As of today, I get to work on 3 big areas: writing (on this very blog, or forex 19mm just books coding (for WPSumo and iAdd , at the time of writing this article) and consulting (in areas defined on the Work With Me page). Choosing a Time Zone, since the forex market is open somewhere in the world all the time, you do not have to stick to your local market to trade. As long as you calculated your risks right, and the swings are between your take profit and stop loss points, you really have nothing to worry about. If you commit to a certain situation, to a certain project, or career, that doesnt mean you have to stay there forever. What I really learned was something more subtle: the risk can be managed. It means that emotions, as useful as they are as a feedback mechanism, shouldnt be used as the sole foundation for your actions. Its a lot of money.
Before stabilizing on a trend, the market moves many times. Its no surprise Forex trading draws a lot of interest It looks like an easy way out. As you may see, it takes a lot of work to balance greed and fear. Its actually quite possible to keep doing what youre doing during the day and maintain trading at the full-time level by only giving the markets about 2 hours of your time per week. You opened a bunch of long positions, based on the assumption that youre gonna be right. You must be able to leverage your self-control and patience in every situation, under any level of stress. Monitor the charts and go over scenarios in your head about which options would be best for each situation. We even have a very clever split risk money management strategy that works extremely well in the markets. In terms of life that means: nothing is worth everything. I started this experience by curiosity, pretty hastily, to be honest, and ended it up abruptly (hopefully, youll realize why by reading this article). The longer you stay with a trade, or with a single way of trading (a.k.a. Im not saying its easy to strike a balance. Its like staying in a relationship that proved to be wrong, and wait for the other person to change.
With all the market ups and downs, you trader forex life never can be sure what will happen next. Whereas, if you melt down in front of the charts with Forex, no one will be there to take the blame and you will suffer the full consequences of any decision you make. Asking yourself those questions and reviewing the details of each trade is where you will learn. Do you know what the core focus and sole purpose is for a trader? Naturally you want your slice of the action and youre willing to do what it takes to do get itor are you? Meaning I tried to understand chart variations, different price actions and other representation models. They let Forex trading consume their life and it kicks off a chain of self-sabotaging events just like a gambler, alcoholic or drug abuser. Learning how to trade from a text book only gets you so far.
Forex trading cant really be compared to your full time job where the more effort you put into it, the more money you get out. Of course, youre not. Because life in itself isnt. I am proud to say that Ive helped many traders detox themselves of bad habits, free their time up dramatically and helped them see better results in the market. Then the next day you take just two bites, then before you know it youre eating whole packets of them and youve lost control of your diet program. What could you have done to make the trade more profitable? Theyll grab their cup of coffee and scour the news headlines to look for events that may affect the price of the currency they are trading. If hes frustrated, he yells, if hes happy, he jumps around. They think the market will move in their direction for ever. But the more we pretend we can control everything, the more the Universe is kicking our butts with unexpected events (in the form of what we usually call crises). Checkpoint, many people are highly attracted to Forex trading looking to escape their need to work a day job. Being wrong is a process of elimination that should be guiding us in how to be right more often. Lets suppose that right now youre earning 3,000 a month and you start making some random trading calculations, account sizes and leverage possibilities on how many trades and.
But, in itself, thats not even remotely a reason to stop taking profit from. The short answer: because I wasnt prepared. Learn to embrace failure, not become disappointed. So, what does it take to become a successful Forex trader? No concern whatsoever for his environment, or for the consequences of these actions.
Hopefully you will learn from your mistakes, burning those neural pathways in your brain, and start to build a positive trading mindset. Discipline Self-Control, if discipline was a muscle, the seasoned Forex trader would be like the ripped guy down at the gym the person everyone looks up to and aspires to be like one day. Checkpoint Patience is the ability to be able to control your emotions or impulses and proceed calmly when faced with difficulties. There are a lot of other things to be known or learned, from technical analysis, (like candlestick charting, price actions, and so on up to the trading mindset, (like avoiding revenge trades, sticking to a trading plan and so on). Set a certain point in the future when youll be able to say: thats all that I wanted to do with this job/relationship/experiment. In terms of personal development, having take profit points its like saying: ok, I got my paycheck from this experience, now time to move on to the next one. Most traders put themselves in highly stressful situations like trading with high frequency where patience can run very thin, quick! Fear makes you lose money by not letting yourself cash enough of what you deserve. So you can continue climbing your career ladder, or following other passions. Screen time is very valuable, whether it is good or bad.
Checkpoint Every trader knows discipline is key to success in the market but most are not willing to do anything about. New traders tend to shoot first, and ask questions later. Of course, some days are better than others. Becoming a forex trader can certainly be exciting! Because it challenges one of your deepest convictions, which is: you have to be right in order for things to move the way you want. Of course, there will trader forex life be losses. If a thing is going downhill in your life, and you feel you are just a victim of the circumstances, take a deep breath, cut the rope, let the rock fall and move again. Sure it can be thrilling, but way before the thrills begin you must learn, study, be aware of the different trading regulations, practice and follow the pros to see how trading is done professionally.
Greed manifests in a trade when the trade is moving in the right direction, but the trader wont cash in, waiting for a bigger profit. They dont want to miss out on a trade signal as if it is a one in a life time opportunity. Everything Takes Time, during a trade you may see a lot of swings trader forex life back and forth. In real world, greed is one of the two reasons people are losing life. The market is such a dynamic place, where youre rarely going to find those text-book perfect scenarios. Take Risks You cant play safe.
What does this mean in real life? Trading by technical analysis means also that I had to spend a lot of time studying charts and trying to create reliable predictions. Just to put that in perspective, not one person, or even one business has made it even close to the trillionaire mark yet. See my guide for keeping a Forex trading journal. Then once you finally begin to make your trades, you will find out that along with the challenges of a swiftly changing market, there is a lot of time spent staring at the monitor waiting for something to happen. Seemed the safest one for.