From our interactions with some of the people trying our forex trading signals we get the impression that a good proportion of the people are relatively new to Forex Trading. We would like to say that it takes TIME to learn to trade and to start making money in the market. It is NOT easy, contrary to what most brokerage and online trading sites would want us to believe. If it helps anyone, we want to share the following:
EVOLUTION OF A TRADER
Every Trader goes through the following stages of evolution:
1) Basic market reading - is the market going up or
down? Note, that at this stage, very few people think of
the third possibility.....that the market could be going
2) Setting targets for the envisaged move - During this
stage the person is happy if the market moves in the
envisaged direction and even if the market comes just
close to the target but misses it
3) Getting to know all the scores and scores of Technical
Indicators and tools, thinking that knowing the tools is
the secret of successful trading.
During this period, the person is focussed on "being
right", the mentality is "me against the market", or even,
"my forecast is better than yours". The person trades
during this period, experiencing both profits and losses,
but consistent profits elude her. She is happy every time
there is a profit, no matter if it be small and tends to
forget about the losses
Slowly, the Trader moves onto the next plane of evolution,
1) She starts to think about various possible
scenarios....and starts to think in terms of "If-Then-Else"
2) She starts to think in terms of Probability....what are
the chances of the IF or the THEN or the ELSE happening
3) Starts to think in terms of Risk-Reward
Having mastered this higher plane, the Trader can then
move on to the next plane
1) Thinking in terms of strategy
2) Managing multiple positions
All of this takes time, TWO years at the
minimum. During this period, one should trade as small
as one can, alternating one month of Real trades with
one month of Paper trades and so on.
Learning to trade FX is not the same as learning to ride a bicycle or learning how to swim. Please think about it.
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These views/ forecasts/ suggestions, though proferred
with the best of intentions, are based on our reading
of the market at the time of writing. They are subject
to change without notice.Though the information sources
are believed to be reliable, the information is not
guaranteed for accuracy. Those acting in the market
on the basis of these are themselves responsible for
any profits or losses that might occur, without recourse
to us. World financial markets, and especially the
Foreign Exchange markets, are inherently risky and
it is assumed that those who trade these markets are
fully aware of the risk of real loss involved.
Visitors should be aware that Foreign Exchange transactions and trading are or can be subject to laws, rules and regulations of the country in which the entity undertaking the transactions is situated. It is incumbent upon the Visitors to keep themselves informed and abreast of the Laws they are (or would be expected to be) subject to and governed by, and act in accordance thereto.