How To Treat Your Forex Trading Like An Investment Business
Many people want to change their financial futures by trading Forex, but they get started off on the wrong foot. The first mistake they make is treating their Forex trading like a hobby, or some part time activity you put very little thought and effort into. This type of thinking gets you off to the wrong start and started on a path that only leads to failure.
To be completely honest, you MUST treat your Forex trading like a real business if you want to succeed and make the kind of money that can change your life. And the business is the serious business of investing.
Most would-be traders are ill equipped to treat trading, or anything, like a business. Most people work for someone else or for a business they did not create. This means they have the mentality of a “worker” not an “owner”. Being successful as a Forex trader is not about putting in hours in front of a computer screen, but having a plan and getting results.
YOUR investment business depends how you set everything up AND how you execute the daily activities of your business.The first thing you need to think about is your Forex trading business infrastructure. If you opened a different type of business you would have to have a place to work and all the equipment that allow you to work. Starting a Forex business is exactly the same.
You need a place to work that is dedicated only to trading and void of distractions. You’ll also need to think about the computer, Internet connection and broker platform you’ll use. More advanced things to consider are a Virtual Private Server and a smart phone that receives messages from an email account. A lot of people think the only cost of a Forex trading business is the money you need to set up your broker account. If you use a monthly signal or mentoring service, the cost of this must also be taken into account.
The best way to look at your trading like a real business is to treat your losses as expenses and your profits as income. Just think of a real business where you sell something. You’d have to buy the products to begin with (expenses) before you can sell them for a profit (income). Like any business, you need to have goals. And the goals for your business need to be based in reality.
Too many times new traders have unrealistic views for their trading business. You need daily goals, weekly goals, monthly goals and yearly goals, and a plan to make those goals a reality. Unlike other businesses, you can use compounding to greatly increase the amount of money you make for doing the same amount of work. This makes starting a Forex trading business more advantageous than other forms of businesses.
***Article provided by Edward Lomax at ForexInvestingLive.com. Take the FREE course, Forex Investing Battle Plan and learn the 4 Foundational Core Principles that leads to life-changing profits. This is the LAST WORD on Forex Investing Success.