By Ben McArthur
Forex trading can be a highly profitable profession. Because it is the largest financial market on the planet, Forex trading offers many opportunities to make profits.
But in order to become one of the elite Forex traders, you must have the proper plan in place to succeed. The most successful traders know that profiting and surviving in the markets takes knowledge and rigid disclipine. There’s no room for undisclipined traders who are not ready to have a solid strategy and the disclipine to stick to it.
1. The first secret of top traders is to accept responsibly for their trades. Never blame the market or bad advice for a losing trade. You are ultimately responsible for your success or failure.
It’s hard to emphasize enough the importance of having a trading system that has been proven to be profitable, and harder still to stress the importance of never varying from your trading system.
Your trading system is not perfect. Neither is the latest guru’s trying to sell you their newest system. The most important rule of your system and all of the others is simple: stick to the rules of the system and when you have a losing trade ask yourself this. Did I follow the system? If you did then evaluate what went wrong in the trade and see if there is anything in your trading system that can be refined to avoid a similar loss in the future.
2. Have a trading system that fits your particular style of trading. If you’re not comfortable day trading then obviously you would not want to use a day trading system. Many traders are not comfortable or simply don’t have the time to follow every little movement all day. Still others find day trading best suited for their style of trading and their temperament.
Some prefer to make short term trades and trade accordingly. By having a trading system that they are comfortable with, these traders can take a position in the market and let their system dictate when to exit the trade. A good short term system, used with appropriate stops, is a more stress free way to trade for many traders.
3. Have a plan and trade your plan. By having a well thought out plan in place before entering a trade, things become almost automatic. You know in advance where your entry point will be, where to place stops, when and if to add to a position, and where to exit the trade.
Properly planning your trades in advance takes away the emotional aspect and lets you trade in a more professional manner. Poorly planned trades can have a huge emotional effect on you if the trade goes against you. Instead of having a precise strategy in place, you are now trading more on emotions. This can not only have emotional complications, it can also wipe out your account.
4. A good trading education is worth it’s weight in gold. No one can reasonably expect to be a good trader without a proper education. Learn all you can about the Forex markets before ever making a trade. Study as much as you can about the proper mindset you must have and prepare yourself thouroughly before taking the plunge into trading.
Decide what type of trading strategy is best suited for you. Most good traders ultimately find that following and refining a trading system that fits their trading style will yield the best results.
There is a lot of excellent, and FREE software available that will allow you to hone your trading system and skills until you are comfortable enough to begin trading.
5. Positive thinking produces positive results. As was mentioned above, having a solid foundation about the Forex markets, developing a trader’s mindset and having a solid trading plan will go a long way to help you succeed as a trader. Disclipine to stick with your system and having a strict risk management regiment are vital to your success.
To succeed at Forex trading you must first believe that you can be successful. Doubting yourself and not having confidence in your trading skills will almost surely lead to failure. Prepare yourself with knowledge and have confidence in your own abilities at all times. These are the real keys to trading success.
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