One of the most feared factor of the forex market and trading in it is that there is a very small percentage of traders who succeed in their trading endeavors. Having the right type of forex education, from the most basic up to the most comprehensive, is a very important factor in order to avoid losses and to secure the forex trading success that all forex traders are craving. But since there are different types of forex education out there, to make the task of choosing the right ones not too daunting anymore, a budding forex trader should abide by the following tips:

1. You should not really rely on day trading systems. Most day trade systems sell with the theory of making money on a daily basis and, at the same time, having a very low risk of loss. However, this is simply not the reality. The opposite is.

2. A forex education should give you the leeway to have real time data of any of your forex trading activity to ensure that you are on the right track at all times by being able to make the right calls at the right time. This will greatly reduce losses and can make forex trading one of the most, if not the most, rewarding ventures that you will ever encounter.

3. You should do a research first on the backgrounds of your forex education provider options in order to ensure that you would be in good hands. There are lots of forex brokers who are not successful who are offering forex education that they claim really works. If it did, then they would just really be venturing into forex trading and not on selling what they claim are forex education that works, right?

4. Once you have chosen the forex education that you feel would really work for you, you should understand it as a whole. Not having a clear understanding of it defeats the purpose of choosing to have it in the first place.

5. Keep in mind that the best forex education that you can find is free. Use different types of resources, like your fellow traders, online blogs, etc.

Being forex savvy is very important in order to be successful in any forex trading activity there is. Make your forex education always work to your advantage.

First let’s look at information to avoid.

Forex forums are often touted as places where you will pick up good forex education but I don’t know anyone who is successful who has time to hang around them. Normally, you get a bunch of losers, trying to make themselves feel better by chatting. The other group in forex forums are a load of vendors, trying to sell junk products - avoid them.

You should also avoid all those free secret guides you see which you can have for giving your email. What you get are not secrets just basic info you can find anywhere, so unless you want a full inbox - move on.

Broker research is popular - but if brokers were good at trading they wouldn’t be brokers and as most brokers are market makers (they lose you win), it’s a bit of a conflict of interest really.

Gurus and experts who claim you can follow them to success and want to charge you.

Some are good and can cut your learning curve but most are not, they simply sell simulated track records ( that’s trading done on paper backwards knowing the prices) to sell worthless, forex robots and day trading systems - avoid.

Breaking news, I have always been bemused why this is considered valuable, when its pretty obvious it doesn’t help. We have better news today than 30 years ago - but it hasn’t changed the ratio of winners to losers its still 95%!

Avoid it markets are a discounting mechanism and it’s not the news itself that’s important, its how its perceived that determines the course of events.

Good Sources of Best Forex Education

So where do you get the good sources?

The best way to trade is to use forex charts and everything about technical analysis is free online and you get various chart services that come with all the indicators you need. You can put together a simple robust, profitable, forex trading strategy from these free sources on your own. We have covered what to look for in other articles so look them up.

The Real Key to Forex Success

Now the real problem is - not devising a robust forex trading strategy but in learning money management and discipline.

In forex trading you are going to take losses and have to trade through them as the market makes you look a fool and stay on course and keep your losses small and your emotions out - sounds easy? Its not and that’s why so many traders lose.

Get Advice From the Best Traders

This is where I would recommend going to an online bookstore and getting some great trading books. We recently covered a top ten trading books all traders should read and the cost? Around $100.00 - now this is best forex education!

You are getting advice and an insight into the mindset of traders, who walk the walk, rather than simply talk the talk.

So there you have it a simple robust technical system from free sources and some great trading books, from the pros, to get you in the mood and get you disciplined.

You can then trade with confidence and enjoy currency trading success.

Two of the most profitable, particularly when combined with support and resistance are the morning and evening star patterns. These patterns require three candles and they’re easy to recognize.

The evening star is a top reversal pattern. The first candle is a long white one. The second is a star. A star is a candle with a small real body which is white or black. In both these patterns the color doesn’t matter.

The star can also be a doji, a candle in which the open and close are the same. The third candle must be black and it must reach deeply into the first white candle’s real body.

In order for this to be an evening star pattern it must occur after an uptrend. The trader would short on the close of the third candle and place their stop just above resistance.

Here’s an example from the Euro Wednesday morning that led to a nice move. I’ve circled the three candles that make up the pattern. Note that the pair was at resistance—that makes this pattern very important. Because it was at resistance, the trader could set a tight stop, risking very little for what has turned out so far to bring 140 pips.

The morning star is also a reversal pattern but it occurs after a downtrend. The first candle is a long black real body. The second candle is one with a small real body. It can also be a doji. The final candle in the pattern is a white real body that extends deeply into the first candle’s body. Here’s an example from Wednesday morning’s USDCHF three-hour chart. Again, there was another powerful indicator in that the pair was at support. The trader would buy on the close of the third candle.
Think about these two examples. These two pairs are usually negatively correlated, trading in opposite directions from each other. Both showed mirror images of the same pattern. The Euro was at resistance and the Swissy was at support. It was additional confirmation that one or both of these trades could be taken with a high probability of success and with low risk because of the ability to set a tight stop. In Forex trading it doesn’t get much better than that.