Many new forex traders try to make big profits in a short time. The first year of trading currencies should be all about learning how to trade. There are important lessons to learn when it comes to approaching markets, executing trades and monitoring risk. Achieving break-even at the end of year one can be a victory. Most currency traders who can at least break even after one year of trading will often become profitable traders in the years that follow.
It is not easy to be a successful forex trader, it requires patience, concentration, time, energy, intelligence and most importantly, it requires a lot of dedication and perseverance. It is not a secret that most people who begin to search for and study forex trading have the goal of becoming independent and successful traders in the long term. However, the reality is different in the sense that most people who start their journey in forex trading don’t end up as successful traders but as frustrated and tired individuals who sacrificed an important amount of their savings trying to get a grip of forex trading.
It will take about three years of trading before someone can become a consistently profitable forex trader. One must absorb lots of fundamental and technical research and experience before achieving a level of competency. Time, effort and discipline, are necessary to reach this level. Many new traders learn the craft as an apprentice, from a trader who is already successful. If someone is willing to impart their experience, it tends to speed up the learning curve. While there are trading schools and courses available online, choose carefully, ask many questions and compare the alternatives.
Becoming a forex trader is a lifetime job. Never forget, there will always be someone in the market who knows more than you because they have access to more information or more up to date and robust data. The two most important things to remember for any currency trader are discipline and perseverance. Discipline is the risk management side of the business- never risk more than you are willing to make and set profit and loss horizons when entering a trade. Perseverance is always striving to learn more, never think you know it all and when you have an idea never be afraid to act on it.
So in the end, what determines your success here – in forex trading – is not that different from what determines your success in life. You need to be consistent, analytical and willing to learn from your mistakes and the mistakes of others. If we analyze the biographies of famous traders, it becomes clear that they spent different times trading to become profitable. However, the average term is a few years of intensive training and practice. Of course, there are brilliant traders who got millions from the first deal.