brain in a jar - source wikipedia
A lot of people are worried that they do not have what it takes to become good Forex traders. They’re mostly concerned that they don’t have the right kind of analytical ability, math prowess, and logical thinking that they believe all good traders possess.
Are these concerns founded? Do you really need brains to trade Forex?
The truth is that you don’t need a lot of brains to be a successful Forex trader. You hardly need any math skills at all.
As long as you know how to count the money in your account (to see how it swells, I hope) and know how to perform multiplication, addition, and subtraction you’re good to go. After all, that’s all there is to it: you need to know how to find the difference between two prices which is subtraction, know how to place Stop Loss orders which require addition and subtraction, and figure out how to work with leverage which is pure multiplication. It’s so east a 4th grader could do it.
People with good math skills have no advantage in Forex, unless they’re the sort of geniuses who can actually develop trading methods. The vast majority of people do not belong to this group, so you have very little to worry about. Even if you had a bad time at calculus in school, there’s no reason why you can’t make it big on Forex.
You don’t need an analytical mind to succeed in Forex. All you need to do is learn how to read a chart and it’s not really that hard with some practice. You don’t need to develop indicators, you just use what’s already available.
You do need to understand that different trading orders, but even that is not such a big deal.
You don’t need logical thinking as well, since you need to be working with solid trading methods that are complete with entry and exit guidelines.
Where does it leave you?
1. If you’ve been avoiding Forex because you feel you’re not smart enough, I hope that you now understand that this is unfounded.
2. You need to understand that becoming a good trader is more about your psyche than your intellect. Since you don’t need brains to trade Forex, what you do need are some other qualities. The mental side of trading is actually much more important than the intellectual aspect. You need to know how to keep your cool, deal with losses, handle your emotions, and avoid doing silly emotional mistakes. All this can be learned and has nothing to do with how smart you are.
So, don’t worry about math or any other such nonsense. Work on yourself to become better emotionally and you can succeed in Forex.
