Trading the forex market is a fantastic way to create a secondary income for yourself and your family, and in time, it can become your primary occupation, giving you that much needed time at home with your loved ones.
Currency trading requires several aspects in order to be profitable, let alone successful. It requires technical analysis, the ability to analyse a chart and find patterns within that foreshadow a future move. It requires fundamental analysis, the analysis of information around the currency or host country of that currency, such as interest rates, trade deals, the population’s employment level, and so on. It requires confidence, when setting a trade it’s important to set your stop-loss orders and your take profit orders and stick to them. Too often a trader can see a trade moving to their stop loss and close out the trade, accepting the loss, but if they had kept it in, it would have missed their stop and gone on to hit their target. Confidence is an incredibly important factor for a successful forex trader.
If you try and use forex trading as a way to make a short term fortune, you will find yourself in an incredibly high-risk situation and can wipe yourself out. The forex market is a beast that you cannot tame, you cannot make it bend to your will, all you can do is try to predict its movements and move in the right direction. Professional day traders have a number of forex strategies that they use to predict big moves in the markets and will use their swing trading strategies, or reversal strategies to use these movements to their advantage.
What makes a professional isn’t the trading platform they use or the currency pairs they trade, but the time that they put into each and every trade they take. You won’t catch a professional trader opening up chart windows and just clicking buy and sell on multiple currencies, there will be a lot of time spent on both fundamental and technical analysis before entering the market, especially in the long term.
Day trading is an exciting endeavour but requires discipline, if you are just going to flick from time frame to time frame trying to find an opportunity, you will lose. Don’t go looking for trades, let them come to you. Be patient, be confident, and be diligent. If you are, in time you will become the trader that you know you can be.