Forex Trading – The Biggest Lesson!
The Forex Trading Journey.. If I looked forward 4 years and 7000 hours, I probably would not have started in the first place. The drive for me, and it is different for everyone, is that this type of business(Forex Trading) can bring a lifestyle that most people only dream about. Well I’m not in the dream state just yet, but I am getting there. One of the BIG reasons I got into forex trading is the fact you can work from anywhere.
I always had a dream of working from a boat.. Laptop, sunshine and a cool drink, and making a living, oh yeah!! When I started, I would have given anything to have someone teach me the RIGHT path. You know, Forex trading is like trying to find your way through a jungle with no compass. There are people out their that will just rip every dollar out of your pocket, and never think twice about it, personally, I don’t know how they can sleep at night and even live with their own conscience. There are a lot of systems out there, and most have not been well back tested, which means they look fancy on the surface, and believe me, I have seen a lot of great forex trades when these gurus show you past history charts, and say things like, ‘well look here, here is a great trade’. It took me a long time to steer away from all that and get back to very basic market forex trading, reading the market and understanding why the markets move like they do.
Let me go into a little bit about BACK TESTING. Probably the most essential thing as a skill for any new forex traders. It does two things. Lets say you come across a system that you think is profitable, you back test it over a period of say 5 years, and if you are consistently making money in that period in forex trading, and you are growing your account, then you will have more confidence in trading this system when you are in a losing period, which WILL happen, and its one of the biggest hurdles to overcome in trading. Physiology of forex trading is another area that you have to consider. Nobody likes to lose, it’s just human nature. When we have a loss, we start to have doubts creep in, and our subconscious is relating this to pain from our past experiences with losing. Back testing is very important to not just new forex traders, but to all traders, even experienced forex traders still back test. Best regards, David.