How to Become a Successful Self Made Forex Trader

Forex trading strategy for beginner forex traders shall be different from amateur forex traders! In general, there are 2 types of forex traders: trade automation the fundamental traders and the technical traders. Fundamental FX traders monitor the news and updates about economics and currency market very closely because their reaction against the market sentimental is their winning factors. However, how would a new beginner forex trader know what is good news or what is bad?!

The second group is called technical traders. Technical forex traders will not look at the news to decide their forex trading, but they depend on numbers, figures and various analysis on the forex market. Some foreign currency traders even use various forex indicators or forex signals to help them decide their trading in forex market. However, can a beginner forex trader learn everything necessary before entering into the volatile forex market?

Most financial schools or forex training courses will teach new forex traders template strategies. Due to the large foreign exchange currency market, more than 3.5 trillion US dollar in a single day, the forex market has a trending nature. The forex secret for beginner traders is just follow the trend…

The currency market tends to be overbought or oversold conditions for a long time. Therefore, just follow the previous trend, if the new forex trader does not how to measure the trend.

The next forex secret is that a beginner forex trader shall not be greedy or aim to profit too much. For many foreign exchange currency traders, especially those new in forex trading, to buy at the lowest and to sell at the highest in the currency market or vice verse is their aims. However, these foreign currency traders have forgotten that they are not GOD! Only GOD can know the lowest and the highest all times… So, a daily 20 pips to 50 pips profits for new forex traders is considered a good part time extra income, isn’t it?

As a human trader in forex market, we can lower our risk in trading forex by taking small profits (PIPs) within a small time frame (short period of time). Shorter time frame like 15-minute (M15), 30-minute trade (M30) or even hourly trade (H1, H4) have less risks, compared to longer time frame like daily trade, weekly trade or monthly trade. Rather than aiming 200 pips to 500 pips in longer period, which sometimes may not happen in weeks or months before it hits target profits of a forex trader, just consider to target 30 pips a day. If the profit trades are consistent, in 20 days trading in forex market (a month period), the forex trader would have accumulated 600 pips profits already!

The most important successful factor for new beginner FX trader is to learn trading of foreign exchange currency online before anxiously entering into the volatile FX market. Best to is get a coach or mentor who can literally hold the new trader’s hand and show step by step method to trade for living!