Forex Trading For A Living
Becoming a professional forex trader isn’t likely to be easy process for most people. It takes a combination of many different skills all coming together to really hit the mark. And to orchestrate your own success is no mean feat. Does someone decide they want to become a doctor then read books, go on a few medical forums or perhaps take some courses that they believe to be beneficial?
Would they then become a top level doctor? Is a kid who loves football able to simply practice in the local park or at school and gain the appropriate knowledge and experience in order to develop into a professional sportsman or is the game likely to be different in the pros?
The reality of forex trading is that when you go live, you are playing in the pros from day one. Sure you might choose to trade mini or micro lot accounts, but all this does is limit your risk – you’re still trading what’s essentially the same market.
So unlike other professions, trading has the potential to inhibit the development and growth of an individual. So what does it take to ensure you take the right path on your way to becoming a professional forex trader?
DRIVE, PASSION AND AMBITION
Whether you’re learning from a spare bedroom or you’re trading at Goldman Sachs, you’ll need to have an abundance of drive, passion and ambition.
That’s right – especially in fact if you’re hoping to be some hot shot bank trader.
This is the very essence of trading – the sheer determination to make it and to stay successful.
Without this attitude and drive for excellence, ego and fear and greed and hopelessness get in the way. A dedication and strength of belief will help you remain on course when things don’t always go your way.
METICULOUS NATURE AND SELF-MASTERY
You must understand the importance of ‘giving in’ to this approach. Many people aren’t as such fighting this as they are not fully embracing something that they see as rigid and inflexible. But what they don’t see is that by trading in a strict manner, they will learn to implicitly trust themselves and have a baseline for development.
By understanding the nature of a trading edge – i.e. that the probability of it winning over a number of trades is favorable and that you never know whether or not the next trade will win or lose – a trader will begin to develop in such a way that they are less prone to emotional slip-ups.
Take a look at these and see how much they end up costing you over the course of a month. Many traders will note that if they were to eliminate these outsized losses, they would be profitable. But also, by trading consistently you have the ability to create a baseline for development.
Think about this for a minute. If you are trying to make an observation in order to draw valid conclusions, how can you make sense of the results if the inputs are random?
Trading forex is unlikely to make you a gazillionaire overnight. If you start off trading and making a whole heap of money, I’m sorry to burst your bubble, but this is probably one of if not the worst thing a beginner can go through.
1) The money made in this period is not likely to be significant in the grand scheme of things (as much as it seems like it is at the time).
2) Profits will feed into unrealistic expectations and likely cause a beginner to become cavalier with their risk control.
3) This behavior ultimately will lead to bigger (and possibly much bigger) losses than the original gains.
4) The setback is likely to cause a trader to become overly cautious and hinder their development even further. As a trader, it’s so important to understand that you will take losses and that consistency is the objective rather than trying to hit a homerun every trade.
This is even more important when you’ve taken a few losses in a row – so many traders come unstuck when trying to make back all their losses in a single trade. Consistency is about making money, but moreover it’s about being able to replicate results via consistent trading actions in the market.
You also have to understand what the strengths and weaknesses of your product are. Although day trading forex is possible there are better options out there if that’s the route you wish to take. But the fact that you have such a vast market with many different pairs to trade is a huge advantage.
And if you trade a few of them, there’s more than a good chance you’ll be given the opportunity to catch one or two huge moves per year. Don’t think that if you don’t day trade forex that you won’t be active either. Trades can be taking place in so many different pairs at any one time that you’ll actually be kept pretty busy anyway.
Trading forex or anything else for that matter is about having the determination to succeed then setting a robust course to get to where you want to be and sticking with it. Just because you don’t see immediate success with a particular approach, if it is based on sound logic, proper risk control and your account is appropriately capitalized then there’s every chance that with practice you’ll be able to turn the corner at some point. C
hopping and changing strategies is only likely to delay the most important stage a trader must go through – development of their own self-control. Netpicks have a number of fantastic strategies for forex trading including Trend Jumper, Premier Trader University and Keltner Bells. So when you’re ready to commit to a path to becoming a professional forex trader, why not check them out.