Can I Become A Forex Trader?
Anyone can successfully trade the spot forex market as long as you have some basic components in place. You must have a trading system that works and produces pips and you must be willing to commit to demo trading that system for a period of time. Then you can move forward with micro lot trading and start to scale up the number of lots that you trade to get to full scale lots. Any other path you take will likely result in months or years of frustration and losses. We have a trading system that works here at Forexearlywarning that is ready for you to get started with.
Information Available To New Forex Traders
A lot of information is available to new currency traders. The primary source of information is the internet. The amount of information related to the use of technicalindicators or risky news trading can overwhelm new forex traders. The sheer volume of information about forex trading on the internet is difficult to wade through. new traders are not sure who to believe. There are hundreds of websites that contain information about automated systems and robots too. These types of systems are all failures but very alluring to gullible new traders. There is no proof anywhere that robots work but new traders still get fooled and buy into these systems.
The amount of information on the web about technical indicators is also overwhelming. You could literally spend years testing different combinations of layers and layers of indicators attached to charts. Once again more confusion sets in for new traders. But technical indicators do not work and once again there is no proof that they do. We know of one website that is very popular with traders and has very high google rankings. This site has over 1600 trading systems, almost all of the systems are different combinations about technical indicators and some systems are basically gambling. This is why currency traders are so lost and confused. The sheer volume of information is incredibly large, and new traders want to trust these websites but the information they see is of no value.
Another alternative for new traders is expensive online or live courses and trade shows. These avenues are very heavy handed with the marketing and you can learn the basics about the currency market but everything they teach is ineffective and available somewhere else at no cost. Do not choose this path unless you plan on giving away thousands of dollars, sometimes up to $50,000 just for ecucation. At this point you will be confused and will have spent a lot of money.
When a forex trader is presented with a logical, effective and inexpensive trading system like Forexearlywarning more often than not they simply cannot believe it. They have been bruised and ripped off so many times that they have lost faith and trust that anything could ever work. They are highly suspicious because of their past experiences. In some instances a leap of faith is required.
When traders discover the Forexearlywarning system they routinely email us in amazement that they wish they had found us much sooner. Some of our clients at Forexearlywarning have stumbled around for more than 5 years and were very happy to find us. The Forexearlywarning system is very logical and it works.
The Cost of Becoming a Forex Trader
The upfront cost of becoming a forex trader is zero dollars. Some new traders they do not believe it but they need to re-adjust their mindset because it is true. The cost of knowledge and finding a good trading system is free. But traders persist in spending thousands of dollars on expensive courses because they are looking for shortcuts and subsequently pay some “guru” a lot of money for a weekend boot camp. All of this is not necessary and is the result of the high level of forex education marketing you see on the web.
Forexearlywarning provides this beginner and intermediate level forex course for free, along with many other illustrated articles. Our intermediate level course is in the form of our 35 forex lessons. You will be prepared to trade the forex market when you finish these courses and you will know why currency pairs move, how to enter trades, how long to stay in a trade, and profit taking skills. After you review this trading system, the out of pocket expense remains zero because you should start to demo trade to prove that you can make this system work for you.
Once again you do not have to spend any money at this point, just time and effort evaluating different trading systems and demo trading. This is the system evaluation process but you are not a successful trader at this point. You have still not funded a live account at this point because you need to show consistent demo trading results with the system you have chosen first. After you see consistent demo trading results you can then fund a live account, but only for trading micro lots. For trading 2-4 micro lots at 50:1 leverage you don’t need more than $2,000 but $1,000 is likely enough to continue forward.
When you are ready to start trading more lots, you can deposit more money into your trading account when your accuracy is good. Or if you do not have the funds, you can get lots of third party funding from the various forex funding providers that can provide large amounts of trading capital into your live account. These firms will split the trading profits with you up to 90%.
Forex Trading As a Business
If you decide to go into business for yourself, trading the forex market is a good and logical choice. You do not need to hire employees or invest in inventory or products. All you need is a good computer and basic computer skills along with an internet connection.
