If you want to become a Forex trader and make money at it you need to consider the key point enclosed…
Many traders simply don’t consider the key point enclosed but its vitally important for any novice trader. Rather than think about this point and ignoring it you could be putting your currency trading account in jeopardy. Let’s take a look at this key point.
How important is discipline?
Discipline is the key link to success of any trading method and is not as much a reason why traders fail, as it is an inherent attribute of successful trading.
What does it involve?
Discipline means – adopt a traders mindset; the mindset that maximizes gains and minimizes risk.
The important point
Concentrate on this point – it is the one element of Forex trading everyone can do something about but understand this – you need discipline to follow your Forex trading system through the losing periods and until you hit a home run.
Why is it so hard to adopt a traders mindset?
The simple answer is – too much greed.
You haveined your Forex trading system will make money and can be tempted to take it before it has had a chance to show its profits. Most traders get excited the first few times, make to much money and then get frustrated and quit.
Another reason is traders don’t really understand what they are doing. They read a bit about the news and the euro and think they will make a fortune but as the dollar falls they get worried. As in life they are capable of making sense, of what is going on but as yet they have not achieved this success and it’s not just because they lack discipline.
There are other problems which cause traders to lose and they are as follows:
- Trading news stories as their stories and not the reality of what occurs
- Believing there is some mathematical formula that can help you win
- Trying to trade using to much lots
- Pip profits are the key to making money
- Day trading
- Plotting and reading to much
The above are all about earning a lot of money and that’s all most traders want!
They like to be right and hate being wrong; this is not a problem in many areas of life but in Forex it’s a huge problem. Most traders today are fixated with length of time on price momentum, with building a lot of hype around a meaningless indicator.
What you need to concentrate on when buying and selling currency pairs is the long term fundamentals which form the real trends; it’s these trends that yield the big profits and that’s why novice traders mostly fail.
The other problem with not understanding the long term fundamentals is that you will see a lot of vendors telling you that you could make money with a couple of indicators bought from a vendor but they don’t work. There selling these systems tell you that you just plug them in and follow them but you don’t have the discipline to execute your trading signals this way – you need confidence and discipline separates out the winners from the losers.
It may sound obvious to you that if you want to enjoy currency trading success, you need to have confidence and discipline separates out the losing majority of traders, who want to feel clever and win all the time, losers who want to make no effort, think they can win and lose.
No Forex traders winning with hyped systems and novicessold on by vendors who promise them riches with no effort – avoid them. Just like in all areas of life, you need to learn skills and get a solid Forex education and if you do this, you will be rewarded with a great second or even life changing income.
The good news is anyone can learn to trade and anyone can achieve success, so if you have the desire to succeed and have a willingness to do some study, Forex trading success can be yours.
