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Forex: Foreign Currency Trading and Exchange With Confidence

Forex is a great name for a foreign exchange market because it evokes the word “fever” immediately after it. The term “Forex” is derived from “Foreign Exchange.” Confused? It’s okay; it’s still important.

At that time, forex trading was available only to banks and other commercial institutions that had to have money to trade, but now, thanks to the internet, even the smallest trader can participate in forex trading. And the best thing is that you don’t need a lot of money to start trading.

When you start your forex trading, it will be confusing at first, but you will learn, like I did, that the more you trade, the more money you make. It’s just like economies rise and fall, and if you have forex right, you will make a profit the way the market swings.

Forex is a great way to earn money as long as you do it in a sensible manner. Don’t trade with money you can’t afford to lose. That’s greed speaking, and there’s nothing wrong with that. You can lose big time if you are not careful. You can also achieve long term results if you make an effort to educate yourself and be consistent.

What I’d like to talk to you about are 3 key areas that you must work on before you can achieve long term results in forex.

1. Will you listen to your trading plan?

The biggest mistake traders make is that they let their emotions get involved in their trading plan. They are tempted to tweak their trading plans, cut corners here and there, and run losses.

These small baths are often the death of a trader. I talk to many traders who are well-educated and successful traders, and they struggle to make consistently profitable trades because their trading is all over the place and they are always in and out of the market. What’s surprising is that their disciplined and successful trading plans got them to where they are now, making seven-figure incomes year after year.

Getting a hold of your emotions and sticking to your proven plan is crucial to your long term success in forex. Just make sure you don’t change it too drastically.

2. Can you control your greed?

Another dangerous temptation in forex is that of greed. There are many traders that trade because of greed. They think if they are not in the market, then their chances to make money are slim.

While this may be true, you have to learn to expand your definition of “sins”. You have to learn to say “no.” You don’t always have to trade. You can study and work on your selling and trading plans, and in the process, you can clean up your emotional arsenal.

When you’ve built a solid emotional foundation, begin to focus on your long-term goals of financial independence.

3. Can you accept responsibility for your actions?

This may sound like a bit of a tougher question, but it’s no different than anything else we do in our lives. The moment we place our blame somewhere else other than ourselves, we are effectively teaching ourselves less about who we are.

So many traders want to blame the markets or anyone else for their losing trades. But it’s we who are to blame. So take responsibility for your trades.

If you’d like to succeed in the forex market (or any other market) you are going to need to take personal responsibility for your actions. Don’t use anyone else.

Instead, learn to stand on your own two feet. False faith found in the name of a guru or mentor is not going to benefit someone who is looking for a shortcut to success.