Forex Trading for Beginners - Before You Trade

By: Monica Hendrix

This article is about forex trading for beginners and has 3 questions you need to ask yourself before you trade - if you are confident in the answers then you could enjoy forex trading success on the other hand, get any wrong and you will join the 95% who lose...

Forex trading can give you a great income and with many people it becomes a life changing income however, this is the few NOT the majority.

You can enter this elite group, with desire, the right information and the right mindset in fact anyone can but you must understand why the questions below are so important and answer them honestly.

The first question you need to ask yourself is:

1. Have you learned EXACTLY how and why your system will work?

This may sound obvious but most traders don't even consider it.

Most novice traders buy a forex robot from the net and think a few hundred bucks spent will allow them to make profits automatically. Most of these systems are junk and haven't even been traded and come with simulated track records and a lot of hyped copy. If you're in this category, say good bye to your equity.

Other traders just want to shoot from the hip and trade whims and news stories well, the bad news is - this isn't a proper forex trading strategy, it's a recipe for a wipeout of equity.

Whatever system you use, you MUST have confidence in how and why it will work long term, if you don't have this understanding, you will lack the discipline to take loss after loss and stick with your system until the profits come again.

Trading success is built on this:

Understanding & Logical Method + Confidence = Discipline and long term success

If you don't have understanding and confidence, you simply won't have the discipline to stay on course.

2. Can you take long Periods Losses?

For days, weeks or even months at a time and stick with your trading system?

All the best traders know they will face long periods of drawdown and have to stay disciplined. If you think this won't happen to you think again - it will.

3. What's Your Trading Edge?

Think about this - 95% of traders lose only 5% win, so forex trading success is not a walk in the park as many would have you believe.

The winners all have a trading edge, that allows them to enter this elite minority and you must to and be able to define it, have confidence in it and apply it with discipline.

That's just 3 questions a novice trader should ask themselves and if you can't answer them correctly, then you need to continue your forex education until you can.

Forex trading is not easy - and why would you expect it to be with the rewards on offer. The winning traders know this and you need to as well - but anyone can learn to trade and anyone can succeed, it's just a question of the right education combined with the right mindset.

Forex trading for beginners is all about learning the right info and mindset and combing them to make a trading edge for profit and if you do this - currency trading success will be yours.

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