Friday, August 22, 2008

Where to start?

I have been getting a surprising amount of emails and messages asking where I learned all of this stuff, how to get into trading, what kind of money can be made, etc. Its a great subject, and a daunting one for people trying to break into the profession. So I thought we could take some time and discuss the matter in brevity.

So why is this stuff so hard to get into? Information. Tons of it. The good news is it exists; the bad news is because you don't know anything about the topic you're unable to discern the scams and the crap strategies, analysis, and education you see laid out before you. Whats worse is for every piece of analysis, indicator, or strategy available there is someone, somewhere who disagree and has 9 different reasons why you should discard it and do what they do. It becomes a nasty catch 22 quite quickly.

Trading is simple. Not easy, just simple. At least it can be if you don't fall down the rabbit hole of using twenty different indicators, and a trading chart that rivals an air plane telemetry system. Less is more. The simplest strategies are outright the best. I talked to a trader yesterday who makes roughly 50k a week in the Forex markets trading 100 lots. His system was literally one of the most basic, rudimentary, simple systems ever devised. But thats why it works. If your system stops working, it is most likely how you are trading it, and not the system itself at fault. Emotions come into trading at each entry and exit. You need to be aware of this and how to handle it. Buy "Trading in the Zone" by Mark Douglas before you ever place a trade. If i had it would've saved me thousands in losses and months struggling to get back on my feet.

So you want to learn more? Here are the basics of where to start.

Babypips is a great new free educational site. The best i've ever found. If it was up when I started over a year ago it would've saved me months of research. Trade the Markets is a popular educational vendor. Their systems do work. Sign up for their free video webcasts and check out their archived videos here. Traders Laboratory is a relatively new site that is vastly expanding and has loads of great content, postings, and videos that should teach you a LOT.

If you're interested in trading the methodology I do with my mentor shoot me a message and i'll refer you too him. Its not cheap, but its the real deal. You can see his free public videos here.

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