You Want to Trade Forex, But…Who Are You?
Before you even get started in your trading career, one of the most crucial questions that you’re going to need to address is very simply, “who am I”? What this means, is what kind of a trader am I? And this is going to take a little time for most people to figure out.
The kinds of factors that will impact this decision will be things like time availability, personal demeanor and mental make up, capital available, etc. There is no right or wrong answer as to who you should be, scalper, position trader or whatever, in fact I have worked with many, many people who have become extremely successful, and some of them are strictly short term scalper-type of traders, others are day traders, and still others go for longer term movements.
It’s all good, but if you make the mistake of not settling in on anything in particular and you find yourself jumping around, trying to do everything, and never becoming consistent at anything, you’re likely going to have big problems.
Now having said that, if you’ve never traded before, you’re going to have to go through a bit of a trial period to find out what suits you. In other words, how are you most comfortable trading? And this is going to mean that, like most people, you’re likely going to buy a few different systems of trading and/or attend a few different seminars, and/or read different books and so on.
But don’t fall into the system chasing trap! You need to figure this part out, and do NOT keep switching from one type of trader to another over and over. You’ve just got to avoid the mistake of getting influenced by the tens of thousands of different systems out in the world that all sound so incredibly juicy.
And you know how it happens. It might start off by hearing about somebody or some system that just had a big profit trading some particular style in some particular currency pair. So that really gets your attention. So naturally you get all excited! You try it, and sure enough, it doesn’t work! So…on to the next one that sounds even better. Bad cycle!
This is the sort of lure that so many people get drawn towards over and over and over. The point is, figure out the way you want to trade that suits your unique profile and personality the best, and do your own thing—not somebody else’s. LEARN how to trade.
The really important thing that you’re going to need to do is very simply, be honest with yourself. So when it comes to trading, you may say, “Hey, I’ve test-driven several different systems or market approaches, I know I don’t have the patience to hold onto a longer term position, so I’m just going to focus in on short term trading”, or it may be the opposite: “I don’t have time to be at my screen all day long, I’m more of a position trader, so I’ll structure a trade accordingly”. Or whatever it is for you, you get the idea.
Again, when you first start out, it’s very likely that you don’t really know for sure the kind of trader you are, so you’ll want to try a few things out. And that’s OK—up to a point! Just don’t become a system junkie.
In the meantime, I would highly recommend using a demo account until you’re settled. The market doesn’t care how much experience you do or don’t have, and they’ll happily take your money if you’re ill prepared!
All the best!
Vic Noble
**This article is an excerpt from an e-Book of mine. Get this e-Book FREE, plus 7
great videos on key trading concepts that I believe will genuinely help you.
http://www.forextradingandeducation.com/wp/free-fx-training/
The kinds of factors that will impact this decision will be things like time availability, personal demeanor and mental make up, capital available, etc. There is no right or wrong answer as to who you should be, scalper, position trader or whatever, in fact I have worked with many, many people who have become extremely successful, and some of them are strictly short term scalper-type of traders, others are day traders, and still others go for longer term movements.
It’s all good, but if you make the mistake of not settling in on anything in particular and you find yourself jumping around, trying to do everything, and never becoming consistent at anything, you’re likely going to have big problems.
Now having said that, if you’ve never traded before, you’re going to have to go through a bit of a trial period to find out what suits you. In other words, how are you most comfortable trading? And this is going to mean that, like most people, you’re likely going to buy a few different systems of trading and/or attend a few different seminars, and/or read different books and so on.
But don’t fall into the system chasing trap! You need to figure this part out, and do NOT keep switching from one type of trader to another over and over. You’ve just got to avoid the mistake of getting influenced by the tens of thousands of different systems out in the world that all sound so incredibly juicy.
And you know how it happens. It might start off by hearing about somebody or some system that just had a big profit trading some particular style in some particular currency pair. So that really gets your attention. So naturally you get all excited! You try it, and sure enough, it doesn’t work! So…on to the next one that sounds even better. Bad cycle!
This is the sort of lure that so many people get drawn towards over and over and over. The point is, figure out the way you want to trade that suits your unique profile and personality the best, and do your own thing—not somebody else’s. LEARN how to trade.
The really important thing that you’re going to need to do is very simply, be honest with yourself. So when it comes to trading, you may say, “Hey, I’ve test-driven several different systems or market approaches, I know I don’t have the patience to hold onto a longer term position, so I’m just going to focus in on short term trading”, or it may be the opposite: “I don’t have time to be at my screen all day long, I’m more of a position trader, so I’ll structure a trade accordingly”. Or whatever it is for you, you get the idea.
Again, when you first start out, it’s very likely that you don’t really know for sure the kind of trader you are, so you’ll want to try a few things out. And that’s OK—up to a point! Just don’t become a system junkie.
In the meantime, I would highly recommend using a demo account until you’re settled. The market doesn’t care how much experience you do or don’t have, and they’ll happily take your money if you’re ill prepared!
All the best!
Vic Noble
**This article is an excerpt from an e-Book of mine. Get this e-Book FREE, plus 7
great videos on key trading concepts that I believe will genuinely help you.
http://www.forextradingandeducation.com/wp/free-fx-training/
0 comments:
Post a Comment