Thursday, January 17, 2008
Forex Trading Tools - Developing Your Skills For Consistent Profits
There are several Forex Trading Tools available to a trader. Yet with the multitude of such tools, the number of traders that make it to consistent profits are still so few. So the question that begs to be asked is: If it s not the forex trading tools that make a successful trader, then what does? Some of the tools required to trade the forex currencies are obvious and basic. At the same time, there are quite a few others that aren t. Yet it is these less obvious tools, while not having a direct impact on your trading results, influence your forex trading success in very subtle and important ways. One of the reasons why forex traders find it so difficult to find success is not having the ability to see how everything works together in the forex markets. This ability to see the bigger picture is crucial to find success as a trader, because it influences the way you would use your trading tools to pull profits out of the markets. The difference between novice traders and season traders is this: Most novice traders only think about the minimum things required to start trading, while the experienced, seasoned traders often strive to utilize the maximum of the tools available to them. In the game of forex trading, retail traders are usually the least informed and hold the weakest power to determine how the forex currencies. On the other hand, while the banks and large financial institutions have access to sophisticated forex trading tools, it doesn t mean as a retail trader, you require all these tools for forex trading success. But you DO need to have all the trading tools required for forex trading success. So what do you need to start your forex trading career? The Basic Forex Trading Tools to Start Trading These are the basic forex trading tools that you obviously need in order to trade the forex currencies, but these aren t the only tools required for forex trading success: 1. Your Forex Trading Account 2. Your Forex Trading Platform 3. Your Forex Trading System 4. Your Forex Trading Risk Capital In most cases, novice forex traders tend to think that this is all they need to become hugely profitable in the forex markets. It s so simple and easy, right? It s true, this is all you need to start trading. But what is not so obvious is that while this is what you need to START trading, it s not necessarily what s needed to be trading profitably! Forex Trading Success is a journey where you, as a trader, are on a path of learning and growth. It s a journey from point A to point B, where point B is consistent forex trading profits. To think that a novice trader can become wildly successful with just these four trading tools alone is thinking a towering 100 story building can be constructed with only a pencil, a piece of paper, and 4 bricks. Other elements and tools are used to build your forex trading business but because they are in the background of what s going on, they can be easily missed or dismissed in terms of their importance. If these four tools are what is required for trading success, then we would have a lot more traders being profitable and rich, wouldn t we? Developing Your Skill To Use The Basic Forex Trading Tools Developing your skill as a forex trader is necessary to become successful. The quality of the product is due to the quality of the craftsman. The more highly skilled you are, the more you are able to understand and utilize the nuances of forex trading tools. On the surface, it may seem the skills required to use these forex trading tools would be the technical knowledge. Knowledge of how your trading platform works, how technical indicators are constructed, what they mean, and what would be the best ways of putting them together to create a forex trading system. However, forex trading success isn t a two dimensional thing consisting only of your trading account and a trading system. In reality, it s a multi-dimensional thing that encompasses you not just as a trader but as a complete person. You have to learn a forex trading system suitable to you, the appropriate type of risk and money management strategies, developing a daily forex trading routine that matches what you want to accomplish in congruence with your actual life, maintaining your records and other supporting skills. And these skills as a trader can t be bought with money. It takes time, effort and discipline to develop your trading skills. Not only that, it does require actual trading experience to understand what emotions you go through and how to manage them in your forex trading business. While it may seem to be a lot of work and study, it s definitely possible to become a successful forex trader. Just don t expect it to happen overnight, or you will be sorely disappointed. Even the best of traders are constantly learning new things about the markets, the subtleties of trading and of themselves as traders and persons. Although with the right forex trading education and mentorship you can reduce the time taken, in most cases you ll still have to go through the experience of learning what it takes to be a successful forex trader. Keep working on your trading skills in totality and soon you will find yourself having Consistent Forex Trading Profits . Ryan Lee Daniels runs a Forex Trading Education website for the Smart Forex Trader, where you can develop Your Forex Trading Strategy for consistent profits.