Become
skillful forex trader isn't easy, but there is no need to blow things out of
proportions. Trading might be difficult in the beginning, but all new things
are complicated at first. It gets better with time and whoever tells you
otherwise simply didn't take time to learn the basics.
What needs to be done to make forex trading less confusing?
1. Increase
Self-Confidence
The first thing that every novice trader fears is the
lack of knowledge. Most of the energy goes to finding "shortcuts" and
"tricks", which do not exist. Instead of looking for easy way out,
start learning the basics of trading right from the start.
Another thing that will increase the beginner's
self-confidence is the fact that losing trades are absolutely normal. In fact,
during the sequence of daily trades, there MUST be losing trades here and
there, otherwise you probably not trading forex market! Because of volatility
and price action, there is no way every trade is a winning trade. So take it
easy when you lose here and there. After all, it's all about the big picture at
the end of the week/month. Losing trades are just accompanying the success.
2. Stick
to The Plan
Sticking to the plan doesn't mean to stop analyzing and enhancing your trading system. What needs to be stopped is jumping from one system to another. Switching from one indicator to another will not magically turn you into a better trader. In fact, it is not about indicators, but rather about your understanding of the market and your experience with the developed system.
3. Overanalyzing
is Paralyzing!
If you use all available indicators, read news from at
least 10 sites and cannot make a clear decision, you are suffering from
overanalyzing.
You don't need to use all the resources you can find.
Pilling up all there is to "read the market" will only confuse you
more. Don't make it harder than it is. Couple of indicators and two news sites
is enough to make correct moves in forex market. Charts are great, but too much
visualization will make you blind!
4. Fear
of Loss
Take loss under consideration and include it in your
trading plan. It will happen as a normal course in trading. So instead of panic
attack, you need to have clear stop loss strategy and a good money management.
Take losses as an intensive course in forex. Just like
for any good course, you have to pay for it right?! So there you have it, a
fantastic example of how not to trade which you can analyze and understand.
Yes, it costs money, but it is much more productive than any trading courses
and ebooks out there.
5. Keep
Imagination at Bay
Don't try to find something that isn't there. Currency
pairs only have one trend. The rest is noise which should be avoided. If you
want to understand the trend, look at weekly chart you will have an idea what
is happening in the market. Leave the hourly charts for day traders.
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