There are no magic recipes. I am very sorry when some people write me discussingme that you have purchased a course or magic strategy that will make themmillionaires; or that there are fantastic operators (from another world) that alwaysgenerate astronomical monthly returns and never fail to win (amazing right?). Walked on Earth and are not naive.
Stages that you must experience in order to be a good Trader:
Stage 1.
Courses of Forex
which teach you technical analysis, Fundamental, strategies,Capital Management, psychological Control, etc. It is better to perform a consistentand serious preparation. This is not to say that you don't can learn in a self-taughtway, also is valid however for those who are not familiar with statistical, financial andeconomic analysis them can be difficult and tedious understand on their own. I do notrecommend any specific course, for the simple reason that scammers and people whooffer their programs abound as if it were the solution to all the problems of the worldand you will be absolutely ready to operate real account after a few weeks. Nothingfake. However, if I can tell you as you can filter if a course is worth or not (in myhumble opinion).
First discard the courses offered you become a millionaire within months or alwayshave 50% monthly return (and are so cheaters that up to make them). Say that is morebit serious even in a market as difficult as the forex. Second take into account the timeof duration of course. The course to which you point must have a respectable periodof several months. Do not take courses of days because it would be throwing awaytheir money. And thirdly the best courses are those where a tutor that will help it live,either in classes or in weekly meetings, you have to "guardian tells in that is wrongand as corrected". This tutorial should be constant and above all be applied when youare already operating on demo accounts, i.e. putting into practice what you havelearned. Why I say that the best courses are those where you that will help you with apermanent follow-up, because it is precisely at the time when you most need someexpert.
Few courses provide this service, and in my opinion is the most important because theordinary operating is wrong, and in that sense you need an experienced voice whichsee what you is (after that term of learning or take the course) on trading platform.Another aspect is to be very careful with those courses that offered open realaccounts at its end. Never do that. Take a course does not give any warranty that youare a competent operator and if they offer it surely is for profit to its shores because itis the easiest way to destroy an account by opening an account with little preparation.Do not be fooled.
At the time of search learn trading do so formal and academic. If a doctor studying atUniversity seven years for having surgery or a civil engineer studies 5 years toconstruct a building. Then. What should a forex trader be making money within a fewmonths of practice? Perhaps do you think to that there are enlightened people? Againdon't be naive.
Why you should think that after 3 months of practice in a demo or a simulator couldalready be operating cash? Really think that making money is so easy? Don't foolyourself or make taking advantage of his good faith. Concerned the study of thetrading in the more academic way and will avoid big disappointments or lose timeand money foolishly.
On the other hand, if you do not have the means to finance a course not willcomplicate life either. You don't have no choice but to learn on their own. In thatsense there is a lot (hung in the Web) free information that will help you to learn.Information surplus, therefore the efforts that you put marked as delay in having thebasic knowledge. However, being self-taught is also (and is honest to mention it) thehard and complicated way. The self-taught does not know where to begin becauseoverwhelms it tons of information and usually do not have enough discipline to carry out a proper study. Therefore they are a subject of constant trial and error, where itwon only frustration. You are only self-taught but account with the means necessaryto finance studies.
For any questions or material if you like me you can write to thedruizb@consultant.com and happy what I share with you ever a very experiencedoperator helped me with material, the only thing I'm doing is to follow the chain and I hope that the day that you will be an experienced trader help other newbies.
Stage 2.
Already having a basic knowledge, you must find an appropriate strategy to make ityour first tool. In other words, seek a method that should prove it hundreds of times.This set of tests or simulations that you will carry out your method is calledBacktesting. The question is: where can I find a method?. Simple answer. They are abundant. There are thousands of methods posted on the Web, in forums or pagesspecialized in forex (like this). Thousands of methods and other thousands of hybridsof these methods, even when you have lots of experience and is a consistent winnercould create their own methods. Methods or strategies already exist (you do not havebecause discover gunpowder). What if this you forced to perform is to try the methodwhich has chosen against the past (thats the Backtesting). I want to be emphatic in thefollowing. Try your method means to carry out trials of its strategy against the past.For example. Take the months of January to April 2010 (or any other year) and test theeffectiveness in the EURUSD used your metatrader or platform that you most use.Backtesting is embodied in an Excel sheet where you must enter data as the price ofentry, the output, the normal gain, maximum gain, the maximum loss, hours ofoperation, etc. The idea is to calculate the possible gains and risk average of thatsystem and measure its profitability ratio. Only then you can quantify if the methodyou're using for something or but throw away it and use another method.
Trading forex
is a matter of odds. Then if you have reasonable stops and limits yourstrategy should work and months your account "should" be with nice numbers foryour view.
