Once you complete your Forex Trading Course it can be quite daunting to be thrown in at the deep end with a high level of expectancy to make profit on the Forex. A common mistake new traders make is to let their emotions take over and fly into the wind which only results in one thing...failure. After being taught how to trade Forex, a great deal of planning needs to be made that will define your approach to trading. Without this, all the notes that you have made in your Forex course simply fly out of the window leaving you helpless knowing that other students are well on their way to making profits.

Do Not make amateur mistakes

At this stage stress will most certainly become an issue. Majority of people that are unlucky enough to suffer from this find themselves looking aimlessly through a huge number of Forex charts trying to find a trade to take. If a suitable trade is not found there is a tendency towards taking a trade that is 'almost suitable'. Despite knowing deep down that the chosen trade does not mirror the entry characteristics they were taught, beginners to Forex trading still execute this due to a belief that you should trade a certain amount of times per day in order to be successful on the Forex. It's not rocket science to know what the outcome of taking such trades will produce...a loss. The trick is to know when not to trade. The worst thing is that now that a new trader is trading with emotion, this process repeats numerous times and investments are doubled in the trades thereafter to recoup the loss. Unless rules taught on the Forex Trading Course are followed, this can become a dangerous cycle to be in.

So, in order to approach your trading future in a calm and appropriate manner there are certain rules to follow:

1) Become a perfectionist – To start with chose two trading strategies to conquer. They may be strategies that you found the easiest to understand when you were learning how to trade the Forex or they may be those that deliver most profit. Whichever they are, once they are picked, a maximum level of commitment towards testing and re-testing should be applied enabling optimum insight into how/why these trading strategies work i.e. what does the market need to do in order for you to trade them. On a general level, beginners to Forex tend to chose simple trading patterns such as a flag or a channel as they are basic patterns most commonly found in trading charts.

2) Confirm your indicators – If chosen trading strategies require the assistance of indicators, a beginner should confirm which apply to their strategy/patterns. There are a huge number of trading indicators available, most common being RSI, Stochastics and volume. Not all of them will apply to every strategy so deciding on a trading approach with indicators is crucial. Once trading indicators are confirmed, planning should simply take over. That is, sticking to the rules that point you towards a trade only if indicators do what you want them to do. For example, highest volume on the confirming trading candle.

3) Acquire good resources – Unless you are a pro Forex trader that requires no advice, being alone can be damaging to your trading career. Whilst there are a number of great books or pieces of literature out there, there is nothing more beneficial than having a mentor or communicating with Forex traders alike. This is a great way to pick up tips, rules and most importantly avoidances. Remember however that other traders can only guide you, it is up to you to devise your own trading style that will take you from a beginner to a professional Forex trader.

As you can see, Forex trading for beginners can be quite difficult and emotional if not approached correctly. Follow the rules taught in your Forex trading course and these situations can be avoided.

By: Dragan Lukic

http://www.forextrainingworldwide.com/