FOREX TRADING IN WORLD

Before anyone considers Forex trading, they should understand the facts that are outlined in this article. If you understand them before you trade, you can avoid the losing majority and join the small minority of winners...

Here are your facts - they are in no particular order of importance - they are all important.

1. Forex Trading is Not a Walk in the Park

Many traders simply think it's easy to win and yet it's not as 95% of traders lose and they want to follow others selling robots and sure fire systems which simply don't work. In Forex trading you can win but you need to get the right education and mindset

2. Forex Robots Don't Work

All the ones you see heavily advertised online never win. It's obvious you don't get financial freedom for $100.00. Don't be naïve, if they did work, the whole world would be trading and there would be no credit crunch. Pass them by, you need to make money by learning skills and how to apply them.

3. Hard Work Counts for Nothing

Many traders actually come in with the attitude the harder they work the more money they will make - but this is not true, you get rewarded for being right, not the effort you make. To Win, you need to work smart not hard.

4. Complicated Systems and Intelligence dont Guarantee Success

They count for nothing in terms of Forex trading success - it's a fact that simple systems work best, as they have fewer elements to break, than complicated ones. To win you don't need to be college educated, you just need the right mindset and a willingness to learn.

5. Prediction is not the way to make Money

This myth is put about by vendors, who claim markets move to some higher force but they don't. If you predict, you're simply guessing and your guess will be as accurate as your horoscope. Trade the reality of price change on a chart and you will have the odds on your side and win.

6. A good System is Enough

No its not. I have seen plenty of people with good systems lose. The reason they lose is - you need to understand the system needs to be applied by you! This means you have to apply it with discipline, through periods of losses and stay on course, as the market makes you look stupid and your emotions are trying to get involved.

Discipline is based on confidence and a sound Forex education. Discipline is actually the one trait that separates winners from losers.

7. Anyone Can Learn to Win

Its true, anyone can learn to win and if you work smart, you can learn forex trading in a few weeks and then be making big profits, in about 30 minutes a day. No other business will reward you with so much, for your effort as Forex trading.

The Challenge

The challenge is there and anyone can take it up.

Just decide that you want to win and understand, you can learn to trade and you can get confidence in what your doing which leads to discipline, the key trait for success.

Are you ready for the challenge?

If so, welcome to the world of Forex trading the world's most exciting investment opportunity.

Forex trading has the great potential of becoming a profitable and fulfilling career that will let you have a lifestyle that few other lucrative activities in the world can offer to people from many roads in life and without asking any of those men and women for a diploma or some special certification.

But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing. You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade always fulfilling the main objective every trader must have; making money
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There are two kinds of analysis you can perform on the Forex markets. They are known as technical analysis and fundamental analysis. It is common that traders tend to divide themselves into "technical" and "fundamentalists". Each group devoting themselves to the main tools each kind of analysis gives them.

Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns. Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economical indicators of countries economies. Though, even if divided, both tendencies tend to complement each other to some degree.

In this article I will place myself on the "fundamentalists" side and focus on one of the situations every forex trader must be aware of and don't let the events involved affect his trading efforts.

This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner. The result of this magnification and rapid diffusion of the news about the series of unfavorable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world. And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.

If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavorable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, or of people as the case of Martha Stewart trial, etc. There is also the example of the terrorist attacks on Sep 11 in New York, March 11 in Spain, etc. Also natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.

In short, every forex trader should be totally sure that his method of trading has built-in safe guards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavorable events I mentioned above ever takes place. And being realistic, many of those events will surely happen in the future.

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