There is a lot of mystery and mystique regarding trading the foreign exchange currency (forex) market profitably.
Let us look at two essential ingredients. These two things will help you to extract money profitably from the market on a regular basis. One of these ingredients is obvious and most entrants new to the forex market spend practically all of their time on just one of these essential ingredients.
The thing is that they then spend far less time if any time at all on the second ingredient. The irony is that the second key ingredient is far more important that the first one. It is this fact that kicks most traders out of the market. It will do this sometimes immediately and yet other times it will kick them out later. Later may be days, weeks, months or even years in the future.
If is interesting to work this out. The most important aspect to trading is rarely covered and the most obviously and visible ingredient is covered over and over again.
Okay so here are the two ingredients-- Firstly you absolutely have to have a strategy to be able to know what to trade and when to enter and exit a position. That is essential. You cannot blindly enter the forex market without a strategy. What is a strategy? A strategy is some plan or idea you have before you decide to place your trade. If you do trade the market without some idea beforehand of what you are doing and what you expect to gain then you will lose money.
Many promoters of forex training emphasise this more than anything else. They explain that the strategy is a proven one and worth sometimes substantial sums for the new trader to invest to discover the answer to how to make profits from the forex market quickly.
However the second and far more important aspect to trading has little to do with strategy at all. This is where many traders experience loss and ultimately failure.
This second vital ingredient is that of psychology. Specifically the psychology of the individual trader.
Depending on who you listen to your psychology accounts for up to 99% of your success in trading forex. If this is true then obviously only 1% is down to your strategy. This seems improbable or even ridiculous but is it? What is more well known is the fact that the vast majority of traders lose their shirt trading the forex market. Just maybe then there is some value to looking deeply into your psychology before you enter the forex market.
By the way, do you want the formula for building a full time income through trading the foreign exchange - forex - currency market? If so, listen in to my next webinar here-- http://www.wealthcubed.com
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