A whopping 95% of all Forex traders will come up empty-handed. We’re not just referring to rookies here though. ‘Nuff said. Odds are against you, regardless of whether you’re trading Forex to make a living or just for fun. What a remarkable fact. However, the remaining 5% of Forex traders manage to break even, and there are those lucky few who constantly profit from the currency market!
“How did they do that?” asks the TV show.
Aren’t these the million dollar questions? Answering this question has been the subject of numerous publications, conferences and trade shows. It’s a sad fact that innumerable books, seminars, and interviews have been devoted to attempting to address the mystifying questions of magic. The truth is that there is no one-size-fits-all Forex trading strategy; there is no one Holy Grail.
To put it another way, what do successful traders do that the rest of us don’t? They’ve figured out a way to consistently win by combining and tailoring a variety of factors. They’ve mastered the art of trading thanks to them.
First and foremost, you must have a strategy in place before you can achieve your goals.
All components of your trading must be outlined in a formal business strategy. When will you trade, how much will you risk, and what are your entry and exit strategies? These are just a few considerations. A consistent (profitable) Forex trader must plan his or her trades and then follow through on them.
Simplicity reigns supreme! Don’t overcomplicate this strategy. Your goal statement and trading strategy can both be written on the same piece of paper. It’s probably too difficult to go any farther.
Step 2: Pay attention to your own psychological well-being.
Self-awareness will help you develop the discipline needed to make high-quality trades with sound money management. Investing in Forex requires a high level of focus and self-control. Find out how you feel about risk and money by embarking on a personal adventure. Your trading plan should be built around tactics that help you minimise your deficiencies and enhance your strengths.
There are numerous ways to trade based on one’s personality. As you become more familiar with a variety of styles, you will naturally grow to favour one in particular. Like me, you’ll regret it if you try to resist it. I claimed to be a day trader, but my results were restricted. When I began swing trading, I realised that my winning rates were significantly greater. Guess what I’m going to do for a living now!
Be honest with yourself about what you can and can’t accomplish.
I realise it’s a tough one! When I’m online every day, I’m constantly bombarded with advertisements. The brokers are providing free education, forums of all different trading methods and points of view, and a wide range of educational resources. There are many “gurus” who claim that their approach is “the one” that will help you generate money. In the midst of all that din, how can you manage to hear anything?
Everyone is either right or wrong, and I want to make that plain right now. To be a great Forex trader, you need to put in the time and effort, select a trading strategy that fits your personality, and be patient.
Your situation may be different from mine. Be prepared for a period of self-discovery and learning when you begin your career as a trader. Avoid being swayed by the clamour around you and maintain a clear head.
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