10 Things I Have Learned Trading FOREX

This is a list off the top of my head of the 10 things that I've
learned since I started over 1 year ago.  Some of these may be
repetitive and are based on my opinion only. 

1. I don't really trade in a market with the largest number
   of participants or volume of transactions.   In reality, I trade in a
   very small world created by my broker.  Therefore, I'm at a huge
   disadvantage because they can see my hand but I cannot see theirs. 
   Yes, generally the quoted prices are similar to what the interbank
   offers but execution is dependent on your broker and their willingness
   to allow you to make money. 
2. Trading FOREX isn't easy.  There are many reasons for this.  One
   of them could be because of what I mention in #1.  Some of the things I
   saw when I first started trading FOREX and still see today are
   "testimonials" from "trainers" or authors (ie: James Dicks) that state
   how easy it is for you to trade for extra income and also how stay at
   home moms can do this for a living.  This is bull and it isn't just
   because I haven't consistently been profitable over the last year.  The
   reality is that a large majority of people who were trading FOREX when
   I started a year ago are long gone.  Trading FOREX is a revolving door
   and it's negligent to suggest that it's easy.  Some of the seminars
   I've seen on TV look like they target older people who are closer to
   retirement.  This is strictly my opinion but trading FOREX has to be
   the worst retirement vehicle for someone nearing retirement.  
3. It's all about money management.  When I started trading, I heard
   a lot of people saying that you should have a certain reward/risk when
   entering a trade but it didn't really resonate as it does now. 
4. It was fun when I found a new indicator with cool colors, bells,
   and whistles but you can endlessly skip amongst indicators looking for
   the holy grail.  There is nothing wrong with experimentation as long as
   you know that it might be better to stick with what you have and become
   intimate with it. 
5. Review all my trades whether it is was a winning trade or losing
   trade.  This is still a work in progress.  No one likes to re-live or
   replay their mistakes but it is an absolute must to learn from your
   mistakes.
6. Don't get crazy stupid.  I'm sure a lot of you have had that one
   trade that just went crazy wrong whether you removed your stop and
   prayed for the price to go back in your direction or any other reason. 
   This one trade can wipe your account balance and just as much your
   confidence and motivation.
7. Keep on learning.  There's a lot of information out there and a
   lot of it is repetitive.  I've found that if you can disseminate the
   good from the bad, one small tidbit of information can be an
   unbelievable help.
8. Develop a trading system that suits your personality because what you can learn from it is invaluable to your trading.
9. Remain realistic.  Don't expect that once you start trading FOREX
   you'll make millions of dollars.  Try to remain totally realistic with
   your expectations.  I'm sure it's possible to make a million dollars
   but just like a lot of things, the odds aren't good.  I'm not saying
   that it's not possible to make a million dollars over the long haul,
   but I don't expect to make a million on a couple of trades. 
10. Trading with a demo account is useless to me.  I just haven't
    been able to stick to using it.  It may not be the smartest thing but
    trading with real money will introduce real emotion.  I just cannot
    stress enough how many people have said they made huge profits trading
    with a demo only to see this fortune reverse when they went live.  Of
    course I started trading FOREX with a demo account when I didn't
    understand order execution, stop losses, currency pairs, and everything
    else but once I became comfortable, I started small with money I could
    afford to lose.

I will remain very flexible in determining these 10 reasons.  This list could easily be
different next year as my knowledge and experience grows.

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