Realistically, just how much time do you need to spend in order to be successful in forex trading? How much research will you need to dedicate on a regular basis? How much time will you need to spend on your initial and then on your ongoing forex education.
These are all questions that crop up at some time or other. I would suggest that these questions are answered before a new trader gets involved in forex trading. Anyone can be a millionaire if you live long enough, just need to live long enough!
Time is the one resource that is always in short supply. That is why it is important to know how to use it. You can lose money, and get some more. You can lose a partner and find another one, lose an hour or a day and it is lost forever.
First of all, spending time on education is so important. I personally spent almost six months watching listening and watching successful traders start before I ventured out on my own. Is it possible to start sooner? Yes it is. But when I started I still had a consultancy job to go to so my trading and education time was limited.
In order to know how much time you will require, will depend on the trading strategy you adopt. I for example was not able trade during the day. For me I had to find a trading strategy that I could just check before I left for work and when I returned late at night.
Some people like to receive alerts and just trade using the alerts. That can be an effective use of your time, as long as you are happy with the source. I have always wanted to be aware of what was happening in the markets and in control of my trading. For me understanding and mastering the process was most important. As the saying states “Give a man a fish and you feed him for a day, teach a man to fish and you will feed him for life.” It made sense to me to learn to fish!
Everyone needs to find the trading style that suits their personality and meets their requirements. Not everyone wants to spend time glued to the screen just to make 10 pips a day; others are happy to make 10 pips as long as they see it every day and can see the effect of compounding.
Other people like to place trades either first thing in the morning or evening and simply forget about them. For many this is an efficient use of time. The trader will need to ensure that the stop losses are set at the appropriate level to prevent the trade being taken out too early.
The amount of time you are able to devote must also be brought into the equation. January time is a boom time for gym membership. I find it amusing watching people of various sizes come and spend two hours taking part in various fitness routines. A few months down the line more than half are gone. Setting up any business making time and that will require choices to be made and priorities to be set for managing your time.
As for me, I found that a very good use of my time was, especially in the early days, was spent listening and watching successful traders. This worked for me for a number of reasons.
As I said earlier education is important. I realised that it is not knowledge that is power, but applied knowledge that is power. All too often I heard of people who were full of information about forex trading, but were unable to trade successfully.
That is why I spend a lot of time talking to other traders in order to:
Learn the philosophy behind the trading strategy To be able to share the experiences of the trades I lost in order to find out what I did wrong I wanted to show off to others when I did well I wanted to have the support of a group of fellow trader And I also wanted to feel that I wasn’t the only one getting frustrated.
I find it so annoying when trying to follow what should be simple in theory is not always easy to implement. The fact that you can get advice and share thoughts with others on your journey helps. It’s a bit like running the marathon! Running alone in the evenings is so dull. Running the marathon with others who share your pain and the sense of achievement, is an awesome feeling.
There is no magic formula to define just how much time is needed. If making a success of forex trading is your goal, then I suggest you do whatever it takes.
By: Kaz Kowalski