What qualities do you need to be an effective Forex trader?

In recent years, after the success of several big Hollywood movies, there has developed a subculture around the stock trading industry.

Social media and video applications have become inundated with so-called gurus who will teach you how to trade like them and make disproportionate sums of money. Or so they say!

The truth is that stock trading is very fast-paced and not for everyone. For some, it works, and others not, as this complete guide to Forex trading explains. So what do you need to know before considering trying Forex trading?

Trethowans
Trethowans

What qualities do you need?

There is an abundance of anecdotal accounts of teenagers becoming millionaires by trading on Forex. Thanks to the help of stock trading gurus and guides, you can develop a phenomenal career in the stock industry.

All you need, it might seem to be a successful stock trader, is eagerness and a desire to achieve. But that’s not the case.

Yes, in the digital age, some are making a significant amount of money online from home. Forex trading can also be done on your smart-phone, where you can check income, and buy and sell.

But not everyone who embarks on Forex trading will become a millionaire. And not everyone will even make money. To be an effective Forex trader you need determination and perseverance. You need to get the best possible advice, make informed decisions and apply yourself.

Many have made good money on the trading markets, and many have lost their entire savings – and more. An understanding of the market is essential if you want to be stock trader.

And whether your goal is to be a day trader or full-time Forex user, you need to do your research. The stock market is constantly fluctuating, and to an amateur, a positive sign, could to a professional be the sign of impending disaster.

“I’ve seen a movie and now I want in!”

Some people watch movies like The Wolf of Wall Street, and the fantastic Wall Street with Martin Sheen, and wonder if they too could achieve their wealth.

And while it’s certainly possible, for most it’s highly unlikely. Trading can be similar to the scenarios in these movies, but it’s not the same and it’s certainly less dramatic.

While fortunes are made daily on the stock market, it is unrealistic to suggest you could walk into it today a poor man and leave tomorrow with a net worth somewhere similar to Bill Gates.

Success depends on the money you put in, how calculated you are, and if you know when to sell. And while miracles do happen, don’t hold your breath.

Many a trader has met their early demise in the industry not knowing when to sell their shares. They see shares skyrocketing and think they’ve made it… but hours later when they return to check their stock, the market has plummeted and their margin is so low that they have lost it all.

It is not something you see often in the movies, for movies are just that: theatre. They seldom depict the reality of anything they portray. And while there are aspects that hold true, many do not. This is why it’s essential that you seek out realistic, high quality training if you want to veture into stock trading.

Where can you go to learn?

The first step in becoming a day trader for many is to take online classes or physical courses. You can apply at local colleges, or with stock trading gurus.

It is important to learn the trade before you start, to avoid rookie mistakes. Many an uninformed trader has bankrupt themselves with the slip of a finger. You need to become familiar with every minute detail, so you can take the step toward financial independence.

Make sure that when you are searching for courses you choose one designed for beginners. Many trading courses will expect you to already possess an understanding of how the market works so, if you’re a complete beginner, find a course that caters for your situation – and lean the ropes properly.

Photo by Mark Finn