Would you like to learn forex trading? Brainyforex can guide you in the right direction. Learning to trade forex successfully is a very challenging endeavor. The forex markets can be extremely fast moving at times. They can trend well for a long period of time. They can also oscillate sideways up and down, not moving anywhere at times too. This is where the challenge comes in. You have to trade accordingly. Are you prepared to trade a trending market? Are you prepared to trade a sideways market? Can you cope with the change from a trending market to a sideways market? Or the change from a sideways market to a trending market?
This change in market conditions seems to be one of the main problems
for most novice traders. They learn how to trade either one market
condition or the other. They are unprepared when the change in market
conditions take place. Novice traders can do well when conditions are
agreeable to their one method of trading. With large leverage available
in the forex markets some beginner traders even win trading
competitions. The thing though is that they cannot consistently win or
produce good results month after month. Why not? Because they cannot
cope with a change in market conditions. They will eventually blow up
their trading accounts because they do not use appropriate stop loss
levels or correct money management. Lets consider an example;
just won a trading competition with 300 % increase on his account in
one month. He used overbought and oversold indicators as his primary
trading system. When price had moved extremely far, in one way or the
other he simply took a position in the opposite direction. For the whole
month of July, his method worked. It was like he had found the holy
grail. Price was in a sideways trading range. His method worked well.
Star was ecstatic that he had done so well for the month of July. He
now tries to repeat his performance for the following month. His first
trade for the month of August seems to be setting up well, price shoots
upwards. He has never seen the price level move so far so fast. His
indicators show “overbought to the max”. Wow thinks Jason, I will hurry
and place a short order in the opposite direction because price has to
retrace from this extreme overbought level. Jason, places the trade
without a stop loss. The next day price is still moving north. Next day
again it moves up, even further. The third day, price stops. Great says
Jason, about time price reverses! The fourth day Jason is nervous as he
is sitting on a huge loss. Price still does not retrace. The fifth day,
price still moves up against Jason's position. Jason had never
anticipated such a situation. Jason says he is now stuck in this trade
because if he closes the position he would realize a huge loss.
Unfortunately, this one bad trade against Jason wipes out any chances of
showing good performance results for the whole year as price only
stalls until it continues its upward climb higher.
situation with Jason Star is a typical story with novice traders whom
have not come to understand the complete trading process. Typically they
only want to learn forex trading after they have unsuccessfully tried
to beat the market without knowledge.
The story ends on a good
note for Jason Star. Jason was trading with a demo practice account. So
he only lost his ego not his hard earned money. Jason's ego was so
bruised by the experience that he decided to put in some hard work and
study to learn forex trading properly, he studied trading systems, money
management and trading psychology. Jason polished up his old trading
system with his new knowledge, he created a profitable low risk trading
system that he enjoys trading stress free.
You too are welcome to put in some hard study and learn forex trading properly.
Lets get started with these topics
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