. But if I can tell you how you can filter if a course is worth or not (in my humble opinion, obviously some will not agree with me).

First discard the courses offered you become a millionaire within months or always have 50% monthly return. To say that is little serious even more difficult as the Forex market. Secondly, take into account the time of duration of the course. The course to which you point must have a respectable life. And thirdly the best courses are those where you have a tutor when operating on demo accounts, either live or in weekly meetings to "guardian" tell you in that is wrong and how to correct it. This tutorial should be constant and above all be applied when you already operating on demo accounts, i.e. putting into practice what you have learned.

I insist on the following. If you not have them means for finance is a course not is complicate the life nor. You don't have no choice but to learn on their own. In that sense there is a lot (hung in the Web) free information that will help you to learn. Information surplus, therefore the effort that you put marked as delay in having them knowledge Basic.

Stage 2.

Already having a basic knowledge, you must find an appropriate strategy to make it your first tool. I.e., it will look for a method that should prove it hundreds of times. This set of tests or simulations that you will perform your method is called Backtesting. The question is: where can I find a method? Simple answer. They are abundant. There are thousands of hanging methods on the Web, in forums or websites focused on Forex. Thousands of thousands of hybrids of these methods, even when you have experience and methods could create their own methods. Methods or strategies already exist (you do not have because discover gunpowder). What if you forced to perform is to prove the method which has chosen against the past (thats the Backtesting). I want to be emphatic in the following. Try your method means to carry out trials of its strategy against the past. For example: Take the months between January and December 2009 and test the effectiveness in the EUR/USD used your Metatrader or platform that you use most. Backtesting is embodied in an Excel sheet where you must enter data as the price of entry, the output, the normal gain, maximum gain, the maximum loss, hours of operation, etc. Only then you can quantify if the method you're using for something or but throw away it and use another method. Trading Forex is a likely topic Wikipedia for a strategy that 10 posts 8 are good and bad 2. Then if you have reasonable stops and limits your strategy should work and in a month your account "should" be with nice numbers for your view. It happens that novice traders comment error not to try a strategy as it should be. An excess of confidence which will eventually become very expensive.

In planet Forex education section have embodied an article on how a good Backtesting must be, I invite you (for those who wish to learn it) to check it. A very important point is that Backtesting you make must be between 100 and 300 data at least. Because both?. Because it is one shows good enough to know if its method is effective and you can use it on several grounds. Obviously there is much discretion on its part too, because if you take a strategy that has too many negative entries (lost) it makes no sense keep trying. Meanwhile do not operate real-money. A classic mistake is to make entries (in your time of proof of that strategy) that have nothing to do with the system. I know that many traders as they tested their systems combined with other systems or make entries for "common sense" or "because it seems to me" and end up ruining the sample of the initial strategy. Conclusion, never knew if the evaluated strategy was good, or poor. You must be disciplined in that sense and do operations "only with the strategy" and nothing more with the strategy. Another common mistake at this stage is to test strategies without taking into account the reality. I.e. placing very large lots, very high stops and all those things that, in real life, wouldn't it. Then try your strategy with the minimum amount of lots and limits and stops that are reasonable (nothing to do heroic operations or very risky).

Stage 3.

When have you found an appropriate strategy and offer reasonable returns of at least 4 to 6 months of continuous gains. When you arrive at that instance then just there you can have a certainty that you can enter to operate real accounts. Even reaching that level is not a guarantee that you will have a guaranteed success, however I am sure that lot of money (and read it well) you will save if you make a constant, sincere and responsible practice-based learning.

To start; trading a demo account is different from a real account in several respects, as psychological for example (that mentioned earlier the importance of having a tutor). The management of the control and the emotions is another. However everything is learned, and there are techniques that help that you can control the blessed psychological factor that (in my opinion) is the most important to be successful in this business. I recommend that you start with small amounts of money (when prepared to kick off a real East) and is always responsible when operating.

The neuronal part is the psychological one. Any method works but are well prepared in that sense. Do not be afraid to entries, respect your method, be responsible, rely on the likelihood of your method, and many other aspects make the difference between a mediocre trader and another good. Trading is a matter of control and not many people can learn it. Unfortunately so. Learn to control ourselves is the most difficult and the door to the resounding success. Could it be that that only 5% of traders Forex operating well and 95% do absolutely wrong? If friends is why. The 5% controls sufficiently well the psychological part. Every day that operate and have the opportunity to teach other people, I realize that it is so. Be an expert analyst at market or be a fortune teller of the fundamental methods is not needed to operate forex and succeed. I am of those who believe that the method can find you anywhere... wherever. Who can try it many times want (at the end is operating are numbers and these do not lie), your probability of a well tested method in the long run should come out to shine and not to fail you statistically speaking.

Conclusions

Who teaches a novice operator control is and do not senseless or random entries? That just what we learn with shock and losing money. Unless we have a good mentor who help us from the beginning and teach you that "horror" should not they commit in the operation. Unfortunately, not all have that luck. If you know people time and able to operate then ask advice, listen experiences, ask many questions, practice and continue practicing, study in a sincere way. Only in this way forms a good trader.

I hope can serve them my views. Forex offers significant potential to make capital and fill us with benefits, and even harder to teach other people to also take advantage of it, but it is true also that this slaughter is full of blood sweat and tears and long but much control, which in the end should lead us to the success and good capital management. And remember: don't try to become millionaires in a month, the greedy are the first to lose. If they think this way will not last anything when they are operating real. All work carried out to operate must be patient, sincere and reasoned. I wish you good trading.