5 Things Everybody Should Know If They Want to Make Income from Forex
Wednesday, April 6th, 2011There are certain essential things that one must know about before they can ever plan on making income from the forex market. Here are my top 5 things that everybody must be aware of if they wish to achieve success trading the forex market:
1) Expect to have losses – I can’t begin to tell you how many people go into this industry and just expect perfection. Even if they don’t flat out say that, you can tell they were thinking like that because when they received their first loss, they were STUNNED. You’ve got to expect losing trades. There is no such thing as perfection in forex.
2) Don’t Treat This Casino – If you’ve got a gambler’s mentality, you are not going to make it far. You should be taking calculated risks, not hoping on a wing and prayer that each trade will be successful. Forex is both an art and a science. It’s not like the poker machines. Treat it as such.
3) Understand money management – I don’t care if you’ve got the greatest trading system in the world, if you are over-leveraged, you are destined for disaster. All it takes is just one trade to go the wrong way, and all your hard earned money is gone.
4) Handling Fear – For starters don’t ever trade with money that you can’t afford to lose. If this is the money that you use to put food on the table, then obviously you are going to be scared to lose it when you are in a trade. That’s when you know you are playing with scared money.
5) Handling Greed – On the opposite end of the spectrum, when people get in a nice winning streak, some of them have a tendency to feel as if they are untouchable, and they can control the market. These are the people you see getting a margin call a week later.
After you get the basics down, its important to what makes the market really tick. Its not as complicated as you may think. All it requires is a simple bar chart and the knowledge of price action.
