The forex market is one essential and proven means of establishing a form of income on your own without providing services or products to customers;
isn’t that quite interesting!.
Trading the forex market as a business enterprise entails Consistency, Perseverance, Hard Work, Timeliness, and a Profitable Strategy.
You don’t make massive success overnight in the forex market.
Just as in every business, consistency and perseverance is a quality that will determine how profitable your trades would be.
Many traders would tell you that you can make 100% of your capital in just one actual day,
But they do not uncover the amount of time they spend backtesting their strategies and the number of losses they had made before accumulating considerable profits in a day.
It is possible to trade forex as a personal or corporate business. To achieve this, you have to possess some qualities. These qualities include:
Dwayne Johnson “Success isn’t always about greatness, it’s about consistency. Consistent hard work leads to success. Greatness will come eventually”
looking from Dwayne’s perspective, every successful individual has one thing in common ‘consistency.’
Being able to follow the same pattern of trading using an effective strategy over time is the best way to trade forex as a business.
Dedication to a particular trading strategy makes traders assured that even though they make losses today, their overall trading activities would always result to profit because they know the effectiveness of their strategy, and they believe in it.
The only way to achieve consistency is by creating and setting trading rules and following these rules to the latter end.
Consistency will differentiate a profitable trader from a non-profitable trader.
Take for instance:
Chris decides to take trades based on no specified trading rules and strategy; he eventually falls for his personal feelings and emotions, which deprive him of making the right decisions.
Because of the lack of rules, he often finds himself spending time and energy trying to understand the market, and because of this he fails to gain;
in due course,
Chris started losing focus, and in the end, he decided to quit. This short instance is the number one reason most beginner traders quit.
Not every trades leads to profit; many at times trades would hit your stop target, resulting in a loss.
But this shouldn’t be a reason for you to quit. Hardly would you see an expert trader who didn’t lose almost all their trading accounts at the beginning of their trading experience,
Eventually, after much work and perseverance, they became gurus in what they do. Running forex as a business enterprise entails that you persevere and endure.
There are times you would have a red day in the market even as an expert trader, but with this quality, you will be able to turn the tides to your favor.
It is essential to start cultivating the virtue of perseverance if you don’t already have it; if you can’t persevere, you will quickly give up when confronted with problems that are beyond you.
The following are the steps to achieve persistency:
- Develop the attitude that every problem has a solution
- Define your goals and be determined to achieve them at all costs.
- Develop an effective trading plan that you can fall back to when problems arise.
- Lastly, remember that setbacks are stepping stones that you can utilize to actualize success further.
Trading the forex market as a business enterprise requires discipline. Many at times, you will be faced with emotional battles like fear and greed that would make you take decisions that are harmful to your trades.
Many traders are often carried away by greed; their primary aim may be to make billions in just a short time.
Because of this, they neglect the place of planning, which is a quality that separates them from unsuccessful traders.
A type of negative emotion that most traders possess is FOMO “Fear of Missing Out” in plain language. It is the fear of losing out on profit you are likely to make if you don’t buy or sell a particular currency pair immediately.
The fear of losing out is a challenge to most beginner traders, and this can make them enter trades without a clear thought out plan, close trades prematurely, and risk too much capital.
Trading with discipline entails managing emotions, understanding and preventing FOMO, avoiding trading mistakes, and overcoming greed.
Although self-discipline is not a trait anyone inherits, and generally, possessing this quality is not quite easy. There are four things you can do to help you develop this quality; they include:
- Developing a specific goal and creating effective trading plans and strategies that can assist you in achieving those goals.
- Following the laid out plans and strategies consistently to the latter end.
- Driving away negative vibes from external sources.
- Implementing a risk management plan and utilizing it on every trade you take.
patience is a quality that is vital to succeeding in the forex market.
There are times you would have to wait for price action to move in favor of your laid-out strategy, but without patience, you go ahead taking trades that have not fully agreed with your plan and strategy, which eventually leads to a loss.
Therefore, for your trading plans to be valid, you must be patient enough to see price action moving in your favor.
Patience is also needed in an open position to maximize profit.
John Steinbeck “Do not worry about losing. If it is right, it happens – The main thing is not to hurry. Nothing good gets away.”
If you are patient in trading no doubt, you will achieve unimaginable success.
Our present world is cursed with the nature of wanting to make instant gratification and profit; people tend to look for a shortcut to make quick money.
The forex market, as in all businesses, requires time for it to create substantial profits, possessing the quality of patience is not easy.
It takes discipline and courage. Everything you do in the forex market from the learning phase to developing strategies and utilizing these strategies requires time. Without having the virtue of being patient, you would eventually quit.
But how can you develop this quality?
The only way to achieve this is by acting by your laid down rules, nothing more nothing less.
When you do this, you will notice that every step you take in the market is already calculated and thought out and you will have the courage and satisfaction that the trades you take would eventually lead to profit.
You can’t decide to run the forex market as a business without being timely.
To be successful in trading entails that you continuously check the market for potential trading action;
you must check all opened positions and price action frequently, some traders use 4 hours interval as a basis for looking out for potential trades.
You have to check price actions from time to time so as not to miss out on potential trades that would have made a great profit for you.
Creating a Business Plan
We have been talking about trading strategies and plans, but how do we go about developing them?
They are no doubt instrumental in trading and can be the only thing that could turn your trading career around.
Before any business is created, a plan must have been written, this plan is indispensable for success as an industrialist.
Your business plan is a roadmap or a written document that describes in detail how your business is going to achieve its goals.
Trading the forex market as a business requires that you initially create a business plan which will contain your goals, strategies, risk management plan, and other relevant information’s; this written document will serve as a foundation for your trading activities. The following steps will lead you in creating an effective business plan.
- Step 1: develop a goal, i.e., what you plan to achieve within a specified period, it could be in a week, a month, or a year.
- Step 2: put in place profitable trading strategies to carry out the goals you have in mind, this strategy must have been tested before you use them for trading. Sometimes it may take a more extended period to develop a profitable trading plan, but don’t give up keep developing new ones and test them; eventually, you would find a strategy that would be highly effective.
- Step 3: After developing a trading strategy, you should also create a risk management plan; this plan would determine the amount of capital you risk on every trades. Most traders risk less than 5% of their capital, you can always increase this percentage based on the amount of courage you have on your trading strategy, but I will advise you to stay between the ranges of 1 – 3%.
After creating your business plan,
Try as much as possible to follow them to the latter end, also combine your plans with consistency, perseverance, discipline, patience, and timeliness.
By doing this,
I assure you with the time you would be running a business that worth thousands of dollars; this amount is dependent on the volume of capital you are willing to risk.