5 Things to Know Before You Start Trading Forex

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#399: 5 Things to Know Before You Start Trading Forex

In this video:
00:26 – 5 very important things to know
00:38 – You will not become an overnight millionaire
02:01 – You don’t need to spend all day and night watching your charts
02:40 – You don’t need to study global events
03:52 – You do need to understand global time zones
05:47 – You must be willing to learn and invest in yourself
06:46 – Do you have questions and share this video 

I’m going to share with you five things that you should know before you start wanting to become a Forex trader. Let’s get into that and more right now.

Hi traders, Andrew Mitchem here at The Forex Trading Coach with video and podcast number 399.

5 very important things to know

I’m going to share with you five important things that I think you need to know and understand before you start to enter the amazing Forex world.

You will not become an overnight millionaire

So let’s start with the first thing is, you not be an overnight multimillionaire. Despite all the claims, all the promises, all the flash cars, all the laptops on the beaches that you see online and all the growth that you see, people tell you, you will achieve, you will not. And that’s the reality of it. 90 to 95 percent of Forex traders out there, of just retail small time Forex traders, lose money. It’s the facts. It’s the reality. And you have to figure out what are you you’re going to do differently to that sort of 90, 95% of other people?

There’s a lot of things you can do, and we can certainly help you with those. But you’ve got to actually realise that you will not be doubling your account every week or every month like people tell you, you will do. If you do that, you’re basically a gambler. And if you do that, you are not a trader and you will not last as a trader. So if you think you’re going to suddenly take a thousand dollars and turn it into a hundred thousand dollars or a million dollars in a week, month, a year, it’s not going to happen. You’re just going to lose money. Even if you’ve got a million dollars today to trade, if you don’t know what you’re doing, you’re going to lose money and you won’t have a million dollars pretty soon after. So, do not expect overnight success. Like all good things, it takes time. You will not double your account next week.

You don’t need to spend all day and night watching your charts

Number two, you don’t need to spend all day looking at your charts. A lot of people get into trading think that they need to sit up all night, all day, watching charts, watching every bit of movement. You do not need to do that, absolutely far from it. So don’t think that you need to sit there. You can go to work, do your normal things, kids, family, jobs, sports, whatever it is, travel, whatever it is you like to do, you can make trading work around that. So don’t think that you’re suddenly going to have to give up all your nights to sit watching charts moving or get up at three o’clock in the morning or anything like that. You don’t need to do that.

You don’t need to study global events

Number three. You don’t actually need to sit and look and study global events. I had an email from a guy this morning on LinkedIn said to me, “Hey, Andrew, look, I’d love to share with you what we write up each day.” And it was basically this about five or six pages on a PDF file of what happened yesterday, news events and political events and COVID events and all this type of stuff. Completely irrelevant. If you know what you’re doing as a technical trader, you can look at the charts. You don’t need to be studying all the political news events. You just don’t need to. Sure, it’s good to have an understanding and possibly look at a website once a day to see high impact news announcements, or just if you have an interest in that type of thing, to see what unemployment rates are doing or interest rates, that type of thing, that’s good. But if you want to be a technical trader, then all that other information really is completely irrelevant.

Look, if you want to be a fundamental trader, then by all means, that’s what you need to go and study. But if you’re like us and you want to do this enjoyably and profitably, be a technical trader and forget all that economist type of information, because it doesn’t really help you to make money from right now.

You don’t need to study global events

Fourth thing. This one makes me laugh every time. You do need to have an understanding of time zones. You do have to be aware that different people are in different time zones and what they are. Right now, it is summer in New Zealand. It is February. The amount of people that I’ve met that do not understand that because they live in the Northern hemisphere and they think that February it should be snowing and cold. Well, yes it is in the Northern hemisphere. It’s winter, but simple, simple things like that, people fail to understand. It absolutely, it blows my mind how people lack knowledge of the rest of the world. If you’re going to be a trader, the reality is you’re trading a global market. You do need to have some knowledge of this.

Give you a great example. Just this week, I held a live webinar on my Wednesday morning. The amount of emails that went out saying, “If you’re in the US, it’s Tuesday afternoon. If you are in the UK or Europe, it’s Tuesday night.” We put countdown timers on there. We explained it a hundred thousand times over. We put links to websites so you can see the time in your local time. You would not believe how many people wrote to me saying, “Oh, I missed the webinar,” or “I didn’t get the time right,” or “I thought it was today because in America it’s Wednesday.” Look, the reality is, if you’re going to do anything in the Forex market, you have to know these simple, simple things that different time zones. We work off New York time, 5:00 PM, New York time. How many people come to me and say, “What time is that if I’m in California?” or “What time is that if I’m in Singapore?” or “What time is that if I’m in Sydney?” Work it out. It’s not difficult. Sorry. It’s not difficult. If you want to start dealing in the financial markets, you got to know those simple, basic things, or at least know where to look online. No one has an excuse with not knowing that.

You must be willing to learn and invest in yourself

And lastly, you got to be willing to learn, got to be willing to invest in yourself. If you want to go through four years of tearing your hair out, like I did, going round in circles, buying all these different eBooks and following signals and spending a heap of time on these completely useless forums online, following, copying indicators, et cetera, very few people actually make it by doing that. You will waste so much time. You’ll blame everybody else. You’ll blame your broker, you’ll blame your market why you don’t make money. The reality is, like anything, you want to learn a skill? Invest some in yourself, some time, bit of money, get some good training. Do it properly first time.

So, hope that helps. That’s my five tips if you’re a new trader or someone thinking about getting into the Forex market very soon. Look, it’s an awesome market. It is absolutely the best market to trade without a doubt, but you’ve got to know what you’re doing like everything. So I hope that helps.

Do you have questions and share this video 

If you have any questions at all about the Forex market or you’d like any information or you’d like me to cover any information topics on future videos and podcasts, just let me know. If you felt like you’ve got a lot out of this, share my YouTube channel, share the podcast with your friends, family, anybody that’s interested in the Forex market. And I’ll see this time next week. Bye for now.

Episode Title: #399: 5 Things to Know Before You Start Trading Forex


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