Have you been dreaming about becoming rich with forex trading? Are you intimidated by the idea of doing currency trading online? Do you really think that you can make profitable trades? These are important questions that one must consider before doing forex trading.
The Reality About Forex Trading
Forex trading can be easy but it is not that easy to make money with forex. As a matter of fact, only 5% of the new traders are really able to make any money with currency trading. That means they get the money invested by 95% of the new traders. How does the money really flow from the 95% to the 5% of the traders? When the majority of the traders lose, the smart minority is able to make money. And yes, those traders do become rich overnight, while the losers go broke. If you are able to figure out the secret of successful traders, you can also be on the other side i.e. the winning side.
Successful Traders Don't Become Successful Overnight
The veteran traders put in a lot of hard work and practice to become successful. It takes years of paper trading, practice, understanding fundamental and technical analysis before they come up with "strategies" that make them successful.
The Secret of Successful Traders
The real secret of successful traders is using strategies that work for them, over and over again. The more successful strategies a trader knows, the more money they are able to make. Once they know a bunch of strategies, they continue repeating them to make money and also keep learning new ones. This is the real secret that makes a forex trader successful. They know when to make money and when not to lose money.
What You Can Learn From This Secret
If you also want to be a successful forex trader, you must know at least one winning strategy. And you must know it well. Once you know that strategy, use only that strategy repeatedly. You must wait while trading for a certain situation to come up until you can use your strategy. If it doesn't come up, don't do anything. Just keep watching the markets. That requires some self-control. Successful traders have strong control on their emotions. So once again, learn a good strategy and learn it so well that you can repeat it over and over again to win a trade.
Don't Do Forex Trading if You Can't Follow This Secret
If you have a habit of getting carried away, if you are unable to take time to learn at least one good strategy and focus only on using it, you shouldn't do forex trading. If you are trading just for fun, that's another thing. However if you really want to become successful but are not serious about it, then don't lose your money in the currency markets.
Watch the Markets Before You Start Trading
Once you have come up with a strategy, give yourself enough time to watch the markets and apply your strategy on paper before you start real trading online. Become completely comfortable with your strategy. Once you know that you can identify the situations where you can apply your strategy and are able to make money, you can then focus on learning a second strategy and follow the same process.
Although it is quite possible that one may master forex trading, it may happen that in a spur of the moment, you may forget the trading rules that you have set up for yourself and end up losing a trade. That's why currency trading is considered highly risky. On a friendly note, I don't recommend currency trading to someone who is not disciplined and dedicated enough. If your ethics don't allow you to gamble, then don't do trading either.