How to Become a Currency Trader
Can anyone become a currency trader from home? The answer is yes, everything about successful currency trading can be specifically learned, by anyone with a desire to succeed but you must avoid common Currency myths and work on getting the right FOREX education.
Anyone can learn Currency trading here's the Proof
A graphic illustration of how anyone can learn to trade was provided by legendary trader Richard Dennis - who took a group of people who had never traded before and taught them to trade in just 14 days.
They went on to make $100 million dollars in 4 years and many became trading legends. This group Known as the turtles conclusively proved that everything about trading can be specifically learned.
But how do you go about becoming a currency trader and making regular FOREX profits?
The answer is you don't need to work hard – but you need to work smart and just as importantly, get the right mindset for success.
Currency trading success is based on a sound logical FOREX trading strategy but also relies on the discipline to apply it, through periods of losses and to enjoy longer term success.
If you don't have the discipline to apply your method, you simply don't have one!
The Basics of a Sound FOREX Trading Strategy.
- It should be simple – all the best currency trading systems are, as they tend to be more robust than complicated ones which have too many elements to break.
- The simplest and most time efficient way to trade is by using technical analysis and study FOREX charts. Here you need to isolate and spot important levels of support and resistance and then trade looking for the level to hold or break.
- A Good FOREX trading strategy will NOT try and predict in advance but will act on the reality of price momentum changes – either looking for these levels to break or hold, by measuring the velocity of price.
- You should never try and predict - you should use some momentum oscillators to confirm the moves and then execute your trading signal. You should keep in mind that some of the best high odds trades come from breakouts of new highs or lows and going with these breaks can yield substantial profits.
- Try and keep the rules of your trading system as objective as possible – if you have too much subjectivity in your system, your emotions can get involved and you will lose.
- Always assume the worst when you place your trade. Calculate your loss and make sure you have a stop in place – never use a mental stop.
The easy bit is getting your currency trading system together it should only take a few weeks study, the hard part is applying it with discipline.
To Win You Must Have This!
Discipline is a hard trait to acquire for most traders.
To acquire discipline, you need to educate yourself and know everything about the currency trading system you are going to use.
Only by having a complete understanding of how and why your system works, will you acquire confidence in its ability to be successful and from this confidence comes discipline.
The reason many traders don't succeed is they blindly follow experts and systems they don't understand. As soon as they hit a few losses, their discipline goes because they don't have confidence in what their doing.
The biggest mental barrier for any trader is executing his trading signals in the face of consecutive losses (all traders will have them and they can last for weeks or months) and it is in these periods that you must stick with your system and not throw in the towel.
It sounds easy to do but is anything but – it's very hard. If you want to achieve success you need to base your strategy on the right knowledge to obtain confidence and achieve discipline.
Work Smart NOT Hard
If you want to become a currency trader you don't need to work hard as we have said you need to work smart AND treat it like you would any other business – one where you have to learn the basics and understand what you are doing. While this may sound obvious, it's surprising how many traders thing FOREX trading is easy. They think they can follow some mentor blindly, or a story from the news and make money – it's not that easy and you wouldn't expect it to be, with the rewards on offer in FOREX trading.
If you want to become a currency trader from home you can - if you have the desire to succeed and a willingness to work smart and learn the right knowledge.
If you invest time and effort in becoming a currency trader you could enjoy currency trading success and you could set yourself up with an income stream that can create significant wealth. If you want to become a currency trader anyone has the potential but it's up to you to realize it.