Is it hard to make money in the Forex market? How Long Does It Take To Really Make A Living Trading In The Forex Market? These and other important aspects of trading should be discussed in this article.
Trading in the Forex market has many advantages over other financial markets, among the most important: superior liquidity, a 24 hour market, better execution, etc. Traders and investors see the Forex market as a new speculation or an opportunity for diversification because of these advantages. Does this mean that it is easy to make money in the Forex market? Not at all.
Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at breakeven point, and only 5% of them achieve consistent profitable results. With these statistics displayed, I don't consider trading an easy task. But is it harder to master another business? I don't think so, consider musicians, writers, or even other companies the success rates are about the same, there are many that never made it to the top.
Now that we know that it is not easy to achieve consistent profitable results, a compelling question would be: Why do some traders succeed while others fail to trade successfully on the Forex market? There is no hard answer to this question, nor is there a recipe for you to achieve consistent profitable results. What we do know is that traders who reach the top think differently. That's right, they don't follow the crowd, they are an independent part of the crowd.
Here are a few things that separate the best traders from the rest:
Education: They are very well educated in the subject; they chose to learn every unique and important aspect of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove to them that they are wrong.
Forex Trading System: The best traders have a Forex trading system. They have the discipline to follow it rigorously because they know that only trades that are flagged by their system have a higher success rate.
Price behavior: They have integrated price behavior into their trading systems. They know price action has the final say.
Money management: Avoiding the risk of ruin is a paramount topic for top traders. After all, you cannot be successful without funds in your trading account.
Trading Psychology: They are aware of all the psychological issues that affect the decisions made by traders. They accepted the fact that each individual trade has two likely outcomes, not just the winning side.
These are, among others, the most important factors that influence the success rate of Forex traders.
We now know that it is not easy to make money in the Forex market, but it is possible. We have also discussed the most important factors that influence the success rate of Forex traders. But how long does it take to get consistent profitable results? It is different from a trader to a trader. For some it can take a lifetime and still not get the results you want, for others a few years is enough to achieve consistent profitable results. The answer to this question may vary, but what I want to clarify here is that successful trading is a process, it is not something that you can do in a short period of time.
Trading successfully is not an easy task; it is a process that could take years to achieve the desired results. There are a few things that every trader should take into account that could speed up the process: having a trading system, using money management, education, being aware of psychological issues, discipline for follow your trading system and trading plan etc.