Thursday, July 22, 2010

The Most 3 Basic Questions for the Beginner in Forex

Forex (Foreign Exchange) is a trade transaction currency of one country against another country's currency. The average trading volume that occured every day is about of U.S. $ 2 trillion. This causes Forex is 46 times greater than all the combined market shares and therefore called on the world's most liquid market.

Forex trading can provide a very large incomes, changing people became a billionaire, however, not all traders, but only few are successful. This article I wrote specifically for beginners who want to make money with currency trading. The most important thing for you as a beginner is to lay right foundation in your mind, like a strong will, the right information and the right mindset.

There are three basic questions that you need to ask yourself before you begin trading currencies.

1. Do you have learned exactly, how and why your system will work?

This question may be simple but many traders do not care. Many beginner traders buy forex robots from the internet and think that they will automatically earn a living by investing thousands of dollars to buy forex robots. However, the fact is, most of these systems is just rubbish and has never engaged in transactions directly. If you fall into this category, say goodbye to your capital. Whatever system you use, you must have a strong confidence about how and why your system will continue running for long durations. If you do not understand how your system is running, you will take the risk of loss while still trust your system to gain back. Success in trading is formed by the understanding of the methods used plus the confidence in the system created. This will create the discipline and long-term success.

2. Can you bear several successive losses in the long term?

For how many days, weeks or even months you'll keep believing in your system when it makes you a loss? All the best traders know that no system is perfect, and they remained faithful to use the system until finally returning to the right track and make a profit. If you think that this would not happen to you, think again because this will definitely happen.

3. What are your strengths?

Think about this fact that 95% of traders lose and only 5% who make a profit. So the success of the Forex transactions are not as easy as most people think. The winners have their respective strengths, which make them join the group 5%. You must have a strength, believe it, and follow with discipline.

That was three questions you should know as a beginner. You should ask yourself and if you can not answer it properly, I think you have to continue your Forex education until you can confidently answer all the questions above.

Forex trading is not easy thing to do, but everyone can learn to trade and can obtain success. You should have a good knowledge with the right mindset. The most basic knowledge for beginners in Forex is how to learn properly and get the right mindset to practice and combine to become your advantage to be able to get profit. If you can do this the success in Forex will belong to you.