If you are thinking of trading Forex then try answering the 10 questions below.
Answer them all correctly and you could be a winner!
1. Do you accept that you are totally responsible for your performance?
Most traders cannot accept responsibility for their actions.
When they lose, they blame the markets, or if they have bought an e-book or course and fail, that gets the blame and it's never their fault.
If you like to shirk responsibility, then you won't succeed in online currency trading.
If you want to succeed you will realise that you are totally responsible and the only person who can give you currency trading success is you.
2. Do you think you can buy success?
There are plenty of forex traders who think they can buy a currency trading system or an e-book, for $100 or so and be successful.
The reality is most information sold online is junk.
If it was as good as the marketing copy, the seller wouldn't be selling it, they would be making to much money to bother.
3. Do you think you can make money day trading?
One of the biggest myths of online currency trading is you can make money at it longer term - you can't.
All short term volatility is random - so you can't win.
Great theory but doesn't work in reality.
If you want proof, ask anyone selling a forex day trading system to give you a real time track record and you won't get one.
People who buy into the day trading myth get wiped out - PERIOD.
4. Do you believe the markets are scientific?
If you do you are going to lose.
The far out investment crowd love theories such as Elliot wave and cycle trading and think prices move in specific patterns that are scientific and can be predicted.
GET REAL!
If the markets were scientific and we could predict them with scientific accuracy, there would be no markets, as everyone would know the price in advance!
Trading is an odds game and any trader who thinks the markets are scientific should take a look at standard deviation of price - if you don't know what it is look it up.
5. Do you have a method you have ultimate confidence in?
If you are not prepared to take responsibility for your actions or follow someone else's theory you probably won't have total confidence in your method when it hits a losing streak (and trust me every system does).
If you don't have confidence you won't have the discipline to follow your trading signals when they lose and still have the confidence to know your going to win longer term.
Discipline is the key to successful trading and most traders simply don't have it.
6. Do you like taking a risk?
If you don't enjoy taking risks then forex trading is not for you.
Most traders try so hard to restrict risk they actually create it, by snatching profits and never covering their losses.
If you sweat about the markets or constantly want to check prices, then do yourself a favour trading is not for you.
7. Do you have patience and discipline?
We have already talked about discipline and hand in hand with this trait goes patience.
You need patience to wait for the right opportunities and ride out losing periods - that for most traders can run into several months and not throw in the towel.
8. Do you think knowledge is power in the markets?
If you think that being clever is going to help you think again.
Forex trading attracts some very clever people and a lot of them lose.
They think that if they apply their knowledge and build clever complicated systems they will win. They also tend to be stubborn and never accept their wrong.
Well, a humble trader with a simple system will beat a clever trader with an ego every time.
In Forex Trading the right knowledge is power, not knowledge for knowledge's sake.
9. Do you know your trading advantage?
That will make you successful while over 90% of traders lose all their money?
If you don't know what it is, you don't have one - so get prepared to lose.
10. Do you enjoy the challenge?
If you don't find risk taking a challenge and fun and you can't cope with the frustration that currency trading can present at times forget trading.
Finally..
There you have 10 questions.
If you answered all of them correctly, you have a chance of entering the elite 5 - 10% who make big consistent gains in currency trading.
