Forex trading is simple, isn’t it?
Someone very experienced and in a position to know once said that to me. He was the head of the forex broking unit of one of the world’s largest and best-known banks. Actually, he wasn’t stating that trading FX profitably was easy. He continued: “…it’s just an exchange rate, a ratio, that moves up or down”. That’s what he meant by ’simple’: forex has few ‘moving parts’ compared to equities. In turn, equities are easier to analyse than bonds.
Many beginners make the mistake of trying to use too many indicators, patterns, charts, etc. Anyone starting out should first of all get a good, basic tuition in forex trading, and then consider starting with a demo account to get accustomed to the trading technology and practise the basic skills.
After you’ve done that, return here to learn where the opportunities are occurring for you to put your new skills to the test. Read some of the articles about the different aspects of FX, and follow the reasoning behind my own trades that I put on here from time to time.
Have any of you tried forex trading yet? Are you finding it simple, even if not necessarily that profitable? What do you think your biggest challenges are? Let’s have your comments and share experiences.