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Posts Tagged ‘Forex currency trading beg’

Automation is in the world of Currency Forex Online Trading truly the lazy man’s way of trading the forex. And it’s a smart way of doing it. You may ask why? Simply because it deletes the strongest enemy to overcome in the process, which is by the way: You!

But be careful, after 6 years of FX Online Trading, I’ve probably been through all the pitfalls that this industry has to offer, which was sometimes a very hard lesson to learn. But what if you don’t want to make all these experiences yourself? So what are the differences between the minority of successful traders and the majority of those 95% who lose money in the forex market?

To be successful in a swimming pool of sharks, you must digest and own some key concepts. So here we go:

What you should know to become one of the best Currency Forex Online Trading Experts
The 8 basic rules

1. Never trade with money you can not afford to loose. When you are in a trade, you don’t want to be on pins and needles in front of your computer. Just say no!

2. You should never invest more than 3% of your account balance. Your Stop/Loss has to secure this under all circumstances.

3. Always begin with a trial or demo account for one month if you are trying out something new. Most  Automated FX Trading Software Systems require a minimum of 3-6 month testing time to get familiar with the software and the trading “habits” of it.

4. Only switch to real or live trading after a minimum of one month profitable trading. It should be at least 20 trades, the more, the better. Don’t forget that these are the minimum requirements.

5. After finding a profitable FX Trading Software, always take portions of the newly earned capital out of the account and let the rest accumulate. It is recommended that you take 50% of each months earnings.

6. Maintain a record of your trades. Always write down, or put your trading data in an excel file. A log file will be given to you by the MT4 broker in most cases.

7. Study the trade transactions of the trading software. That’s one of the most important parts to improve your understanding of the automated fx trading software. Systems weaknesses and strengths become more obvious as you notice similiarities in the trading. This is also a key aspect for manual trading by the way.

8. Adhere to the preceding 7 guidelines. Believe me, this is the hardest part of all. I have seen too many traders losing all their money only because they were not able to follow these simple basic rules.

This is all that is needed in terms of the fundamentals to begin. If you simply pay attention to these simple rules you will do far better than many others who struggle with FX Online Trading. Get your homework done, stick to the basics and you are on your way to the top 5% who are making serious money with fx online trading.