For a long time, this question has been coming in from both newbie and veteran traders alike. Knowing how long it will take you to become a profitable FOREX trader is as important as becoming one.
We have previously looked at this but from a different perspective. Today, we will be looking at it from a completely new angle.
Before I give you the answer, I want to walk you through the different stages a trader would go through before making a trade.
The Trader’s Journey in Becoming a Profitable FOREX Trader
Stage 1: The hyper newbie
At this stage, you don’t know what you don’t know. So you’ll study and devour everything you come across, be it trading books, blogs, courses, forums, whatsoever. You’ll just devour everything that comes your way and learn everything from A to Z: chart patterns, indicators, etc.
I call this the hyper newbie stage because, at this point, you’re pumped up and thinking, “Oh, man, I’m gonna be the best trader in the world. I’m gonna be the next champion trader. I’m gonna be the next market wizard.”
Join our Upcoming Training Program from September 25 to 27, 2020. Click here to register.
Those were the thoughts I had when I first started some five years back. I wanted to be the next best trader and I’d do whatever it took. But at that stage, what happens is, you’ll end up blowing up a few trading accounts which I did many times over and over with my school fees.
Suggested Read: Fundamental Trading: When to Buy, Sell, or Hold Currencies
That’s when you realize that the strategies and techniques are not everything. Because risk management also plays a huge part. And that’s where you progress on to stage 2.
Stage 2: The risk-takers
At this stage, you’re being careful with your trades and you’ll risk 1% or 2% on each trade, always having a stop loss, managing your position size knowing that you shouldn’t take too much risk on each trade.
You become the risk-taker when you know how to manage your risk. You risk a fraction of your trading account on each trade, but you’re still not making money. You’re still losing money, even though you have eradicated most of the large losses, but the losses still come in.
This is when you encounter the death by a thousand cuts. You don’t lose a lot but you lose small consistently. And when you realize this, that’s the time you start thinking about the third stage.
Join our Trading Community on Telegram.
Stage 3: The lone ranger
At this point, you know that risk management is important. But at the same time, risk management is not enough because you must also have a trading strategy that works in the long run, otherwise known as having an edge in the markets.
How long it will take for you to become a profitable FOREX trader depends on many things. But most importantly, your determination and consistency will get you there fast.
Don’t miss my training program as I will be sharing my trading strategies.
Register for our 3 Days Training Program.
