A lot of studying and preparation is involved when becoming a forex trader. You will read the no-fail tips from various trading gurus and you’ll subscribe to the newsletters with tips for always winning. You can sink a lot of time and money into these preparations and still not know everything!
As I began my life as a trader, I was surprised at the things that were never mentioned in any of the courses, books or teachers that I learned from. When I began to understand certain facts about trading forex and made discoveries on my own, I realized I could have saved time and money if I knew them ahead of time. Here are seven of those facts that no one mentions regarding trading forex:
- Keep it Simple – I was under the impression that I needed to invest in expensive software systems to get the best trading results. Nope. Not true. Of course, if someone has produced a software trading system then that person is going to try hard to sell it to as many new traders as possible. Promoting the software can come with many promises for better success etc. but remember that you can trade successfully on your own. You do not need fancy computers, a room full of monitors or special equipment. Start with the minimum equipment and buy a new computer or additional monitors only if you need them.
- Trading Takes Time – Don’t be fooled by beginners’ luck! Becoming a successful trader takes time.
- Trading is Hard – We are not born distinctively knowing how to trade or which brokers are the best for our needs. It takes a lot of learning, practicing and hard work.
- Cooling-Off Periods – It is important how you enter your trading session. You should have a block of time set aside, know which market you’ll be trading in and are prepared to enter your office. Out of nowhere, unexpected events can occur. A family member begins an argument with you, a neighbor comes to complain, or your car is involved in an accident. The best advice I learned is to stop where I am. Take a deep breath. Fix whatever needs fixing. Calm your nerves and then approach your laptop. Nothing is worse than trading when upset or overly emotional.
- Don’t Touch Family Money – This means that you need to have your own money set aside specifically for forex. Don’t even think about dipping into your family’s personal savings account. When you were taught to trade only what you can risk losing, this refers to your trading account, not your family’s bank account.
- Too Much Pressure – If you’ve had a week of losses, then you might want to set that straight before the weekends by coming back with some good wins, but don’t do it. Trading under the pressure of needing to win can easily end in more losses. Give yourself a break and lighten up.
- Good Trading is Boring – Becoming a forex trader is exciting but sitting in front of a monitor for hours at a time waiting for something to happen can be boring. Don’t expect all fun and games!