Learning to trade profitably on a regular basis is something that can be very elusive to most traders, especially in the beginning of their trading careers. It almost seems a little bit like you are a rabbit chasing a carrot that is always just a little bit out of your reach, until you figure out just what it takes to learn to trade profitably. Making consistent money trading the forex market is something that most traders do not achieve simply because they don’t know what it takes, or they don’t have what it takes.
To become a consistently profitable forex trader you must have a trading strategy that is truly effective in any market condition and that will not become less effective as time goes on. What we are talking about here is basic chart reading skills; if you can learn to interpret and make educated predictions on the possible future direction of the price of a forex currency pair based on reading the dynamics of price movement, you will have the ability to develop a very effective trading strategy.
That being said, the particular trading strategy one uses is only a small part of the entire forex trading puzzle. If you want to learn to trade profitably you are also going to have to work on yourself. By this we mean that you will need to learn to master your own emotional impulses and feelings towards forex trading. As you learn to trade the forex market you are going to experience some new feelings that you likely have not felt before, having real money on the line and being able to watch this money move for and against you can really evoke some strong emotions. So, in order to learn to trade profitably you will have to develop not only a “trading” strategy, but also a strategy to deal with your emotions until you get to the point where you have firmly set in place the correct trading mindset.
• Why learn to trade?
Everyone gets interested in trading the forex market because they want to make extra money, or they want to get rich, or they want to quit their job, or they want to buy a Porsche. Unfortunately, most people concentrate too much on the possibilities of reward in forex trading and not enough on the possibilities of risk. As you learn to trade forex it is important to gain a thorough of understanding of both reward AND risk, you truly must believe that each trade has an equal chance of losing as it does of winning, this is the only way you will be able to effectively manage your risk.
Where most traders get themselves into trouble is when they begin to get convinced that “this” trade setup is a sure winner, they have never seen a better setup and they just “know” that this one will work out because it looks so perfect. They proceed to risk way more than they should, only to see the trade move against them, once this happens you are literally done, you will get sucked into a very difficult to break cycle of emotional trading that can even be difficult to recognize. So, the BEST way to avoid falling into this very common trap as you learn to trade is to just accept that you COULD lose on ANY trade, because if you really believed that than WHY would you ever risk more than you are comfortable losing?