I won’t argue that trading forex is an exciting adventure every time I sit down for a session of trading. It’s impossible to know exactly what might happen or what curves the market might throw you. There are good days and there are bad; there are days that make me smile and others that find me longing for a new career. Whichever way you want to look at it, there are great experiences to be had when trading. And hopefully, will give you some extra funds with which to line your pockets.
However, the picture might look rosier on the outside looking in, than on the inside looking out. And I’ll tell you why. It’s because trading forex is a challenge. For the good or for the bad, it’s a career path that takes a lot of stamina, discipline and desire. The good news is that the challenges involved in trading forex are surmountable. Once you get through the tough times, it can strengthen your motivation and determination to keep going and to improve your trades.
Growing Your Trading Account
After learning, practising with a demo account and following the charts and the current events, it’s time to try out your first trades. There is a good chance that you will lose many more trades than you can ever win in the beginning. But if you trade according to the rules and don’t risk more than you can afford to lose with each trade, you can keep trading while getting experience under your belt. At some point, you are going to want to increase your trading account. If you are increasing your wins and beginning to make some money, keep the profits in your account so you can build it up. But unfortunately, the cards seem to be stacked against the small-account traders. It can be very hard for new traders to compete with the more experienced ones with much larger accounts to deal with. It can be difficult in those early months, years to keep your head above water, but if you stick with it and keep learning from your mistakes, you have a chance of succeeding.
The Challenge of Loss
As a new trader, you can easily lose your entire account in a few risky deals. No matter what rules you follow, the fear of losing is always hanging over your head. Not everyone has the stamina to be able to live with that. Your emotional stability and a strong sense of self confidence can go a long way in helping you succeed as a trader. The important thing here is to trade strictly by the book, when it comes to taking risk. Even then, a total loss could happen but it’s much more unlikely.
Lack of Sleep
If you’re one who enjoys sleeping through the night, then be careful of the foreign currency pairs you choose to trade. Choose a country/currency in your time zone so you don’t stay awake during the wee hours trying to make smart moves.
Overcome the challenges and enjoy trading!