Forex trading education
Best Forex trading education - Learning the right stuff by
Harold Hsu
It is the aim of all retail Forex traders to make money from
the market. We read books, take courses and search the web
for all kinds of Forex-related information to best educate
us on how to trade profitably.
Unfortunately, most of the time retail traders are looking
to learn about the wrong kinds of things. We spend our time
looking for the “best and latest” techniques and systems
with the hope of making money once we adopt them.
The truth, however, is that there are other more important
aspects of Forex trading that we should all be paying
attention to… and these are the aspects that separate a
consistently winning trader from a consistently losing one.
Forex Education Topic #1 - Understanding Leverage
One of the biggest attractions of Forex trading is leverage.
We are all aware that in the Forex market, we can trade with
a large amount of currency using only a fraction of our own
money.
What most retail traders dont realize, however, is that
leverage actually plays a major role in how they should
manage their money (and risk).
Simply put: the more leverage one trades with, the smaller
the stop-loss allowance would be available to them. If you
dont know why this is so, I highly recommend that you study
the impact of trading with leverage more carefully and how
it affects your money management system… too many beginner
traders have wiped out their accounts because they didnt
truly understand the risks involved here.
Forex Education Topic #2 Understanding Yourself
Among all the aspects of profitable Forex trading, this is
arguably the most difficult to master. You can have
thebest” trading system in the world; but if you find it
hard to trade according to its rules, then its still
useless.
Understanding your own risk appetite is a crucial component
of deciding which trading system you should adopt. If youre
an aggressive trader, find a trading system that reflects
your style. And vice versa if you a conservative trader.
An old trader once told me, The market is the perfect place
to discover your true flaws. And now, I finally realize
what he meant. My flaws of greed, fear and discipline have
all been exposed to the market and its through the
conquering of these flaws that you can emerge as a
profitable trader.
Dont trade if youre not prepared to have your
vulnerabilities exposed by the market.
About the Author
Visit http://forexsystemprofits.com for more tips and
techniques on profitable Forex trading. Get your free
26-page Forex trading guide while you’re at it.
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