Being a successful Forex trader is not just about having the right tools for the job it is about having the right state of mind. In this article we are going to look at the equipment required and also how to get focused on the job in hand. Contrary to all the sales hype out there Forex trading is not as easy as placing bets on a currency going up or down. A 50/50 bet that either goes against you or with you, Wrong; Forex trading is a strategic activity that is influenced by an array of different fundamental and technical issues.
First of all let us look at the equipment that one might need to be a modern day Forex trader; computer, of course this goes without saying but not just any old computer will do. You need to have a PC or laptop that is fast enough to fill your orders in the shortest time possible, most modern laptops and PC’s will do the trick but steer clear if you are still operating a commodore 64. This also goes for your internet connection. Although it is pretty much unheard of these days, dial up internet is a waste of time you must have broadband and not through a mobile network. Although mobile dealing is getting faster there can still be a dangerous delay in filling orders. A secondary monitor is also a good idea as you will need to watch your charts and enter trades at the same time, once you have experienced using more than one monitor you will never go back.
Now you have the right equipment it is time to choose a broker; this can be trickier than you think. Funny enough there is a fair share of scam brokers out there that will do anything to get their hands on your money and I am not just talking about legitimate means such as the spread they charge. I only really have one recommendation here; do not be tempted by small spreads to trade with an un-established broker. Use a regulated broker by the Financial services authority of that country and try to keep it local where you can i.e. in the same country that you are living and trading.
Now, let us talk about the biggest key to being a successful Forex trader. Attitude; if you are an un-patient person then you might as well pack up your things now or start auto trading because there is no room for impatient people in the world of Currency trading. You only need to trade a couple of times a day to make a consistent living. In fact if you are trading more than 10 times a day then you are over trading and need to seriously look at your strategy.
You will need to detach yourself from the value of money, because if you let the emotion of greed or the fear of losing money get in the way of your trading strategy you are doomed, from now on you need to think in increments of pips and points and not monetary value. Most successful traders will only win around 30% of the time, but there wins will be 4 times worth their losses. Losing is a fact of trading and you will need to get used to that.