I've been reading a lot of articles lately and I've noticed that there's a common theme with the majority. They all talk about the "4 Must Haves" or the "7 Secret Steps" or the "Secret List of 5 amazing fandangles you need", it just goes on and on.
It's complete and utter garbage. It's misleading and makes it harder for you to understand what you're doing, or supposed to be doing.
Trading isn't about making things complicated. In fact, it's the opposite. It's about making the trading system simple, just like the bankers. I know, because I was one of them for 20 Years.
Now I'm not here to take a crack at the authors of these articles, that's their business, but what am here to do is, to give you some 'experienced' advice & hopefully make it easier for you to become a successful trader.
The ONE THING you need to do, to give yourself any chance of success (especially in the beginning), is to narrow your concentration down to ONE THING.
Now, what is this ONE THING?
Well every trader I've come across is at a different stage of their 'trading journey', but funnily enough the majority all share a common trait, they have been unsuccessful to this point.
I put it down to trying to focus on too many things..... 4 must-haves, 7 secret steps, etcetera.
To make it easy for you there's one of two things you should focus on. This is the exact same learning process I used for the graduates when I was working at Citibank for all those years.
If you know nothing at all then concentrate on ONE THING:
1. Technical Analysis
AND if you've got that covered already then there's only one other thing you need, and that's Capital Management'.
Technical Analysis is the market 'form guide'.
Those that follow horse racing or sports betting will know what I'm talking about. It tells you what the currencies been doing, it gives you the history, how it's been performing and it's strengths and weaknesses.
It's all there; you just need to understand what you're looking at.
So what is it?
Technical Analysis is very simple. So simple, everyone bypasses it looking for the fancy trading systems.... or the must-haves, etcetera.
It's all about technical trendlines, that's it.
The Rules of Technical Analysis
1. Resistance trendlines slope downwards.
2. Support trendlines slope upwards
3. If you want to get fancy, throw in Stochastics so you can gauge real-time momentum.
This is everything the bankers learn and don't forget they control all the volume and make the decision when to trade. I know I'm having a bit of fun with this, but that's because that's all there is to it.
Anyway who tells you otherwise is trying to sell you something: a gimmick, special software or a Supply and Demand indicator. The list goes on. Oh did I forget you'll have to cough up $10-20K for the pleasure of using these systems?
How to Use the Trendlines
Have you ever heard the old adage: The Trend is your friend?
Well, it's true and you need to be on these trends.
If a currency is trending up like USDJPY at the moment then a support trendline is your best place to be getting long.
If you're not sure then simply place a 'stop entry' order on the opposite side of the trendlines and you'll capture the break when it happens.
Concentrate on this ONE THING
If you concentrate on this ONE THING, on your simply technical analysis skills, which is basically drawing trendlines, then I guarantee you're more likely to have success, then by using any other system.
And the best thing is it's FREE. It comes with every trading platform. So you can start practicing straight away.
If you're not sure what I'm talking about with regards simple technical analysis then drop me an email and I'll be happy to explain further.
Just don't get manipulated into all the 'Must Haves" and "Secret Steps" that 'inexperienced' companies and individuals are selling!
Before I go let me define what I think "Experienced" means
To me, experience is first-hand FX industry knowledge. I mean Big Bank FX trading teams. Not Sales, just FX Trading. There's a massive difference and most people don't know it.
I wear my 'experience' as a badge of honor. I have over 28 years of FX trading experience. Prior to setting up T4T in 2009, I worked for Citibank, Commonwealth Bank of Australia and Toronto Dominion Bank. I was Chief FX Dealer of some of the biggest FX teams in Sydney, London & New York. I have also worked extensively through Asia in Japan, Singapore, Hong Kong and Vietnam.
Do you know why 98% of people don't mention their experience up front?
It's because they don't have any! It's make-believe. And they're the guys coming out with the list of 'Must Haves' and 'Secret Steps', etcetera. It's hilarious.
So do yourself a favor, before you get advice or buy anything from anyone, do some research. It'll potentially save you 6 months of wasted time and thousands of dollars.
Don't forget, concentrate on ONE THING only!
The risk of loss in Forex trading can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in the light of your financial condition. The high degree of leverage that is often obtainable in Forex trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. Past performance is not indicative of future results.