Simple Steps of Learning to Trade Forex

By Albert Schmidt

In my experience I saw so many people who jump into trading currencies without proper education. Just because it looks like you can earn a lot of money easily it doesn't mean anyone can start trading and earn significant amount of money without much effort. Anyone who starts trading needs training. Can you imagine a brain surgeon who performs a surgery on your brain without a proper education just because he thinks that this is very lucrative job and seems very easy to perform?

Unfortunately I was such a trader who jumped into trading Forex without any knowledge of market. The result was very predicable - I lost money. Only after that I started looking for education.

What I learned from my experience was that I needed to be accountable to myself. I understood that my skills were not good enough to succeed in trading.

I think there are two kinds of people who start trading Forex. Some people understand the importance of research and market study. These kinds of people put themselves through a proper education. Others are impatient to start trading immediately without even understanding the basics.

That's why I think there are actually two ways of learning to trade. First is to do the learning before one loses his money and the second way is to do the learning after he loses money. But the important thing is to understand that the knowledge of the market and economy is not all you need to succeed in trading.

Of course trading is not a rocket science and not a brain surgery. First it seems very easy. You buy when price goes up and you sell when price goes down and you will make money. Seems very simple. And actually the rules of many trading systems are simple. Then why 95% of people lose money if it's that simple? The problem is their mindset. And it can be developed only through practice.

After I lost money in Forex I made myself to practice on a regular schedule to increase my skills. By that time I had a very little knowledge of the charts, of the worldwide economy, or even about choosing a Forex dealer. I decided to schedule my time on a daily and weekly basis to increase my skills. I also read a great amount of material about trading and trading psychology. I practiced my trading skills on a demo account so I wouldn't be risking any real money.

The results of this decision were amazing. It felt like learning to ride a bicycle. First you don't know how to keep balance and your have no clue how others are doing it. You keep falling on your face. But once something clicks inside you keeping the balance on a bicycle becomes an easy and simple task. Therefore a person who approaches trading thinking that he will be making easy money will be very disappointed. Another one who applies the effort and hard work to learn market and his psychology eventually will make the trading simple and easy task for himself.

Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trades.