Many new forex traders see the huge profit potential that forex trading offers and dream of becoming financially independent and building long term wealth - no more boss, lots of free time and wealth. Anyone can do it but they have to be aware of a few points and there listed below.

The first point to stress is that anyone can learn to trade and be successful but it's a fact that 95% of traders lose. This may sound paradoxical and it is but becomes clearer with some explanation.

Forex traders who lose have the following traits:

1. They shoot from the hip without learning the basics

2. They get the wrong forex education

3. They have the wrong mindset to succeed.

Point 1 is pretty obvious and a huge number of traders think it's easy and lose their equity. Point 2 obviously means you have to get education but you need the right education and point 3 means you have to get the right mindset to apply your education.

Forex trading is not just getting the right information but knowing how to apply it correctly.

Let's examine this combination more closely.

When you trade forex you don't just take on the market you take on yourself and your emotions. You need a sound logical method but you need to have rock solid confidence in it to apply it through periods of losses and aim for long term currency trading success.

If you can't apply a method with discipline then you really have no method at all and your forex trading system will cease to exist.

Successful forex trading is based upon:

Simple logical method + Understanding = Confidence = Discipline = Success

In forex trading simple methods work best and the most time efficient way to learn is to use forex charts and technical analysis. You need to acquire confidence in your system and then you will have discipline. Now let me tell you a story...

In 1983 legendary trader Richard Dennis taught a group of 14 people who had never traded before to trade and in 14 days he had them ready to trade real money. These people were of all ages, both sexes and had various levels of education.

The result?

They made $100 million in 4 years and went on to become some of the most successful traders of all time.

Dennis taught them the method but he taught them to apply it in their own way with discipline - he knew the method was not easy to apply and several of this group have commented on this in interviews. The method was easy to learn but the discipline required relied on the confidence they had acquired.

I am not saying you will become as successful as this group, life simply isn't like that but it does show you it's possible for anyone to become a successful trader and is an inspirational story for any new trader when devising a forex strategy for profit.

So why is discipline so hard to achieve?

Most people are followers not leaders and cannot accept responsibility for their actions. Furthermore, their used to operating in a structured environment and following rules whereas in the currency markets your in an unstructured market where you have to live by your own rules.

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