Success at anything means that you are pretty much comfortable that you can know the outcome of any particular activity that you take part in, and that there is a reward worthy of your effort when you get done with it. You may not get the outcome you desire every single time out, but you do so enough times to make the process a worthwhile one to you.
In this article we will shed light on what we think are the four keys to becoming a successful Forex trader.
Obtain A Good Forex Trading Education
The first of these keys which will unlock everything else that you desire to achieve in the Forex trading arena is the acquisition of a real Forex trading education. Without it, you are just speculating or worse, just gambling with your money. Your ultimate education can be a formal one where you attend classes, seminars, and workshops, or it can be one that comes by way of being self-taught. It can be a combination of the above, or it can even include either of the above in combination with your real-life job experience depending on what you do. Being a Forex Broker is a good way to get a foothold in the business of Forex trading. It does not matter how you achieve it, what matters is that you obtain a good working Forex trading education and you are urged to go with what ever method works for you.
Understand Money Management
Every successful Forex market trader uses some kind of money management system. A good system is designed to keep you from being knocked out of the business due to a long unlucky streak. That is the primary purpose. Beyond that, a good system will keep you from trading too large which will create volatility within your equity curve which is the hallmark of a greenhorn trader. True pros know that slow and steady win the race, and they also know that their ability to attract money to trade with will depend on making their prospective investors comfortable with trusting their money to the trader. Believe it or not, most big investors who might be interested in putting money in with a trader are at the heart of it, fixed income investors who are used to single digit annual returns. The key is that these returns are highly reliable. As a trader you want to be regarded as highly reliable, and to do that you need a steady and gradually climbing equity curve. Getting there requires having a money management system that keeps you in the game the longest, and prepares you to cut your losses short and let your profits run.
Trade With The Trend, Never Against It
Yes, there are some famous professional traders who employ a counter-trend trading approach, but they are few and far between. In your Forex education process you have or you will learn that price movements that are in harmony with the prevailing trend are almost always sharper, and run longer than counter-trend price movements. This concept is by the way a central theme in wave cycle analysis. Those who are trained to use this form of analysis are taught to wait for a market to complete a certain number of parts to a cycle before the anticipated setup which according to the theory sets up for the biggest price move yet, which if it happens will almost always be in harmony with the trend. Your Forex training and education will prepare you to identify the trends and to know if any given market is currently trending up or down.
Trade Small At First, Then Scale Higher In Lot Size
This is an easy one and should be intuitive for almost every trader, but alas, the industry is famous for "turnover", and the revolving door of Forex trading can have as its cause the propensity of rookie traders to make big bets that are way outside the scale of what their competency level calls for. To be a winner in this game means having the discipline to start out as small as you can, and simply work your way up (scale up) gradually until you can handle a big account. When things start to slide, and equity starts to drain, then it is time to scale down and start small all over again.
Jeff Webb
forexconqueror
forexnewsmarket
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