How To Be A Forex Trader – In 3 Steps!
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If you are a beginner Forex trader, or a struggling Forex trader… you should read this to the end!
You are here because you want to be a Forex trader. And I don’t blame you… participating in a 3 TRILLION dollar a day market can be life changing! And if I am not mistaken, you are either just starting your Forex journey, or you have dabbled in Forex with limited success and want to figure out what you are missing.
Therefore, I am going to go over 3 steps that are essential if you want to learn how to be a Forex trader…
Step 1: Figure Out What Type Of Forex Trader You Want To Be
Yes, I already know… you want to be the RICH Forex trader. But forget about the money for a second and imagine yourself Forex trading. What type of Forex trader do you imagine yourself being on a day-to-day, trade-to-trade basis?
This might be one of the most overlooked steps because people are only interested in how much money they can make trading Forex. They think HOW they are going to trade Forex is secondary. This is a big mistake! So, take some time and give this some serious thought.
There are a lot of questions that need to be answered…
- What type of trading personality do you have?
- How much time do you have to dedicate to your Forex trading?
- What are your trading goals?
- How would being a successful Forex trader improve your life?
- What are you willing to do to succeed as a Forex trader?
One of the most important things you MUST do is match the Forex trading method you use to your personality and goals. You cannot force yourself to do something that goes against your very nature… no matter how hard you try. You will eventually get frustrated and fail.
But here is the good news…
There are trading methods and plans to meet every traders personality and goals!
Here are a few quick examples of what I am talking about…
A SCALPER is someone who likes to be very active, getting into the market and out of the market very quickly. They go after small profits per trade, but build their accounts by making a lot of trades. Does this sound like you?
A DAY TRADER is someone who looks to get into trades that last anywhere from a few minutes to a few hours. They like to hold positions for a maximum of 24 hours, and rarely hold position long term. They go after bigger price targets trying to take advantage of daily price movements. Does this fit your trading personality and lifestyle?
A POSITION TRADER looks to get into big moves in the markets that can last anywhere from a few days to a few weeks… and maybe longer if they catch a big move. Usually, you can spend less time actively trading this way… but you do need to be patient to wait for the proper setups. Are you patient enough to wait for the big score?
Think about what kind of trader fits your personality, lifestyle, time restraints and goals when you choose a Forex system.
Step 2: Avoid The Buy – Abandon – Buy Forex Trap
When I say the “Buy – Abandon – Buy Forex Trap”, I am not talking about taking a BUY position, jumping out at the first sign of trouble and then reentering the trade when price goes in your favor again. Although you should avoid doing this as well. What I mean is the way a lot of budding Forex traders jump from one system to the next without results.
Unfortunately, there is a lot of hype when it comes to teaching Forex. There are a lot of marketers who really are not Forex traders spinning tall tails about how they are going to turn you into a successful Forex trader overnight with little or no input on your part. Mostly, these products and services spend more time and money on the hyped up sales letter and fancy graphics then they do on the Forex information they provide.
As a result, you end up getting convinced to waste your time and money on something that never teaches you how to be a Forex trader or profit in the Forex markets. And when you finally figure out it doesn’t work… you go in search for something else. And unfortunately… you run into another nicely packaged product or service with limited value. And this cycle, the Buy – Abandon – Buy Forex Trap, continues. (I think everyone who has tried to learn Forex has been through this, myself included, so don’t be embarrassed if this has already happened to you).
The results can be more devastating than you imagine…
Besides wasting precious time and money on something that doesn’t work, this cycle can kill your chances of EVER becoming a successful Forex trader. Here are two ways this can happen…
- You learn bad habits and worthless information that you take with you, even if you find a successful program. I can’t tell you how many webinars I’ve been on where an unsuccessful trader is spouting off something they learned from one of these worthless products. They actually RESIST learning the proper info. And here is the thing… if the system was so good, why are they not already successful traders? If you don’t UNLEARN these bad habits, you’ll resist success.
- You quit prematurely because you get frustrated and convince yourself Forex trading is not for you. Going from one worthless program to another is very frustrating and will zap your confidence and belief in both yourself and Forex trading in general. How many budding Forex traders on the cusp of greatness quit before realizing their success?
Get off the Buy – Abandon – Buy cycle and only focus on proven products and services with a track record of success.
Step 3: Get MENTORING From An Already Successful Forex Trader
From the previous two steps you should already know you need to find a Forex trading system that fits your personality, lifestyle and goals AND the system must be a SERIOUS product or service with a proven track record. And most people would believe that is enough. But the fact is… there is one more important step.
I truly believe your success is still in jeopardy if you are not MENTORED by a real Forex trader. You see, no matter how well a training course is presented, you are still going to have questions. It is only natural when dealing with something like the Forex markets. And if you don’t have a mentor to get you through whatever obstacle pops up… your probability of success decreases dramatically.
It always amazes me that in other walks of life we look for teachers and coaches when we want to learn and succeed. If we want to learn to be a doctor, we go to Med School because that is where the professors are. If we want to learn golf, we get a golf coach. But when it comes to something as important and potentially life changing as trading Forex… we think we can learn it all by ourselves locked away in a room somewhere.
Even with the right Forex system, success can be elusive. This is why you need a MENTOR to help you through any rough patches. This is normally the step that takes traders from struggling or break even… to consistently profitable!
In review, these are the 3 steps you need to follow to be a successful Forex trader…
- Figure out what type of trader you are…
- Choose the right kind of product or service and avoid the hype…
- And make sure you have a mentor.
I hope these steps help you fulfill your Forex trading goals!