Forex Trader? Success? When?
The saying goes that it takes 10,000 hours to become a master of any skill — at least that is what Malcolm Gladwell once said in his book “Outliers.” Why does it take so long? Well, firstly, people are different. Some may be able to learn faster than others, but the truth is that very few people will go from zero experience to expert forex traders in just a matter of months. It just doesn’t work like that.
It is said that forex trading is not for the faint of heart. Trading in the world’s most liquid and volatile markets requires one to be well-versed with various skills, ranging from the technical to the fundamental.
If you’re serious about making a living as a trader, you need to know how long it will take you to reach your goals. Of course, it depends on what kind of trader you are. But for most traders, success takes three to five years on average.
Intuitive trade-entry and trade-exit.
You will be a newbie trader for a few months. Then, you’ll be an intermediate forex trader for a year or so, and then it takes time to become an intuitive trader.
Intuition is the ability to make sound judgments or decisions quickly. It knows something instinctively, without being able to explain why you know it. In trading terms, intuition is the ability to understand what price might do next based on experience and knowledge.
Most traders have gained this knowledge by experimenting with different strategies in their trading journals. Some traders develop this intuition faster than others because they focus on developing one system at a time before moving on to another strategy.
If your intuition is telling you that the price might drop, then don’t enter a long trade if certain conditions are met because that would go against your gut feeling.
When your trading intuition tells you that the price will turn because of obvious technical reasons, the price doesn’t turn as expected. It’s not destructive if you go against your gut feeling (but only when there are technical reasons).
Psychological stability.
Forex traders must have healthy psychological stability. Otherwise, the fear of losing money may affect the quality of decisions. A trader with a good state of mind will be able to objectively evaluate the financial situation and not let their emotions drive trading.
When you trade currencies, you should always be prepared to lose your investments, but at the same time, don’t expect to lose every time. The key is to accept that you can’t win every time and try to minimize your losses by developing an excellent psychological strategy. This is where discipline and experience come into play.
Stamina, a lot of stamina.
It is essential to understand that there will be tough times. There will be hard days, weeks, and even months. As a new trader, you must have the stamina to push through these times. You cannot give up after a string of losses or one massive loss. You must have the ability to push through till you are profitable again or till you hit your goal for the month, quarter, or year. Once you have developed this consistency in your trading, it should become easier over time but do not think it will ever be manageable!
Here are some tips for staying consistent:
- Think about why you started trading and what values you want to achieve with trading
- If there are specific financial goals, write them down and hang them up where they can be easily seen (on the fridge is a good place)
- Trade in small enough sizes so that no single trade is going to hurt more than 1-2% of your account (this makes it easier on yourself psychologically)
Flexibility to adapt to market conditions.
A forex trader must be flexible. There is no other way to remain successful over the long term in the ever-changing market. If you are the type of trader with a strict and inflexible trading system that cannot be changed under any circumstances, you will have a hard time being a successful forex trader.
How can a forex trader become flexible? What does it mean to be flexible in trading? Let’s look at this from both sides.
First of all, you need to understand that the market changes. This is something that many traders don’t realize, and then when they do, they already have their mindset about what works or doesn’t work in the market.
Instead, it would be best if you kept an open mind regarding trading strategies and systems. You should always be willing to try out new things even if they sound crazy at first glance because they might work for you!
As a trader, you must first understand what the market is doing and why it’s doing it before you can decide where it should or shouldn’t go next. This means you need to be flexible with your strategy and trading hours so that you don’t get caught off guard by sudden movements in the market. The key here is flexibility, which means adapting quickly as conditions change (like markets evolving). And if things don’t go your way with one strategy, then try another one until something works out better for you!
It takes at least 3 to 5 years of forex trading to become successful.
The length of time it takes to become a successful forex trader depends on the person. It depends entirely on your willingness to learn and put in the effort.
Just like any other form of education, if you don’t have complete dedication, you will never make it to the end. This can be frustrating for some people who start trading with great expectations only to find out that they are still unsuccessful after all their hard work.
There’s a big difference between being good at something and being an expert. You may only need to put in a few weeks of effort to learn the basics to be good. However, to truly master any subject, it takes years of practice and serious dedication. Forex trading is no exception, which is why most traders fail.
The key here is experience, which, as we all know, is always directly related to time. You will not see good results until you’ve put in at least 3-to five years of solid trading, working daily on improving your skills and mastering your trading strategy. It takes time to become a successful forex trader because you need to learn and master many different things:
- What do you want from trading?
- How much capital do you need?
- Trading strategy
- Emotional control/stress management
- Consistent and disciplined trading habits
- Accounting and tax laws related to currency trading that may apply to your circumstances
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