What It means to Be a Successful Forex Trader?

People often misunderstand what it actually means to be successful. According to an average guy, a successful trader is the one with a lot of money who can lead a dream lifestyle without having to look at the price tag! But that isn’t what it means to be a successful forex trader. A successful trader on the contrary is the one who has built enough wealth to create enough cash-flow every month, to cover his or her expenses for the rest of his life. So basically a successful trader is the one who is on his way to create assets that he can survive on whether he works or does not. Money will be flowing in perpetually.

Creating assets should be the main objective of a forex trader. A good trader knows how to align all his assets in a way that they will provide him with a steady monthly income. A successful trader or an aspiring individual who wants to make forex trading his long term career will not look at a paycheck because he will be working towards creating a steady income for himself. So if your assets make more than enough money to cover your expenses, consider yourself a successful trader. Building wealth and investing it wisely will last forever. Short term gains won’t.

A smart and successful forex trader will make his money work for him. He will probably invest into bonds, stocks, businesses, gold, or real estate, so that it’ll make more money in future. Once a trader learns this little secret he will never need to really worry about having a job, if things do not work out because he will never need one if he is focused and clear about his goals.

Majority of forex trading individuals are the people who became successful and rich and weren’t born with a silver spoon in their mouth. It took them hard work and dedication to become successful.

When we are in middle and high school, we’re taught that we can make money by getting a good job. Since this is so deeply set in our minds and we are conditioned that way and as a result majority of us get addicted to the idea of a job or an hourly wage. We have not programmed out mind for anything other than that.  We think of hourly wage, monthly paychecks, yearly bonus, jumping jobs, corporate career etc and do not contemplate doing something unique that will help us build more wealth and will make us many times more financially and emotionally secure as compared to keeping and going on with a drab job.

I am hoping through this article I am making some sense to the readers that will make it easy for them to tell when an individual is successful and rich or not. If a person’s assets produce enough money every month to cover his or her expenses, then that person is successful as a forex trader.

Ways in Which Individual Investors Can Benefit From Forex Trading:

There is little doubt that all these years’ only large multinational and individual banks and major financial institutions had been dominating FX trading but the changing times have given way for a paradigm shift in the nature and type of investing. Forex trading has become accessible and has been on an upswing amongst fellows from all walks of life so much so that these days’ start-up firms are competing directly with financial institutions to serve investors in the new technologically driven economy. And in this entire hullabaloo the real winner is the customer. Internet has empowered the individual investor to take control of his own investment strategy in forex trading.

Now as we already know that like in the past, foreign exchange trading is no more limited to large banks and institutional traders. With recent advancements in technology even small traders are taking advantage of the benefits of forex trading with the help of online trading platforms. Forex trading is on 24 hours a day and 5 ½ days a week.  Online trading has revolutionized the currency markets by making it accessible to the small and medium sized investor. Investor is jumping at the rooftop all excited. It’s an opportunity for him to build wealth if he learns to make use of it with his mind and eyes open.

The forex trading is perhaps the largest financial market in the world. Forex trading is about simultaneous buying of one currency and selling of another. The world’s currencies are on a floating exchange rate and are always traded in pairs, for example EUR/USD or USD/JPY or USD/INR etc.

In the new millennium, the forex trading has become accessible for an individual investor or small group of investors. Forex traders have been seen to reap many benefits from forex trading as compared to stock market, e-mini futures and such other trading.

Today mostly traders are choosing forex trading in comparison to stock trading because while there are around 4,500 or may be more stocks listed on the New York Stock exchange, and 3,500 are listed on the NASDAQ.  In spot forex trading, you have 4 major markets, 24 hours a day 5.5 days a week.  You are more likely to do well in terms of finding good trades in forex as currency pairs are limited and fixed. Forex trading is easy and hassle free as compared to stock/future market.

Not only is it an accessible, easy and less capital-intensive business opportunity, but it is much more cost efficient too to invest in the forex market, in terms of both commissions and transaction fees as compared to Stock or other forms of trading. Commissions for stock trades as generally observed range from $7.95-$29.95 per trade with on-line brokers to over $100 per trade with traditional brokers. When you compare these notes with stock trading the stock commissions are related to the level of service the broker offers to its members. Traditional brokers offer full access to research, analyst stock recommendations, and so on. Online Forex brokers on the other hand charge significantly lower commission and transaction fees.