How to Be a Successful Forex Trader – But if Currency Trading can be profitable, and it can be, why do so many new traders fail?… Currency trading, like many other pursuits, is profitable if – and this is a very big IF – you know what you are doing.
The problem is, most people believe trading forex is easier at the outset than it really is. After all, they correctly believe, a currency pair is going to move in only one of two directions, up or down. Pick one and you have a 50/50 chance of getting it right. Pretty easy stuff…and yet a very large percentage of new traders fail.
Think about it this way however…
Do you have a 50/50 chance of making a shot against LeBron in the NBA? Nope.
Do you have a 50/50 chance of outperforming him over several games? Nope.
Let’s move to medicine. Do you have a 50/50 chance of doing brain surgery on a patient and having them survive? Nope.
If you do more surgeries will your odds improve? Nope.
But for some reason, when it comes to trading, some folks believe that you can read a few books, read a few blogs, open a demo account, open a live account and in a few days you can be in the markets successfully trading against the pros – people who have been the best in their field for decades.
In what other profession can you do that?
Taking the above NBA example, no matter how serious I am, I can’t read a few books on basketball over the weekend, take some shots in the backyard and be on the floor shooting against LeBron in a few days. Nor can I read a few books on brain surgery and even get access to an operating room let alone perform an actual operation.
LeBron James or Dr. Ben Carson have nothing to fear from me!!
Now reading trading blogs, listening to webinars, trading in a demo account, etc. to learn more are all certainly helpful and valid pursuits. But they alone will generally not prepare you for success over time.
Currency trading, trading in general however, offers the opportunity to compete against the professionals while having absolutely no experience. And you can do it in a matter of days. And, if you are particularly aggressive, in a matter of hours. And you can do it with high leverage!!
What could possibly go wrong?
Now, I write the above NOT to discourage you from trading or learning to trade, I write the above to encourage to you go about trading and learning to trade in the right way. Know the arena that you are entering and learn to play the game, really learn to play it, BEFORE you ever get into the game.
LeBron had coaches and mentors all through his career. Dr. Ben Carson had teachers and mentors who he followed in Med School and beyond.
Once you decide you want to pursue trading, treat it as you would any other profession – seriously and with preparation.
The three trading basics that I focus on initially with my clients are as follows:
- Develop a Trader’s Mindset – the psychology of trading.
- Understand the Principles of Money Management and apply them unfailingly.
- Trade with a Strategy that provides you with an edge – put the odds of having a successful trade in your favor.
How to Be a Successful Forex Trader?…. Becoming profitable in Forex takes skill and personal development. Just like winning in any sport or competition. Most traders want favorable results after a week of trading with little effort.
Anyone can become a profitable trader if they do what it takes to become profitable. You don’t need to be “born a great trader“. You need to work at it and keep working at it. Derek Jeter shortstop from the New York Yankees said something to this effect-“You may not be the most talented guy on the team but there is no excuse for you not to be the hardest worker.
“Is Forex profitable?…” For 5% of Forex traders it is. You need to do what those 5% do in order to be profitable. They all basically do the same thing.
If you are new to trading there will be a learning curve. If you are serious and have the drive to succeed stay with it and never give up learning and developing yourself as a trader.