Dear Trader

To the trader

Trading is a skill learned over a long period of time.

If you are a new trader entering into the world og trading this is something that is very important to realise.Trading is a skill learned over a long period of time.If you have heard from a friend, coworker or just stumbled into someone or something on the internet saying that trading is the new trendy thing in becoming rich quick ! double your account over night ! or something in that region, you must realise that these statements are wrong, or maybe not wrong but were unrealistic, sure if you have a capital of 1 mil dollars and you luck into the right site of the market and you position size is very large you can surly make a lot of money over night or maybe in just a couple of hours or minutes, but to you a must say, its much easier going to the casino and put everything on red or black, safes you the hassle of creating an account, finding a broker, paying the fees and spread. But to you the ” normal ” person, the person the wants to get good at trading, to you that understands that trading is not going to the casino and doubling your money overnight, to you that realises that trading is a skill, something to learn, to understand, to master is say, Welcome to www.forexviewers.com

Rome was not build in a day, or was it ?

Well since you have continued reading this article i think it is safe to say that you realise that trading is not one of the get rich quick schemes. The quicker this becomes apparent the better. So let us ask the question is it possible to make money in trading ? An the answer is simple, Yes you can. Earning money is relative to size, is finding a penny on the street earning money ? To you finding a penny is probably not a big deal, but what if you find a dollar, or ten dollars or even one hundred dollars ? does that make a difference ? what if you find a dollar a million times over. Like i say earning money is just relative to size and how you look at it, as long you are in the positive you are making money. This analogy you can well use to describe the markets and the process of making money. It is very important to know when you first start of in your trading journey, that it is alright “finding” a penny, you take that penny and you take it proudly! One day you will be able to make a dollar or ten, hundred or even thousands of dollars, Rome wan not build in a day, or was it ?

The “J-O-B” Joy of becoming !

Do you like your job ? if not, keep reading. Do you want to become a trader ? if so keep reading. Do you want to become financially independent ? if so keep reading. Don't you have a lot to invest right now but you want to become a trader because you think it is fun, you have the drive to become one and it is your dream to earn a lot of money in the future ? Is so, read the following answer to all your problems and the way to get and become all you always knew you could be in life. Answer = Keep your job, safe money, work hard on your dream in the little time you got to spare, visualise your dream coming true. Not the answer you were hoping for ? Well thats life folks. To do anything in life you have to work at it. I am not talking about working hard, I'm talking about WORKING HARD ! There is no way around working hard, you have to want it and when you want something so bad, the work, well its boring at times but when you have a goal, a dream it stings a little less having to do all the work. One day your dream will come true, but only if you are ready to do the work.The J-O-B or the Joy Of Becoming is something you will have to master. You do not have to look very hard to find successful people telling you that the greatest success came after working day and night to create the outcome of your dream, yourself. I must say i would not mind winning the lottery, but i can say with great confidence that i would rather work my way into success, feel the joy, feel it deep in the core, say to myself, ” yes, you did it ” Isn't that what it is all about ? or do you just want money and don't want to do any work ? You could always try robbing a bank or playing in the lottery the next 40 years, you could get lucky ! who knows.

How to make Money in Forex

The reason any of you are reading this is probably because you want to make money in the forex market or any other market. Well there is no simple way to do that, why not ? because trading is not simple it is a craft learned over time and with effort. Mikel Jordan was not bored great, he practiced and he practiced a lot. He did not become one of the greatest athlete in the world by half assing it, he became great because he practiced day and night. And if you do the same so can you. There are still some basic principles to the subject on how to make money in forex.

1. Have a trading plan

Having a trading plan one could argue is the most important thing to have if you are planning on having a trading career. So what is a trading plan and how do i make one ? Making a trading plan can be a difficult task, and it is something that everyone should have before trading life money. You could think of your trading plan as the book that has all the answers, kinda like a cheat sheet in that manner that when you have a question on a trade you are taking or thinking about taking it tells you the answer Lets say you are looking over the markets and you see a spot that you like, the next thing is to check your trading plan on if and how you could enter that spot. If you do not see any reason in your plan to enter, well the book that tells you all has just told you to stop thinking about that spot and move on. If you do see a reason for entering you do so. Then you will need to know how and when to get out of that trade, what do you do ? Yes you take a look in you plan, it should say how and when you should get out. The trading plan should cover every aspect of your trading, whether you are a structure trader, pattern trader, fundamental trader, it does not matter. If your trading plan does not have the answer, you do not take the trade.

