Stages that you must experience in order to be a good Trader
Take Forex courses, where they teach you Technical, Fundamental and Psychological Analysis. The most advisable thing is that you make a consistent and serious preparation. With this I do not mean that you can not learn in a self-taught way, it is also valid, however for those who are not familiar with statistical, financial and economic analysis it can be more difficult and tedious to understand them on their own. I do not recommend any specific course (nor would it be ethical), in addition to the charlatans and people who offer their programs as if it were the solution to all the problems of the world. But if I can tell you how you can filter if a course is worth or not (in my humble opinion, obviously some will not agree with me).
First of all discard the courses that offer to become a millionaire in months or have 50% monthly profitability always. To say that is not very serious anymore in a market as difficult as forex. Second, take into account the duration of the course. The course to which you point must have a respectable duration. And in third place the best courses are those where you have a tutor when you operate the demo accounts, either live or in weekly meetings so that “your Tutor” tells you what is wrong and how to correct yourself. Said tutoring should be constant and above all it should be applied when you are already operating in the demo accounts, that is, putting into practice what you have learned.
I insist on the following. If you do not have the means to finance a course do not complicate life either. You will have no choice but to learn on your own. In that sense there is a lot of free information (posted on the Web) that will help you learn. There is plenty of information, therefore the effort you put in you will mark how long it takes to have the basic knowledge.
Having a basic knowledge, you must find an appropriate strategy to be your first work tool. That is to say, it will look for a method that will have to prove it hundreds of times. This set of tests or simulations that you will perform on your method is called Backtesting. The question would be: Where do I find a method? Simple answer They abound. There are thousands of methods posted on the Web, in forums or specialized forex pages. Thousands of methods and thousands of other hybrids of these methods, even when you have experience, could create your own methods. The methods or strategies already exist (you do not have to discover the gunpowder). What you are obliged to do is to try the method you have chosen against the past (that is the Backtesting). I want to be emphatic in the following. Testing your method means that you test your strategy against the past. For example. Take the months between January and December 2009 and test the effectiveness on the EUR / USD using your metatrader or the platform that you use the most. The Backtesting is shown on an Excel sheet where you must enter data such as the entry price, the exit price, the normal profit, maximum profit, maximum loss, operating hours, etc. Only then will you be able to quantify if the method you are using is good for something or else you should discard it and use another method. Trading forex is a subject of PROBABILIDADES you can have a strategy that of 10 entries 8 are good and 2 bad. So if you have reasonable limits and stops your strategy should work and in a month your account “should” be with nice numbers for your eyesight. It happens that novice traders make the mistake of not trying a strategy as it should. An excess of confidence that in the long run will become very, very expensive.
In the Education section of Planeta Forex I have written an article about how a good Backtesting should be done, I invite you (for those who want to learn it) to review it. A very important point is that the Backtesting that you make must have between 100 and 300 data at least. Why so much?. Because it is a good enough sample in order to know if your method is effective and you can use it in various fields. Obviously there is a lot of criteria on your part too, because if you take a strategy that has too many negative (lost) entries, there’s no point in continuing to test it. Meanwhile do not operate real money. A classic mistake is to make entries (in your time of testing that strategy) that have nothing to do with the system. I know that many traders while testing their systems combine with other systems or make entries “by common sense” or “because I think” and end up ruining the sample of the initial strategy. Conclusion, they never knew if the evaluated strategy was good, or deficient. You must be disciplined in that sense and make operations “only with the strategy” and nothing else but strategy. Another common mistake at this stage is to test the strategies without taking reality into account.
That is to say to place very large lots, very high stops and all those things that in real life you would not do. Then test your strategy with the minimum amount of batches and limits and stops that are reasonable (nothing to do heroic or very risky operations).
When you have found an appropriate strategy and that offers reasonable returns of at least 4 to 6 months of continuous earnings. When you arrive at that instance then just there you can have a certainty that you can enter to operate real accounts. Even reaching that level is not a guarantee that you have an assured success, however I am sure that a lot of money (and read it well) you will save if you do a learning based on constant, sincere and responsible practice.
To get started; operating a demo account is different from a real account in several aspects, such as the psychological one (that’s why I mentioned the importance of having a tutor before). The management of control and emotions is another. However, everything is learned and there are techniques that help you to control the blissful psychological factor that (in my opinion) is the most important to be successful in this business. I recommend that you start with small amounts of money (when you are ready to start with a real one) and always be RESPONSIBLE WHEN OPERATING.
The neuronal part of the operative is the Psychological one. No method works but you are well prepared in that regard. Do not be afraid of the tickets, respect your method, be responsible, trust in the probability of your method, and many other aspects make the difference between a mediocre trader and a good one. Operating is a matter of control and not many people can learn it. Unfortunately, that’s the way it is. Learning to control ourselves is the most difficult and the door to success. That is why only 5% of traders that operate forex are doing well and 95% goes flatly wrong ?. If friends is why. That 5% controls its psychological part well enough. Every day that I operate and that I have the opportunity to teach other people, I realize that this is the case. To operate forex and be successful you do not need to be an expert market analyst or be a fortuneteller of the fundamental methods. I am one of those who think that the method can be found anywhere … anywhere. That you can try it as many times as you wish (in the end it is operative are numbers and these do not cheat), your probability of a method well tested in the long run should come out and not fail statistically speaking.
Who teaches that a novice operator is controlled and does not make entries without meaning or at random? We only learn it with the blows and losing money. Unless we have a good mentor to help us from the beginning and teach you that “horrors” should not be committed in the operation. Unfortunately, not all of us have that luck. If you know capable people with time to operate then ask for advice, listen to experiences, ask many questions, practice and keep practicing, study sincerely. Only in this way is a good trader trained.
I hope you can serve my appreciations. Forex offers an important potential to make capital and fill us with benefits, and even more to teach other people to take advantage of it, but it is also true that this job is full of blood sweat and tears and a lot of control, that at The end should lead to success and good capital management. And remember: do not try to become millionaires in a month, the greedy are the first to lose. If they think like this they will not last anything when they are operating real. All work performed by operating must be patient, sincere and reasoned. I wish you good trading.