Why does Forex trading attract so many people?
Many people want to find ways to make money quickly, and the natural desire of any person is the dream of an easy and affordable method of attracting income. There is hardly anyone who will like the idea of mastering unfamiliar skills if it does not promise tempting results. That is why today thousands of novice traders try their hand at Forex trading, enthusiastically starting to study expert training materials. Most newbies believe in their success, and their optimism is supported by examples from the practice of experienced traders.
Of course, positive thinking is welcome in absolutely any undertaking, especially when it comes to profitable Forex trading. Belief in oneself significantly motivates a novice trader, gives them hope for professional growth, possibly even to an expert level in the future. It would be wrong to believe that a person who is far from knowledge of technical analysis does not have the initial abilities for productive Forex trading. Everyone has such a potential, the main thing is to uncover it in a reasonable way and learn how to apply it.
However, there is a certain pattern: up to 80% of novice traders leave the foreign exchange market, barely faced with the first setbacks. Only 20% of people remain who continue to master various trading strategies in order to make their Forex trading truly effective. Who are these 20%? What qualities and traits do such traders have? The statistics clearly illustrate our statement that the majority of novice traders sooner or later lose interest in currency trading in Forex. Most likely, these people, by default, were not aware of the specifics of the market as such and were not ready for natural processes for it.
This group of traders does not have the patience, self-control and pragmatic mindset to learn to think in the long term and organize the knowledge gained by experience (or empirical) about Forex trading. The very first unfavorable deal, a decrease in the size of the deposit or a conflict with a broker extinguish the ardor of traders of this type. If only yesterday they made grandiose plans for the future and calculated a hypothetical profit from successful Forex trading, today you can see that these people have completely cooled down to the very idea of trading on the currency exchange. Therefore, a reasonable question arises: is it possible, in principle, to become a successful Forex trader?
The concept of success in Forex trading
So what is success for a trader? Who can be considered a truly successful Forex trader, by what criteria is it determined? It should be noted right away that every trader, both beginner and experienced, puts some subjective meaning into this concept. Indeed, for some, the material expression of success is the opportunity to purchase many expensive things, real estate, a good car, high-quality equipment, and so on. It is for this purpose that beginners come to Forex in order to quickly and effortlessly earn a decent standard of living. What motivates those traders who understand success somewhat differently?
Another category of traders implies by the success making profitable transactions in Forex, even if they cannot be called large-scale. For day traders (or scalpers), a series of small but breakeven trades is also a reward for the hard work invested in developing and testing a trading strategy that has proven itself on the positive side. Traders of this kind may be more realistic about Forex trading than those who set excessively high standards for themselves in advance. However, both are at risk of strategic mistakes.
Therefore, the scale of financial demands of a novice trader in itself does not play a key role, but only acts as one of the components of the overall picture. Is adjusting your own needs and expectations for profit the key to successful Forex trading? Analysts agree that any successful Forex trader is distinguished, first of all, by self-discipline. This quality makes the potential trading efficiency directly dependent on whether the trader has it or not. The very 80% who, over time, refuse to trade on Forex, just cannot discipline themselves to the trading process.
Perhaps you still do not quite understand what exactly is meant when the experts of the foreign exchange market persistently remind novice traders of self-discipline. The essence of this personal quality, as well as the behavior emanating from it, is that a trader learns to perceive Forex trading as a serious and responsible occupation, akin to how the same person would react to their regular office work. To become a successful Forex trader, you must initially exclude a frivolous approach to trading activity, since this does not at all contribute to an increase in the profitability of transactions.
Again, the concept of success in Forex is purely individual for everyone, but universal is that in order to achieve even modest positive results, an essential condition can be called the presence of disciplined behavior, a reasonable choice of a trading strategy, operating with the amounts of money that are appropriate for you and, of course, completely serious approach to trading. A skeptical attitude towards the currency exchange and the perception of what is happening as a game is definitely not what will make a trader successful. Then what are the tried and true tips from Forex experts?
Actionable and helpful advice from successful Forex traders
If you have decided for yourself with the concept of personal success, then it is time to pay special attention to the correct goal setting. Knowing what you want to strive for is also an important component of your future success in Forex. In general, almost all advice from experienced traders can be divided into several main categories, of which the list below is useful for every novice trader. It is a trader’s personal choice to follow these recommendations or not, but the effectiveness of these tips and their practical effectiveness have repeatedly shown themselves in real Forex trading. This includes the following principles:
- find the time and resources for preliminary training in Forex trading;
- explore both step-by-step guides for using profitable trading bots and best-selling literary memoir plan from stock trading sharks;
- do not neglect the opportunity to test not one, but several different trading strategies;
- develop flexibility of thinking, do not fixate on the only acceptable trading scenario;
- train willpower, discipline and an emotionless approach to Forex trading;
- try to follow “the ten thousand hours rule”.
Now let’s take a closer look at these recommendations. At the beginning of this article, we mentioned that everyone has the potential to become a successful Forex trader, so why learn anything, it it really that necessary and unavoidable? The essence of this thesis lies in the need to obtain a minimum basic knowledge of how profitable automated Forex trading works. It is important to have an understanding of how modern trading robots work and how the Forex currency exchange functions, even if you do not plan to become an expert-level trader and simply wish to increase your income.
Profitable trading bots with adequate parameters can significantly increase your profit from Forex transactions. It is also interesting to study algorithms for the operation of trading bots from the point of view of developing your own analytical abilities. You will be able to learn to understand what factors led to a particular outcome of the transaction. In addition, experienced traders are advised to take the time to read the applied literature for beginners. In any literary source, be it a specific instruction on how to use a profitable trading bot or a book by an expert with many years of experience, you can always find inspiring and useful ideas for productive Forex trading.
To become a successful Forex trader, you need to apply a whole range of measures to achieve this status, think and act in several directions at once. Effective Forex trading does not imply absolute conservatism when choosing trading strategies. It is important to alternate between different methods, since the volatility of the foreign exchange market and many other reasons themselves push the trader to a constant search for the optimal strategy that will be relevant in certain circumstances. From here comes the following advice on developing the flexibility of the trader’s mind. You should give yourself the right to make mistakes and remember that a losing trade does not make a beginner a loser.
Two subsequent tips from Forex trading experts can be conditionally combined into recommendations related to human psychology. Why does the expression “trade like a robot” exist? If a profitable trading bot is already trading for you even without your physical presence, then what does this phrase mean? “Trading like a robot” does not mean that the entire Forex trading process is solely on a high-quality trading bot. This, first of all, means that the trader themself must control their emotional background, not to allow a state of passion, anxiety, regret or fear. It is also not recommended to stay overjoyed after a series of beneficial deals. The minimum involvement of your emotional component in trading activity is a step towards success in Forex.
And finally, the mysterious “rule of ten thousand hours”. To win the title of a successful Forex trader, you should devote approximately four hours a day to learning trading, testing strategies, reading literature and using a profitable trading bot. This rule is universal, and it was deduced empirically by experienced traders. Thus, in ten years, a yesterday’s newbie can claim an expert level of knowledge of the secrets of successful Forex trading. In principle, this level can be reached earlier, the main thing is to wisely use and apply in practice useful tips on how to become a successful Forex trader.