I believe the reason that the majority of beginners who wish to start forex trading online end up as losers is the ease at which this “business” can be started. It is the work of just a few minutes to open an account with your forex broker, and in many cases you can be trading that very same day. Contrast this speed of launch with the incredible complexities of starting a business in the “real world” there’ll be licenses to get, lease agreements to sign for your storefront, employees to find and hire…Etc.!
Because it is so easy to begin a trading business, and takes such a small amount of startup capital, most beginning forex traders don’t give this business the respect it deserves.
If you were to meet someone knew at a cocktail party, one of the most likely topics of conversation would be what do you do for a living. You know who you are, and what your job description is. How to Invest Online You know what your job entails, what you’re good at, and what areas of your work your trying to develop. The answers to these questions come instantly, since you know intimately all the aspects of your “business plan”.
As a speaker, educator, and consultant to the active trader community for the last 10 years, I have had the great opportunity to work with hundreds of individuals on developing their business plan for trading. I am continually amazed at how few have ever even considered this to be important! Their single mindedly focused on building their skill set of trade selection and execution, and fail to realize that without a business structure, their chances for long-term success are almost nilâEUR¦
Think of a trading plan as a scrimmage match for a professional sports team. It is a chance to try out scenarios and work out solutions to problems at your leisure. A properly prepared football team can execute highly sophisticated plays on command because they spent the time needed during practice to build these skills. Most importantly, these plays will hold up under periods of extreme stress as they have been practiced over and over.
A properly constructed trading plan will have nearly every aspect of trade election and management predefined. What I help a client build a trading plan, the goal is to make it so incredibly simple and clear that any clerk on a trade desk could execute the trades for the client. I strongly believe, and my experience backs this up that genius and brilliance in the forex trading world are valuable during the trade selection process, but have little value once the position has been opened.