New trainee alert

Beginner Questions
1

hello people,

i recently finished my second year of studying money, banking and finance. tried to get an internship for the summer but im sure many of you will know how hard that is given the current financial climate.

so instead of sitting on my arse for 5 months and relying on a part time income, i have decided that will continue my studies but in the trading field. i feel this is probably one of the most important things i can learn in my life.

i believe as in everything with life, strict discipline is paramount to any sort of success.

therefore i have set a strict set of rules which i will follow to the end (i hope), starting with graduating the babypips school of trading. further to this i have set myself a strict guide line that will not trade live at anytime in the next 6 months.

i think what im saying makes sense, like everyone i know learning never stops and there is something new everyday.

there is no such thing as easy money, i know that, i have had enough experience in my life to know that. i just hope that everything i learn will be enough to keep me surviving just in case times get tough. what im trying to say is, i see trading as a back up plan and not my primary source of income.

all i ask for is advice, i dont want to fool myself into believing get quick rich schemes, just the advice i can use to make judgements myself. im solely responsible for my actions and this is true of the money i invest.

2

trusharp,

You have devised for yourself as good a plan of attack as anyone here could devise for you. Congratulations on a good start.

Six months of study, if you take it seriously, will provide (1) a foundation in the basics of the forex market, and forex trading,
(2) enough time to learn and practice several trading systems or strategies, (3) ample time to master one or more broker trading platforms, (4) enough information to choose a broker you can work comfortably with, and (5) time to find out how different trading is from the “money, banking and finance” that you have been studying.

If you stick with your 6-month plan, you’ll have plenty of opportunity to ask questions, here on this Forum, about (1) through (4), above. I just want to start you off with a few comments about item (5).

In the world of money, banking and finance, things are more clear-cut and better defined, than in the world of trading. In the world of money, banking and finance, there are “right ways” of doing things, defined by government regulations, industry standards, and “best practices”. You can learn these things, and have a successful career, following the rules. Money, banking and finance, then, are more like “science” than “art”.

Trading, on the other hand, is at least as much “art” as “science”. Unlike money, banking and finance, trading involves uncertainties and probabilities. In trading, there is no one correct way to analyze a trade, and no one correct way to make a profit.

Trading requires you to know yourself — your temperament and your emotions — in a way that money, banking and finance do not. As you delve into your study of forex, you may be surprised at how much has been written on the “art” of trading, and on the psychology of trading. Don’t ignore this aspect of trading. Even if you think you are the calmest, most rational person in the world, prepare to battle the emotions of fear and greed when you begin to trade. And consider this: if you feel these emotions when you are demo trading, with only your ego on the line, how much more intense will these emotions be when your real money is on the line?

There is lots of discussion of the art, the psychology, and the mind-set of trading, here on this Forum. Don’t hesitate to join in.

Good luck with your 6-month plan.

Clint

3

that sounds like great advice. this could be one of the riskiest ventures i can get into therefore i will force myself to adhere to my plans strictly.

hopefully all goes well and i hope as a newbie i do not annoy all of you advanced traders with my petty questions. i will make full use of the search function and im sure i will get most of my answers from there.

thanks again

4

With your attitude, and commitment to discipline, I’m sure you will succeed at this.

I wish all brand-new newbies had your attitude.

After you’ve done your best to find your own answers, don’t hesitate to ask questions.

The only dumb question is the one you don’t ask.

Clint