Forex Trading Without Tears
- A whopping 73 percent of them spend their time jumping from one Forex trading robot to another. As for the strategies they use, they are always in search of the 'Holy Grail' that will make them fortunes overnight (we all know that it doesn't exist). And, when all else fails, they place trades using their hunch. End result? They lose their trading account!
- A smaller group of people - 16 percent of Forex traders, somehow manage to breakeven. However, when it comes to the strategies they use, they are not confident enough to follow it down to the "T". They would break a rule here and there, so the end result is that their progress is not consistent.
- An even smaller group of 7 percent place long term trades. They are much more profitable than the other 16 percent. While this may sound good, you need to realize that these are the traders who watch the news all of the time. They don't sleep well as one economic report / policy, change in the government, etc. could easily turn their profits into ashes.
- Last but not the least, we have the cream of the crop - 4 percent of traders make consistent profits... day in and day out. Nah, they are not immune from losses, but they are few and far in between. What sets these Forex traders from others is that they follow their plans and strategies strictly. Unlike the traders above, these guys sleep well, they can take vacations, and they live a happy life!
Forex Trading doesn't have to be a tearful and painful business. However, it does involve plenty of time and effort especially when you are just starting out. If you belong to the first 3 groups of traders mentioned above, perhaps the following tips will set you rolling in the right direction:
Know Thyself: Forex trading isn't just about knowing your market or currency pair; the average daily movement; or the things to watch out for in a country's government or economy. True, they are important, but just as important is understanding you, the trader. You should define your needs. You should make sure that your risk tolerance along with the allocation of your capital is not excessive or lacking.
Plan Your Work, Work Your Plan: This is more of an extension of the previous tip. Once you know thyself and goals, it's time to get to the planning board. Define for yourself the timeframe you want to spend and the plan for your trading career. Define what success is for you. What are your goals? What can be considered as failure? How much time and money should you spend on trial and error, which is inevitable? What are your income goals? And those are just to name a few. Oh! One last reminder: Stick to your plan down to the "T". There's no point in planning if you are not going to follow it anyway. And believe me you won't like the results of a plan-less trading.
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