Are you sick and tired of self-proclaimed trading experts internet marketers telling you how easy it is to make money from Forex? The problem is that most sites wont tell you how hard Forex can be. In fact most sites say Forex is easy. Most Forex websites do not tell you the truth about Forex. They see advertisements promising quick and automated riches with a Forex robot or something equally irresistible.
They dive right in blind to the dangers and they get hurt. You could be a lawyer in 30 days, you could work for a prestigious law firm earning a six figure income. You would not buy the product because you know its a lie. Getting a law degree requires half a decade of study.
There is no way you can become a master lawyer in under a month. Forex might not be as hard as law but the same concept holds true. No product is going to make you a master trader in a few weeks. No EA Forex robot is going to make you consistent profits while you sleep. When looking for a system the first stop is usually popular Forex forums.
If you see a system with great feedback and many users it must work right? Most trading systems on popular Forex forums are created by inexperienced traders. The systems may work well for a few weeks, or even for a few months, but they fail in the long run. This is especially true of indicator based systems. Indicators are sensitive to changes in market conditions. Some indicator based systems give amazing signals in trending markets but fail in ranging markets. The problem is that most indicator based systems are not adaptable to changing market conditions.
So a system that works this week might not work next week. If a trading system has not been forward tested for over a year you cannot trust its effectiveness.
If you go down the path of hunting for Forex systems you have already failed. You will embark on a long, fruitless search and find nothing. My advice is to start with the basics, learn how to read price action and how to place Support and Resistance areas. Once you learn those two things you will not need to find a trading system. Imagine a mean looking, tattooed biker approaches you. He pulls out a shotgun, points it at your chest and demands your wallet.
What would you do? Chances are you would probably hand over your wallet pretty quickly. Now imagine an scrawny little eight year old kid approaches you. He pulls out a water pistol, points it at you and asks for your wallet. You would probably laugh. This may sound absurd but there is a correlation. When you trade a demo account you are not using real money.
So the fear and apprehension of risking real money does not impact your performance. A real account is like the biker above, the fear and the intimidation of trading real money impacts your actions. Psychological factors may seem insignificant but they are very significant. Most new traders perform extremely well on demo accounts but fail abysmally on live accounts.
Psychology matters and demo accounts do not prepare you for real trading. Demo accounts do have their use. They are great for familiarizing yourself with a trading platform and learning basic trading concepts.
They are also good for basic testing of a trading system. So many websites tell you that you can trade Forex successfully with less than one hour of work per week. The reality is that you need to invest a lot of time into becoming a profitable trader.
If you can only find a few hours each week to dedicate to Forex you should probably give up. Learning to become a consistently profitable trader takes a lot of time.
You need to be prepared to set aside several hours a week to study Forex. According to scientists it takes 10, hours of practice to master something. I doubt you need 10, hours to become a profitable trader. However, you will need more than two hours per week. The good news is that once you are profitable it is possible to cut your trading time down to a few hours per week. Currently I trade around two hours per day four days a week.
With a constantly changing market a trader need to be able to make changes on the fly and adapt to current situations. So, a good trade knows how to adapt quickly to a changing market. When the market throws something unexpected at you, you need to be able to analyse the best course of action and make a decision quickly.
My trading method is based on price action. Right now I concentrate almost exclusively on reversal trading. This is because since the average daily range of Forex pairs has dropped. When markets are not ranging breakout trading becomes hard. My trading method was adapted from trading breakouts to trading reversals in When pairs start to range again I will probably adapt to market conditions and begin to trade breakouts.
Well, that is up to you. We all know that the vast majority of new traders fail. They fail because they expect no stress, fast and easy riches. You cannot change the harsh realities above. However, you can accept them and get on with it anyway. The reason I first started forex4noobs. That is why this site is packed with stuff to help you along the road from beginner to pro. So if you want to get on the right path take a look around the site.
If you are completely new to Forex you should start with or basic Forex education section. If you know the basics you should check out our free Forex course.
In the video course I show you many important things you wont learn anywhere else. I show you how to put together a highly effective trading plan, money management plan and trading diary.
I even explain how to put together a trading strategy. Finally if you want a proven trading strategy along with a private members forum where we discuss trades check out the advanced Forex Price Action course.
It is closed to new members right now but if you throw your email in I will contact you in the next few weeks about getting access. Click here to cancel reply. Email will not be published required. That is really a great info…. Unfortunately when people learn the hard way they often decide to quit.
That is the point of this post I want to make some things clear to new traders from the start so they do not go down the wrong path. I marked up my Euro chart earlier this week with the support and resistance zones which you had layed out in your email. Like a magnet, price bounced high and low on these zones all week. Your analysis was spot on! I really appreciate what you make available each week to the forex trading world. It is wise, sensible and no nonsense advice.
Work, educate, discipline and time are vital. I hope one day I do make it: Hope you do to man. You are on step ahead of most if you realise and accept that hard work, discipline and time are vital. Nick, thank you very much for the advice!
Sometimes, we need that, despite of the lots of bogus ads we see on the web! Thanks Nick, I can perceive great experience and truth in your thoughts. Like your forex4noobs very much and your method too. Hope to enter the advanced price action corse soon.
A demo account is a necessity for a new trading system you are trying out. You need to practice that new trading system on demo first to see if it works.More...