Warning: Not everyone is capable of becoming a consistent trader. Learning to become a trader is no different than learning any other discipline. It takes time, training, commitment and discipline.
It is a myth that there is some trading product available that allows for quick and easy profits. Eight out of 10 people fail because they believe this myth.
It does not matter whether you choose to trade using a technology based program or by learning to understand price action, long-term or short-term trading. You need to take time to learn how each market works. There is no such thing as a universal product that can make money in any market or on any time frame.
If all it took was a few hundred bucks and a set of DVD's or magical indicator package to make money, everyone would be trading.
If you are looking for that "magic" trading product, you are better off going to a casino or playing the lottery. If you are looking to make instant "big money", save your time and dollars on low-cost trading gimmicks. You have a higher chance of success playing roulette in a casino.
Most folks have a huge misconception as to what the daily function of a stand-alone trader is. Let me break it down for you. Your job is to create a trading plan that requires a high probability trading setup to develop based on your trading rules and criteria and then execute that trade based on your trading plan. If the plan does not develop correctly, no trade.
You are not a macro-economist or an analyst.
Just because you decide to turn on your computer and trade does not mean at that point in time there is something worth trading.
Your objective is to preserve your capital and consider only trading high probability setups in the best conditions.
There are a number of programs and products out there that lead you to believe anyone can successfully trade and you can trade anytime you feel like turning on your computer. This is a fallacy.
Once again, if it was that easy everyone would be making money trading and the statistic would be 80% are successful and 20% fail. Unfortunately that is not the case.
First you need to select a trading process that matches your personality and, more importantly, the amount of trading capital you have available.
If you are trading with less than ,000 you need to select a process that trains you to trade small intra-day moves with tight stops and small profit targets. You simply cannot afford to trade with large stops and look for big moves. A simple rule of thumb to follow when selecting a trading process is, lower risk trades occur on smaller time frames and happen more frequently. Higher risk trades develop over larger time frames and occur less frequently. If you only have ,000 or less, in order to be around for awhile, you need to trade with minimal risk. You do not have the money to look for high risk trades.
Another point to consider, I never met a broker who did not want to make a lot of money. All brokers are commissioned licensed salesmen. Their objectives are very straight forward: get you to open an account ASAP and then trade as much as possible. Their commissions are based on how much you trade, period. Whether you win or lose, they make money. Naturally, to achieve their objective they are going to offer you all the free incentives they can to stimulate you to trade as much as possible. Remember their success is measured by how much you trade, not by how successful you are. The reason brokers are licensed and regulated is because history has shown they will tell you anything so they can make money. Plain and simple.
So if your plan was to let your broker teach you to trade via his free training programs, I encourage you to re-think that plan.
Trading can be a lucrative profession. Just as most independent businesses fail, so to most traders. It all boils down to one reason. The failures were due to looking for immediate gratification and instant success.
In order to be in the winning 20%, you need to make sure you do not do what the losing 80% is doing.
Remember, successful traders do what unsuccessful traders refuse to do. Solid disciplined traders are not looking for shortcuts. They are willing to make the commitment and sacrifices necessary to achieve their goals. They understand the difference between a gambler's mindset and a trader's mindset. A winning trading formula: make small consistent gains and build those gains over time. A losing trading formula: jump into the market looking for the big move and then rely solely on hope and luck to achieve your profit.
Someone once said "common sense is an uncommon thing." This statement epitomizes the failed trader; they simply lack common sense. Remember, not everyone has what it takes to become a successful trader.
To learn more visit: www.theforextradinginstitute.com
