Forex trading is no doubt the most lucrative profession in the universe, with less physical stress but more mental analysis. A successful Forex trader is more or like a financial god with access to unlimited funds. With almost 5 trillion dollars trading volume available in the market daily, the Forex Market can be regarded as the most liquid market in the world, some folks even regard it as an Online ATM machine.
However, as easy as it sounds with all these qualities, the Forex market is a very complex platform to earn a consistent source of income if a trader fails to follow some peculiar protocols. To be candid from my years of experience trading is more of psychology than methodology due to the fact that it deals with the human emotions which we all have embedded in our genes.
To be successful in trading a trader needs to balance all elements of trading which includes a balanced psychology, sound trading strategy, tight money management and realistic Return on Investment (ROI) on monthly basis. Most new bee traders have a wrong impression about the Forex profession, thinking Forex is a get rich quick scheme. One needs to be disciplined, patient and most of all tolerant.
There are several strategies out there in trading the Forex market but one has to select the best of the best. A strategy that suits your individuality either based on the fact of its winning rate or risk to reward ratio. Moving from one strategy to another is one of the most disastrous cancer in the Forex business. Improving a particular strategy and sticking to it is the best way to trade and be profitable. One thing i have realized is that every strategy has its draw-down period. There is no holy grail in trading, once that fact is accepted, a trader performs better.
During my early years in my trading career, i became too knowledgeable about the market due to unlimited search for knowledge to conquer the market. I kept learning endlessly to the extent i ended up having a reason not to pick a trade signal. The funny thing is even if i ended up managing to pick a trade signal, there was always a reason to close the trade prematurely. Then i finally realized the problem isn’t the market, the problem is with me. The truth is no one can completely conquer the market no matter the research one involves into.
I am not saying research is not imperative in Forex trading but it should be within the boundary of the particular trading strategy one makes as a choice. To be truthful, i believe sticking to one trading style would bring more peace, good health and most of success to a trader. Friends, family members and neighbors are only interested in the material things you can show for your success in your profession not what you know. Knowledge that cant be converted to wealth is useless. The most successful strategies in Forex are most times the most simple trading strategies and requires less brain stress and time.
As the saying in the book of Ecclesiastes in the bible, too much of knowledge brings grief and too much of wisdom brings sorrow. In trading, try not to be inquisitive to know it all because you can never know it all.No matter your analysis, the market would always move where it wants to. As long as you got a simple strategy that keeps giving good returns, do not fall into the category of traders that gets paralyzed by analysis.