One of the things that I enjoy the most about trading Forex is that it never ceases to be a challenge. It’s not like something that you learn, and find yourself on autopilot. To be a successful Forex trader, it is a lifelong pursuit as well as being a lifelong passion.
Traders are professionals just like a professor, an airline pilot, or a doctor. A physician will continue taking educational seminars and classes in order to keep his or her skills up to date, and more importantly ensure patient safety. The airline pilot will spend countless hours in airline simulations, as well as other training methods to keep up to date with the newest upgrades to the airplanes that they fly.
For some strange reason, many new Forex traders think that they can succeed in this game without any training. They fail to recognize the fact that they are trading against some of the smartest and best traders in the world. Investment banks like Goldman Sachs don’t hire random people off the street; they only hire people that have proven their economic prowess as well as the ability to trade in a profitable manner.
No matter how good you have become, there is always going to be one or two things that you can do to improve your trading. Perhaps there is a new system, or technique that you haven’t been doing as you have progressed. By learning these new techniques are systems, you are looking the marketplace in the eyes of other people. Perhaps you will notice things that would have been ignored in the past, which may allow you to profit off of alternate setups as opposed to the handful that you have been taking.
Let’s say that you’ve been a profitable trader for a few years. Sometimes traders will find their returns hitting a plateau over time. Let’s pretend that you are making 17% a year on average. This is a great return, and certainly nothing to shun, but let’s just pretend that there’s a couple things that you could use work on.
If you improve your trading by 1% in a couple different places, it will be longer for you have found that your improvement overall will be 10%. While that doesn’t sound like a massive jump in trading profits, as 10% of 17% is only 1.7% – compound interest kicks in, and you will find that your returns will be supercharged over the next few years.
If you find that you are getting 17% a year, why not aim for 18.7?