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6 Critical Tips For Novice Forex Traders

By : Donald Saunders
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The first step to becoming a successful Forex trader is training and there are a variety of different ways to learn the workings of foreign currency trading. However, although the basic knowledge acquired through training is fundamental to your success in trading, it is merely one part of your true success.

So, before rushing straight from a Forex course into the live world of trading, here are a few indispensable tips.

1. Adopt the right mind-set. The really successful Forex traders know very well that attitude is extremely important and that assuming an attitude to do whatever is needed for success is essential.

You can subscribe to all the tips sheets you want and listen to the so-called 'gurus' for hours on end but success will not come until you equip yourself with the knowledge which is needed, carefully put together your own personal trading strategy and then get out there and do what your senses tell you is necessary to turn a profit.

2. Select the right trading method. There are several different methods open to you for predicting the future direction of the foreign currency markets, together with some very sophisticated software programs to assist with this task, and you have to select one method and stick with it.

You will need to acquire the skills of both mapping and charting and will have to formulate your own system for calculating precisely when to get into and out of the market. You will experience gains and losses and you will find yourself questioning your method and being tempted to ditch it in favor of an alternative but you will have to stick with your chosen method. Once you start chasing one method after another as a result of a trading loss you soon discover that one loss turns into two and so on.

3. Be disciplined. While this follows on from the comments made above about sticking to your selected trading method it is something which you should adopt in every aspect of life as a foreign currency trader. Once you have laid down your trading strategy and method you have to stick to it and should not permit yourself to be thrown off course either by events or by the views of others.

4. Adopt the right mental attitude. Foreign currency trading can be extremely stressful at times and the volatility of the market and the inescapable see-sawing between profit and loss on individual trades may and indeed usually does result in considerable mental pressure. Learning to handle the stress of trading life is no less important than learning the technical aspects of trading.

5. Be prepared to take a risk. One of the commonest mistakes seen amongst Forex traders is a fear of taking a risk. Risk and reward go hand in glove and you will never be successful if you are always erring on the side of caution. Taking a risk does not mean throwing caution to the wind and merely jumping in feet first, but it means that, once you have worked out the risk, you are prepared to trade uncompromisingly based upon your knowledge and reading of the market and despite the risks involved.

6. Take your own trading decisions. It is crucial to focus your attention when it comes to your own trading and not to be diverted from your course by the views of others. You will be working alongside traders who are only too happy to offer you their advice but you should remember that nearly all of them will merely talk a good trade. The really successful traders are few and far between and they invariably steer their own vessel to success.

Stepping into Forex trading without the required level of knowledge is an extremely dodgy game but, once you have acquired the necessary knowledge, success will depend to a very large degree on your ability to set yourself a course and then to steer to it in spite of anything which might come along to throw you off your course.

About the author:
LearningForexTradingOnline.com provides a wealth of advice and tools including an in-house world currency calculator and is the ideal place to learn forex online currency trading


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