Welcome to the world of forex trading (short for foreign exchange trading or currency trading).

Singapore forex trading

At Traders Round Table, we provide forex trading courses  and other trading courses in Singapore that might suit your needs.

Many people who begin trading forex seem to think that they can become rich overnight. They do not realise that, while a certain amount of risk taking is necessary to do well, forex trading is not gambling but a business. Like any business, in order to become a successful trader it is necessary to understand the business of forex trading. Like any business, this takes time, effort and practice. Like any business, there is the theory that you can learn from books – and there is the practice that is probably best learned from a real practitioner, in this case a forex-trader-cum-coach.

Common practice is to:
• Acquire a fundamental knowledge of forex trading and markets;
• Open a forex practice (paper) account and trade under a forex coach until such time that we become proficient at the basic things;
• Open a live account and begin learning the lessons that only live markets and real money can impart.

Unlike most other financial markets, forex trading is highly leveraged and very volatile. In addition to knowledge and tools, you need certain skills and habits. The business or profession of trading revolves around three Ms:
• A mature and flexible Mind;
• Sound Money Management; and
• Time-tested Methods for entry and exit.

Long-term success lies in combining Mind (Trading Psychology), Money Management (Risk Management) and Method (Trading Strategy); falter in any one of these and profits fall (at best) or losses rise (at worst). Long-term success lies in:
• Finding strategies that suit our personalities, risk profiles and time-frames;
• Consistently applying money management principles for each trade as well as for our entire portfolio; and
• Internalising the habits and traits that generations of traders before us have identified as necessary and sufficient.

Losses along the way, in spite of our best efforts, are natural; they occur in any business, and there are no 100% successful forex trading strategies (or other trading strategies, for that matter). Learning from our losses, however, is not a sure thing; we need to spend time and expend effort to study what happened and why. If we can identify our mistakes and not repeat them, we progress in our forex trading; if not, we stagnate or regress, and need the help of someone who has already been there and mastered those lessons.

To be a successful forex trader, it is essential to begin with a number of well-tested forex trading strategies. Markets may follow similar patterns and cycles over decades, but market structures and sentiments differ daily. It is important to have the right trading strategies for a particular kind of market structure, and to have different strategies for different market structures. For example, strategies for trading breakouts abound today, but any experienced trader will tell you that markets mostly either trend or range; breakouts occur only in a handful of situations.

There is an excellent analogy with chess here. Chess grandmasters have a huge repertoire of chess openings to handle any kind of game. Similarly, successful traders need to have a wide range of time-tested trading strategies to profit from all kinds of markets.

All this investment in knowledge, patience, discipline and a trading arsenal can reap enormous rewards; read the experiences of market wizards like Richard Dennis, Paul Tudor Jones, Michael Marcus, Ed Seykota and Larry Williams. For example, during the Robbin World Cup, Larry Williams turned US$10,000 into more than US$1.1 million within a year. Michael Marcus exploded his initial $30,000 into $80 million in less than 20 years.

In conclusion, forex trading is simple but not easy, as professional forex traders will tell you. As in any other business, only a few traders make it in forex trading in the long run. However, with the proper mindset (trading psychology), money management (trade and portfolio risk management) and method (knowledge) you can give yourself the very best odds possible in this highly challenging industry.

Click here to join forex course in Singapore.

Safe trading.

Eric Lye
Dr Foo Loon Sung
Tanmoy Das

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