The Forex attraction.
The Forex is marketed as a great way to make easy money. Unfortunately, it sends out the illusion that trading can be mastered with very little effort and is the gateway to complete freedom and the ability to quit your day job. I understand, we all want to be rich and have everything we desire but the world doesn’t really work like that.
On one hand, yes, the Forex can be a profitable business opportunity and open up new possibilities but on the other hand it can be a short lived dream where all that happens is you lose a lot of money and feel very foolish.
The main problem is that with so many concepts flying around the net, all promising the keys to the vault. Traders struggle to find the correct route and style to trade, we all have different personalities and this is why there are so many different styles of trading. One style can make a killing for one trader and another trader could lose it all.
Lack of patience.
The Forex is very frustrating initially because you are able to see the potential gains straight away and this gives new traders hope and the notion they could be very rich and successful in a matter of months.
To understand the Forex markets we need to be disciplined but also patient enough to learn and become experienced enough in all aspects of trading. If all that was needed was to learn the setups and put the trades on, we would all be kicking the Forex markets butt.
Learning to trade is a slow gradual process, where we get small eureka moments and the penny drops for a particular aspect of our trading. It’s all down to persistence and the hunger to succeed.
A lot of traders find themselves jumping from one technique to another, they expect instant results and if they don’t appear they move onto the next best thing they’ve spotted on the net. Sound familiar?
We obviously need to find the correct style for our individual personality and this is where the hard work needs to begin.
Only the disciplined and experienced traders with the real grit and determination to push on, will have the odds on their side.
Treating the Forex as a business.
If we consider Forex trading as a hobby, we will never give the Forex the right amount of respect. The Forex is a hungry beast ready to gobble up all of our money. We need to be completely professional.
If we don’t have in place rules, discipline and a daily routine we are never going to succeed.
There are so many areas a trader needs to master and we usually learn about our weaknesses once we start trading but as long as we can recognise our faults, we can make adjustments and strengthen our trading for the better. It’s a learning process, no one is able to trade straight out of the box.
So if we can’t manage trades consistently we will never have a solid framework to build off. We never know which trades will be the winners and which will be the losers and it really doesn’t matter.
We just need to treat each trade the same and we will be consistent in our approach.
The biggest area most traders struggle with, is the psychology side of trading. If we neglect this key area we will always be at a disadvantage.
Getting the correct mind set to trade is what usually turns a trader who’s losing or just breaking even to one that can make consistent gains each month.
Getting the correct guidance.
So learning to trade the Forex markets can be a great adventure, it’s not an easy thing to conquer but once all the pieces fall into place the Forex does make sense. It just takes time and patience, which most traders seem to ignore.