Forex trading looks like a good work from home job at the beginning because you can sit at your personal computer, trade from the comfort of your home and make money. Every day, more people start working from home through the Internet. Forex trading can also be done from home, but Forex is a really different business.
To make money with Forex trading, you have to know the techniques and have enough experience, otherwise you lose more than you make. You have to become a Forex trading expert to make money and become profitable every month, otherwise you can lose more, and you can even wipe out your account.
Forex trading as a business that can be done from home is not an easy way of making a living, unless you know how to pass the stages properly and professionally. You have to become able to analyze the markets and find the best and most optimum entry points to get in the market to make money.
If you religiously follow the trading experts who follow strong trading strategies, then you will have a much higher chance to become a consistently profitable trader. You can start from here:
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Trading is a great business and you can make a lot of money through it while you don’t have to leave your home. However, you have to become able to analyze the markets properly and find the strong trading opportunities. At the same time, you have to have proper mental and life conditions, so that you can do your job as a trader with peace of mind: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy
Forex trading can be done from home, while it doesn’t have some of the complications that the other work at home jobs have. For example, a freelance writer or programmer who also works from home has to be worried about the competition all the time. But in Forex trading you don’t compete with other Forex traders. You only deal with the price chart that will be your friend, if you follow it properly, and will be your enemy, if you go against it. However, to make money through trading, (1) you have to become able to locate the strong and reliable trading opportunities, and (2) the markets should form these trading opportunities, otherwise you won’t make any money.
Is Forex Trading a Suitable Home Business for Everybody?
To become a Forex trader, first you have to learn it. It is not very hard to learn the techniques. But learning the techniques is not all you need to make money through Forex trading. You have to practice and become experienced. You have to master the trading strategies you learn.
Forex trading is like driving. You can sit at home and read a lot of books about driving and learn even more than a driver who has been driving for 30 years. But, you will not become a driver, if you don’t drive and become experienced. Additionally, to become a good driver you need to have a healthy body and mind, otherwise you will make problems for yourself and others.
It is the same with Forex trading. Not everybody who knows the trading techniques theoretically can be a good Forex trader.
You have to have three things to become a good and successful Forex trader:
- Proper mental and psychological condition
If you lose more than what you make and you haven’t become a consistently profitable trader yet, you don’t have at least one of the above essentials.
As explained above, the knowledge can be gained easily through the Internet. You can read some books and articles to learn what Forex trading is. You can even learn the good and strong trading strategies. So it is not that hard to gain the knowledge you need.
The experience can be gained through practicing and demo trading. Forex brokers offer free demo accounts that enable you to practice and learn to use your knowledge practically.
But what about the last factor? The suitable mental and psychological condition…
You can lose money in Forex, even when you have enough knowledge and experience. Why?
What kind of people, with what kind of personality, can’t make money in Forex, even when they have enough knowledge and experience?
1. Impatient People:
If you don’t have enough patience, you will have problems in trading. Forex needs a lot of patience. Sometimes the markets don’t form any trade setups for such a long time. Those who are not patient enough get fed up very soon and start taking positions, while there is no proper trade setups and it is not the time to get in the market. Then, they will have to close a wrong position while they have already lost a lot of money.
Having no patience can be related to your financial situation somehow. Unfortunately, you don’t make money through Forex trading when you HAVE TO make money. I mean, it is almost impossible to make money through trading when you are unemployed and you have no income. It is not like that with the other businesses, but as I told you above, trading is a different business. You have to have peace of mind to make money through trading, otherwise you lose. Don’t forget to read this article: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy
2. Greedy People:
Those who are greedy are big Forex losers, but they can be great in the other businesses. Greed pushes you to work harder and make more money with the other businesses, but in trading, it causes you to lose.
Greed causes you to over-trade and enter the markets when there is no proper trade setup. You think that others are making money and you have to do it at any price too. You want to double and triple your money within a short time. So you don’t wait for a clear signal to get in the market. As a result, your losses will be bigger than your gains.
Greed causes you to hold a position for a longer time and not to close it at the right time. You hold the positions to make more money, but if you don’t close your positions on time, the price can turn around and you lose the profit you have already made.
3. Timorous People:
Fear is another big problem in Forex trading. Generally, fear is the biggest problem and obstacle in all businesses. Fear keeps people from taking risks and those who have a lot of fear, can not use the opportunities because they are always afraid of losing. They wait a lot and miss the opportunities. Then they get fed up finally and try to overcome their fear, and so they take the wrong directions before doing a proper market analysis and finding the good signals. What will happen then? They lose money.
In general, fear is always your biggest enemy in everything including trading.
4. Emotional People:
If you are a person who makes his decisions emotionally, not wisely, logically and analytically, then Forex is not for you because you will lose money. Forex is a technical and scientific business. It works according to the scientific rules and analysis. Forex traders use special indicators and signals to decide to buy or sell. They act only when they see proper signals and not when they feel that the price will go up or down.
Something you feel can be wrong, and so, if you trade according to what you feel, you lose.
Emotions are good but not in business, Forex or stock trading. If you are an emotional person, you should not try Forex trading, unless you learn to control your emotions and use your knowledge.
How Can You Control Your Emotions?
If you are an impatient person and this has made problems for you both in your life and Forex, you have to do Yoga, meditation and relaxation.
To control your greed, you have to understand what trading is all about. You should know that you can’t double or triple your money every week or month by taking too much risk.
To control your fear, you have to spend enough time on learning and demo trading. You have fear because you don’t have enough confidence about your trading skills. You have to become a consistently profitable demo trader first. Then, you should start with a small live account to improve your trading skills with real money. If you advance slowly but surely, you will have no fear.
To work from home and make money, Forex trading can be an option. You can increase your wealth through Forex or stock trading, but you have to have the proper conditions to do that.