The question we often face is, ”How long does it take to become a successful Forex trader?” Sadly, no one can be able to give a definite answer to the question of how long it can take to become a successful Forex trader. Some say 2 years, some say 4, and some say they have not seen success in ten years.
However, a well-experienced trader stated in an interview that he took two months to blow up his first account, six months to learn how to protect money, one year to make profits, and four years to make a constant profit. But that does not apply to everyone. Actually, this time to be successful depends on your decision-making ability, strategy, intelligence, foresight, self-controlling power all depend on how fast you can become a successful trader in the market.
But no matter how long it takes, everyone has to go through four levels to be successful. In the next segment, we have discussed them. Now ask yourself how long you will take to pass the levels. I think you will get your ultimate answer.
This is the first level of your trading life. At this level, you will have strong willpower, high dreams, and indomitable desire. At this level, you will read any Forex-related article, blog, or book and will dream of becoming like George Soro or Stanley Druckenmiller.
You will cover the technical terms like Fibonacci, MACD, RSI, Charts, Candlesticks, Stop-Loss, and so on. Gradually you will start to think that trading is very easy and those who become unsuccessful are nothing but fools. But the sad part is, the unsuccessful traders also thought like you.
And you will stop this silly thinking when you hit the first loss. And for the very first time, you will realize that trading strategies, plans, indicators, patterns are not all. There is also something called risk management.
After blowing up few trading accounts, you will reach the second level – Risk manager. At this level, you will apprehend the importance of risk management. So, now you will start studying risk management and will start to gain relevant knowledge on how to define risk to reward ratio, how to trade with 1% risk of capital, etc. To know more about the risk factors at trading, visit the official of Saxo capital markets and try to learn more about money management techniques.
But unfortunately, you will not be done yet and will make a continuous loss. This will make you sweat, but you will not find out where the problem is. And to find a solution to this problem, you will go to the third and final level.
Eventually, we have come to the final level. Only by passing this level will one reach the path to success. This level is the most crucial level. Here a trader has to find the answer to the question left in the third level. You know everything about Forex, and you know a lot about risk management. But still, you are not getting the desired success, but why? Because for extra safety, you listen to the engine but not to your heart.
Suppose you know how to set stop-loss and risk to reward ratio. But the problem is sometimes you have to work beyond math. Suppose you have set a stop-loss at 2%, but somehow you come to know that the coming trend is going to be a downtrend. So, you should not wait for the stop-loss to sell the currency. Rather, you should sell it sooner.
Again, if one zone’s foresight tells him to open a sell position because the coming trend will be an uptrend, but the trend indicator is telling him that the possible coming trend is a downtrend. What should he do? Sometimes a trader needs to listen to what his heart says. Depending on machines or robots does not bring good results always.