How could anyone make money trading currency? What do you have to do to become a proper currency trader? Is forex trading a job for an elitist few? Hey, back off for a moment. If you could identify your granny from your next-door neighbor, you are good enough to trade. You don’t have to be bright to be a financial trader but you need to the smart. That’s all you need to identify your chart patterns and analyse your trades.Let’s see what could make you an excellent currency trader. So, what is it about money making that creates convolution? Especially in currency trading or anything other financial instrument for a start. Here in this article, the aim to help you decipher some of these myths and attempt to answer some basic truths that could lead you in the right path. Firstly, let’s set you a goal.Goal – To Become an Excellent Trader
Excellence is a mark you could earn in whatever you choose to do not bought. Making money from currency trading is something that requires you to deliberately carry out certain elements of success and commitments. Make no mistake about this; the currency market is unkind to the lazy, disorderly and disorientated people. Those who have little regard to a structured approach and work ethics never make it. Therefore, to succeed in this field you must position yourself against those attributes.There is no mystery in forex trading. You too can make it too. Everyone who is successful in forex trading has paid the price at some point, which you don’t know about. There are key questions and decision you must conclude before starting out on this journey. For example, what do you need to do to become a great trader? What price are you willing to pay? (I’m not talking about your costs; there is a huge difference.) If so, have you paid it in advance?Key Decisions
These questions must be settled before progression. You must have your mind made up that you really want to become a forex trader. Your decision to trade must be clear with due diligence and dedication to become the best. That should be your goal. Dithering and indecision costs money, therefore it’s not on the table. There are no short cuts if you are to succeed. I know these are rare attributes in today’s generation of quick fixes and tantrum. You must be hungry and passionate about your forex trading. In addition, you must ask yourself, “What price am I willing to pay to achieve this goal? Where will this new voyage take me? Is worth my sacrifice?”You must conclude these questions in your mind and be willing to pay that price in advance. That means training before engaging in any trade in the market place. Forex market is a place where you find the trained and the untrained. When you are pitching your skills against the sharpest minds in the profession, it is fair to get trading education. That’s why you must be fully prepared.What are the skills required?
Trading Education
Develop A Trading Plan For Success
Focus Your Emotion
Discipline and Market Psychology
Trading Education
Trading education is foremost of all requirements and a must for everyone who wishes to trade. To learn quickly you need a great mentor. Do your research and find out about an established forex trading training center to put you through the process of trading. I always suggest, if you have never traded any financial markets before it could be better for you to try out equities, options or the futures markets first before attempting forex. The transition is not an impossible task but it’s a lot easier to grasp it with slower markets that if you have never done any trading.Focus your training on your trade analyses; technical and fundamental. Learn how to analyse market risks, trading processes and money management strategies. These are vital survival skills and technique for your quick development in the market place. When you have gained your training, how would you trade?Develop A Trading Plan For Success
One of the greatest reason people fail in forex trading is not so much about their style or what they trade. The bulk of it is down to trading without a plan. It’s like traveling without a roadmap. Not having a plan sets you up for failure.The forex market is not a market you trade without a plan because you will get burned if you did. What is your trading strategy? You must plan for your success otherwise your trading becomes erratic and your decisions become irrational. Even the most astute of traders can fall victims of this factor after years of trading.The key to it is, for you to get a trading plan for your success. Developing a structure for your trade is as vital to your success as your training was. There is a continuum of questions you may want to answer. For example; what currency pair should you trade? When is the best time to take a position? How much are you willing to trade at a time? Which brokerage firm should you use? How many pips could you set yourself in a month? Is this a realistic target? If you are to be a good trader you must address these questions first before you start.Another significant part is to build a habit of journaling your trading thoughts. If you intend to place any trade you must document it. Why was trade taking? What sort of analytical decision was reached before you place the trade? This thought journaling is very important for your confidence building. Win or lose you can always go back to check your assumptions against the reality of your trades after you exited the positions. You don’t learn much from winning as you would if you lost heavily. Without a plan you set yourself up for failure. It is like walking through the dark alley without the faintest light. Endeavour to have a trading plan before you start trading. Focus Your Emotion
