I have been trading for quite some time now and even though it has not always been a good ride, I learnt a lot in my 7 years of trading Forex. In this article, I will share with you 3 things I have learnt.
ANYONE CAN BE A FOREX TRADER, BUT FOREX TRADING IS NOT FOR EVERYONE
Listen up, if you are having problems learning how to trade Forex and you do not see any results, it doesn’t mean you are stupid! Forex trading is not for everyone. If your purpose is solely to make extra money, then it is probably better for you to leave trading to someone who can do it. Nothing is wrong with that!
FOREX TRADING IS NOT ONLY ABOUT TECHNICAL ANALYSIS
A lot of people who I have met, always ask about the best indicator, the best system, etc. When I ask them about money management and psychology of trading, they say they understand it. They say they have learned about them all and what they need is the best system. Well, if they DO understand it, they would not ask me the question.
The Right Mindset
Let me tell you something, if you trade Forex just because you want to be a millionaire in one night, then I suggest you to stop trading, for your own good. The reason why I say this is because it is almost impossible for you to be rich in a very short period of time from trading Forex. The only chance this will happen is by LUCK and luck doesn’t last forever. You probably risked all of your money in one trade and you got lucky, the trade is a winning one. Boom, you are rich! For now. you feel like you are the GOD of trading. You are invincible. You do the same thing again. You risk all of your money in one trade. And then BOOM! You find yourself in a very deep sh*t hole. You look at your account and you just lost all of your money plus the profit you just made. Sound familiar?
I am a firm believer that we should take it slowly when we trade Forex. I believe our main goal is first to manage risks and then seeking for profits. So many people out there looking to grow their account overnight. Let me tell you, that is not how you do it. The truth is, it takes time to grow your small account (also manage the risk). We also need to be consistent. If you are not consistent in your trading approach, it can be seen in your trading performance.
Most Traders Fail Because of This...
There are so many good traders out there. With the technology we have now, it is so much easier to learn and make money from trading than ever before. Trader's technical and fundamental analyses are pretty good too. Data from a major Forex broker shows that traders are actually correct more than 50% of the time!