The internet is filled with trading systems, indicators, academic studies, forex trading courses from “trading gurus”, automated trading software, etc.
To be honest with you, many newcomers suffer from information overload due to the thousands of forex education materials online.
All this information usually leads to “analysis paralysis”. Newcomers get so caught up in talking about forex trading, running through scenarios, and reading up on the most up-to-date market information.
The one thing that all of these have in common is that they don’t make you any money.
Any experienced trader with a track record of success (more gains than losses) will tell you that the key to actually making money in the forex market is to learn how the game is played and just do it.
The “perfect” situation you’re waiting for will not show up, so get out, learn, and start trading.
How forex trading works:
Whatever course you choose, make sure it covers the basics of trading.
The majority of forex traders pay close attention to key support and resistance levels.
This is the foundation of many currency trading systems online, and it is a good foundation for anyone to start learning to trade effectively.
It is pretty simple once you break it down…
Unpredictable currency price fluctuations are usually started by outside forces such as political events, world news, policies, reports from respected economists, financial television news, etc.
Currency traders do not care what caused the movement.
You are a trader, not a monetary policy maker.
Your primary focus is profiting from the volatility caused by the events mentioned earlier.
When the forex market reaches low levels, they are at a level that attracts many buyers simply because the prices are low.
This called the support level. The market bounces up off this level by attracting more traders who are enticed by the low price points.
Once the lemming instinct kicks in, prices will rise as more and more traders push up the prices.
The opposite is true also, and a price level can be rejected by buyers because sellers are asking for too high of a price.
The price will lower until seller supply meets buyer demand. The point where the price is too high is called the level of resistance.
More sellers join in and the price falls to levels that attracts even more buyers. The price will eventually rise because of the large amount of buyers bidding up the price.
This is the dynamics forex market in a nutshell: support and resistance levels creating profit opportunities during high transaction times.
This is the fundamental way traders make their money.
Make sure your currency trading course covers this topic, and how to use it to limit your risk, before they move onto advanced techniques like exercising options.
What to look for before you get started:
Your trading course or program should cover three areas: developing your mindset, money management and risk skills, and the method to trade (buy and sell).
I can not stress how important those three areas are.
Without them, you are pretty much destined to fail like the rest of the traders in the market.
There are many good courses on the market that teach will teach the technical aspects of trading.
Make sure that whatever course you do end up choosing also focuses on the mental/mindset portion of training.
Your attitude, combined with your technical skills, will determine how successful you will become. 90% of traders fail because they never developed the right mindset. To become a successful trader takes time and experience.
Your trading course should develop your skills and mindset so that you can successfully trade based on belief, education, and experience.
From there, you will develop your skills so that you can mechanically execute profitable trades with no emotion.
Emotions kill your chances of making money in the forex market.
What I Recommend
One trading course that I recommend is Forex Mentor Pro.
This training system is perfect for beginners because it teaches the fundamentals needed to succeed.