The Knowledge you need to succeed in Forex Trading
Today I was thinking on the meaning of the word "knowledge". What is knowledge? What does it mean?
Knowledge means different things to different people. For me anything that doesn't have a practical application in life is worthless.
Many people, and definitely many Forex traders, think knowledge is filling their head with tons of information. The more you know the wiser you are. Well… it's not.
Don't get me wrong. I have nothing against formal education. But if you think that´s all you need then you are in for big failure. Just ask, most of, the business school graduates out there that are trying to find a job and pay their college credits.
Think of it this way: You can read a book on the best swimming techniques of all time. If you had a test about the information contained in the book you could get the best grade. That doesn't mean you know how to swim. It's not until you dive in a pool for the first time that you are going to gain a general idea of what swimming is, and what you can achieve in the water.
As time goes by and you increase your visits to the pool you are going to become a better swimmer.
Here is a clue: "Your knowledge lies in your blood, in your skin, not in your head.
You know you know, when you are able to feel it in your body. It is like driving a car, it's an automatic response. When you are able to drive without giving much thought to it, then you can call yourself an accomplished driver. (By the way driving is another good example of something you need to experience in real life to be learned).
The Forex Market works the same way as swimming, or driving. You might be able to get your hands on the best system out there. You will study it, and learn it by heart. But the truth is you will become a trader only when you start trading.
When you experience your first loss, your first win, your first trading session you will realize that theory is only a part of the equation.
A good trustworthy mentor can be a big advantage in your learning process. But the truth is you learn by yourself. Make a promise to yourself (if you want to become a good trader) that you will succeed no matter what. If you are serious... you will !!!
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There is a lot of resemblance between boxing and trading the forex market. When a boxer sets foot in a ring, even the undefeated champion, he can't expect to go through the boxing session without receiving a couple of punches back. You should realize that experiencing small losses, while trading in the forex market, is just part of the deal.
Here is the second part, as promised, of the principles I think you need to develop a good mindset as a Forex Trader.
Believe it or not there are many things in your Forex trading career that are as important as having a good system. For me having the right mindset is the top virtue a Forex trader can aspire to acquire.
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This days learning to trade should not be a difficult task to accomplish. I offer you some guidelines of what to look for in a good system. Anyone with the right education can make a good living out of the Forex Market.
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