Why are so many forex beginners failed?
Most novice forex traders who drop out, do so because they make beginner's mistakes and lost their first forex investment.
Three basic requirements to be a successful forex trader:
1) Do not be discouraged too quickly. Success often comes through trial and error, even in forex trading. Analyze what went wrong, spend as much time as needed to practice your forex demo account and then you start again.
2) Begin only with small position - a 'micro lot'. Say you get the forex broker to open position for micro lot of $ 2.50. In this micro lot is a 'pip' of 10 cents. Even if you are the world 's worst trader ever, a pip is worth 10 cents and that is alot of pips if you have $ 250 in your forex account trading. But with 2500 pips you can get yourself really plenty of practice on forex strategies to test in a real money environment, without much risk.
3) Make to adopt basic rules of your own money management and protecting your trading investments. Mistakes in decisions are unavoidable, but if you always have a stop / loss and a take / win strategies you will minimize you loss and maximize your gain..
What more do you need to be a successful forex trader?
If you follow the basic requirements means you will at least survive. But you want to move to next level to attain maximize profit. How are you going to earn big money with online forex trading?
1) Practice, practice, practice. A forex demo account is not just for beginners. Even professional forex traders have a Forex demo account. Why? To create a new forex strategy testing example, or a money management model, or to become proficient in a long term forex strategy as they naturally are intra-day trader. Of course you can not learn everything by 'dry run' on a forex demo account. Trading real money is simply different from using 'play' money. But in any case use your forex demo account to experiment.
2) To gain knowledge. There are unlimited written articles on the internet that can help you to learn about forex strategies, fundamental analysis, technical analysis and technical indicators, setting up your own forex trading system, etc. Best of most of these items are free take advantage of it. If you are new to forex trading, then recommend to take a forex course for beginners.
3) Discussion with other traders. The fastest way to learn is through each other feedback. There are of course other novice forex traders who also trying out their forex strategies on demo account, play around with technical indicators and making beginners mistakes. Even experienced traders are often happy to discuss with you a forex strategy. So, it becomes a member of forex forums. Post your trades and ask for feedback, comment on trades of others, ask questions if you have them and learning is10 times faster.
4) Patience. There are novice forex traders that are profitable within a day, but no one will be a successful forex trader in a few weeks. In other words, beginners luck can happen to anyone. But for real success you must do your best. Compare it to learning to ride a bike. It takes time to teach you to move the pedals around. Just like the training wheels, the demo forex account and forex micro lots on your real money account for $ 2.50 can still give you the feel of 'real' bikes. And if you've learned to move, then suddenly they get off the training wheels and for the first time fall on your face. Is it avoidable? Can you learn to ride without ever going on your face? Ever make a mistake? No. But if you move and keep trying you will get better.
5) Ambition. There are some who first come into contact with forex trading and know that this is it. This will really make them rich. They see the path, what they are required to do, that it is not easy but not impossible. Probably have to invest some money, but then again not too much, with possibility to earn lots and lots of money . And they go for it. Practice, practice, practice, read forex books, forex articles, talk with others about a new forex strategy, evaluate their forex trading system, meanwhile remain critical looking at their mistakes. They know they can not just take a shortcut to be rich, but have a goal, and do not give up. These are the winners.
The is no promise to a mountain of gold, that we can to leave others. The only thing you can promise yourself, it is that if you stick to the above, your chances of success in the forex market significantly improved especially with a few thousand percent, compared with those who muddle around.
