Forex trading is a complicated activity, despite being portrayed by some advertising campaigns as a shortcut to making money in a relatively short period of time. The reality is not rosy at all, and one statistic proves it: in the last four years, only 15% of traders have ended up in profit.
Yet, despite everything, it is possible to succeed in Forex trading and even become rich. However, it is necessary to take this activity seriously, investing intellectual and moral resources, maturing more and more specific knowledge at any point along the way. The advice that can be given is numerous; in this article, we will list three, namely those that do not strictly concern the technical part.
Trading Community
A saying goes that no man is an island. Well, this is also true for a decidedly individual activity like trading, and specifically currency trading.
Yet joining a community, and participating in it, can make a difference. This small but important truth might make those who have actually tried to attend a
trader community and got badly burned turn up their noses. It is not uncommon, in fact, for discussions to degenerate, for example in forums, offering the user nothing but stress and useless waste of time. The doubt, in fact, is not so much between choosing whether or not to attend a community, but
which community to choose.
A truly supportive community, based on principles such as the free exchange of opinions and pushing for the collective interest, and therefore in which individual goals are achieved through group work, is an indispensable resource for any trader, from beginners to the most experienced.
Why are communities important? First of all, because they "relativize" the work of each trader. Thanks to the testimonies of others, the user evaluates themselves from a different perspective, from the outside, and can finally understand where they are going wrong.
Then there is the very important chapter of sharing. In communities, at least in the "healthy" ones, strategies are shared with a social trading perspective, whose impact (clearly positive) is demonstrated by the experiences of thousands of traders.
The Mindset in Forex Trading
Mindset, beyond the necessary technical knowledge, is in all probability the most important element of trading activity. As with pretty much everything in life, after all.
What does it mean to have a winning mindset in Forex trading? The mental processes that distinguish the winning trader from the losing trader are essentially three.
Never give up. It's not an empty phrase, but one full of meaning. Never Give Up, in life certainly but especially in Forex, why? Simple, when trading, defeats are very frequent, so the desire to throw in the towel is perpetually around the corner. The tools, or rather the aids, to never give up are numerous. First and foremost, an unsuspected one: demo accounts. When defeats become too frequent, it's good to stop for a while and develop a new strategy. Once developed, it is tested on a demo to verify its adequacy.
Forgive yourself. It's hard to forgive yourself for a trading defeat, especially if it has generated a hard blow from a financial point of view. However, remorse is the number one enemy of mindset as it undermines self-esteem and reduces mental resources, useful, indeed necessary, for trading. One must therefore be aware that yes, one can make mistakes and there is nothing wrong with that. As long as you get up as soon as possible.
Banish extreme emotions. If the tendency to have low self-esteem is enemy number one, enemy number two is emotions, when they are too strong. This applies in both directions. Both fear and euphoria are harmful. Both, certainly with different effects, reduce lucidity and lead to error.
Training
Training is an essential resource for success in Forex trading. It should not be forgotten that any type of investment, if conducted personally, is a very risky but also very complicated activity. Venturing without a solid wealth of knowledge is a potentially fatal mistake. There are numerous stories of those who, driven by excessively optimistic advertising campaigns, approached online trading superficially, convinced they were about to play an easy-to-win game of chance.
The training path must be long and in-depth and must not stop at all once you enter the market. Indeed, it must continue forever. In trading as in life, you never stop learning. Of course, all traders are more or less self-taught but there are plenty of resources to study. In fact, there are printed manuals (important ones written by famous traders), essays, ebooks, video courses, live and online seminars. Many brokers also provide real training centers.
