How Long Does It Take To Be A Profitable Forex Trader?
The question most new traders do not ask? How long will I be losing for? How long, on average, will I be unprofitable?
Most entrepreneurs, who are seeking capital from investors, ask this question so that they’re not under pressure to turn a profit while a business is in its incubation period.
Why don’t traders have this same mindset?
What should you expect when you start learning how to trade Forex? Truth is, everyone has a different journey and learning curve. Some people are self-taught, others learn from a mentor or a course.
The 2nd option will cut your learning curve IF you learn from the right people. If you can avoid the scammers and fakes out there, you will still have to find a mentor who teaches you a trading style that suits you and in a way you understand.
That’s what can separate taking 1 year from 3 years (or even more) to become a profitable trader.
Learning how to make money by yourself will probably take more time than learning from somebody who has already found a profitable edge that you can just learn and execute in the markets.
Even if you manage to find someone with an edge to teach you, they cannot teach you the psychology behind making that strategy a profitable one.
When you start to learn how to trade, what you’re actually learning do is how to master your psychology, so that you’re able to execute a system through its losses and wins consistently.
The technical aspect of trading will probably take you a couple of months and you will be equipped with the tools to be profitable in the market.
So then why does this process normally take so much time? The one obstacle that takes traders different amounts of time to get over is the ability to BEHAVE and consistently EXECUTE trades.
They know what they do works. They don’t second guess their strategy after a couple of losses and that, honestly, takes time and practice.
Seeing the results over and over again. Again, this process is much easier if you’re learning from someone profitable, but doing it on your own can be tough. That’s why back-testing a system can help give you confidence in trading a particular system.
How to prepare
The best thing you can do if you know that, like a business, your trading will have an incubation period, is to prepare for it. How?
Well, NOT by quitting your job to START LEARNING how to trade full time. Make sure you have some sort of income or savings that can hold you down while you learn how to trade.
I can assure you that when you start learning how to trade, you will not be making any money. You will probably be losing money.
The amount you will lose is totally up to you but what you are learning, as I mentioned earlier, is the skill of being able to trade invariably.
Another way to prepare is to backtest. So if you’re trading a profitable strategy but you aren’t able to realize any profit while trading live. You’re not consistent enough yet, YOU, not the strategy.
Practice executing the strategy and the results will give you the confidence to trade more consistently. It’s just a positive feedback loop.
Another great way to prepare is to trade small! Trading small is probably the smartest thing since you KNOW you’re going to be losing money for a while.
Once the results start to show up, you can increase your capital and trade bigger. Practice managing risk on a small account and the same principles will apply to a larger one.
To answer the question, as soon as you can execute a profitable strategy consistently you will become a profitable trader. That may be helped by buying a course or some serious backtesting.
But that’s what you should be aiming for. It is harder for some traders to execute consistently but we all have to make it past whatever obstacles we have to to get there.
Don’t bet the farm
Don’t lose your shirt
Cut the L
Keep the W