What It Really Takes To Make It As A Forex Trader
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If you have been around the forex trading market for any length of time then you will know it's definitely not easy. Let's face it, if everyone was winning then we would all be millionaires and there could not be a market. The cold fact is that for every winning trade another has to be on the losing side. In most cases it is the general public that is losing while the big institutions are taking the profits.
This being true, there are a lot of retail forex traders who do manage to lock in gains and earn a living trading. What separates them from all the losing traders?
Two of the most valuable qualities needed are patience and discipline. These are the 2 qualities that most people are lacking and the reason why the majority of new traders will loses their money and give up. If you don't have the patience to wait for the right time to enter the trade then you will be taking lower probability trades and are destined to lose money. The edge is already slightly against you as you have to pay your broker a spread or commission to enter the trade. Even a system/strategy that has proven to be successful over the years with an experienced trader can be a loser with someone who doesn't have the discipline to implement it correctly.
Most successful traders agree that trading is 50% your strategy/methodology and 50% mental/emotional. As humans we tend to make emotional decisions and justify them with logic. Advertisers know this and use this so that we buy the products and services they are recommending. Trading is tough because it challenges the reptilian parts of our brain, the same part that is responsible for the fight or flight mechanism. In trading it is all about fear and greed. We get into trades we shouldn't out of greed, we close trades before they hit our profit targets out of fear. To be a truly successful trader you will need to master the forces of fear and greed.
These are what I would term the primary challenges and there are many "tertiary challenges" to watch out for like news releases, fundamental changes, unexpected volatility, etc. It is a huge challenge for a new trader to become consistently profitable. This is not to discourage you but so that you can understand what you're getting into. Ask yourself honestly if you can overcome these hurdles, if you can't then you may be better off seeking a good money manager. |
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Author Resource:-
Forex Mentor has trained thousands of traders on how to succeed with forex. Visit his site for quality forex trading training.
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By :
Alex Harper
Submitted
2010-10-20 05:42:39 |
Article From Article Mayhem
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