Becoming a Great Forex Trader
You want to know the one thing that all great forex traders have in common?
Lean in real close, because I'm about to tell you the secret..
They all worked INCREDIBLY hard to get to where they are right now.
There is no magic potion, no "secret strategy" that will made you wildly successful in forex trading overnight.
Sure, you can achieve short-term success without having any idea what you are doing.
However, to profit over time, you need to develop a number of things, including:
1) The general framework of a strategy that will stand the test of time
2) The ability to adapt
3) Intestinal fortitude
4) Knowledge of the pitfalls of trading forex
5) A strategy for cutting losses
These are things that are developed through years (not months or days) of trading.
When it comes to becoming a successful forex trader, there is just no substitute for hard work.
The successful forex traders that I know all put in an incredible amount of hours perfecting their craft.
Some people are of the opinion that trading forex is a part-time job, however the really successful people that I know have all put in incredible amounts of work to become what they are.
My advice if you are just starting out:
1) Don't purchase any forex "systems", e-books and the like. Instead, do as much reading as you possible can (there is a wealth of free knowledge online), and start trying to come up with your own system.
2) Paper trade. Click here to sign up for a demo account at Forexyard that will allow you to paper trade (trade with "fake" money").
3) Once you have done these two things and are starting to feel comfortable, starting trading for real money, but trade small.
A single forex trade can absolutely cripple you, so make sure that you are familiar with how margin works before entering your first trade.
Greed kills, and greed REALLY kills when it comes to trading forex. Don't forget that. All it takes is one bad trade to blow out your account.
Other than that, have fun, and don't forget that mastering the art of trading currencies can take years, so don't get frustrated.
Filed under: General Knowledge