forex market trading, you must have the right attitude
to profit making and suffering losses. This is only through
experience, and experience is only possible if you protect
yourself from large losses by establishing a meaningful
mentoring relationship with a successful trader ferom the
beginning, or by taking classes from experts who offer their
But make no mistake, whatever you do, as a trader one of
the first things you’ll notice will be the importance
of education and study. Just like it’s impossible
to trade without a trading platform, it is impossible to
profit without proper education.
Education itself is made of two different parts: reading,
and study, where you create the basis of your future career,
and trading where you apply the knowledge you have acquired
in a real time environment for actual profits or losses.
Learning about forex is not a matter of weeks or months.
Markets change all the time, economic events make new scenarios
possible with each passing day. A successful trader must
have a good understanding of these dynamics, and that is
achieved through self-education fuelled by skepticism about
everything you are told as a beginner.
Unless you understand the causes behind the choices made
by your teachers, you are not gaining much for the fees
that you pay, or the time that you invest. To be successful,
you must have the inquisitive mind of a child when asking
questions, and the discipline of a seasoned warrior when
applying the lesson learned.
It is also important to have a good idea on what your education
is aiming at. Education is not a way to eliminate losses.
A good education will never grant you the skills that will
allow you to create strategies which are successful at all
times. Instead, education will help you absorb losses, protect
yourself against emotional extremes, and most importantly,
it will help you stay away from market euphoria and irrational
exuberance when they inevitably occur.
Let’s remind you that the aim of a successful trader
is not making huge profits. Even the worst traders occasionally
make large profits which are later absorbed in an avalanche
of losses which they fail to control or manage.
The purpose of the successful forex trader is always minimizing
losses, protecting his account against market swings, while
allowing the profitable positions to compound in value through
trend following strategies, and scaling in.
Education is the beginning and end of online
forex trading. The trader knows nothing as a beginner,
but as he asks questions, he learns, and his knowledge leads
him to new questions which all improve his skills and strengthen
his character. Those who neglect trading, but get a good
education may eventually get rich, be famous, or achieve
Those who neglect education and try to build a trading
career, however, are doomed from the beginning to failure,
despair, and financial disasters.