torsdag den 8. september 2011

Things you should know about trading!

Things you should know about trading!


How difficult is it to trade on the Forex market? How long does it take to really be able to make real trades?




Trading on the Forex market has many advantages over other financial markets, the most important are: superior liquidity, market 24 hours, better performance, and others. Traders and investors see the market for a new foreign currency speculation because of these advantages. Does this mean it is easy to make money on the Forex market? Not at all.


Brokers confirm that 90% of traders end up losing money, 5% of traders end up in the balance and only 5% of them arrive at positive results. But is it more difficult to control trading that control other activities? I do not think so, if we're talking about musicians, writers, or even other businesses, the success rates are substantially the same, there are a whole bunch of them who have never had the upper hand.

Now that we know it is not easy to achieve results, why some traders come to success while others fail to do so? There is no firm answer to this question, or recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think differently. Yes, they do not follow the crowd, they are an independent part of the crowd.
A few things that separate top traders from the rest are:

The forex education: They chose to learn all the unique and important aspects of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong. The money management: avoiding the risk of ruin is a primary subject for the best traders. After all, you can not succeed without fund your trading account. Trading psychology: They are aware of all the psychological problems that affect the decisions made by traders. They agreed that each individual can arrive at two likely outcomes, and it can not be always on the winning side. The trading system: the traders have their trading system. They follow it rigorously, because they know that only trades that are reported by their system have a higher success rate.


These are, among others, the most important factors influencing the success rate of traders.

We now know that it's not easy to trade, but it's possible. We also discussed the most important factors influencing the success rate of traders. But, how long does it take to get positive results? This differs from one trader to another. For some, it could take a lifetime, and still do not get the desired results, for others a few years are enough to get results. The answer to this question can vary, but what I am making here is that the negotiation is not something you can do in one night.


Successful trading is not an easy task, a process that can take years to achieve the desired results. There are some things that every trader should consider that and
could accelerate the process: having a trading system, using the money management, being aware of psychological problems, and follow your trading system with discipline and your trading plan.


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