A Forex Trader's Life
In the big bad world of Forex Trading, there are many misconceptions about what it means to be a Forex Trader.
This can be chalked up to a lot of things… Mainly Instagram, if we’re honest. People either think Forex is a get-rich-quick scheme OR a place where savings go to die. Neither is true.
Forex Trading is less to do with luck and much more to do with patience and skill.
As a Forex trader, your routine is everything and will differ from trader to trader, but the reason for a routine is what proves that Forex is a skill. Consistency is what brings results.
Forex Traders are risk managers first and foremost.
So the idea that it is possible to lose your savings trading Forex should be a sign that you don’t know what you’re doing, and that is not a bad thing.
It’s a good thing because you’re aware that you need to learn something. Don’t learn how to trade with your life savings. It’s not worth it.
What to Expect
Work! Hard Work! Self-Work! Profitable traders have had to do a lot of self-reflection and unlearning whatever bad habits they may have formed during their lives.
It’s non-negotiable. A way of thinking will have to be adopted. That way of thinking is always trying to improve yourself. Improving yourself will directly enhance your trading.
How you deal with your emotions when making (or losing) money will determine how effective you are as a trader.
So expect to be growing as a person constantly. Many people who have learned how to trade Forex, including me, can attest that the journey of learning how to trade will change how your approach life in general.
It’s a repeating cycle of self-mastery that will end up seeping into everything else that you do.
It can become repetitive once you’ve achieved profitability because once you reach a stage of profitability, you have to keep doing the same thing repeatedly.
Consistency becomes an essential thing.
When you first start trading. Just do that. Start trading, start learning. Don’t think about Lambos and traveling all over the world.
That can inspire you, but it should not be on your mind when you start trading and learning.
Don’t expect to start trading and start making a 1000% return in your first month of trading.
Did you follow your plan? Do you have a Trading Plan?
If you were able to flip your account without a plan, you would be better off withdrawing your money because it will be taken away by the markets if you continue trading without a strategy.
You need an edge first before you think of the kind of profitability you want from the market.
I’ve written an article on what to believe about traders you see on social media platforms here and whether it’s wise to look at the pictures or videos they post and attach those things to your expectations about trading Forex.
The same thing is happening with cryptos currently. Everybody and their aunty are making money trading or owning cryptos, and that should speak to people’s expectations to get rich quickly.
While it’s true there are massive gains to be made in the crypto space, a lack of education may find you in a position taking huge losses not because you’re a terrible person or you were unlucky, you just didn’t know what you were doing.
So don’t compare other traders’ returns to your own returns like for like because you don’t know what that trader knows or how that trader trades. If at all. But that’s a subject for another day.
Above All Else
Don’t be pressured into putting your money in things you don’t understand because you see people around you either getting lucky or reaping the fruits of the seeds they planted a long time ago after having done much due diligence and having put in the work that you haven’t yet put in. Take your time, and you will be rewarded.
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.