This article first appeared on AsiaForexMentor.com.
Alot of times, I have people asking me.
I’m totally new to forex Ezekiel, what are some of the important things that i should know or learn before i start trading?
Look this guy really have the potential to make it is because most people who are completely new will just start diving into forex without knowing what’s needed to succeed.
To me, forex trading is a game.
It’s a game that once you found the way to win it, it will make you money.
What’s better than to play a game with a few clicks of the mouse and make money while at the comfort of your home?
This game is of course not as easy as it seems.
But the good thing is that, you don’t need a Master’s degree or Phd to win it.
Instead it needs another set of skills.
Some that you may have it, but most can be trained.
3 Important Skill Sets For Forex Trading
Analysis is just like reading a book in my opinion. For example when you are looking at the charts in the mt4 or any forex trading platform that you use.
You are actually trying to find out what is the chart telling you – this equals to learning or reading a book actually. In essence, you are reading a book and trying to derive the outcome.
Therefore, you must have the ability to try to understand what the chart is telling you. Just like what your friends or spouse is trying to tell you with just their body language alone. lol. All this requires a certain point of analyzing.
But i know, some men can never read woman. So maybe the charts are easy to read. 😉
Analysis is the core of trading, but it’s not as difficult as it seems. Analysis is a tough word, I say read what the market is telling you and try to derive the outcome base on what you have learnt from the chart.
Real traders learn how to analyze the market and try to derive an outcome with the highest probability. Prediction is never guaranteed. Consistent profits just come with high probability reading.
Patience is the trait of all successful forex traders. Successful forex traders are patient traders. It means the ability to wait for the right opportunity to enter.
And if there isn’t a good opportunity, we just don’t enter. Even if this means waiting for days.
This is just how the game is played, if you are not patient enough. You will lose – plain simple.
3. Precision Striking ability
Striking ability is the heart of trading. It’s like what lions are made to do, wait and when the prey is a worthy one (or the weakest link). Once it comes close enough, they will strike it in a heartbeat with little hesitation.
Alot of traders have the ability to trade, but when they spot a trade that seem good. They would have a little resistance in them, telling them not to trade. Or when they see a trade, they strike too fast without analyzing if it is really a good trade.
Precision in striking is important. Nothing too fast or too slow.
Too fast, you get in too early.
Too slow, the market will have shot up without waiting for you.
So you got to be lethal. Once you have decided that it’s a good trade. Pounce in with precision.
4. Mute your heart
Your heart is not your friend in forex trading. Your heart is the one that causes you to lose money.
They are the ones that bring out fear and greed. The 2 main killers in the currency market.
For example, when you enter a buying trade – meaning you want it to go up.
Scenario A: it went up, when your heart sees the profit, it will tell you to lock it in. Because what if it reverses back down, then all your profits will be gone. (GREED)
Scenario B: The trade went down right after you place a buy order. And as you see it going down, you decide to close the trade even though you are still far from your stop loss. It’s because it’s better to lose a little money now than to lose more if it goes down later. (FEAR)
Look, Scenario A and B are both rational thoughts. They are what you have learnt in life in one way or another. And those are what the heart tells you.
But the fact is, those thoughts are detrimental to forex trading.
Because in Scenario A, what could happen is that after you close your trade for a little profit. It shot up all the way to your original planned area for profit taking.
And in Scenario B, after you close the trade for a little loss, it went back up for profits.
If you ever let your heart interfere in your trading, you are always going to get little profits (if there is any) and always going to close your trade early.
This will NOT make you a profitable trader in the long run.
You see a trade that looks really promising, and since you feel really good and positive about the trade. Your heart tells you to take a bigger lot size (so that you can make really big money from this positive trade).
We all know what will happen to the trade – it didn’t turned out as positive as it seemed. Resulting in a huge loss on that trade.
So MUTE YOUR HEART. Don’t listen to your heart in trading. Listen to what the market is telling you. Not your heart.
How to Master The Skill Of Forex Trading
We all are going to grow old anyway. And we all want to at some point in time is to have enough money to stop working. I say, why not learn a skill that allows you to do that.
Think about how old are you this year?
Scenario A: And what if you learn a skill (eg. forex trading) that maybe take you a couple of months to years to master.
Scenario B: You don’t learn a new skill.
In both scenario, you both will grow old with the same number of years.
But in scenario A. You will most likely be richer and able to accomplish more things than you could in Scenario B where you did nothing.
Even if it takes 5 years to master this skill. So what?
If you are able to master this skill, and even if it took you 5 years. Your life will change afterwhich! You will be able to literally ‘print money’ from your computer. Irregardless of where you are.
So i say, why not learn a new skill that can actually take you to where you would like to be faster? Rather than doing nothing and live life like it always is.
Nothing will change if you live your life as it’s always is with no action taken. Your life will go on, and 5 years later. It will still be around the same.
But if you decide that you will really want to master this skill. Even if it took you 5 years. You are going to really make a difference in your life.
Had you learnt this skill 5 years back, things will be different today.
The 2nd best chance is today. Make a commitment to master forex trading as a skill today by clicking on the button below now: