How to learn Forex? Stages to be a good Trader

Perhaps the title may seem very pretentious, since I don't believe; "There is only one way to learn to trade in the Foreign Exchange Market" (FOREX). However, if I think (convincingly) that there are steps and stages that a trader (I mean the operator) must go through and in many cases repeat again so that they are part of his unconscious when making operating decisions.

I dedicate this article to many new traders that I see are increasing every day (that seems great to me), but nevertheless they tend to operate without preparation and end up destroying their accounts or those of other people (worse).

To begin with, I would say that if you are operating real and you are still not sure of your system and even more of your psychological control when operating then I recommend you stop operating the real and do it only in the demo. Only then will you avoid yourself (for the moment, keep punishing your real account). A tip from someone who won and lost money and knows what he is talking about. It makes no sense to enter the market if you are not sure. If someone was lucky in some operations, but knows that he is not prepared enough, he would tell him to keep his enthusiasm and take advantage of his “good luck”… because it was just that. And good luck does not last for a lifetime.

There are no magic recipes. I am very sad when some people write to me commenting that they have acquired a magical strategy that will make them millionaires. Friend, do not look with the Forex to be "millionaire in a year." Look for consistency.

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

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Take Forex courses, where they teach you Technical, Fundamental and Psychological Analysis. The best thing to do is to make a consistent and serious preparation. By this I do not mean that you cannot learn in a self-taught way, it is also valid, however for those who are not familiar with statistical, financial and economic analysis, it may be more difficult and tedious to understand on their own. I do not recommend any specific course (nor would it be ethical), and there are many charlatans and people who offer their programs as if it were the solution to all the world's problems. But if I can tell you how you can filter if a course is worth it or not (to my humble understanding, obviously some will not agree with me).

First, discard the courses that offer you to become a millionaire in months or always have a 50% monthly return. To say that is not very serious even more in a market as difficult as forex. Secondly, take into account the duration of the course. The course you are targeting must have a respectable duration. And thirdly, the best courses are those where you have a tutor when you operate in demo accounts, either live or in weekly meetings so that “your Tutor” tells you what is wrong and how to correct yourself. This tutoring must be constant and above all it must be applied when you are already operating in the demo accounts, that is, putting into practice what you learned.

I insist on the following. If you don't have the means to finance a course, don't complicate your life either. He will have no choice but to learn on his own. In that sense there is a lot of free information (posted on the Web) that will help you learn. Information to spare, therefore the effort you put into it will mark how long it takes to have the basic knowledge.

Already having a basic knowledge, you must find a suitable strategy to be your first work tool. That is, it will look for a method that must be tested hundreds of times. This set of tests or simulations that you will perform on your method is called Backtesting. The question would be: Where do I find a method? Simple answer. They abound. There are thousands of methods posted on the Web, in forums or pages specialized in forex. Thousands of methods and thousands of hybrids of these methods, even when you have experience you could create your own methods. The methods or strategies already exist (You don't have to discover gunpowder). What you are obliged to perform is to test the method you have chosen against the past (that is Backtesting). I want to be emphatic in the following. Testing your method means that you test your strategy against the past. For example. Take the months between January and December 2009 and test the effectiveness in the EUR / USD used by your metatrader or the platform you use most. The Backtesting is reflected in an Excel sheet where you must enter data such as the entry price, the exit price, the normal gain, maximum gain, the maximum loss, the operating hours, etc. Only then can you quantify if the method you are using is useful for something or else discard it and use another method. Trading forex is a matter of PROBABILITIES you can have a strategy that of 10 entries 8 are good and 2 bad. So if you have reasonable limits and stops your strategy.

When you have found a suitable strategy and that offers you reasonable returns of at least 4 to 6 months of continuous earnings. When you reach that instance then only there can you be certain 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 a lot of money (and read it well) you will save if you do a learning based on constant, sincere and responsible practice.

To get started; operating a demo account is different from a real account in several aspects, such as the psychological one (for example, I mentioned before the importance of having a tutor). The administration of control and emotions is another. However everything is learned and there are techniques that help you to control the happy 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 you are ready to start with a real one) and always be RESPONSIBLE FOR OPERATING.

The neuronal part of the operation is Psychological. No method works unless you are well prepared in that regard. Not being afraid of tickets, respecting your method, being responsible, relying on the probability of your method, and many more aspects make the difference between a mediocre and a good trader. Operating is a control issue and not many people can learn it. Unfortunately it is so. Learning to control ourselves is the most difficult and the door to resounding success. Is that why only 5% of forex traders are doing well and 95% are doing badly? If friends, that's why. That 5% controls their psychological part well enough. Every day that I operate and that I have the opportunity to teach other people I realize that it is so. To operate forex and succeed you don't need to be an expert market analyst or be a fortune teller of fundamental methods. I am one of those who think that the method can be found anywhere ... anywhere. That you can prove it as many times as you want (in the end it is operational they are numbers and these do not deceive), your probability of a well-tested method in the long run should come out and not fail statistically speaking.

Conclusions

Who teaches a rookie operator to control himself and not make meaningless or random entries? We only learn that with blows and losing money. Unless we have a good mentor to help us from the beginning and teach you that "horrors" should not be committed in the operation. Unfortunately not all of us have that luck. If you know capable people and with time operating then ask for advice, listen to experiences, ask many questions, practice and keep practicing, study sincerely. Only then a good trader is formed.

I hope you can serve my appreciations. Forex offers an important potential to make capital and fill us with benefits, and even more to teach other people to take advantage of it, but it is also very true that this task is full of sweat and tears and much but much control, that at In the end it should lead us to success and good capital management. And remember: do not try to become millionaires in a month, the greedy are the first to lose. If they think like this they will not last anything when they are operating real. All work they do operating must be patient, sincere and reasoned. I wish you good trading.