Having a focussed mind and purpose could only make you a better trader. In any trading day there are series of activities. Different pairs and crosses but do you trade them all at once? If you are learning to bake a cake you don’t start with ten but you begin with one. As you master your baking, then you begin to add more dough to your baking tray.The same holds true with currency trading. To master your trade you need to pick one pair or cross you think you could master. Study it and learn to trade it very well and quickly. Master this instrument until you become very proficient in both currencies involved. Learn more about what drives it. Who the key players are? Whose voices could drive that market? In fact be informed on that currency pair than anyone else you ever known. Seek to grow and be better at it everyday from your previous trades. Maintain this single handling until it fills your dream.Another important aspect of your focus is your emotions. How you feel and act under trading conditions are critical to your forex trading successes. How do you act under pressure? How would you conduct yourself if you were making huge gains from you trading positions? Does your emotion run wild or calm? And how do you behave when you lose? Do you still maintain the same calm persona? Do you have distractions in your trading environment? All these could heavily impact your trades. There is a trading commandment called “Know thyself”. It is an unwritten rule only you could define.You know yourself better than anyone else. You know what sort of money your mind could handle before your heart rate start beat skipping. What you must do is to avoid the enigma of allowing your emotions to rule your trade.As a trader you are obligated to have a balanced temperament at all times. For example, do you take to calculated risks or trade by instinct? What you want to do is develop yourself to the level you would have mastered your emotions to take those intuitive decisions in the market environments. But these answers won’t come over night until you have built discipline to your trade and emotions. This brings us to the last and final part of your trading requirement.Discipline and Market Psychology
Discipline is required to birth habits and routines. What you do routinely, you perfect. A typical example is learning to walk. When you first began to walk you never imagined running but today to do. Right? Now, you do marathon, sprints and now you even want to believe that you are Usain Bolt. Wow! Have you noticed it wasn’t like that at the beginning? You staggered, you fell many times but you got up. You kept on practicing how to walk. Today you have mastered your act of walking.The same is true of forex trading. Currency trading demands that you have a plan. Focus and discipline of purpose could help you to co-ordinate your trading successes. You can’t have it any other way. You discipline of purpose is important to your trading success. Actors and actresses train to master the simple things. Doctors learn too to master the simple things. Have you every asked yourself why? At first, it might seem monotonous but doing the same thing over and over again birth consistency and help to build confidence. Somewhere in the midst of that confidence, your genius will emerge. When I first began I felt the boredom of sameness exhaustive. Today it makes my trading far easier to understand.You build discipline to help you go through times you may not feel like trading. You build discipline to help you identify moments of great opportunities especially when market ranges. In these difficult times winning become far-fetched in forex trading. But if you have a discipline in place you can still make handsome gains. If you never studied the market consistently those moments of opportunities would pass you by as they came. In fact, your ability to recognize those times is what changes your life for the best.Trading forex profitably is not so much about what you do when its good times for everyone. But what you did to win when most traders could barely make gains is what sets you apart. It doesn’t take Einstein to win consistently, but it takes a disciplined approach to trading. I have had many of those inspirational trading moments and the rewards were magnificent. You have to identify them to be able to trade and capture them. It is an impossible attempt if you have not been trained for it. This is why many lose in the market place. You could avoid becoming part of those statistics by doing things the right way.Finally, to make any significant amount of money from your currency trading, your focus should never be on money even though that’s your ultimate goal. But this should be canceled immediately. Zero your focus on becoming an excellent trader. If you could succeed in making that your priority, money would chase after you in abundance. To lead a life of independent you must first learn to think independence and freedom within you. Only when you see that image within, re-lived it over and over again could your reality manifest. To be an excellent currency trader you must first be one within. At this time when employment, job and long term investments seemed to be dwindling fast, learning to trade currency from the comfort of your own home seem a viable way of raising your income level. Don’t be crushed by the punches of the economic crunch. You could still rise above the waters of these present times. Have a great day of trading.