You can trade part time just a few days a week. Or you can trade full time and eventually replace your job or other sources of income with currency trading. Trading the forex has become very popular and daily spot volumes began at about 2 trillion per day when retail trading was introduced in the US in 2002 and the daily trading volumes have now approached 7 trillion dollars.
All businesses must keep their expenses low or they go out of business. If you would like to stay in currency trading for the long term select low cost vendors and educators when you get started. Any business has risk and forex trading has risks, keep your risk factors low. This beginners course has an entire section devoted to risk management. If you have many successful trades and some small losses along the way you will grow your trading account quickly. Try to make sure you are a more knowledgeable trader today than you were a month ago, keep improving and asking questions to be a great trader and businessman. A business plan for your forex trading business is something you should have in writing and execute step by step.
Commitment of Time and Effort
This is an area where forex traders, generally speaking, have it completely wrong. For the most part I know of few if any forex traders who ask about what type of commitment is needed before they start. This is perhaps the most important question since time seems to be so scarce for most people once lost cannot be replaced. It has been my experience that many people want to trade the forex but in actuality are merely evaluating whether or not they can. More times than not they just quit but that is fine because everybody cannot do everything.
The forex might turn out to be be a life time commitment for a lot of people and it should be approached as such by new traders that way and not taken lightly. You should approach forex trading the same way as purchasing a home, getting married, having children, or other very large life events. There are many ways to waste time learning to trade the forex but we can assure you that the methods we use at Forexearlywarning are effective, logical and worth the effort to learn and master.
Your personal schedule and time availability must be suitable for successful forex trading. Regardless of your time zone most trade entries occur in the main trading session in roughly a 5 hour window of time. If you are not available to trade during these hours then your chances of becoming a forex trader drop quite a bit or you must be willing to accept much lower pip totals. You also must eliminate other things from your life that waste time and commit that extra time to studying and demo trading, once again if you cannot do this your chances drop quite a bit again. Just be realistic about what it takes to become a trader.
Personality Traits of A Successful Forex Trader
Based on coming into contact with many forex traders over the years we can say that one of the best traits that a new forex trader can have is determination. You must be willing to fail several times and pick yourself back up. You do not need to be smart. Being organized also helps. Maintaining a trading journal will keep you on track to success.
Another trait is you must be willing to let go of failed trading systems based on technical indicators. People cannot seem to let go of these indicators because of the humiliation involved with knowing they used them for so long and completely failed with them. You have to drop your ego so you can start making pips. Letting go of a bad trading system is good because your mind will open up to new possibilities. You have to be willing to change and evolve from failed systems and leave them behind.
One excellent trait is people who enjoy learning and know it is a journey to trade the forex market. They enjoy reading, studying, watching videos and demo trading and it is not a chore to them, they see the potential of the market and what lies ahead. If you do not enjoy the journey why even walk down the road? If you have been successful at most things you try you will likely be successful trading the foreign exchange. The final characteristic is patience and being careful. Sometimes a currency pair will take about 3 days to develop a new direction and trend and you need to learn how to sit on your hands and not trade during those times. Computer skills are also necessary. You must know how to operate a personal computer and understand web browser functions and downloading and installing computer files and trading platforms, etc.
Personality Traits of Failed Forex Traders
As far as failure traits laziness and taking shortcuts is at the top of the list. It seems like a standard pat answer to say this but there is a lot of truth to it. I ask people who are interested in trading using the Forexearlywarning trading system to read the website first and ask a lot of questions before subscribing and generally speaking about 25% do this, which is good. Some traders who subscribe to Forexearlywarning do not even read the homepage.
Currency traders many times experience a false start with Forexearlywarning then they invariably quit only to come back two months later and subscribe again. There is no hurry to learn to trade the forex market and being in a hurry is bad. Traders do not always do what you tell them until they have exhausted every other possibility and this is a giant waste of their own time. Highly emotional people or compulsive behavior is also bad because you will go from system to system month after month.
New traders are also gullible. They believe everything they read on blogs, message boards and forums, and sales pitches and it causes them to hit multiple dead ends and failures. Don’t believe the marketing and sales pitches prevalent in the forex industry. LO