2. Backtest your strategy

The most boring thing you can do while taking your journey in becoming a success is the backtest, well at least for me it is / was. While you hear and read on the internet about this and that, this is the ultimate strategy, that is the best one, you will never know unless you check it out for your self or does the internet never lie ? There are many good and profitable strategies out there but there are also some that are just scams and simply do not work. The only way you will know for sure is if you take a look at the charts, go back years and years and see for your self if setups and strategies that are being made and fed to you via the internet,work. This is the part among other parts where most beginning traders fail to master, why ? because it is a lot of work. The second reason for backtesting is building you belief system, you must backtest every system and strategy so you can belief that it works, because at the end of the day, if you don't belief your system works during the times of drawdowns you are destined to fail.

3.Passion for the markets

This is one of the easy ones to master. It is safe to say that if you love doing something then it doesn't feel like work ( even though it is. ) If you have a passion for doing something,doesn't matter what it is, whether being sports, music or the markets, when you love doing something and you have a goal and you are ready to fight to make that goal or your dream come true, in most cases it does. Have a passion for what you are doing and life will treat you a hole lot better.

4. Patience – discipline – determination – Consistency

This can be the three harder things to master. It takes a lot of mental battle on your part, especially if you do not practice these things in your day to day life. I am here to say that, even though you are very un patience it can often pay to take a step back and breathe although i encourage you to match you trading style to your personality it can leave to a quick minus on your account not to master Patience and discipline. You will have to find the right balance in your trading style, both to match your personality and to keep your self from going broke. Like so many things in life, it does not matter if you fall ones or twice, you will have to have the determination to keep getting up. If it is not hard to do, its not worth doing at all ! Keep you chest up and grind your way to the top

5. Psychology

Now to talk about the most important factor of trading, Psychology. They say that learning the skill of trading is something that anyone can do, I'm not the one to argue any different. Everybody with the passion, and the ability to learn can in fact learn this skill we call trading. But trading is not for everybody, if you do not have the mental “health” to withstand what ever the market may throw at you, you will nor make it in this business. It is with great importance i say to you that you will have to train your mind. Unfortunately not all of us do so, most of us come into this industry thinking that we can handle the “pain” of trading, just set the trade and let it run they keep telling me, and well, you should, but when push come to shove most of us are scared, scared of loosing, scared of missing the trade, scared of pulling the trigger, scared of failing and being wrong, and when that happens, well you all know what it feels like when you set your self up to fail, you usually do. To trade you need to have the confidence to know that you have done the best you can and it is out of your hands, for you parents out there it can be a lot like sending your little boy or girl off to collage or letting them have their first vacation abroad with friends. When you do all the “right” things there is no need to feel scared of loosing or failing, you should have your trade set up in that way that even though it fails, over time it should make you money, or did you not backtest your strategy ?

6. Money Management

A great beast to tame in it self. When using money management you are basically controlling your position size, whether being increasing or decreasing you size. Money management is typically set up into calculated algorithm or spread sheets. This is a powerful tool to have in your arsenal. With the right money management strategy your can drastically increase your profit but we advise you from jumping to increasing your position size after having a good trading day or two. Money management sheets are specifically designed and calculated strategies that are made to maximise your profit but with the wrong one you can easily drop dawn from profit to blowing up your account. Advise a professional about these matters because it is very important to know what you are doing, when to increase and when to decrease your position size.

These are some of the many important factors you will have to master, some are just training the mind and some are things you will have to build, build a trading plan, building you belief system. Remember that trading is a skill, learned over time just like anything you want to be good at. Have patience in your self and never give up on your dream.