Failure plays important role in Forex success, says freshman trader
Failure plays important role in Forex success, says freshman trader
Written by: PaxForex analytics dept - Wednesday, 15 June 2016 0 comments
Forex is the largest and most liquid market in the world. This is the "place" where currencies are traded, while their value is mainly determined by supply and demand. The Forex market is important for all of us, regardless of whether we know it or not. When you import a product or travel to another country, you are engaged in trade in the Forex market because of exchanging a certain amount of one currency to an equivalent value of the other one.
There are a huge number of financial centers around the world that actively involved in Forex market, being located in different time zones. This means that when the trading day in the United States is over, a new trading journey begins in Tokyo. As a result, the market is active 24 hours a day, 5 days a week.
It is important to note that there is no single central market in Forex. Trading is carried out online between traders electronically worldwide. So here we come to a logical question: Can a particular man take part in that market and earn some profit? We talked with Dheeraj Bhandary, who is a successful Forex trader and who knows the answer to our main question.
What did you do before trading and how did you start your Forex career?
I am a software engineer. I developed an interest in trading while working for one of the financial firms. I started doing more research on trading which I could do during non-office hours. That’s how I came across Forex. Forex is still not a full-time career for me, but I would love to continue it as the fulltime career if I do better.
What motivation did you have, except for earning money?
I found Forex trading very interesting and challenging. It motivates me to learn something new every day. Markets always intrigued me and that’s how I developed my passion towards Forex.
How long did you study the basics of trading before you started to make the constant profit?
I studied the basics of trading for a week and then I opened a demo account for a month. Once I felt comfortable with the demo account, I started trading with live accounts and started understanding the intricacies as I started trading. Every profit and loss I made thought me something new.
How did you know about forex first time?
I was looking out for something that I could trade during non-office hours, so was doing research on the same. That’s how I came across Forex trading. I read about forex trading online.
Did you succeed from the first attempt?
Yes, I did succeed in my very first attempt, which made me over confident. But after few weeks, I started making huge losses.
Did you face the failure?
Sure I did, I used to make small profits and huge losses. There were instances when my entire account was getting wiped out. But I believe failure plays a very important role in your success.
What forced you to trade again?
I had success with my first few attempts but then had failures. I always knew that I would be able to recover my losses, so I traded again. Then I became passionate about it. It is all about not giving up when things go against you.
How many times did you try you finally find out your successful trading strategy?
I have tried multiple times and have lost count of it. I always make a note of my mistakes and the list of currency pairs in which I do well and not do well.
What would you advice for newbies?
Keep it simple
Don’t open too many trades
Research and analysis are the keys to opening any trades
Identify major/minor support/resistance areas
Perseverance, risk mitigation and effective cash management
Knowledge about all the important economic announcements before opening a trade
One can make good profits during key economic announcements
Analyze your trades both profitable and non-profitable and figure out what you did right and where you went wrong
Make a note of the currency pairs and the trading strategy that suits you
I believe I am still learning and I have a lot to learn from other traders. I have given some of my learning in the above question.
What helps you with trading?
Disciplined trading, not to be nervous, perseverance and lot of research/analysis about the existing economic conditions and major/minor support/resistance levels
What makes a negative impact on your trading?
Emotional decisions, not doing proper research/analysis before opening any trade and opening too many trades.
How did you deal with nervous tension on your way top profit, when any small accident could ruin all your hopes and plans?
I always kept my calm and had the confidence that I will be able to recover any losses. I also meditate daily twice to calm my nerves.
By your opinion why many traders do not succeed in trading?
In my opinion, many traders fail if they lack the tools, the perseverance, action plan and risk management/mitigation. The other aspects are fear of failure, too many trades, poor choice of broker, lack of knowledge, lack of capital and not following both technical and economical indicators.
Did forex change your life? If yes, in what way?
Yes, it did. I gained knowledge - it is very important to know what is happening all over the world as it can impact the currency pair that you are trading. So I started paying a lot of attention to economic announcements of various countries. Also, Forex trading has given me a ray of hope of quitting my 9-5 job and work at my own time and pace. I love to work for myself instead of working for others.
Now, when your profit is constant and all stressful emotions are gone, how did you decide to spend your money?
As of now I am reinvesting some of the money into my forex account, some amount in savings and some of them to close my liabilities. The future plan is to invest some amount in real estate. In future if I do well I will plan to travel all over the world.
Is there any other reason why do you trade on forex except money?
The reasons for forex trading are as follows:
Liquidity in forex market
Ability to trade 24 hours a day, 5 days a week
No commission fees
Do you participate in discussions on different forums? Do you often consider other traders' opinions?
Yes, I do, in my opinion, it is very important to consider other trader’s opinions.
How did you find out about PaxForex? And Why did you choose PaxForex?
I was doing research on one of the sites, it had the list of all the brokers, I saw good reviews for Pax Forex, and that’s when I decided to open an account with PaxForex. I chose Pax Forex for the following reasons
I found them very reliable
The spreads offered are very good
The most important thing for me was the speed of deposit/withdrawals
Excellent customer service
Acceptance of wide variety of deposit methods
By your opinion, which services provided by the company are the most interesting for traders, and which ones should be improved and developed more actively?
As you can see, the Forex market is not so scary and extremely difficult. To be more precise, it is not fundamentally different from other types of business. Of course, it requires constant learning and improvement of practical skills of trading as well as many other things, but it is totally worth it. It is very important to have an additional source of income in our very difficult economic times and Forex market can offer you many tools for achieving it.