Like you, every single person that chooses to begin Forex currency trading online does so with the sincere intention of making money. 100%, including you. Nobody intends to lose money, yet the statistic of 90% losing their money is very real. This is a real tragedy, because the problem does not lie with the abilities of the people or the inherent difficulty of currency trading online.
Forex currency trading online offers a very real and very achievable opportunity for those that will simply approach the matter in a sensible manner and follow the proper steps to reach their goal of consistent profits. There are several components to a trader’s development into the confident trader that produces consistent profits. Just like price gaps as in the markets though, gaps in a trader’s education will have to be filled before the end-goal is achieved.
The main reason that the statistic in currency trading online exists is because those people choose to focus almost exclusively on making money right now, and not on developing themselves and their Forex currency trading online business. Online Trading Thus the gaps cause them to lose their money before they’ve filled their educational and developmental gaps.
Most second-wave traders have been forced to realize this, and subsequently take a more realistic and business-like approach to their currency trading online. They realize that they missed some steps and now consciously pursue them, so that they can have greater odds of success and end the vicious cycle of regular and repeated large losses that they experienced as first-wave traders.
Here are the five steps to avoid the tragedy so commonly found in Forex currency trading online.
Step 1. Develop a thorough understanding of currency trading online. This means what the markets are really about, what drives them, how to read a price chart, etc. The basics are essential to master.
Step 2. Seek out the mistakes made by others. There are over 39 different mistakes commonly made by traders. This means that there are numerous opportunities to lose money in currency trading online. If you don’t make yourself aware of mistakes made by others, then that leaves you open to making them yourself – and paying the price.
Step 3. Treat your trading like the business that it is. Any endeavor engaged on a regular basis for profit is a business. Even the government looks at it this way. The more structured a business is, such as your currency trading online, and the more it includes sensible formalities such as reporting, the more consistent it will become. This is the end goal of most traders – consistent profits – so treating it as a business definitely assists in achieving that goal. Problem is very few know how to go about it. There are resources available on sites such as YouTube, so seek them out.
Step 4. Systemize your currency trading online, in addition to your system for placing trades. This goes hand in hand with step 3, but in more detail and from more of an operational perspective. A system is put in place to bring repeatability and predictability to an activity, and this is desirable in trading as well.
Step 5. Get a handle on your emotions as they are often the undoing of even the veteran traders. It is not necessary to try to be a robot and “turn off” your emotions. Just have an understanding of how your emotions play into your decision-making process and what factors affect your currency trading online, so that they can be your ally, not your nemesis.