In our highly connected world today, trading the foreign exchange (forex) market over the internet is one of the coolest ways in the world that I know of to make a living.
Anybody who tells you that forex trading is a quick and easy path to riches either A: is a total moron and is trying to make a quick buck selling erroneous information, or B: has a vested interest in seeing you fail as a trader.
However, anybody who tells you that it is impossible to make alot of money through forex trading is also sorely mistaken. Yes, it is possible to make a large, almost obsenely large, amount of money through trading the forex market using only a laptop, but it is not easy to get to a point where you can consistently place profitable trades.
I could go on and on about how sucessful forex trading takes time, education, emotional control, and experience, but there is one single thing that I have found is much more important than all of these things if you want to have a successful forex career. And that one thing is...
.......... (Wait for it) ..........
Your MINDSET, and how you perceive trading the forex market.
This is the hardest part for most people to truly understand and use with their own trading, but if you can fully harness and implement the following information into your forex trading, you will experience unprecedented success and you will become one of those people who can travel anywhere in the world and answer to nobody.
(Just as a sidenote, if you do get to this point, I recommend checking out something called an 'economic citizenship program,' where you can become a citizen of a place like Panama by investing in certain organizations. You can get a new passport so that you can go anywhere in the world, anytime you want, and no longer answer to a draconian government that seeks hegemonic control over its citizens.)
The problem is... most people who have had difficulty with their forex trading view the market and their trading platform only as a way to make money, and they become emotionally attached to the money in their trading account and subsequently, each trade that they make with this money.
The key to success in online forex trading is to view your trading platform as a GAME that you play, where the objective is to collect or capture pips. The more pips you gather, the better you are at this forex game.
Now this is easy to say, but it can be different when you are really at your computer making those trades. The one thing I must empahsize is that when you adopt this new mentality and you view forex as only a 'pip collecting game,' the biggest change that you make is that you are now completely emotionally detached from your trading. For this reason, you can view your winning or losing trades from an objective, outside perspective, and it will be easier for you to devise a winning strategy since you are no longer blinded by emotion.
---Exercises For Developing The Proper Forex Mindset---
There are two things that I recommend doing if you want to slowly change your perception to where forex trading is nothing more than a game where you win by getting pips (and few games in the world can be as profitable as this one).
First, I will introduce to you something that I call 'risk capital.' In short, risk capital is money that you would like to grow, but if you lost it then it would not have a big impact on your financial situation. You want to make sure that the only money that you ever put into a live trading account is risk capital, which is just extra disposable income that you do not need to pay the bills.
Second, you want to make extensive use of trading demo accounts. If you already have a broker or a trading platform that you prefer and are comfortable with, the best thing to do is to open at least one demo account with this same broker.
As you should see, trading your demo account will look and feel EXACTLY the same way as your live account will. The only difference it is not big deal if you lose money in your demo account, since it isn't real. What you want to do is get to the same point after trading your demo account that you feel the same way about your live trading account, where it is no big deal if you lose money.
Spend enough time trading your demo account on the same platform that you trade your live account on, and your subconscious mind and a part of your brain called the visual cortex will begin to associate seeing this forex trading platform with 'Oh, a demo account. No big deal, its just fake money after all.'
This is where you want to get, and it will become nothing more than a game for you. It just so happens, though, that this game will fund your next month long trip to Monaco, and will elevate you to the status of a High-Net Worth Individual (net worth exceeding $30 million USD) and beyond. I suppose it is ironic that the less you care about how much money you are making, the more you are actually positioned to make.