Forex trading is one of the most difficult careers to enter in this day and age. It is known that the failure rate for Forex traders is 70% to 90%. This is a very low success rate of 30% to 10%. This is why it is very important to have a correct foundation in the industry before creating the failure attitude. Having the correct foundation in Forex trading will allow traders to be profitable for many years. Although it is very important, getting the correct foundation is one of the most difficult tasks to do and is directly linked to the high failure rate in the industry. One big factor in creating the foundation is the personalised of the foundation. Everything in Forex trading is personalised to the trader and cannot be copied by other traders.The foundation formula compromised of Forex education, a mentor, a broker, a trading platform and winning strategy. These are the main aspects of the foundation, however, there are others that we will get into later.
The correct education is extremely important has the foundation of your trading career. To put it into perspective, it is like choosing a university program to attend, in order for you to have the best career you can. Unlike universities, the validity of the education is not based on price, but the actual information in the course. Many course providers are just trying to make extra money, so their courses are comprised of the basics, unaware to the students. Many students walk away from these expensive courses thinking they know everything about economics and the Forex industry, when in reality they barely know how to read a chart. Free course are sometimes best, as many times it is old traders who want to help new traders who comprise these courses. It is important to check content, and to know what content to look for. Never use search engines or videos on the internet to learn how to trade. The next key factor for the foundation of a profitable trader is a good mentor. There are many people claiming they know how to trade and want to mentor people for a price. Just like the education, traders should not look for the most expensive mentor. It should be noted that there is no laws preventing mentor from taking your money and leaving you high and dry. Because trading is such volatile and risky industry, that governments have not put into effect, laws on mentors and how they should mentor their students. Many mentors have fake or demo accounts, which they share with the public, enticing them to purchase courses or mentorship packages. This leaves many traders with big loses and a negative view on the trading industry. Brokers also play a big part in the foundation of profitable trader, as they are how the trader gets to the market. There are many broker scams in the world, but they are especially big in South Africa. Because trading is new to South Africa, the government hasnt clamped down on broker regulation. South Africa has the Financial Sector Conduct Authority (FSCA) which oversees all financial services in the country, but does not serve as a regulatory board. This leaves a lot of room for brokers to scam new traders who are not aware of these things. It is imperative that traders verify their brokers and their regulation. One way traders can verify their brokers is by using a Forex inquiry app called WikiFX. Choosing the correct trading platform is essential to the profitability of any trader. Many platforms could over simplify things or complicate things. It is important that traders use platforms that they understand and are best suited their wants and needs as trader. The last and certainly not least, a winning strategy is extremely important when trading. As stated above, the strategy should be personalise to the trader and not copied or edited from another trader. The strategy should include forms of analysis and most importantly discipline. This brings us to the two main factors for failure in the Forex industry. Greed and doubt are the elements which kick new traders out of this industry. It is important manage greed and discipline when trading Forex. There is no way someone can teach you how to do this, you as a young trader have to decide for yourself how you will kill greed and doubt.
Traders should incorporate these aspects of trading into their trading strategies, if they have not already. It should be noted that Forex trading is one of the most riskiest careers in the world and it will take serve discipline and concentration to achieve a profitable career. It is advised that traders demo trade for at least a year in order to understand trading and how it works and if their strategy works. Traders are also advised to start with a decent sized account, in order to avoid being margined easily. Follow these rules and you will certainly be a profitable trader in no time.
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