Forex trading may make you wealthy if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to wealth, forex trading can be a rocky highway to enormous losses and potential penury. With Forex, all this is about making a fortune. In this article, you will learn what makes some traders stand out and much richer than others! Most traders simply go with the flow and make average gains. We’re going to say that you know how to trade and that you have a good deal of trading experience. You can change that with easy improvements in your trade selection n, money and risk management, and perspective.
1. Volatility and Risk
All good Forex trading systems incorporate volatility. You can’t have a profitable Forex trading method without taking calculated risks and taking losses. if you can’t accept the risk, then don’t trade. Many traders back away from a market because it’s too risky – however, risk also means reward! If you are a trader who doesn’t like volatility, then go and find something else to do. Draw downs are part of trading; it’s volatile markets that make Forex trading fun and highly profitable. To the well-informed Forex trader, a draw down is not something to fear, but something to enjoy.
Remember: volatility = big opportunity!