Forex trading is the new fad in the investing public. You will find many new gurus in the market paddling their courses. If these gurus had been so successful at forex trading they did not need to sell forex trading courses.

Forex trading is being shown as so easy that anyone with a computer and an internet connection can do it from the comfort of their homes. No doubt, you can now trade forex from anywhere in the world. The internet revolution has made retail forex trading possible.

No guru will ever tell you that only 5% of the new traders ever succeed in the long term. 95% will quit after a few months or within a year. Forex markets are like a battlefield. Only the best survive. There is no room for inexperienced traders. Forex markets are brutal and unforgiving to those who dont know how to swim.

Why do so many new traders fail? Simple; they dont try to educate themselves properly about forex. They will read one or two eBooks. The gurus will tell them very simple things. They will believe the gurus. Take the plunge in the stormy waters and drown in a short time.

You need to understand how the forex markets work. What are the economic factors that move the currency markets? How interest rates, GDFP growth, unemployment ratios affect the currency markets. As long as you dont develop this gut feeling, you should not start trading forex.

Learn fundamental and technical analysis. Some people say both are exclusive and require different strategies. But I say both supplement each other. Fundamental analysis can help you predict the general trend in the forex market in the medium to long run. Fundamental analysis studies the underlying economic factors that affect the currency markets.

Technical analysis studies the past behavior of prices to predict the future behavior of prices. You need to master technical analysis if you are thinking of becoming a day trader. Technical analysis is ideally suited to forex markets.

Understand the indicators that are used extensively in Technical Analysis. Master them in order to determine the short term and long term expected behavior of the market. Technical analysis will also tell you what the best entry is and what the best exit point for a particular trade is. It is essential that you master technical analysis if you are really serious about forex trading.

Those who have been stock trading can switch to forex trading rather fast. But as long as you dont make forex trading your passion, you will never become a winning trader. If you want to succeed than take forex trading as a passion and learn everything about forex you can.