Forex and Freedom

While successful forex trading can free us from waking up to the sound of the alarm clock, commute to the office and smile to the boss, it still requires discipline and takes time. There are no shortcuts. Becoming a successful trader does require some characteristics of a day job.

The Forex Guy wrote about the patience that is needed for forex traders, and touched an interesting point – forex traders want to be free of their jobs and their bosses. I’m following up on this point. Here are the characteristics:

Education: While you don’t need to spend years in college, basic education is necessary. It can either be done in a forex course, by hiring a coach or by studying alone, if you are disciplined enough. In any case, education cannot be avoided.

There is a currency that always goes up

Stock markets go up and down. During these troubled times of a global economic crisis, stocks are tumbling down. Even on the day of Obama’s inauguration, stocks went down.

In the Forex market, trading is in currency pairs – which means that when a currency weakens, it loses ground to another currency. So, there’s always a currency that goes up.

In the past few months, the currencies that went up are the US dollar and the Japanese Yen, while European currencies such as the British pound, Swiss Franc and the Euro went down. Also the Swedish and Norwegian currencies have suffered.

Top 5 Characteristics of a Successful Forex Trader

Not anybody can be a Forex trader. Trading occasionally, as a side income or professionally requires certain skills and characteristics.

Are you up for it? Here are 5 critical traits that any trader needs.

1.Seeing the big picture: Are you able to separate the small details from the bigger picture? This is critical in two aspects. First, separating the current movements from the bigger trend. The second aspect relates to money management: being able to separate your current trade from the situation in your account and the bigger plan.

2.Patience: Too many traders lack the patience to educate themselves before jumping into a trade, or don’t wait for a really good opportunity, as Andriy mentions. Others don’t wait long enough for their trade to run its course. Or, upon meeting success, they have the patience to continue trading in the same position sizes, and quickly double the positions, hoping to win more but actually burning their account fast.

4 Hot Tips That Will Kick Your Forex Trading Career Into Overdrive!

1. Develop a trading plan and stick to it.

Trading is just like any other business if you don’t have plan of action you are destined to fail. A trading plan is a necessity because without one you are just gambling. A good trading plan will have defined rules that tell you: when to take a trade, how much to risk, and when to exit a trade. It is important that you develop a trading plan and adhere to its rules if you hope to be a successful trader.

2. Learn To Accept Losses.

Losing is a part of trading and you will never escape it. As human beings we seek perfection we want to believe that if we can just find the right method we can trade the markets flawlessly and never take a loss. Unfortunately that is not the case as even the best traders in the world take losses it’s a part of the game. The key however is to not fear these losses but to simply expect them to occur and to manage your risk accordingly

8 Basic Must Know Forex Trading Terms

The Forex or foreign exchange market is a group of traders conducting tens of trillions of dollars worth of trades 24 hours a day, six days a week. When the Forex or FX market is in session, individuals, governments and major banks all over the world trade currency pairs with one another constantly. Mere seconds can mean the difference between making and losing money, and those same seconds can equal the difference between small and large changes in one’s wealth.

Forex

The Forex or foreign exchange market is a group of traders conducting tens of trillions of dollars worth of trades 24 hours a day, six days a week. When the Forex or FX market is in session, individuals, governments and major banks all over the world trade currency pairs with one another constantly. Mere seconds can mean the difference between making and losing money, and those same seconds can equal the difference between small and large changes in one’s wealth.

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