Trading From Home – What separates the winners from the losers?
There are so many Forex traders today trading from home. With the advent of high speed internet connections there is no longer a need to go to any day trading floor and rent a computer. Many people however are unsuccessful at day trading. In fact about 95 percent or more people are just not very successful trading from home. What is it that separates the losers from the winners? What makes the person who can consistently trade Forex day in and day out and make money?
I believe that the only real answer to that question is the education, the right tools like Range Bar Trading and the experience each day trader received before they began trading. By far the hidden factor of all day traders is the level of knowledge that each person has and the skill to manage money. Now of course a new day trader just starting to trade from home will not be as experienced as a former commodities or forex trader from the City or NYSE. That is just a simple fact. However, with all of the available information out there you can rapidly train yourself so that you can be nearly as good if not better than many of the day traders out in the market. Trading with Range Bars can really make trading an easier experience.
The best Forex trading systems are not complex computer algorithms thought up by Harvard Ph.D. students. Actually, the truth of the matter is that the best trading systems are the most simple. The reason why the simplest systems work best is because you are not bogged down by any complex thinking. Because each Forex market can trade in seconds you need a system that is so simple that you can respond just as quickly. If you make your trading system complex and cumbersome then you are just bound to fail. You would not be able to respond appropriately to the changing market conditions.
Many of the most successful Forex traders follow a chart based system. This is probably the wisest course of action. Now chart based systems do not really take into account the daily news. This can be a good and bad thing. Since you are not paying attention to the news you are not going to be swayed by the panic or the chaos you may think will occur. You see sometimes the Forex markets are not moved by daily news reports. But here is the rub with strictly paying attention to only the charts and ignoring the
news, you can miss out on some opportunities. While you may not be swayed by the news other traders will be and cause fluctuations in other segments of the market. The best system then would allow you to trade just following charts but also keeping one eye on where you believe the market will go. Once you start to see a trend you can make your move, and hence reap the profits.
Being knowledgeable, disciplined, and dispassionate you will be far ahead of just about everyone out there. You cannot let your emotions get in the way of making money trading from home. Following these guidelines you should be able to find a trading system that will ultimately make you the most amount of money in the shortest time.