Trading is one of the most exciting and profitable ways of earning at home, which brings substantial income (basic or additional) to many people. All this is undoubted, however, with all the apparent ease of learning Forex is not so simple. To become a successful trader, you need to know and be able to apply the basic principles of the financial market, quickly navigate in a changing environment and, oddly enough, do not give vent to the excitement.
Is trading a game or a job?
Financial and news portals in the last decade have been filled with advertising games on exchange rates. Forex and other online trading offices lure visitors with promises of golden mountains, bonuses for account replenishment, but in practice, everything turns out to be not so rosy. Having tried their strength on a demo account (and this is at best), and having approximately figured out the interface of the site, the latter-day traders, headlong, rush to spend their own money. As a rule, their lion's share resets the account at the first transactions, after which they no longer try to continue.
The case, in this case, is not at all in the fraudulent actions of the site owners, as many visitors who have lost money belief. Yes, indeed, for demo accounts, most brokers create simplified working conditions and can even adjust rates. Therefore, you shouldn't trust your first successes at all - the demo version is designed solely to familiarize yourself with the functionality and capabilities of the site, and you don't get real skills on the exchange.
The main mistake of unfortunate newbies in trading is that they do not really represent the essence of earnings in exchange rates. Misleading, as a rule, introduce the word "game", which creates the idea that Forex does not require any effort, only luck. However, for genuinely successful traders this is a severe job that requires knowledge, diligence and skills.
What dooms you to fail?
Before we talk about the personal qualities of a successful trader, let's talk about his antipode - a man who is exactly waiting for the loss of funds, time and effort on Forex. So, when should you not open a deposit?
Figures and graphics make you depressed, and the need for calculations makes you sleepy. If you have never been interested in finance and mathematics, then there is nothing to do in Forex.
You do not know how to manoeuvre in a massive flow of information, analyze it, draw conclusions. Anyone who has been in Forex has seen a regularly updated news feed, without tracking of which it is impossible to predict currency rates.
Unwillingness to devote to trading a lot of time. It is impossible to play on the exchange from time to time and has success. While you miss the time, others earn. Excitement is the main enemy of any trader who can ruin you in minutes. Carried away by short-term benefits, you can miss the main thing, and the next fluctuation of the course will lead you to losses.
Surprisingly, the fear of loss is as harmful as recklessness. It should be understood that making money in the financial markets is like a trade, and in any business, there are ups and downs. Even the most successful broker does not manage losses in trading, but they should fit into your borders, and not go beyond them.
The key to success is knowledge and strength of mind.
Not everyone can become a successful trader, no matter how the advertisement assures us of the opposite. Like any other profession, trading on a stock exchange requires a combination of specific skills and character traits. So, what do you need to make the game on currency rates bring you not frustration, but income?
Cool and sober calculation. An ideal trader is a person who can curb his desires and appetites, does not succumb to momentary aspirations and always acts under the outlined plan.
Serious attitude to trading. We have said earlier that we should not regard currency trading as a game - this is work and not an easy one. And treat it accordingly.
Self-discipline is one of the main factors without which trading is necessary. You determine how much time you can devote to the exchange because at this work there are no bosses or a daily routine. Here lies the main problem: many people do not know how to force themselves to work. As a result, having turned on the computer, you are constantly distracted by other matters, personal correspondence and devoting yourself to trading in a catastrophically short time. In such conditions, it is difficult to expect that your earnings will grow.
Interest in trading process is the key to your professional growth. Seminars, training courses, an independent study of news, forums and all available information increase your level of knowledge, allow you to make decisions more thoughtfully.
The ability to plan and go to the target is also essential. As a rule, successful traders make a strategy for a specified period, which they clearly adhere to. As a result, they can even plan their income levels quite clearly and very rarely incur losses. At the same time, individual costs are put into the strategy, and traders calmly relate to a temporary recession.
Willingness to invest your own funds. It should be understood that a deposit of 10 dollars can turn into a state only in fairy tales. To have substantial incomes, you need to invest sufficient initial capital for this.
Self-confidence (not to be confused with self-esteem) is the quality of prosperous and successful traders. While newbies fear and lose opportunities, experienced stockbrokers make money.
The set of personal qualities necessary for a successful trader is quite extensive. But even if you have all the character traits described above, there is something else that you cannot do without when trading currencies.
Do not think that financial education is necessary for trading. Moreover, in financial institutions of higher education, not so much time is devoted to trading - this is usually an overview course where students do not gain any practical skills. The same information can be obtained in a few days, carefully examining any information site.
In order to successfully play on the stock exchange, you will need something else - the ability to study information and draw conclusions, build graphs and forecasts, and then implement the strategy. In fact, any intelligent person with an analytical mindset and mathematical abilities can learn this.
Novice traders study Forex trading in two ways:
- Undertake training courses with experienced practitioners; - They learn by trial and error, independently studying materials and practicing on an account with a small deposit.
The profession of a trader is exciting and very difficult, and with a serious and thoughtful approach, it can bring a stable and rather significant income. However, it should be understood that it requires specialized knowledge and skills, so the first time in Forex should not be expected to super-profits. A severe business approach, continuous improvement of skills and the ability to plan your work and its results will lead you to success rather than hope for luck and gambling on quotes.