Forex Trading the Business, Not the Job!

I find the average trader does not do well in trading for a couple reason. First, they do not have the right mind set. Second, they do have the proper training and the third least talked about is making sure you are treating it like a business and not like a hobby or job.

Most people trade because they want to make more money. The average person is trained to think working a job is the best way to earn money since it is "secure", so we let our brain connect the two without even realizing we are doing it.

The problems with looking at Forex trading as a job are that in most jobs you are not ultimately responsible for the profits to be able to pay yourself a salary. You get paid no matter what and you get paid the same amount whether you did well or poorly that week or month. In trading, you are the boss. It's your money on the line no one else's and you can only blame yourself if you make a wrong trade. Therefore, trading needs to be viewed as a business where you have a business or trading plan, you have risk management rules, you invest in continuing education and you review your results on a periodic basis. The business of trading needs the same amount of attention as if you purchased any other business.

Another big reason to look at this like a business and not a job is if you lose your job you can usually find another one pretty quickly. In the world of business (as in trading) you actually have money invested that you need to protect and grow. If your trading account is declining then you need to take action to "fix" the problem or you will be out of business. When people blow out their accounts it is like going bankrupt in your business. I don't think most individual traders look at it in this way. They just either stop trading or send the broker more money and hope it works out better the next time around.

Forex trading is fun and exciting but should not be treating like gambling. You cannot just throw your money at the market and expect to be successful. You need to get the proper Forex training, learn proper money management, and have a few proven Forex strategies and finally the discipline to follow through on your trading plan. It can be fun and exciting but it also deserves the respect any owner would give to their business. Take the time to get your Forex business setup correctly before you start to trade with your own money and you will be glad you did.