In order to become successful with your forex trading, you have to learn how to do it for yourself. Relying on the education of others, or copying others, will not do you justice for the long term in your fx trading career. Many traders, especially beginners, find a trading system online that lets you look into an individual trader or group of traders live execution of trades. Because these people have a track record of success they copy what they are doing in their own particular accounts.
WHY COPYING OTHER TRADERS IS WRONG
This strategy of copying other successful traders is totally wrong. As a beginner trader you want to develop your own strategy and only use the live traders program to educate yourself and possibly integrate some of their style and strategy into yours.
Even if you decide forex trading is not for you, it should not be based on a strategy that is not your own.
WHY WORKING HARD PAYS OFF
With the foreign exchange trading about 6 trillion dollars in volume everyday it should not be to hard to come up with a winning strategy to earn a positive portion of that. Many people fail at this only because they did not work hard enough to understand how to earn money trading forex properly.
HOW COMPANIES UTILIZE THE FOREIGN EXCHANGE MARKET TO THEIR ADVANTAGE
With that much money going around it is no wonder so many people and businesses trade inside this large market everyday. A cool thing some businesses do is when they introduce a new product overseas they invest money in the foreign exchange to offset any losses that may occur with the fluctuating currency exchange rate. If a business loses money from their product, not because it is not selling well, but because the rate of exchange is a lot different from when they introduced the product than they will gain money in the foreign exchange because they invested in the opposite. The opposite is true as well. Even if the business loses money with their trades in the foreign exchange, they gain the positive rate of exchange from the products being sold in that particular country.
FOREX STRATEGIES FOR INDIVIDUAL TRADERS
In order for individual traders to see success they have to come up with a winning profitable strategy. This is not hard to do and can easily be done with the help of a free demo account so you do not have to put any real money into the market in order to learn to come up with your own forex trade strategy.
I know it is hard to learn at first and you might be wondering how will I ever come up with a winning and profitable strategy. The key is to keep it simple. Try not to think to hard and do not over strategize where you can make the mistake of having to many strategies, making your trades more complex, difficult to understand, and at a loss.
A successful fx trading strategy minimizez the risks involved. You should have an over 70% success rate with your strategy as well.
Learn the indicators. So many indicators exist within the forex market that can be used to find and execute trades, identify trends, used as exit strategies and more. Each one that you learn will only add to your intelligence as a potential fx investor and will only help you.
Try to get away from copying others and thinking the only way to be successful is by doing what other successful traders are doing. Your strategy will most likely differ from others because everyones work ethic will be different.
Their are strategies for people who only dedicate a little time to trading while other strategies exist for people who do it full time. Strategies exist for the various currency pairs and time frames on the chart. Unless everyone dedicated the same amount of time, traded the same currency pair, and traded the same time frame on the charts everyday, than each strategy has to be different. Which is why you have to be careful copying others because technically you might now know their thought process for future trades you might execute on your own for other currency pairs and charts.