I have to warn you, this is something you probably don't want to hear. But if you are serious about giving currency trading an honest effort, then this is something that you have to consider.
When you first get into trading, it starts off as a mix of internet Porsche shopping, rose colored glasses and pure adrenaline. All you have to do is learn a couple of sold techniques and you will be rich, right?
…or at least be able to pay a few bills. Unfortunately there is a lot more to it than that.
Scammy Forex marketing doesn't help either. The US government has cracked down on a lot of that, but there are still a lot of marketers who promise the moon with…no ability to deliver.
So how does it really work? Well from personal experience and from talking to others who have gone through the same process, it really is a lot of trial and error.
You have to try many different trading systems and you might even have to trade several different markets.
That is not something that people want to hear. Some people are lucky and they find a trading method that works well with their personality and a market that they like right from the beginning. Others (like me) have to struggle through it for many years. I am not where I want to be yet, but I get better all the time and I'm so much better than when I first started.
Look at professional independent trader Walter Peters. When I interviewed him for the podcast, he told me that it took him 4 years to become consistently profitable. Most people just don't want to hear that.
How I Found Forex (A Love Story)
I personally started trading the stock market during the dot com bubble in the late 1990's. I was probably the only person to lose money before the crash. Since that time, I have traded futures, options, ETFs, Forex and I worked at a bond arbitrage hedge fund.
The reasons that I finally settled on forex as my primary market is because I like the liquidity, affordable testing data/software, 24 hour access and very low trading costs. And I love it. That is the only reason that I can continue to to maintain this blog with over 900 posts and keep taking trades, even after I have had to endure a few bad trades.
But guess what? I had to go through all those other markets first.
In the same way, learning trading styles that work for me has been a process of of trial and error. It is still a work in progress and will never be complete.
That is half the fun though. Never retire…I say.
So try different trading methods. Even try different markets.
I think Forex is the best market to trade, but that is because it fits with my personality. But I will also trade some stocks and ETFs here and there. I would like to learn how to use options to hedge my currency positions.
The Paradox Of Trading
But guess what happens after you learn to trade one market well? Generally, that skill is applicable to other trading markets. As Rafael says: Trading is trading. It doesn't matter if you are trading stocks, options, Forex or horses.
So if you have been focused on Forex for a long time and you are frustrated or feel bored or stuck, then try something new. Of course, do not risk a lot of money doing it. If you do not have money that you can risk, just paper trade a market for a few months.
It might open your eyes to a market that you like trading better. Or you it might give you renewed vigor for trading Forex because you can appreciate it that much more.
Whatever the case may be, never rule out a possibility unless you have given it an honest shot. But once you find a market and a trading style that you are sure that you want to trade, stick to it and master it!
It will take time and a lot of effort, but it is worth it. This is a marathon, not a sprint.