Yesterday I was talking with a friend about forex trading and how difficult it is to achieve success trading in this market.
Above you can see a chart of what I consider the most important aspects for someone to succeed in forex trading.
All you have to know here is you will have to prepare a small sum for it simply because the algorithms are really complicated and therefore it is not free.
Trading forex, stocks and commodities on margin carries a high level of risk and may not be suitable for all investors. Everybody has heard for example that a genius is 99% effort and 1% inspiration (or a similar variation of this theme). This is the most important aspect for me since it is what eventually allows a trader to get rid of the influence of emotions.
Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. For me success in trading is mainly divided into 5 different fields each one having an important role in the final achievement of profitability. Yesterday when I was talking with my friend I started to realize that although we first had similar goals, the different way in which we have always approached problems and challenges in life led us into two very different paths around forex trading. I will now go through each one explaining what it means for me and I why I consider it important. In trading this means that you will know exactly the inefficiency you want to exploit, what this inefficiency means, why it is present, how it can be made into a system, what the characteristics of the systems are, why they are bound to be successful, what risk level you are expecting, etc.
Lack of understanding, lack of knowledge and weak emotional intelligence are the main factors that lead people to failure, from what I have seen in my experience and they are the main reason why after many years I achieved success from trading while my friend is working a 9 to 5 job. My friend then completely quit forex trading and I continued to slowly learn about it and eventually made it my career. For example you need to know basic stuff, like how to calculate lot sizes and control your risk, but you also need to have more advanced knowledge like how the market changes when it evolves and how a trading strategy can be reliably evaluated.
People who are patient are favored to become successful traders because they will be able to wait for profitable periods and live through the draw downs, they will be able to resists frustration before reaching understanding, etc. Patience is a BIG part of successful trading, a common characteristic of most profitable forex traders.
People who have a higher tolerance for frustration and continue to build understanding and knowledge often have a higher chance of succeeding because they will be able to get to the point where their understanding eliminates their frustration while other people who lack this skill will not be able to get there.
Futures trading software|
Binary option trading platforms
Virtual gold investment
Forex strategy builder