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How To Trade Forex - The Best Way To Trade Forex

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  • How To Trade Forex - The Best Way To Trade Forex

    Introduction

    As a professional in the Forex industry, I'm often asked by my friends and family about the best way to trade Forex. Well, the first thing I tell them is "Don't", because Forex trading requires a serious commitment that most people can't follow through with most of the time. Of course, there are always the persistent ones who don't give up that easily, because they are serious in their desire to learn how to trade Forex.

    If you're not going to give up on your desire to learn how to trade Forex successfully, then I want to let you in on a couple of little secrets that Forex educators and 'experts' will seldom talk about. By the end of this article, you'll be clued in on the best way to trade Forex that most people don't even know about.

    Challenges Every New Trader Faces

    Every new trader has one massive obstacle when they begin to learn how to trade Forex: themselves. Who you are as a person and everything that you've learned from your life experiences up to this point is not an asset in the world of Forex trading, in fact, it is a massive liability. If you try to bring your normal, everyday decision making processes into the world of Forex trading, you will experience a lot of frustrating losses.

    Let me give you an example to illustrate how hard it is to learn how to trade Forex. Traditionally in life, and I know that this is an oversimplification but do bear with me here, we grow up learning through positive and negative reinforcement. In the case of positive reinforcement, it means that when we do something, and the result makes us feel good, then we'll keep doing that something. In the case of negative reinforcement, it means that if we do something, and the result makes us feel bad, then we'll stop doing that something.

    Pavlov's Bell In Forex Trading

    That's all well and good to keep you from burning your hand on a hot stove, but if you allow positive and negative reinforcements to dictate your trading, then you're in for a real baptism of fire in the markets. That's not the best way to trade Forex... it's the worst! That's because the Forex markets have a certain element of randomness to them. That means that one day, you might decide to take a long trade based on your analysis of certain indicators or patterns, and if it is profitable that day, you'll associate that pattern based on the good feelings you have for winning.

    Now comes the part that gets traders stuck for years in a cycle of failure and despair. Tomorrow, when you see the same pattern or come to the same conclusion for a long trade from your analysis, then you'll take the trade again. Only this time, the price falls and you get out of the trade at a loss. Now you're feeling bad about your trade, and all these negative feelings get associated with the previously successful pattern or analysis. Now imagine this dynamic in play for hundreds of trades and dozens of combinations of patterns etc., and you have a real recipe for confusion and frustration.

    The Best Way To Trade Forex

    Many people don't even realize that they're being affected by the reinforcements that the Forex markets dish out, which is why they run around for years from Forex expert to Forex expert, trying to find the best way to trade Forex so that they don't have to lose, because in their minds losing is bad. Well, the best way to trade Forex isn't actually to avoid losses at all! The best way to trade Forex is to find a pattern or trade opportunity that is profitable in the long run.

    The best way to trade Forex is to overcome the natural tendency of your mind to think in absolutes, and start thinking in probabilities. That means that instead of considering just one trade or a handful of trades, you analyze the same trade opportunity over a hundred or even hundreds of trades. If by trading this 'long run' of trades you end up with a substantial profit, then you keep trading it. If not, then you forget it and apply this same analysis and line of thinking to other trade opportunities.

    Don't Learn How To Trade Forex From Scratch!

    Obviously, this entire process gets very tedious if you're always doing it manually, because there are thousands of combinations of indicators, patterns and market conditions to test! That's where you can save yourself a whole lot of time and money by piggybacking on someone else's efforts in finding these profitable opportunities, and even have a pre-programmed system in place that can trade these opportunities for you. As a trader wanting to learn how to trade Forex, you'll get where you want to be a lot faster if you get yourself a simple Forex trading system rather than to develop and trade one yourself.

    That said, without overcoming the challenges of positive and negative reinforcement in Forex trading, you're no better off with a system than trading on your own. The system is not the key, but your understanding of the best way to trade Forex is. So, switch your thinking from absolutes to probabilities, and once you're ready, save yourself a whole lot of time and effort by investing in a simple Forex trading system.

    Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.


    Article Source: http://EzineArticles.com/6070175
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    "Step into the arena and hold on to your hat. Don't get discouraged if you don't make 8 trillion dollars in your first month. Trading is not a get rich quick scheme. Realize that trading is a skill and just like any other skill it takes time to learn. Have convictions in your decisions in life and trading. Ignore the comments and "advice" of those that have never traded a day in their life."

    Good KARMA and positive energy abound.


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  • #2
    Most people have failed in forex market because of no knowledge about forex. In spite of that there are so many reasons to fail in the forex market. Some of them are Emotionally trading in the forex market, greediness, lack of knowledge, choosing wrong decisions, choosing wrong broker etc. A good and reliable financial advisor like AtoZ Markets can help you to know all basics about forex and take proper decision to become successful trader in forex market.

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    • #3
      Forex trading is the most famous and profitable business in the world. Anyone can start trading and earn a lot of money from the forex market. A reliable broker and strong knowledge about forex are very important for a trader. If you want to know how to start trading or how it works then you should use a demo account first. I used a demo account. Now I trade with Eurotrader. They are one of the best brokers I have ever worked.

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      • #4
        Forex trading is easy to start, however it is not easy to make profit from it. Trader need hard work and patient to do that. The best way to start trading with demo account. 95% new trader lose money in forex trading. So, demo account is safe to start. I also start trading with demo account. My broker Eurotrader provides free demo account.

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