Sponsored Article: Can anyone become a trader?

Updated: Dec 27, 2016, 16:44 IST | A Correspondent

The short answer to this question is, yes anyone can become a Forex Trader but in reality there is a much longer answer

The short answer to this question is, yes anyone can become a Forex Trader but in reality there is a much longer answer. There are so many factors involved in determining if this is the right path for you. Is is a career you are looking for or a way to make money outside of your regular employment. Do you intend to do your own trading or hire a brokerage firm with traders who trade for you. Do you want to learn all the ins and outs or would you join a social trading network and mimic someone else’s trades?

There is also a difference between becoming a trader and becoming a successful trader. Anyone can become a trader but not everyone has what it takes to be successful. At this point we will assume that the question that is being asked is who can become a successful Forex Trader and we will examine the elements necessary for that to happen.

Being a Forex trader takes patience, flexibility, persistence and the ability to handle stressful situations well. The Forex market fluctuates greatly. It’s important to know yourself well and be aware of how you will handle the highs and lows of trading before you start.

A trader needs to know he can lose money and still be ok. Forex traders can not be winners 100% of the time. A person must be able to handle losses both financially and emotionally in order to be a Forex trader. It is also a matter of determination. A successful trader needs to be determined to weather the storms and stick it out because many beginning traders struggle with difficult losses before they make consistent profits.

Fortunately there are countless opportunities to learn the Forex Market before one decides to jump in. There are websites, books, social networks, software, and magazines. An interested person can spend anywhere from hours to months learning about the market while they decide how to proceed.

A trader just starting out will want to chose a large brokerage. The larger brokerage firms will likely have been reviewed extensively. They will also be more likely to have methods of insuring you against bankruptcy. These firms will allow traders to trade with a simulator so that until a person feels comfortable trading with real currency, they can get the feel of the market. These accounts are called demo accounts and most large firms offer this option.

Once you have passed the point of trading on a demo account you need to make sure you have enough liquidity to start trading real money. It is recommended to have at least one thousand dollars to open what most brokerages call a mini account.

In addition to a demo account it is advisable find a Forex Trainer. Someone who will guide you and advise you during the early part of your career as a Forex Trader. Sometimes the best place to find this is a social trading network. It is also possible to find a trusted mentor through your brokerage firm.

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