Trading Forex and being successful may not be as simple as it looks like. The fact is 95% of Forex traders fail and lose all their money. So, what can you do to prevent this, and be on the 5% that achieve the success?
1 – Work smart, not hard. Learning how to trade Forex is not a matter of hours; but a matter of how well you employ those hours. The best thing you should do if you’re just starting in this market, is to start with swing trading, not day trading.
2 – Learn the basics. This is an essential step you should take. Try to understand some technical analysis tools also, like support and resistance; check out some indicators to confirm the price movements; learn how a breakout strategy works; among others. Try to learn everything that you can.
3 – Simplicity, patience and discipline. These are the 3 most important factors that will allow you to be in the 5% group. Simplicity because the simpler your system, the better it will work, the better the results it will give you. Don’t try to complicate things that are simple. Patience because you need to know how to wait for the perfect trade and pay attention to every detail when you’re holding the currency pair. Discipline because you must avoid your emotions at all costs. You need to be able to get in a trade without an anxiety feeling, without being nervous or excited.
This are the three main elements that will make you succeed and be a part of the 5% successful Forex traders. Mistakes made by beginners are common but they can also be avoided with the right knowledge.
If you want to succeed, you need to work; but putting your efforts in the right areas.
Sadly, I now understand the wisdom of the above article. However, it does not put it over strongly enough. I am one of the mugs who didnt think about the basics enough. I urge all new traders to learn the basics and not go near a LIVE ACCOUNT UNTIL HAVING HAD AT LEAST 50% SUCCESS RATE ON A DEMO ACCOUNT. The money you want to make will still be there aftern you have learned the bsics and proved your own application of the knowledge you have gained. Please remember 95% of traders dont make money. Its all about making money not how clever you are!
Paul: Thank you for your comment. Clearly a message written by someone who learned these lessons the hardest way.
Wish you the best of luck in your trading.
Your message is very instructive for both newbies and the pros.
Thanks a lot
You’re welcome. Good luck.