A successful trader is an educated trader

Today, an increasing number of people around the world are getting involved in the workplace at Forex currency marketForex is a very attractive market for beginner traders. Often those who hear about Forex for the first time do not realize what they are actually facing. The seeming simplicity of trading currencies at first glance and suggested by advertising is an illusion. Forex is a serious international interbank currency market. It is a market of high-class professionals, intellectually strong, disciplined and mentally stable people.

 

Self-education is the highest form of trader's education

Choosing this type of individual business, beginner traders should realize that in order to stay on Forex and start making good money, to enter those statistical 5% successful traders, they must you're gonna need to do some serious self-education. Spend quite a lot of time, make every effort to study the intricacies of the market and the psychological characteristics of your personality.

Self-education - is a process of independent acquisition of knowledge and skills in any field, assuming personal interest of the learner.

Self-education includes all types of knowledge acquisition related to independent, conscious, voluntary, planned and controlled study of material.

It is impossible to succeed in such business as trading on the currency market without self-education. This is a prerequisite for his professional activity. The specifics of a trader's work are such that for successful work he will need to master at least minimum knowledge:

• economics and politics: economic data indicators make up the fundamental analysis of the market, while political data is reflected in the movement of currency prices;
• on technical market analysiswhich includes studying price movement charts, determining the trend direction and support/resistance levels, studying the indicators et cetera;
• in psychology: studying one's trading behavior, one's emotions, feelings, moods, etc.;
• tacticallyThis involves finding and studying all sorts of tactics used by others and developing your own trading tactics.

In order to master this knowledge on your own, you need to answer the questions:

1. What exactly will you study (where will you start with practice or theory)?
2. How much time per day (week, month) can you devote to self-study on theoretical and practical market research?
3. How will you study (independently, in a group or with an individual tutor)?
4. From what available sources will you draw the information you need?

So, you already know the answer to the first question: you are going to study the Forex market. I think that many of you have already attended at least one free introductory course, which made you interested in trading on the market and convinced you that this kind of income is possible in principle. That working in Forex can bring you an additional source of material income and give you a certain independence and freedom of action, as you will be your own boss with a free work schedule and other advantages. Then you face many other questions: which broker to choose, how to open an account, how to trade, what literature to read, etc., etc.

Preparing the theoretical basis

On how to open a real or virtual (demo) accountYour broker will easily tell you. You should realize that this process takes a little time. But first things first. I recommend taking some time to study the theoryTo know at least roughly what you will have to work with in the future. The study of theory includes familiarization with literature and periodicals on the topic, attending seminars, master classes, club days, online training, etc.

So, first of all, you should decide how you are going to learn the theory. However you decide to learn it, either on your own or on a course, you should realize that There are pros and cons to both independent and group studySuch as: saving or losing money and time.

If you study the material on your own, on the one hand, you may lose a lot of time trying to figure out obscure material, while in a course with a teacher you will learn it faster. But not always, even on paid and, even more so, on free courses, you will get clear answers to the questions you are interested in. Sometimes courses are also wasted time and money.

In self-study, you definitely save money. The catch with self-study, however, is that you will find the answers to all the questions on your own. It follows that for successful self-education you must find something that is personally acceptable to you. My experience of self-education was based on the fact that I first attended free courses (from three to five different companies lasting about 5 days a week), and at home independently worked through only important and interesting for me personally on the downloaded program from paid courses.

In addition, I studied the material progressively: once I had analyzed one thing in detail, I started to study another. For example, when studying technical analysis, in particular, trend lines, I printed out charts for previous periods (hourly, 4-hour, daily, weekly) and drew these lines on them. Having familiarized myself with trend lines and tracked them in real time trading on the demo account, having learned how to use them, I moved on to the material on technical analysis and so on. In the same way, I studied fundamental analysis, printing out the history of economic data, tracing it through the history of charts, assessing how this or that news affected the price movement.

Self-study of the material was dictated by the fact that I wanted to develop your own opinion of the marketand to avoid the stamp of the same training for all and the influence of the personality of the faculty, staff of a particular dealing center.

Of course, an approach like mine, is not conducive to saving energy and time and requires, above all, hard work, lack of laziness, patience, determination and concentration. And then, if you decide to spend money on paid courses, I recommend that you do it not at the first stage of training, but after some time, when you have developed your own opinion, and it will be in harmony with the opinion of the teacher.

And experience, the son of mistakes....

After you familiarize yourself with a little bit of theory and get the most basic knowledge about the features of the Forex market, you can move on to the practical actions for trading on the market.

To begin with, I recommend studying the market on a virtual account and opening-closing as many trades as possible in order to master the trading terminal. In addition, you should learn to distinguish between long-term, medium-term and short-term trends, be able to identify support and resistance levels, try to study at least one of the indicators to understand how it works in the market: whether it is late, ahead or goes along with the chart, study Japanese candlestick patterns, etc.

Only after you will have a stable trading result in the form of increased deposit on a virtual account, after you will have your trading tactics perfected to automaticity - open a micro-account in rubles.

In my opinion, switching from a virtual account straight to a real mini account carries with it some psychological difficulties, which lie in the attitude towards money. Working with virtual money, you don't lose anything, therefore you won't experience all those mental stateswhich will fully manifest themselves and interfere with working on a real account with real, albeit small, money. And if a virtual account will help you to study and understand the market, then A ruble micro-account will allow you to identify your psychological characteristics and teach you discipline to enforce their own rules of commerce.

Once you have successful trading strategyafter you've master yourselfOpen a regular trading account and trade in a disciplined manner using only your profitable tactics and proven signals. And for a deeper understanding of the market, to test something new, use the same virtual account from time to time.

What you are is defined by what you read

To make self-study of theory and practice effective and quick, it is best to make a list of questions and search for answers in various sources of informationIn order to develop a personal opinion, you need to read different literature, study different trading strategies and tactics until you have a trading strategy and tactics. Therefore, in order to develop your own personal opinion, you need to read various literature, study different trading strategies and tactics until you have a your own approach to trading and your own view of the market. When studying the materials all the information you receive try to filter and subject to a healthy dose of skepticism, do not take for granted everything that is recommended and written by various authors, remembering that the personality and experience of others may well not coincide with your opinion and experience.

Take the best from each author. And the best for you will be only the information that coincides with your thoughts and feelings about its correctness, accuracy and reliability. The ultimate goal of your self-education is to find your way to success in trading on the international currency market Forex.

Of the plethora of existing literature, I recommend looking at the following books:

• Eric L. Nyman's "Small Trader's Encyclopedia".
• В. N. Likhovidov "Fundamental analysis of world currency markets: methods of forecasting and decision-making".
• Jack Schwager "Technical Analysis. The Complete Course."
• Michael Douglas "The Disciplined Trader."
• Edwin Lefebvre, "Memories of a Stock Speculator.".

There is a lot of different literature that you can study on your own. I have recommended only those books that have helped me personally to achieve positive results in trading and that I use as my desktop books. From time to time I refer to these books again and again to keep my trading morale up.