It happens that novice traders comment error not to try a strategy as it should be. Anexcess of confidence that in the long run will be very expensive, and always ends uptaking a toll. A very important point is that the Backtesting that you perform shouldbe between 100 and 200 data such as Pussycat. Because both? Because it is oneshows good enough to know if its method is effective and you can use it on severalgrounds. Obviously there is much discretion on its part too, because if you take astrategy that has too many negative entries (lost) it makes no sense keep trying it.Meanwhile do not operate real-money.
A classic mistake is to make entries (in your time of proof of that strategy) that havenothing to do with the system. I know that many traders as they tested their systemscombined with other systems or make entries for"common sense" or "because itseems to me" and end up ruining the sample of the initial strategy. Conclusion, neverknew if the evaluated strategy was good, or poor. You must be disciplined in thatsense and do operations "only with the strategy" and nothing more with the strategy.That does not mean to not try several strategies, eye that are different things. You cantest that you want while you save an order. And I refer specifically to the fact thatwhen you this operating in a demo to make only one operation (best of all) and onlyone. Other operations to track in your trading journal. This part is very important tounderstand it. People work habits and customs and if you have healthy habits withyour demo take them also real life. Learn how to be disciplined since the demo andwork their demo as if it were a real account. It is important to have a journal of tradingwhere you place the tracking of their positions, their performance, relevant data andreviews of their operations.
Another very common mistake at this stage is to test strategies without taking intoaccount the reality. I.e. putting on very large lots, very high stop, let the losses of rude; you have many positions open at the same time and all those things that, in real life,wouldn't it. Then try your strategy with the minimum amount of lots and limits andstop that are reasonable (Nothing make heroic or very risky operations).
Is not pressed with time. Who hurries it to make you manage real money withoutbeing a consistent winner in the demos? Do not allow that their anxiety and a possibleshare of immaturity pushed it to open accounts when you are not really prepared.This is irresponsible with your own.
Stage 3.
When you have found an appropriate strategy and offer reasonable yields of at least 6months of continuous gains, profits continuous and consistent eye. When you got tothat instance then recently there may have a certainty that you can enter to operatereal accounts and I mean a much small (micro or mini). Even reaching that level is nota guarantee that you will have a guaranteed success, however I am sure that lot ofmoney (and read it well) will save if it makes a constant, sincere and responsiblepractice-based learning.
To start; trading a demo account is different from a real account in several respects, aspsychological for example (that mentioned earlier the importance of having a tutor).The management of the control and the emotions is another. However everything islearned and there are techniques that help that you can control the blessedpsychological factor that (in my opinion) is one of the most important to be successfulin this business. I recommend that you start with small amounts of money (when youare ready to start with a real one).
The neuronal part is the psychological one. Any method works but these wellprepared in that sense. Do not be afraid to entries, respect your method, beresponsible, rely on the likelihood of your method, and many other aspects make thedifference between a mediocre trader and another good. Trading is a matter ofcontrol and not many people can learn it. Unfortunately so. Learn to control ourselvesis the most difficult and the door to the resounding success. Is it for this reason thatonly 5% of traders forex operating well and 95% do absolutely wrong? The 5%controls sufficiently well the psychological part. Every day that operate and have theopportunity to teach other people, I realize that it is so. Be an expert analyst at marketor be a fortune teller of the fundamental methods is not needed to operate forex andsucceed. You need to know about technical analysis and Fundamental that is obvious,but if you lack the strategy and control psychological there if they will be lost. I am ofthose who believe that the method can find you anywhere... where is. But you shouldtry it on the Back and the demos (at the end is operating are numbers and these do not lie), where the probability of a well tested method in the long run should leaveout and not fail you statistically speaking.
Conclusions
Who teaches a novice operator control is and do not senseless or random entries?...that just what we learn with shock and losing money. Unless we have a goodeducation which help us from the beginning and teach you that "horror" should notthey commit in the operation. Unfortunately, not all have that luck. If known ablepeople and with time running then asked Council, hear experiences, they ask manyquestions, practice and continue practicing, but above all to study the forex in sincereand academic way. Only in this way forms a good trader.
I hope can serve them my views. Forex offers great potential to make capital and fillus with benefits, and even harder to teach other people to also take advantage of it,but it is true also that this slaughter is full of blood sweat and tears and long butmuch control, which in the end should lead us to the success and good capital management. And remember: don't try to become a millionaire in one year, thegreedy and the improvised are the first to lose. If you think so not last anything whenthey are operating real. All work carried out to operate must be patient, sincere andreasoned. I wish you good trading and does not operate for operating.
