By: Sara Patterson
As I was writing that title, I thought that it sounds nearly impossible, but actually, I am not promising immediate wealth or success, but rather, a slow paced and long lasting strategy that, at the end of the road, will lead you to success, making the proposition entirely possible.
For starters, what I just wrote above is one of the key components to Forex success -patience. If you ever have the misconception that Forex will make you rich fast, you need to get it out of your head before you experience some serious disappointment. There are no free meals in life, and that is no different than Forex.
Ask yourself this simple question: “If this or that broker can guarantee me wealth and success, then why isn’t everyone trading Forex with that broker?” If there was a magic potion, there would be a lot more Forex traders out there, and even more so, there would be a lot more billionaires around. (This is why you should research carefully and read Forex brokers reviews before choosing a broker that will serve you well for the long term).
The problem is Forex can bring you wealth and success, but it requires patience, which is a commodity most people do not possess. If you are willing to take the time to invest in your Forex career, not just trade, then you will eventually look success in the eye.
The following is a short list of the first four steps you must take in order to succeed in Forex. If you take these steps properly, there are still no guarantees, but there is a guarantee that if you do not, Forex success will be considerably more elusive.
1. Educate Yourself
Do not, under any circumstances begin trading Forex without getting to know every little detail about the market. Learn the history, terminology, strategy, and volatility of the market. Do not forget to also study the different philosophies about market analysis, as well as the various tools and resources at a Forex trader’s disposal. Once you feel comfortable with Forex, jump in to the next stage, which should be Forex demo trading.
2. Question Yourself
This might sound childish, but before trading Forex, you need to make sure you are emotionally capable of trading Forex. It is not an easy trading arena. It is filled with entities that profit from your losses, it is unfortunately highly populated by people trying to trick you, and it is a nerve wracking experience like nothing you have experienced before. The flip side of course, is that the Forex market offers endless potential for profits, but only to those who can handle it. So, before jumping into the deep Forex waters, ask yourself “Do I know how to swim under such sever weather conditions?”
3. Train Yourself
The last thing any Forex trader wants is to find themselves experiencing major losses due to a lack of control. You need to ensure that your emotions do not get the best of you when you are trading. Do not be afraid to lose, do not be afraid to win, and do not be afraid to pull the plug on certain open positions. Before trading Forex, you need to train yourself to be an objective and scientific trader, one that adheres to their Forex trading strategy, no matter what. A trader that uses Stop Losses and Take Profits when necessary, and a trader that is able to cope with losses, sometimes painful ones, an inevitable part of Forex trading.
4. Know Yourself
In order to succeed in Forex, you need to know yourself to depths not necessary in other parts of life. You need to have complete and utter control over your natural instincts as well as emotions. You need to know how you react to high pressure situations, and you need to know how you handle high risk scenarios. If you can answer all those questions and others about your essence, then you are emotionally prepared to enter Forex. But, let there be no mistakes, such self knowledge can take months and sometimes years to achieve.