Here we are going to look at how to become a successful Forex trader from home and show you how to trade Forex the right way for profit and join the elite 5% of traders who enjoy consistent success with their FX trading strategies.
The first point to keep in mind is that while trading currencies is a great way to build wealth, the reality of how to make money trading currencies is very different from the way brokers, the media and sellers of Forex related products present it.
Myth and Reality of Forex Trading
The myth promoted is that the currency markets are easy to make money from and the promotions from Forex brokers are along the lines, of the way an online casino would promote there services i.e its fun and easy business to do and requires no real effort. In addition, there are a huge number of people selling scam products which again tell you making money is easy. The markets are presented as a fun, exciting and easy way to make money but the reality is very different.
While anyone can learn to trade currencies successfully, making money is never easy – if it were everyone would be traders and all be rich. The good news though is – If you get the right Forex trading education, there is no profession which can give you as much profit for your effort as trading foreign exchange markets. If you want to win at trading you can but you need to treat markets with respect and take your profession seriously. If you are prepared to do this, you will soon be able to trade currencies like a pro from home and make a great long term income.
Get the Right Education
Ignore all the people who tell you Forex is easy and look for info you can learn on technical analysis and how to trade with charts. Charting is easy to learn and means all you have to do is spot high odds set ups on the charts of the currency pairs you wish to trade and this is a learned skill. Even better, it doesn't take long to learn and once you have learned how to use charts, you can trade in around 30 minutes a day which makes currency trading, a perfect way to earn an extra income.
You can find all the information on technical analysis you need for free online or if you want to learn quicker there are many currency training courses which will guide you on the best tools and strategies to use. You can learn for free or you can get some professional help but the key is develop a strategy which can help you make money so let's look at how to put together a trading method which can make long term profits.
Developing a Strategy with an Edge
In terms of currency trading strategies, you need to keep one key point in mind which is the best strategies are very simple and uncluttered with only a few inputs to generate trading signals. While many say, advanced trading strategies make more money than simple ones – this is not supported by the facts. If they did work better, the ratio of winners to losers would have changed but the fact is it remains constant over time. The facts also prove, a simple system is more robust and likely to make money than one over loaded with inputs to generate trading signals.
In terms of the best time periods to trade - don't do what losing traders do and try and day trade or scalp the market, the time period is to short and volatility to random to make any money. Instead use a swing trading or long term trend following strategies (and you will find more details on both methods, elsewhere on this site) these strategies both work and which you use, will be down to your personal preference.
Both these trading methods, will allow you to complete all your market analysis and execute your trading plan in around 30 minutes to 1 hour a day.
Adopt the Mindset of a Pro
The same ratio of losers is always present year after year in the markets because human nature remains the same and this means, it causes the majority of traders to lose – why?
Because most traders lack mental discipline and emotional control in terms of executing their trading signals. The problem with trading I currencies for most traders is not in terms of learn a trading system which can make profits – its having the mental control to cut losses, run profits and stock to a trading plan.
To get the right mindset you need to learn the trading skills of confidence, patience, discipline and courage and we have discussed these else where on this site. Anyone can learn these traits but you have to want to learn them and make a conscious effort to trade with the right mindset at all times.
You should read up on the mental aspect of trading and there is a lot of free info online but you should also read some classic books, where the great traders, will all talk about how important it is in terms of achieving currency trading success.
Have a Realistic Trading Plan
You should have a realistic trading plan which gives you not only rules to follow in terms of your trading strategy but also has a journal for each trade to keep you on track and have a realistic target growth for your account. My own view is to have a annual growth target of - between 50 – 100% and if you achieve this, you will be up there with the very best traders and it is achievable.
If you want to become a currency trader from home you can and you can make a lot of money in your spare time but you must see the markets for what they really are and don't believe the hype. Forex trading is a serious business and requires a serious approach. The markets are not fun and exciting like a casino and you shouldn't consider them as such – there a serious way to build wealth.
If you approach trading currencies in the right way, have a plan, a simple trading system and emotional self control, you will be a successful Forex trader and be able to build serious wealth long term, in the world's most exciting investment market trading global foreign exchange for profits.