How to survive the many Forex pitfalls that cause 95% of all Forex Traders to fail in the forex market?

Many of these traders fall for marketing poloys that make them believe trqading Forex is easy, and that they are able to make quick buckswith Forex.

Thus they don’t bother to learn about how to trade the right way. And they also lack a mindset that is essential for successful forex trading.

A good forex education is crucial if you want to succeed as Forex Trader.

After you’ve learned the Forex basics, next you would look for  a proven and profitable Forex Trading System, to use a s a sort of trading blueprint.

There are a lot of systems out there, and you do not have to be a genius to find a good forex trading system, that will match your trading style (day trading, swing trading, position trading etc.) .

You could for instance search for forex reviews in websites or forums to find out more information about the system you’re interested in.

Don’t go with overly complex systems, becasue mostly simple systems are most robust and easier to follow.

Trade using technical analysis and use the news as a fundamental guide.

Use support and resistance and look  either for a continuation of the trend, a breakout from it or a rangebound market.

Another pitfall is a too high leverage  in your trading account (more than 100:1).

Leverage makes forex trading very lucrative, but on the other hand, it often also destroys newbies’ accounts because they could not handle the high leverage since they are inexperienced.

When trading Forex,  you take a calculated risk whenever the trades are in your direction.

That’s why you need a good money and risk management for your trading, to ensure that you have enough capital to continue trading in case of a series of losing trades.

Hence you should establish a trading plan that gives you rules for your trading, like for instance the  risk to reward ratio (how many pips you want to risk, how many pips you aim to pull out of the market), that will help you set your stops and your profits tragets.

Once set up, follow your trading plan with patience and discipline,  and the market will reward you.

Nowadays, you do not need to have lots of money to trade the Forex  market.

But as repeatedly said on this blog, you’re bound to fail, if you dive into Forex without the proper education.

Better first dip in your toes only, before getting your feet wet.

The easiest way to do so is probably to learn Forex online. You can do so in a number of ways.

Here are 4 easy ones

1.  Know About the Jargon

To play in any financial market, you will first need to speak the language in that particular field. To do so, you can simply go to your favorite search engine and type in “forex terms” or “forex jargon”. You will then be taken to a list of relevant pages. Select a good jargon list, and commit some of your time to get yourself with these terms. This will definitely give you some advantage, especially if you are beginner investor.

2. Free Online Courses

If you are new to Forex market, it is a good idea to start with some free online courses. Again, you can do so by searching for “free online forex course” on the like with your favorite search engine. Alternatively, you can go to a message board frequented by investors and ask if anyone there knows of any good, free courses you should try.

3. Learn From the Experts

If you are already an advanced player in the field but like to learn more, you can also consider the paid options. Many experts, with years of experience in forex trading, are now offering their teaching services online. Although you will have to pay for such courses, the upside is that taking such a course is almost like having a personal tutor, or a mentor who will be there to answer any of your questions, and help clear up anything you find confusing.

Again, probably the best way to find a good, reputable expert to teach you about the forex market is to ask around. Others who were once in the same boat you are in now will be happy to help steer you in the right direction.

4. Sign Up For a Free Demo-Account

Once you have begun to learn about forex trading (whether on your own, or with the help of a professional “teacher”) you will want to put your knowledge to the test, but without financial risk. There are many sites where you can sign up for a free demo or test account. For about thirty days, in most cases, you can actually try your hands at forex trading for free. These demo accounts will not only let you know whether you are ready to risk your money on the real thing, they will also help you gain hands-on experience.

I recommend you go here for chosing your demo-account, because should you “go life” later on, you’d be eligible for getting rebates on your trades, which will cut down your trading cost and allow for more profits.

Bottom line: don’t get too excited about the success stories of others in the Forex market.  Always keep in mind that there is always some pay for the gain.

Do yourself a favor by getting a proper Forex education first, before taking chances with Forex trading.

What are the TOP two reasons many Forey traders fail?

In short:

1. They do not understand how the Forex market works

2. They risk too much capital.

How to avoid failing as a trader because of these reasons?

1. Get a proper Forex education / understanding first

Educate yourself so you can recognise your chances and risks. Learn to read the conditions of the forex market and how tosetup and  manage your trades properly (stop loss, take profit etc).

“Proper preparation prevents poor performance” (Charlie Batch).

2. Money Management

Make it a rule to only risk a very small percentage – like for instance 1% – 2% – of your capital in any one trade. This makes sure you minimise your losses. Because there will be losses and ecvery trader has to learn to face them.

And If you put too much of your account balance at risk, chances are that with a series of losing trades your complete account will get wiped out.

To sum it up:  only risk a very small percentage of your capital in any trade, and educate yourself about how forex markets work, so you know what your doing instead of just gambling.

In the world of Forex, only one rule is unchangeable …

That is, only someone who knows the trend and the going-on of the foreign exchange market can have the benefits of having high return rates and income and have the chance to attain success in the lucrative market of Forex.

It is no surprise to find that a growing number of people these days are keen to participate in the world’s largest and most liquid financial market and a market which is essentially open for trading twenty-four hours a day. Many people have become very rich through trading in the forex market and it has allowed a lot of individuals to replace their day jobs and enjoy the comfort of working from home a few hours a week. It has also made quite a few millionaires!

If you enter the world of real time forex trading without the necessary knowledge and skill then you are almost guaranteed to lose money. However, if you take the time to learn what you are doing before you start trading with your own hard earned money then you will go a very long way towards minimizing your risks and maximizing your earnings potential.

Some have carefully studied the foreign exchange market over the years, had their forex tutorial and have planned their investments according to predicted changes. The shrewdest of investors have profited immensely, as they were able to learn the market, see disaster coming and knew exactly what to do in order to minimize their losses. Of course, learning all of these financial aspects would involve a solid Forex education.

Though Forex is a very lucrative market, where everybody can make forex money, all must bear in mind that it is not like a one day millionaire, where money will flow overnight. IF you want all things to be as fast as you can, you must think twice. Stop for a while and have Forex Training first before battling in the real world of forex.

Forex training will be your first step to success. Not only that, it will be your foundation in every trade you made and whenever you are lost, you can always count on your former knowledge about forex. Forex education brings the knowledge of professionals into your personal trading. Forex training helps you know where to enter a currency based on the direction it is taking and how to forecast that direction. Forex Training allows you to learn how to trade currencies with or without a coach. As you trade, your Forex training can truly help you become the master of your money.

Forex training sessions are designed to give new and experienced traders all the necessary tools to start buying and selling currencies in the Forex market. Forex training program would not only be for beginners who want to learn how to start day trading, but also for more experienced traders who already had some stock or futures trading experience. Forex training will help you succeed in your currency trading as you learn to trade the Forex like a pro.

Have you ever desired to learn more about Forex trade and forex finance but weren’t sure how to get started? Don’t worry because there is a lot of Forex Training available around. But you must choose carefully, your Forex Training and Education is your primary key to succeed in Forex. If you want to be sure of hat you are learning, take a look at BestForexTraining.com and you will see the how can you have the best forex education.

By: M.K. Chin

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