TRADING FOREX SUCCESSFULLY
Forex traders (both new & season traders) find it difficult to profit or maintain consistency in the market without any type of strategy or plan. To trade forex successfully, you need to have a good strategy, be disciplined and be able to manage risk.
The three most important things regarding trading should be balanced to have a chance at becoming a successful Trader. They are;
- Learn a strategy (e.g. Price Action)
- Employ Proper Risk Management
- Build a successful Trading Psychology
Develop these three above; then you will most likely gain consistent profit in the market.
Successful Forex Trading Tips
- Have Clear Goals: This is the first step in being a successful Forex Trader. You must be clear about your goals. Have a specific goal which is measurable and attainable. Setting goals right mostly depends on the trading strategy we use and our trading style. Intraday traders’ goals will be different from the set and forget style traders; therefore it’s important to figure out what trading style you will use to trade the Forex market while setting your goal.
- Decide the Strategy You Will Use: Decide the strategy you will employ to trade the market daily. What kind of Trader Will You Be? Do you want your trading to be based on the fundamental analysis or you want to be a technical analyst? These questions need answering in choosing a strategy to use. 99% of my trading is based on the technical analysis using the price action trading strategy. I don’t focus on the news much, but one major news I concentrate on is the Non-Farm Payroll (NFP).
After deciding the trading strategy to use and what time frame to use, you should go ahead to test your strategy on a demo account across the various instrument.
- Build a successful Trading Psychology: Trading Psychology and having the ability to control your emotion is critical to becoming a successful Forex Trader. Having a successful trading strategy without the discipline to follow will make use lose money. This requires you to be patient, disciplined and remain focused.
- Money Management: I don’t joke with this. Controlling risk and managing money is a critical aspect to your success as a Forex Trader. There are many theories out there on how to manage your money effectively; you want to be sure you are following a proper money management plan based on your trading strategy. I will be talking in depth on this in my next article. Be on the lookout for it!
These are things you should master for you to become a Successful Trader.