Forex Success: 3 Important Landmarks On The Path To Profits
Forex success seems to elude most people who try to learn to trade the Forex market. Even though many marketers of Forex related products and services make it sound very easy, it is never as easy as it sounds. But that does not mean making life changing profits is not possible. We are one of the success stories.
We were probably like most people who try to learn Forex trading. We would try system after system. We would download every indicator we could get our hands on and look for a magic combination of indicators. We would join, and leave, Forex services. But luckily, along the way we were able to figure out how to trade on our own… and have joined the ranks of profitable Forex traders.
When we look back, there are certain landmarks on the path to success. These are steps we took that played a hand in our success. We would like to share them with you here, so you can benefit from our experience.
Forex Success Landmark #1: Using A VPS (Virtual Private Server)
When we first started out, we would download all kinds of trading platforms onto our computer from a multitude of different brokers. Then we would load them up with system after system and hundreds of custom indicators. We soon figured out that a lot of Forex tools (like Trader On Chart or Forex Order Manager) needed the platform to be connected for the tool to work. Same thing if we joined a Forex signals service with a Trade Copier.
So we had to make a decision. Were we serious about becoming a successful Forex trader and using these types of trading tools? If so, we needed a VPS (Virtual Private Server). A VPS allows you to have your platforms running at all times without having to keep your computer on all the time.
Once we got a VPS, started hosting our platforms on the server and started using advanced trading tools we noticed our results improve. For one thing, we were more selective about the system we would use. For another, we were much more organized about our trading. And of course, the advanced tools helped us automate parts of our trading, like the exit strategy, which helped us stick to our trading rules.
Now that we look back, decided to use a VPS was an important landmark on our road to success. The VPS service we use to host all our live accounts is called ForexVPS.
Forex Success Landmark #2: Switching From DEMO To LIVE Account
Obviously, if you are going to make money in the Forex market, you need a live, real money Forex broker account. But you would be surprised how many traders are stuck using a Demo account. They are very slow to open a real money account, and some never do.
Demo accounts are good when you are first starting out. You can use them to get acquainted with the trading platform, learn how to maneuver around the charts and place trades. They are also good to experiment with different trading systems.
However, if you “practice” a system using a demo account, you are not really trading in a live market environment. The feeds on Demo accounts are slightly different than on live accounts. And your emotions are quite different as well. (Without real money at risk you make trading decisions you would not make if real money was on the line).
In short, trading a system on a demo account does not give you any real experience. It is not the same trading environment and you are not acting like you would under live market conditions with real money. Therefore, when you switch from demo to live, you are not prepared at all to trade the system and set yourself up for failure.
Deciding to open a live, real money account was another landmark on the road to success. It forced us to really decide how we were going to trade the Forex markets and grow as Forex traders. The brokers we use for our real money accounts are (IC Markets – non-US clients).
Forex Success Landmark #3: Trading ONE System Perfectly For More Than 3 Months
Most Forex traders just starting out are quickly discouraged. We know we were. At the first signs of losing trades, they abandon the system they are using and look for another one. Or, they start to make changes to the original system to “improve” it, only to turn a winning system into a losing system.
The truth is, most systems work. But they don’t work all the time. There are going to be losing trades with any trading system. There are going to be losing streaks as well. But the true test of a trading system is if it is profitable over the long term. Unfortunately, most traders abandon systems way before they get a chance to prove themselves.
Trading one system, perfectly according to the rules, for more than 3 months was another landmark of ours. Once we did, we realized our accounts are going to see periods of growth, consolidation and drawdown (just like the overall Forex markets). All we need is for our growth to be more than the consolidation and drawdown over time… and we WILL see profits.
Only by gaining the experience of trading one system for months can traders really start to understand the system and the role the market conditions play on the systems results. If you abandon the system at the first sign of trouble, you end up forfeiting all the long term possible growth. This is not the way to succeed.
Forex Success Landmark BONUS: Switching From Forex Trader Mindset To Forex Investor Mindset
We wanted to include this BONUS Forex Success Landmark because it might just be the most important landmark of all. In truth, this is the change in thinking that make all the other landmarks possible. It is changing from thinking like a Forex TRADER to thinking like a Forex INVESTOR.
When you hear about Forex, you rarely hear about it in terms of investing. Stocks, bonds, mutual funds, real estate, etc., are all talked about in terms of investments. But Forex, not so much, if ever.
Forex is talked about as trading. And trading focuses on the short term. It focuses on making money. (And if you listen to the marketers, insane amounts of money in a short time).
We came to the conclusion Forex should be thought about as investing. This immediately shifts the focus to long term… and changes everything. (If you look at the 3 landmarks above -VPS, Live Broker Accounts and Trading One System For More Than 3 Months, you’ll understand how all these came about by looking at Forex as a long term investment opportunity).
If you have not made the switch from Forex trader to Forex investor, we recommend taking our free course at Forex Investing Live.
Do you have these landmarks in your trading journey?
- Have you taken your trading serious enough to open a live account with an excellent Forex broker?
- Does your trading mean enough to you that you will improve your trading infrastructure by getting a VPS?
- Are you dedicated enough to you Forex success that you will stick with one system for more than 3 months?
If you answered “no” to any of these questions… consider taking the corresponding action.
Edward Lomax is part of the Forex Investing Live Team, dedicated to helping people tap into the true wealth creating opportunity the Forex Market provides. Take the FREE course, Forex Investing Battle Plan and learn how to use the secrets of the established wealthy to ensure your success. ForexInvestingLive.com
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