Introduction
Online FX Trading is a risky business, so before you start trading make sure you know what you are doing, you understand all the terms and concepts, and you practice with a demo account before risking any of your own hard earned money.
Having said that, let's get straight to the meat here. It doesn't matter if you are a trading veteran or an absolute newbie, you have to learn everything you can about your trading habits and your trading psychology. The hardest thing to conquer will always be yourself, not the systems you use or the brokers you might trade with. While trading and working with more than 200 traders over the last 4 years intensively, this is by far the most important thing you should focus on.
And you will learn the most if you just go out and trade. Most of the beginners who join the online forex trading arena lose big time in the first 3 months. But why is it so hard to trade currencies profitably? Simply because they are making at least one of
The 3 Major Mistakes
* The first one of the major mistakes is that nearly all of the newcomers Do Not demo trade first. This way you are guaranteed to lose money. Give yourself some time to learn the basics and then go live. Do not expect to get rich overnight, because that will not happen.
* The second one is they Do Not keep a trade log. You will be absolutely amazed what you will learn if you keep one with all of your trades in it. This way you can analyze your trades, which makes a huge difference in your learning curve.
* And the third one is that most of the traders trying to follow some get rich overnight theme which is the absolute wrong mindset to make it in online forex trading. You have to have realistic expectations. For example a realistic expectation for the first month is simply not to lose any money. Sounds boring? I know, but you will thank me later, trust me on that. OK now, here are
The Three Different Approaches to Online Forex Trading
* The first and most often used approach by traders around the globe is manual trading. With the forex manual trading approach you decide everything. What to trade, when to trade and how to trade. It is the hardest approach because everything relies on you. Having chosen the right system, you can trade profitable from the get go and you will learn the most of it.
* The second and most controversial discussed approach is the use of an automated fx trading software. With it you can set up an automation which trades for you even if you are not in front of your computer. No signal will be omitted, no emotional decision will be made, and the application will only make factual decisions, depending solely on the quotes and market data it interprets. But it is a very hard task to accomplish finding a reliable one that is profitable in the long run.
* The third and most of the times the easiest approach of all, is to make use of a forex signal service. In that case, you will receive trading signals that will be sent to you through email or sms. Again, the problem is to find a good an reliable one that is profitable. In addition it is important that you can get fast access to a computer or an internet mobile phone to place the trade shortly after you have received the signal.
Conclusion
You need to get yourself informed of the forex market upfront. Demo trade first. Keep a trade log. Take a look at the various approaches. Make an informed decision. Then pick one system to begin trading. Make your experiences with it, learn and grow. And do not forget that there exists a life outside of charts, orders and brokers ;-). To your success!
