85% to 95% people who start forex trading end up losing money. Just Google the stats.
What is the biggest key or skill required to run a successful home forex business?
Trading skills fall into two groups.
Firstly, possessing the technical knowledge of the trading platform, the markets, how to read charts and how to adopt the correct trading strategy. Secondly, possessing the correct attitude, the right mind set.
When I started trading, I was amazed to see how the currency markets were ganging up against me! I noted how I managed to enter a trade for the right reasons and the market reversed immediately moving in the opposite direction to where I thought it ought to go, And within a short space of time, I lost money! It seemed to me that the market behaved like a wild stallion, full of untamed power ready to throw off me the rider at every hurdle.
When I was learning trade, I can recall the number of times I was almost "begging" the market to fall in line with my trade, to get me back into profit, to help me achieve the one big trade that would wipe out all previous losses.
It took me a while, but I had my "eureka" moment one day when I realised the secret key to the padlock that was keeping my mind in chains.
The secret key to forex trading, more important than any technical analysis skills, more powerful than possessing knowledge of the influences of governments, economies and companies is so simple it is overlooked by vast majority of traders. And the key is "no emotions".
Your emotions are in charge if you get frustrated by your losses, if you get very excited by your wins, if you are chasing trades to make profit; if you are beginning to think that forex is a waste of time or a scam.
It is your emotional attachment that will stop you from banking your profit when you have reached your desired goal (greed is an emotion); that will stop you from pulling out of a losing trade in the belief that things will turn around (fear of loss is an emotion); that will get you to enter a trade because you feel the market will move in the direction you would like (feelings are an emotion).
One of the best on removing "Trading the zone" by Mark Douglas which looks at emotions in trading. Highly recommended.
At this point, I would strongly encourage anyone to access Mr Spocks Forex Trading School. Although a Vulcan mind management 101 forex course would be worth its weight in gold.
Forex trading, has no room for emotions, forex trading is only successful when trades are planned and executed ruthlessly and without any emotion.
Never forget though, the forex market is a wild stallion, that will not be tied down and able to plunge any trader of its back. At most all a trader can do is to try to predict how the market will perform. Just when a trader thinks that trade has a 100% chance of success, something will happen and a guaranteed win will become a loss.
There is only one certainty in forex trading and that is there is no certainty in forex trading. That does not of course mean that forex trading is a case of luck
Everyone must create their own trading strategy. However, I would strongly encourage anyone starting in Forex Trading to find a way of ensuring that work on developing the right mind set for trading.
So whether your strategy is based on technical analysis or trading the fundamentals or it is essential that the trader has the right attitude. That is the single most important key to running a successful home forex business.
Kaz Kowalski has been providing specialist project management support on a number of high profile projects across a variety of industries including Banking, Information Technology, Telecommunications and other industries for over for over 20 years. He has always had an interest in personnal growth and financial security. Setting up a home forex business became his preferred way of achieving financial independance.
