Over the course of time many people have tried their luck in retail forex trading. Many of them failed and never return back to the market while the remainder of them that stayed finally leave the market for good several years later. Only a very small minority left and they’re the ones making consistent profit from trading activity. Is forex trading that hard? Why do people lose so much money over the course of their trading activity? The answer is they’re apparently not doing what the successful traders are doing. However, that’s an oversimplified answer as there are factors that are accountable for the lost of money.
Get the right mindset.This is the former and most important thing before anything else. You should know and understand that forex trading isn’t a business that can make you rich overnight or over a month or even a year. Forex trading is a business, a tough one and as with any other business you’ll experience down times during the course of time. So if you’re not patient enough to endure the difficult time you better stay out of this market. You must likewise have the correct attitude. Why? The reason is you’ll have to adjust yourself to the market and not the other way around. In forex trading, you can only make money when it is possible to make money and you certainly cannot make money out of nothing in the present market. So, contrary to what most people say, this business isn’t a flexible business at all because you’re not the only one who can set your own schedule to achieve this business as in internet marketing. Yet, forex trading can be called a flexible business because while you’re waiting for giving me the opportunity that the market will give you you can perform other things. The last but not the least is you shouldn’t leave your job for forex trading. If you’re just starting out in forex trading it is far better to trade forex part-time. Forex trading have the potential to make you big money but it won’t happen immediately. It will take some time before you can make profit that can sustain your living so do not quit your job yet. Some people still do not leave their day job even if they make more money from trading than from their day job. The beauty of forex is it doesn’t require you to quit your job.
SHANGHAI/BEIJING, July 3 (Reuters) – China has permitted banks to freely set their own exchange rates for the yuan against the dollar in over-the-counter transactions — another step toward freeing the exchange rate from government control. Banks were previously required to price the yuan/dollar rate they offered retail clients within 3 percent in either direction of the Chinese central bank’s midpoint on a given day. Such equilibrium permits the central bank to gradually free the yuan’s exchange rate without worrying about …
Find yourself a mentor.Do yourself a favor by not running around to forums or websites to look for trading method or holy grail. The common sense is something so valuable will still have a price on it. Nothing is absolutely free. A great trading method might be available for you for free in some forum but you’ll not find the full explanation from A to Z about it over there. Moreover, even if you have the information for free you’ll not find a full guidance on the means to trade using it. Also, you’ll lose energy, effort, time, and money if you go from one forum to another. Do you want to find out why? It’s because you’ll have to try the trading methods one by one which will take time, effort and energy and also money (if you do use those trading methods one by one in your real account). Money can be replaced by time is something not even a trillion dollar can buy back. As you can see, the loss is much greater than the benefit.
When you’re in the Forex trading market you’ll find it operates 24 hours a day giving you access to trades when ever you want. This is far different than the common stock market, you can trade without concerns of the market closing when you trade currencies. Forex websites allow you anytime access to know what is taking place in the market at any particular time. This allows you to learn the basic elements of the market.
Be discipline.Discipline is needed if you’d like to run a profitable business, any kind of business not just forex. People usually lose money because they’re not discipline enough to follow through a program or trading plan. Discipline isn’t an issue but the same cannot be said for all people, for some people. It is important to monitor the trading plan/trading method with strict discipline unless told otherwise. It takes time to create a successful business and you’ll not be able to obtain this without a strong discipline.
Be strong during drawdown.As mentioned briefly before, a trader needs to be able to weather the storm. Forex isn’t a job that will deliver ‘salary’ in time every month. You will face periods of losing streak during your trading activity. Most people will change their trading method when they find that the trading method fail to deliver profit on every closed trade. Or perhaps they’re not strong enough to have their money depleting during the losing streak. One thing that you two know better than that is there is no trading method that can deliver perfect trades every time. A trading method have strengths and weaknesses so be sure you understand your trading method and seek to avoid trading using it during unfavorable market conditions.
Contact your mentor if you still experience problems with your trading performance.If you have done your part and still not see improvement in your trading performance then it’s time to apply for help from your forex trading mentor. A great forex mentor will help you solve your problem or answer your questions regarding the trading method that he designed. And the good thing is they normally have a support community where their students gather and share experiences about the problems they face.
There are other things that aren’t mentioned in the present article but the five things that were listed above are the most important things that you must know. Other people will say that forex trading is hard or they might even associate forex trading with gambling. People around you’ll say different thing about one subject and it is mainly because they experienced something bad with it or they simply do not know what they’re talking about. Usually they might change their opinion once they see that you really make it in this business. It does not matter what other people might say about forex trading the fact is there are people making money from it and you can get the same success if you follow in their footsteps.