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Forex Trading Education: Things You Should Know About Forex Trading
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How difficult is it to make money trading the Forex market? Howmuch time does it take to actually be able to make a livingtrading the Forex market? These and other important aspects oftrading are to be discussed in this article.
Trading the Forex market has many benefits over other financialmarkets, among the most important are: superior liquidity, 24hrsmarket, better execution, and others. Traders and investor seethe Forex market as a new speculation or diversifyingopportunity because of these benefits. Does this mean that it iseasy to make money trading the Forex Market? Not at all.
Forex brokers agree that 90% of traders end up losing money, 5%of traders end up at break even and only 5% of them achieveconsistent profitable results. With these statistics shown, Idon’t consider trading to be an easy task. But, is it harder tomaster any other endeavor? I don’t think so, consider musicians,writers, or even other businesses, the success rates are aboutthe same, there are a whole bunch of them who never got to thetop.
Now that we know it is not easy to achieve consistent profitableresults, a must question would be, Why is it that some traderssucceed while others fail to trade successfully in the Forexmarket? There is no hard answer to this question, or a recipe tofollow to achieve consistent profitable results. What we do knowis that traders that reach the top think different. That’sright, they don’t follow the crowd, they are an independent partof the crowd.
A few things that separate the top traders from the rest are:
Education: They are very well educated in the matter; they havechosen to learn every single and important aspect of trading.The best traders know that every trade is a learning experience.They approach the Forex market with humility, otherwise themarket will prove them wrong.
Forex trading system: Top traders have a Forex trading system.They have the discipline to follow it rigorously, because theyknow that only the trades that are signaled by their system havea greater rate of success.
Price behavior: They have incorporated price behavior into theirtrading systems. They know price action has the last word.
Money management: Avoiding the risk of ruin is a primary subjectto the best traders. After all, you cannot succeed without fundsin your trading account.
Trading psychology: They are aware of every psychological issuethat affects the decisions made by traders. They have acceptedthe fact that every individual trade has two probable outcomes,not just the winning side.
These are, among others, the most important factors thatinfluence the success rate of Forex traders.
We know now that it is not easy to make money trading the Forexmarket, but it is possible. We also discussed the most importantfactors that influence the rate of success of Forex traders.But, how much time does it take to have consistent profitableresults? It is different from trader to trader. For some, itcould take a life time, and still don’t get the desired results,for some others, a few years are enough to get consistentprofitable results. The answer to this question may vary, butwhat I want to make clear here is that trading successfully is aprocess, it’s not something you can do in a short period oftime.
Trading successfully is no easy task; it is a process and couldtake years to achieve the desired results. There are a fewthings though every trader should take in consideration thatcould accelerate the process: having a trading system, usingmoney management, education, being aware of psychologicalissues, discipline to follow your trading system and yourtrading plan, and others.
About the author:
Raul Lopez is a full time Forex trader, his trades are based ona price behavior approach. Raul is also founder ofhttp://www.straightforex.com a high quality Forex training company.
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