Let's be totally honest for a minute. If successfully trading the financial markets were simply a matter of opening up a discount brokerage account and getting started, then practically everyone would quit their day jobs to do it. The truth is that it is possible for you to learn Forex trading for beginners, and learn to trade other markets as well. You will have to come up with systems that enable you to develop such a career trading the financial markets. The reality is that this will take time, research, and patience. Below are some tips for how you can go about doing this.
Create and Maintain a Master Plan
This does not mean that you must come up with a finely detailed plan for trading. It does suggest that you should develop a strategy or plan for the systems that you will create and test over the coming three to six months. It would be best if you could create your own trading system for both downtrends and uptrends, as this way you will be well prepared to trade in any kind of market. After all, if you are going to be successful over the longer term, you must learn how to make money in both up and down markets.
Developing Your Own Trading System
In order to develop your own trading system, you will have to come up with a process for both building and testing your strategy. This should be well documented to give you both structure and discipline. The system that you come up with has to demonstrate clearly how and with what to test your ideas. You really need to outline both the flow and order of your strategy development process. You should use check lists for the types of stop, exit, and target orders that you will use. One course that might be of help to you in this process is Brian McAboy's "Trading System Mastery."
Stay Focused Like A Laser Beam
It is all too easy to fall prey to distractions or to procrastinate when you are working on building, running, and testing your own trading system ideas. This can be especially tempting when you are researching and reading about new trading concepts and indicators. The proper way to avoid losing the momentary flash of brilliance with a new idea is to make some detailed notes in a journal you keep close by. Then you can safely come back to it after you finish working on your trading system.
Stop Looking for That Elusive Get Rich Quick Trading System
First, the bad news--- no get rich quick trading system that works every time exists. The good news is that there are some solid ones that can help you to grow rich in only a year if you play it aggressive and have some good luck. This is especially true if you are trading the world's largest, most liquid, and most accessible financial market, the Forex Market. As you can safely and smartly employ mighty margins of 100 and even 200 to 1 with Forex currency and precious metals pairs, you can actually turn $10,000 or $20,000 into a million, two million, or even five million dollars in one to two years. Understand that not every trading system will allow you to do this, but a really well researched, thought out, crafted, and tested, one just might.
Take a Dose of Financial Market Realism Along with Your Hopes and Dreams
Reality is that the path to financial security will be hard and painful sometimes. No matter how thorough and good you are, you are bound to suffer through some mistakes and to be an occasional victim of the sometimes whimsical markets. The key is to work on and improve your financial market trading systems in good times and hard times.
Manage Your Money Wisely, Or Watch it Vanish
After you have at last developed and thoroughly tested your trading systems, you must quickly move on to money management systems. Learning how to money manage your positions is often the difference between making it work and failing in your trading career. There are many good books and videos available out there on scaling in and scaling out of trading positions. Pick a few of them up and learn as much as you can.
Make Sure Your First Trades are Simulated and Never Real Money Trades
Do not be a fool who is soon parted from his money. No matter how good your new trading system has tested out on paper, you still need to do some live trading with pretend money. Most Forex accounts these days will give you a thirty day free trial of their platform in simulation mode, where none of your hard earned money is at risk of disappearing. Even when you are sure that you cannot lose, you should still start trading with only small amounts of money and then gradually build up the size of your trades. It is important to remember that your system will never be perfect, and that your trades will take hits from time to time. So long as you win more often than you lose, and you wisely manage your trades and account balances, you should come out ahead over time.