There are mainly two types of FX traders active in the market. First is the dependent forex trader and the second is the independent forex trader. Sadly, the market is currently straddled with dependent traders.
While the differences between these two types of traders are primarily related to their trading processes, the effect of these differences permeates through their entire lives.
A dependent FX trader typically takes his lead from how the market is performing. This is the trader who will follow other more experienced traders in the market and copy their trades or simply take their forex trading strategies and try to implement them himself.
The independent trader, however, is the trader who will go from being a novice to an expert in a very short time. This is a type of trader who never rests until he or she has understood everything there is to be understood about the FX market.
Needless to say, the latter type of trader is going to make it big in his or her career while the former type will struggle for the rest of his or her life. How can you become independent if you are a dependent FX trader? Here are some answers.
The first step towards becoming an independent FX trader is for you to change your attitude of looking for easy solutions and to focus on lasting solutions. This would drive you to learn the basics of every little forex trading concept you come across.
You would find yourself compelled to try out multiple sources of education such as training courses, guides, and mentors so that you can come to a point in your career where you can say you know everything you need to know.
Once you have grasped the box that is FX trading, you have to start thinking about how you can step out of that box. Most forex traders live within the box but in order to gain big, you have to be able to think outside of the box. Finding new strategies is an exercise in innovation which is only possible if you know the limitations of existing systems.
The moment you strike gold in terms of a new concept or idea, you have to translate it into a working model. This is where your forex trading strategy becomes relevant. You have to take your innovation and build around it with money management principles and risk mitigation techniques. In the end, you will have a revolutionary FX trading strategy.
However, scepticism also has a role to play in your growth. You have to test your FX trading strategy with an objective bent of mind through various ways such as back testing and demo testing.
If you are convinced with your test results, you can implement your FX trading strategy. Even now, your task is not complete because you have to ensure that the implementation of your innovative forex trading strategy is not diluted by your emotions. Maintain a logical mindset and see your magical strategy bring you results.