Candlestick Trading Blog

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If you are new to trading forex or if you are not new to trading forex but you just aren't making any money, it's not comfortable but you are not alone. As you have probably already heard, an estimated 90% of traders lose money as they learn forex trading.

So what can you do about it?

By following the eight steps listed below, you have a very good chance to take yourself from unsuccessful trader to successful trader.

1. Stop trading and don't even think about trading forex with real money. This is the best investment advice for the beginner. Why would you continue doing what you are doing if you are not making money?

2. Buy a ready-made system that has proven itself by delivering positive results. Be careful! Don't go out and buy just any system, or a system that is too expensive. There is a time and place for an expensive, yet proven, stock trading system. They are readily available. Don't let clever sales copy persuade you into buying something worthless. And as you learn to trade profitably, your reliance on any system will diminish anyway.

3. Using books and the internet, study everything you can about money management. You should think of yourself as being in school. Learn the system you purchased in step two. Study everything you can on risk reward ratios and trade size. Realize that the self-control of proper money management makes picking winning trades seem easy in comparison.

4. Demo trade your chosen system utilizing sound money management principles. You are now ready to trade but only with pretend money.

5. Once you've demo traded for six months, and only if you have begun to see profits in your demo trading, should you start trading with real money. Your initial trading account should be as small as possible. Try not to get too impatient with your investment timing. Six months may sound like a long time but do you want to make money or lose money?

6. At this point, evaluate your progress. Start looking for a proven signal provider if you're not experiencing successful trading with real money yet. If you are already profitable, skip to step eight.

7. Using your chosen signal provider, keep trading as you continue to turn your trading profitable. There is no reason to rush when you pick a signal provider. There are a lot of bad providers. Participate in forums and ask questions as part of your research. Talk to your trading buddies in the stock market community. Choose someone who is proven and with whom you feel comfortable.

8. Sooner or later your trading will become profitable because you don't have the stress of having to be profitable (the signal provider is profitable for you). So you will then find your own trading making you money as well.

Hopefully at this point you have made it into the small and elite class of traders who consistently make money from currency trading. Congratulations!