A common question I am asked about trading is how long does it take to be successful in forex. Well, it takes time to fully master forex trading – roughly 2 to 3 years for most people. So for all the newer traders starting out, I created an infographic that lays out the road to success in forex.
To put this infographic together I interviewed over 30 traders, ranging from a few months to a few years experience. This helped me get a really good idea of how long it takes to become a successful forex trader.
Fast Track Success in Forex
Interviewing these traders uncovered a lot of interesting facts about common mistakes that new traders make:
- Waiting too long to create a trading plan. Over 80% of the traders I interviewed waited over 10 months before creating a trading plan. Not having a plan before you start trading is a critical mistake! I give you a free trading plan template over in the free course so go ahead and use it.
- Not filling in your trading journal. Over 60% of the trader I interviewed have never kept or do not regularly update their trading journal. Journals are invaluable because they help you spot mistakes which lets you fix those mistakes. If you want to increase your profitability, keep a trading journal! I have another free template for a trading journal that you are free to use.
- Relying on indicators. New traders rely far too much on indicators and indicator based methods. You are ignoring price action if you use them too much and they are not as sustainable in the long run.
- Wasting money on forex robots and similar things. This is more common than you might think – there are a lot of scammer out in the forex world. New traders throw money away on false promises and products that are not legitimate. Be on your guard and do your research into companies!
- Demo trading for too long. Demo trading for too long. A lot of people disagree with me on this one but demo trading can give new traders a false sense of proficiency. Demo trades do not carry the same weight and pressure as live trades do. Profitability in demo trading doesn’t directly transition into live trading profitability. So don’t put off live trading for too long!
Check out the info graphic below.
Please note that the average profit column indicates the average profit for the 6 month period indicated. This is based on averaging out the percentage of profit/loss given to me by the traders I interviewed. This values listed are based on less than 20 data points each.
sheraad
MMMmmmmmm this is what this is all about. But yes some are sooner than later. Yes this can be a very hard road at times specially when financial pressure is leaking out fianancial profits. (what I’m saying is never trade with money that you can’t afford to lose) Some tend to make it, others try to buy it (looking for the holy grail mmmm) All the best to newbies and inbetwweens!!!!!!!
John
Nick
I can’t agree more about trading on a demo for to long. Since I moved to a 0.01 account, watching your cents disappear makes you think twice before entering a trade.
I have a problem with the trading plan, any help there please?
Thanks for an excellent blog
Regards
John from Durban
hickh
I can say that, give or take 6 months, Nick has just posted my personal timeline. Of course there are the lucky ones who just happen to ‘see it’ in a shorter period of time, and there are those that will simply never get it, or drop out before giving themselves the chance. I also think it helps if you really want it. I have done, and tried so many different things in my life and never consistantly stuck with any of them in the way that I have with forex. Believe me, there was many, many a day/night when I had to MAKE myself go to the charts instead of the Wii. YOU HAVE TO WANT IT! IMO of course. (o:
hickh
Sorry for the double post but I should mention that I do not think I’m a pro trader. I just feel very comfortable with my knowledge of probabilities, and what, when, and where to use that knowledge. Post’s such as this one by Nick will hopefully contribute to helping some see that there could just be a light at the end of that tunnel if you stick with it.
hickh
OMG!!!! I had to come back because I was just reading an old post in a thread where a person was very happy about declaring that “after three years, he is very close to opening a live account”. Now I certainly wouldn’t want to see anyone rush into losing money but this person hasn’t even started to feel it yet. He is going to have to start all over when he goes live! People, people, people, there are too many brokers out there that offer micro accounts for you to still be trading a demo after three years. I’m telling you now, you won’t learn until you lose some real money. This post by Nick may or may not be correct, it seems logical because that is my experience, but you’re kind of blowing the learning curve out of the water by trading a demo forever!! If you’re serious about trading, put a lousy $100.00 in a live account and really learn something! Hell, isn’t a tank of gas about $100.00 these days? Skip going out to eat twice. Don’t smoke for two weeks. Get in there and mix it up! Of course, if by three years you’re still having trouble, then no, do not go live but keep learning. Good luck!
Johnny TQM Jenny
Hickh:
You hit the nail in the head! I could not agree more. Trading a demo account is nothing but a false sense of security. It makes you feel like you are unstoppable and a genius! The only time I trade a demo account is to familiarize myself with the software. That is it! After that is all cash. To really learn to trade you have to put up the cash. A lot of the Forex brokers are still taking mini account. Heck! I spent $400 in a week for gas, groceries and new clothes. So anybody can open a forex account and trade for real..
Hats off to Nick for posting this. You’re selling yourself short, Nick. I saw a vendor the other day selling a home study course to trade the 6E for about $6000! Believe that?
Thanks Nick!
Johnny
hickh
Hey Johnny, I must now say that you hit the nail on the head… Here’s a place, f4noobs, where you can get what I call ‘real’ how to trade methods and help for chump change and I guess people are still paying the big bucks for something that probably doesn’t even work!
Mary McArthur
Forex traders often forget about these aspects of forex trading.
Thanks for the informative article, I know this will help alot of new traders out there.