Forex Trading On Slow Days

There are some days (and even some weeks) where it is painful to be a forex trader. In in a rapidly moving market like ours, sometimes it is more like watching paint dry, or grass grow, or the sun move. You get the picture. So what do you do when you are counting on your forex trading for your "daily bread"?

Well, first of all, you shouldn't! Trading is risky, and sometimes it's a losing proposition. If you are dependant on it to pay your bills, all I can say is, get out now! There's an old adage that says, "Scared money will always lose."

If the money you put in the market is for your groceries or your mortgage or you car payment, then I guarantee that as soon as the market turns against you, you will start feeling sick. You will get this knot in your stomach. Worst of all, you may get "paralyzed". This is what happens when losing trades really accelerate. the trader just can't believe his eyes and he watches as the market moves rapidly against him, wiping out far more than he/she should have EVER risked on a trade.

So you might be wondering, how do I ever get ahead in this? First off, allow yourself some time. You need time to get used to the market. You need time to find someone to teach you whom you can trust. You need experience, and only time can provide that.

If you will commit to taking 1000.00, and doubling it each year which means you have to make about 8% monthly, in 10 years you will have over $1,000,000.00 dollars. You're going to live the next 10 years anyway (hopefully) why not make them profitable? And, if you stay around this market a long enough time, you'll see how it is possible to make more.

But isn't a million in cash good enough reason to take things slowly? Plus once you reach that level, $8,000 per month is a pretty nice little income. But if you're not quite ready to retire (or if 8K monthly is NOT enough), just put it off a year. Then you'll be on a 2 Million dollar account, averaging 16K monthly. Add that to your pension and the $800 monthly form Social Security (if you liver here in the US), and you'll be set.

Secondly, taking your time means also, using low leverage on your trades. Don't gear it it up to accelerate your earnings unless you're ready to do so. It will only result in bigger and faster losses, and you'll find yourself trying to recover from quite a hole that you will blow in your equity.

I'll say it again and again, leverage is a two edged sword. And it is only good when you are holding firmly onto the handle. So let the slow days come. Enjoy the relaxed pace, or maybe not even trade at all! When you appreciate them as much as the faster days, and you'll find a much better balance in your trading.

Until next time...,

Bill