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So You Want To Learn Currency Trading?

The whole world wants to learn currency trading, or so it seems sometimes from the numbers buying the courses, the “robots” and the information on forex, and signing up with a forex broker. Most of them are going to fail, we know, but a minority will succeed in making regular profits.

Let’s have a look at just three things that every newcomer to forex should have if they are to stand a chance of success in this treacherous market.

1. A Demo Account.

This is available from almost any foreign exchange broker. You can have as many as you want but one should be enough, with funding of $10,000, usually, of make-believe money.

Treat this as if it were real money, if you want to really learn. Of course you can have some fun trading it at $20 a point to see how much “money” you can make in a day, but, really, you should use it to learn, and to do that you have to pretend it’s your own real, hard-earned money.

Don’t trade everything. That’s what losers do. Pick and choose. Study your currency pairings and keep them to just two or three. Get to know everything about them intimately. Then when you see a chance for profits, jump on it. That’s what the professionals do.

The objective is very simple – to show a consistent profit from one week (or month) to the next. You can learn to do this trading at no more than $1 a point. Over 95 per cent of newcomers to currency trading fail to do this, and most of them will have skipped or severely shortened the period when they actually learn currency trading by way of a demo account. Don’t let this happen to you.

2. The Simple Moving Average

The simple moving average is the only indicator, out of the dozens available, that most highly successful financial traders, like Vince Stanzione, use. It is usually used in double format (though you can use more), e.g. a 5 day moving average and a 75 day moving average. When the shorter moving average crosses the longer one it is often a signal – to buy (or close a short position) if moving up, and to sell (or close a long position) if moving down.

Just make sure you learn this aspect of currency trading thoroughly. Decide early on which currency pairings you are going to profit from and keep to those. Work out which two lengths of simple moving average give the most reliable indication of imminent moves in price, whether you’re day trading the currency market, or trading longer term.

3. A Mentor who is a Successful Currency Trader

This is your third vital ingredient, and is to be differentiated from someone simply selling information or software on how to get rich in forex. I mean someone who actively trades in the foreign exchange market and can prove that he has made consistent profits.

It’s a mistake to think you can succeed on your own. Even the most successful traders have invariably had expert guidance at important points in their career. You’ll know here I’m referring to Vince Stanzione, who has made his millions in the financial markets.

To learn currency trading properly is a most profitable and worthwhile activity undertaken by a tiny minority of traders in the currency markets. Make sure you become one of that minority.

Just go to our home page and complete the form for your free mp3 interview with Vince Stanzione, Secrets of Successful Trading.

Philip Gegan