How can I begin to understand forex?

Forex is a really difficult business. To make money with forex you have to know the technique and have enough experience or you lose more than what you make. The good thing with forex is that you do not have to be worried about competition. Unlike all other businesses which competition makes tougher conditions for everybody, the more people work on forex the more money everybody will make because it will make more volatility and movements in the market and volatility and price fluctuation is what we make money through it. So forex is a good business but is it a suitable business for everybody? To become a forex trader you you have to learn it at first. It is not very hard to learn forex. There are enough free information over the internet. You just need to spend a few months to learn everything. But the more important part is the experience. You have to learn how to use your knowledge to trade. You must have three things to become a good and successful forex trader: 1. Knowledge 2. Experience 3. Suitable mental and psychological condition If you lose more than what you make in forex you do nt have at least one of the above essentials. As explained above the knowledge can be gained easily and for free through the internet. The experience can be gained through practicing with a demo account. Any of the forex brokers offer free demo accounts which enable you to practice and learn to use your knowledge practically. But what about the last factor? Suitable mental and psychological condition! How can you control your hastiness, Greed, Fear and Emotions in Forex trading? This question can not be answered in a short form but here is some tips: If you are a hasty person and this has made problems for you both in your life and forex you have to practice Yoga meditation or maybe hypnotism to become able to control your hastiness. In case your hastiness can not be controlled at all you may have to see a doctor and check your endocrine hormones like Thyroid, Adrenaline and Noradrenalin. To control your greed you have to make a strict discipline for yourself and try to be stuck to it. E.g. do not make more than a limited number of pips everyday or in each single trade. Tell yourself that you are not allowed to make more than – for example – 20 pips everyday or 5 pips in each trade and as soon as you reach the limit turn off your computer or close your trade even if the market is still hot and you can make more or your trade is doing well and going to your favorite direction. To control your fear you have to spend enough time on learning and practicing with a demo account. You have fear because you do not have enough confidence about your trading skills. You have to make hundreds of trades on the demo account to make sure that you have learnt the methods completely. Then you need to start with the real account and trading with your money but with a small amount. You have to keep on trading with a very small amount of money for several months and when you see that you can make profit and the number of your successful trades is more than your bad trades you can increase the amount of the money little by little. Keep in your mind that forex and stock trading are all the matter of taking risk. The only thing that you have control on is the amount of the money you put in every trade and also the amount of the money that you let be lost. The rest is not in your hand. – What do you think about yourself? – Is forex a suitable business for you or not? – What are your weak-points? – Are you greedy or you have a lot of fear that do not let you trade properly? – What is the reason of your fear? Is it because you think you have not learnt the techniques properly or it is because you have made a lot of bad trades and so you have lost your confidence? Think about the above questions before you start trading and taking trades.