The Forex market is huge, in fact, the biggest financial market on the globe trading approximately $3 trillion in transactions per day. The advent of the internet and the capacity to trading Forex online has opened up Forex to an even broader community of home based traders. The barriers to entry are low, accounts can easily be opened and money deposited into an account in a short period of time.
A lot of “new to the market” traders can become overwhelmed with the trading courses, books, tapes, videos, DVDs, boot camps, seminars, free introductory offers and more that are out there. Most experienced traders know the “traders cycle” in the marketing machine all to well when starting out as well as the way some systems are portrayed as providing the holy grail of trading, unrealistic profits even downright lies.
Some traders after a while give up and move to other trading systems to save a losing account including Forex robotic systems. These systems commonly referred to as expert advisors or EAs provide what seem a relief from the tiredness that information overwhelm has created in the traders mind. A busy schedule, combined with a dwindling broker account balance gives hope to the ever increasing disillusionment of the trader. The known fact is… A LARGE PERCENTAGE OF TRADERS LOSE MONEY. Ive placed that in capital letters as it appears time and time again which many trader never seem to grasp… the grasp of reality tends to not bite until the account is decimated and the riches that were advertised fail to materialize.
At the end of the day trading Forex is not easy… just think of it that you are trying to grab money off one person (worse still playing poker with a broker) in the hope to profit… all under the guise of being hidden behind an online trading platform. Try walking up and down the street playing “hot potatoes” trying to grab money out of peoples hands and see where it leads… you’ll soon see that this game is similar, where your view begs to differ from the person you transacted with and you are hoping that you got it right and they got it wrong.. after all… money doesn’t come from thin air… its come from the pockets of someone’s trading account or worse still your account… move to the casino and try playing against the Casino and see where you get… thats similar in some cases where brokers are market makers and you are effectively playing poker with the Forex brokerage company.
All brokers provide free software such as MetaTrader 4. MT4 or soon to be MetaTrader 5 (MT5) is a standard online Forex trading platform issued by brokers. The system is reliable and has been around for some years with generally continuous improvement and upgrade each year. MT4 is very simple to use and provides all the tools a Forex trader needs including technical analysis capabilities, online charting, Forex news, rates, etc.
But having a good trading platform and broker account flush with funds is not a panacea to having an ever growing online Forex broker balance, one has to have a system to execute trades and be disciplined when to cut a loss or take a profit.
Online Forex trading can be rewarding. You can be sitting in a hotel lobby in the Philippines, Thailand, Australia, London etc on the beach or at home for that matter. Armed with a good trade system and online Forex broker account, free software… the currency market is all yours. But are you prepared to forgo lifestyle trudging through books, tapes, DVDs and courses for years on end or do you want to get up and running right now?
You can start trading today with experience behind you. But how? Well, From my experience most new traders in choosing a trading system start by trying to go it alone. They have funds and will be prepared to outlay big money for isolation in some cases. The day job is now history and the new job – Forex Trader is now the new job. The new “at home” trader wants to sit behind the trading screen and trade for themselves in the hope their own decisions (based on the training they’ve received) will give them the freedom many traders desire.
Alexander Elder once said: “… You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody…” That statement will ring well in the desires of many new traders.
After a number of losses and failed systems traders start looking for comfort…either amongst their peers, family or other members… whether through the trading chat forums, automated systems (because of time issues) or Forex signals providers. Traders in a grim hope to look for that panacea may swap brokers and even trading platforms in the grim hope that it was the broker or platform and not themselves that is at problem.
One “service” that is often overlooked is the group environment within a Forex trading room. There have been various Live Trading Rooms that have sprung up in recent years. It must be remembered though you are going into a room to listen and watch an expert trading, someone who has had a lot more runs up on the board than you have… but remember, the education never stops and you should keep reading, researching about the Forex market and trading but at the same time a live Forex trading room will reduce the time it takes get up and running trading in the markets.
This article does not provide a review of all the live trading room services available given the number and detailed nature of each membership and what each room offers. Generally though, a live trading room offers the ability to “virtually” sit alongside a trading professional whereby members can monitor the traders screen, listen to the trader on audio and chat. The subscriber can also ask the trader questions and see and hear the traders analysis. What this does is provide many years of trading experience packaged into one place. It allows a steep learning curve where you have live trading in action and can ask questions then and there. Participants can either follow trades on an existing live account or use a demonstration account with “demo money”.
Live Forex trading rooms provide the exact “hand holding” new traders need. It provides a disciplined strategy from execution of the trade to exit, money management. It provides the rigorous training that sets the tone for the future rather than the trader learn on the hop, losing money along the way (often termed paying “school fees”) and in the end losing hope.
Live trading rooms are in fact a live course on a day to day basis. The discipline it provides of starting at a regular set time, working to a trading prescription that works and makes money is worth its weight in gold.
You get to hear what others are saying (in terms of typed questions asked about the entry, strategy, trade setups etc).
Many rooms employ a range of strategies including short term scalping and swing trading, position trading both in a long and short direction and hedging strategies coupled with differing money management stops and take profits. These aspects are beyond the scope of the article given the enormity of the trading techniques that are available vs the personal trading style of the reader. There is no one right or wrong way to trade the markets whether it be as above eg. Swing trading – using pivot point systems, Gann, Fibonacci, counter trend trading, trend following system, break out system, session trading during the London and New York period, etc. As you can see theres a lot to cover when educating oneself about Forex.
There are a number of key benefits for considering a live Daytrading room;
1. “hands on” experience from a live experienced trader or group of traders means your learning curve is going to rise a lot faster than struggling trying to interpret books or tapes as a mode of learning alone.
2. You are in the market, “live” as its happening getting real world experience and coaching.
3. Generally, costs of getting 1-to-1 mentoring from an experienced Forex trader are prohibitive and accessing a live trading room provides a cost effective solution to get personal coaching.
4. Helps develop discipline when starting out. Provides a level of coaching that runs through a process whether it be a trading strategy, money management upon entry (placement of stops, take profit etc) that would normally be either overlooked or not considered important as a new trader.