Forex trading is very possible to succeed
Many people are constantly striving to increase their profits in Forex trading. This is with good reason. If you can become a Profitable trader, you are one step closer to financial freedom and saying goodbye to your 9 to 5 job. Unfortunately (or fortunately depending on how you look at it) it takes a lot of work and discipline to succeed. Most new traders jump in without knowing what they are doing and expect to get rich quick. This just is not realistic. It takes time and practice to learn to trade. There are ways to speed up your road to success however. Here are five things that will increase your chances of succeeding at Forex:
1. Do due diligence on your trading method.
There are many Forex "gurus" that claim to have guaranteed winning systems. Before you Risk any of your hard earned Money on live trades however, you should examine the system or method carefully. Do your due diligence on the method. Back test the method either on your trading platform or using back testing software. Is the method successful when you back test it? If so, great! Don't just jump into risking real money just yet however. After you have proven that it is profitable back testing, prove it again with a demo account in real time. If the method is profitable over the course of a few months, then you have yourself a good method! Only after taking these steps should you open a live account and risk any real money in Forex. Remember, the Forex markets will always be there, but if you don't do your due diligence your account may not!
2. Be patient to wait for your setups.
After you have proven to yourself that you have a profitable method, you must be patient to wait for your setups to occur. Many people get impatient when their setups don't present themselves for awhile and they jump into the market hoping to make money. This is basically gambling and you will surely lose money in the long run if you do this. This is the whole reason you did all that testing! You know that you have a method that will make you money if you follow it, so just be sure to stick to your rules.
3. Risk a small percent of your account per trade.
Most professional traders risk about 1 to 3% of their account per trade. If the professionals are doing it, then surely you should be too! Every method is bound to have a losing streak at some point in time. If you are risking a huge amount of your account per trade, your account won't be able to survive that losing streak. Risking 1 to 3% per trade ensures that you are in the game for the long run. Even if you have a few losers in a row it's no big deal. Your account will still be there for the next trade.
4. Fully Accept the risk.
This ties back to most of the other points I have already talked about. When you have done your due diligence and proven that your method will make money over the long run, then you should fully accept the risk of any individual trade. Especially if you are risking 1 to 3% of your account, it really doesn't matter how a single trade will do. It is about how your method works out over the long run. If you are worried about losing money on every individual trade, then you will not have a clear mind to make good decisions while in the trade. Always remember that you will make money in the long run with your method and it should be easy to fully accept the risk.
5. Take notes and study your trades.
This last step is certainly not last in importance. In order to constantly tweak your strategy to make even more money in the long run, you should be saving all of your trades and taking notes on them. This is very easy to do in an excel spreadsheet and shouldn't take more than a few minutes but it can dramatically increase your results. You will start to notice things that you can change in your trading and your edge will increase over time. This is what we are all trying to achieve!
Forex trading is very possible to succeed at if you treat it like any other business and take an intelligent approach to it. If you follow these steps, you will dramatically increase your chances of being profitable with your Forex trades in the long run.
It has been a long journey to becoming a profitable trader. Along the way I realized there were many ways I could have cut the learning curve in half! There is a lot of Forex junk out there and you would save a lot of time by avoiding all of it.
