"Forex" is foreign currency exchanging or trading. It's a risky business for the average person to endeavor to get involved in, they say that about 90-95% of those who try to do it - fail. So, why would I think that I should give it a chance? I cannot afford to lose money, that is for sure. But all my life, I have not really known what I want to do...and when I was introduced to forex, it was like a fire lit inside of me. It's driving me to learn about this and it's gripping and serious and fun at the same time. I don't know how to explain it really, other than that my internal compass is telling me that this is the right thing for me to do...that I have to do this. So, the only thing left for me to do is to know the risks, take them seriously, figure out why others fail so frequently and not make those mistakes myself. Besides, there are people out there who master this and make very good livings at it and live the life that they want to live. I'll get in to that more in a separate post...my goals.
Lets talk about that risk a little more...why do others fail so often? There are a few extremely common mistakes that all newbies to forex make: failure to properly manage their risk per trade, trading with real money before they have any sort of system or know what the hell they are doing, and trading far too often (like a gambling addiction). Good trade set-ups are plentiful, but they are not ALL good and most new traders just feel the need to be in a trade (or multiple trades) all the time, just to be "making money"...but usually they are picking bad trades and losing money. Trading is like poker, you should wait for the hand, not just play whatever you're dealt.
The first thing that I did was to check out some recommended sites to see what it was all about. "www.babypips.com" was my first step, they have this cool "school of pipsology" that basically teaches you the verbage, ins and outs etc., that you need to know to get started with forex. I also started reading tons of other forex sites and this is where the obsession began. I started a demo account right away, and in the beginning was basically just pushing buttons, learning how the format worked etc. I was advised by my forex friend to start a realistically small account to practice on (how much will your first real account be? practice with that amount), so that is what I did.
I was really just playing around and not getting anywhere for the first couple of months, because as much as I read about fundamentals and other people's systems...nothing was consistently working for me. Then, I stumbled upon "price action" and found some videos on youtube, as well as a fantastic site by Nial Fuller, who runs an educational forex service called: "LearnToTradeTheMarket.com". This was my breakthru moment. I learned tons from his site, and though I haven't paid for membership to his program yet, I might when I have the money to spare. Just because I feel that I have learned so much from him for free, that it is worth the small fee he is asking for membership. Besides, who knows what other nuggets of wisdom he might be holding back. Anyway, that is when I really started making some progress. Basically, price action is all about learning how to read the chart and analyzing what the price movement is telling you. You don't need a lot of fancy indicators, infact I believe that they are mostly worthless and an impediment to the user learning how to actually analyze the charts.
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