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Here are 3 keys to succeed in Forex trading !

Here are 3 keys to succeed in Forex trading

The first major aspect is the one we have already mentioned, it is also the aspect of business that seems to get the most attention - business policy.

Business policy

Your business strategy is basically how you trade, what needs to happen for you to pull the trigger on the business? Most trading policies are based on indicators such as the emissions index, the moving average or a combination of several different indicators, personally I do not want to trade indicators. Being able to simply read the price action from charts will provide you with a much stronger foundation for identifying your business.

Whatever you choose, it is very important to have a good business strategy when trying to become a profitable fork maker. The question is what do I mean by "good"? What is a "good" business strategy? Most traders define a "good" business strategy as one that has great success. The truth is, you have to ask, how was this "success" determined? Over the number of specified bids, 10 trades? 100 offers? How about asking the question All trades were taken after the exact steps of the trade policy?

It's not as simple as finding a business strategy that claims to have 70% success and then just running with it. Chances are if you've been in the trading game for some time you'll know it's never that simple.

For example.

The business policy claims that its success is 70%.

But when it comes to business, your success rate is only 40%.

why is that

Of course, it could be that maybe a thousand business plans do not have 70% success to begin with, but let's say for this example that it does not. So what could be the problem otherwise? The answer is that you lack two other key elements to the success of ForexTrader, let's look at the latter.

Commercial psychology

There's one major factor that affects every business you take ... You know that your business psychology is often the difference between a successful business and a failed business. You can be the strongest human being on earth, but you are still human and as a person you have feelings.

Trading is a very loaded emotional game, especially when you are trading with a large amount of money, naturally it can overwhelm your emotions and affect your thinking / behavior as a trader. Sometimes you subconsciously go into a business based on emotions, whether you are "taking revenge" or simply greedy, everything is under the strength of business psychology.

You may have the best business strategy in the world, but if you have poor business psychology then it does not matter. Let's look at some ways in which emotions can influence your business decisions.

Emotions that prevent you from doing business

Emotions that tempt you to go into business

Emotions that cover your judgment

Your business psychology will improve as your exposure to the markets improves, of course I mean live trading with real money. It's fine to start a promotional account, but you do not want to be very comfortable with a promotional fund when you can start trading LIVE. Please, of course, make sure you understand the risks involved and never trade in money that you can not stop.

The last key is to change the game and most Nobs do not understand the power that comes out and the next key is money management.

Money management

We are all different, some of us have £ 5,000 aside that we can put into circulation, some are only £ 500 and for some of these types of numbers you can only dream. In other words we are all different, we all have different finances, different goals / objectives and different reasons for trading the forex market.

Money management, or risk management, is the very important part of trading that determines how much money you will risk in one trade. This amount depends on what your goals / individuals are and also how much money you have to actually invest in the market.

When you are ready to start trading seriously, it is generally best to keep your risk down to 1% and build your money management around it. Unfortunately, there are many "fork gurus" out there on the internet who do not even mention the importance of managing your risk (avoid these types of people), or say that it is okay to take more risks. Say 3% or even 5% (unthinkable!)

The truth is that no matter how big a trader you feel, it is simply mathematically proven that in your business you will have a loss and not just one here and there but a loss. The question you really want to ask yourself is, will I survive this loss? Or will my account be deleted?

Let's say, for example, if you are multiplying 9 trades lost in a row, you are at risk of 5% of your account balance in each trade:

Initial bill: £ 5,000

5% trading risk: 250 GBP trading risk

9 tap x 5% = 45% tap

Account balance: £ 2,750

You lose almost half of all your account balance! The time taken and the difficulty of trying to make up for this deficit until it is very difficult and the currency in which you will still have lost bids makes the whole thing more messy.

Let's now look at what happens if we only risk 1%:

Initial bill: £ 5,000

1% trading risk: £ 50 trading risk

9 Tap x 1% = 9% TAP

Account balance: £ 4,550

Here we lose almost 10% of our current account balance, which is a very fair amount for 9 consecutive business losses. Be smart, trading is primarily about keeping capital and you are only looking to make a profit once you have taken over your money management

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