ForexGen Trader

Dear Traders,

From our interactions with some of the people trying our foreign exchange trading signals we get the impression that a good proportion of the people are relatively new to foreign exchange Trading. We would like to say that it takes TIME to learn to trade and to start making money in the market. It is NOT easy, contrary to what most brokerage and online trading sites would want us to believe. If it helps anyone, we want to share the following:

Development OF A TRADER

Every Trader goes through the following stages of development:

1. Basics FX market reading - is the market going up or down? Note, that at this stage, very few people think of the third possibility.....that the market could be going sideways
2. Setting targets for the envisaged move - During this stage the person is happy if the market moves in the envisaged direction and even if the market comes just close to the target but misses it
3. Getting to know all the scores and scores of Technical Indicators and tools, thinking that knowing the tools is the secret of successful trading.

During this period, the person is focused on "being right", the mentality is "me against the market", or even, "my forecast is better than yours". The person trades during this period, experiencing both profits and losses, but consistent profits elude her. She is happy every time there is a profit, no matter if it be small and tends to forget about the losses

Slowly, the Trader moves onto the next strategy of development, wherein:

1. She starts to think about various possible scenarios....and starts to think in terms of "If-Then-Else"
2. She starts to think in terms of Probability....what are the chances of the IF or the THEN or the ELSE happening
3. Starts to think in terms of Risk-Reward

Having mastered this higher strategy, the Trader can then move on to the next strategy

1. Thinking in terms of strategy
2. Managing multiple positions