How to Trade Forex
03/09/2011 04:13
In this article, we will look at how to trade Forex successfully and if you think you need to work hard or have a degree in economics to win think again. Here we will show you how a group of ordinary people learned to trade in two weeks and then went on to make millions in profit.
Can Forex trading be learned by anyone? Richard Dennis a world famous trader, set out to prove that anyone with the right education and mindset could win so he conducted an experiment...
He got a group of people who ranged from a security guard to a female clerk and set about teaching them to trade. Their education lasted just two weeks, after they had received their training, he gave them a $100,000 each and let them trade and they piled up hundreds of millions of dollars.
The question you might be asking is - how did they manage to do so well so quickly when its a known fact that over 90% of all traders lose money?
The answer is not only did Dennis focus them on the right education, he also made sure they had the right mindset to succeed, lets look at how he taught the group so well and what you can learn from this experiment.
The system was simple, so simple in fact that anyone could learn it; it didn't even try and predict where prices may move in advance, it simply traded the reality of price change via breakouts and locked into and held long term trends which is a timeless way to make profits.
The real key with any system is to trade it with discipline and this is why most traders fail - they can't keep losses small. Most traders believe the ridiculous message that you can trade with more than 90% accuracy but about by vendors of cheap Forex robots and other sure fire systems but the serious trader knows this is not true.
You will get losses and lot of them but that doesnt matter, if you keep them small. Consider the above system, it lost far more trades than it won but that didn't stop the system making huge long term gains, because the traders kept losses small and ran their profits. If you are interested, check out How to Trade Forex.
The key to winning is to keep losses small which can be hard when the market wrong foots you and makes you look a fool but you must take these losses! You musnt get angry or frustrated, be tempted to run losses or deviate from your trading plan, you need to stay on course and that takes tremendous mental discipline.
Can you learn a simple trading system? Of course you can and you can also get a disciplined mindset to because - this is simply a choice and its a choice any trader can make.
So focus on getting a simple Forex trading system and trade it with discipline and you can enjoy a great second income from home.
For more details check out How to Trade Forex.