I will quickly take you through the 7 keys I have found useful to help you build great and lasting profits in the forex market. They have been presented in no particular order. Enjoy your reading.
1. Get Quality Training in both Trading and Risk/Portfolio Management: Most will prefer some cheap training program and think they have got all it takes. Someone once said that for a great many if they had $2500 to go into the into the business, they would prefer to get some training if any at all with $100 or $500 and invest the rest. And what usually happens is that they end up losing it all because they failed to get the right training and information they need to do well. My advice: it will be better for you to gain quality education with the larger amount since it is an investment into you as a person and no one can take away it from you. Not even the market. Any decent training program in forex trading should be able to cover the following as a benchmark:
(1) Risk / portfolio management (2) Trading systems (3) psychology of Trading (4) Key Technical and fundamental indicators for trading decisions making to say the least.
2. Get Reliable and Proven Trading system: a decent trading system should do 2 important things for you as a trader:
(a) To help you identify trends as early as possible and (b) To protect you from possible whipsaw the following are the components of a decent trading system so you can identify a decent one when you see it: (1) time frame (2) indicators to help you identify new trends (3) indicators to help you confirm new trend (4) The risks the system allows (5) entry and exit rules. So, next time you ask your trainer for a system, test it with the above. You may develop one yourself or buy reliable one from a trusted source.
3. Develop a trading plan, set achievable goals and stock to them: This one that most pay lip service to. Many simply wake up and say, my plan is to make $5000 a month or my goal is to make 1000pips monthly. And some of these may not have even demo traded for more than 3 months. Then they rush to trading without a decent plan. But I advice as always starting small and growing big. A good trading plan should at least contain the following 6 components. (1) trading goal (2) trading mindset (3) trading weaknesses (4) trading journal. Build your trading plan with this guide.
3 THINGS TO AVOID WHEN TRADING
1. Do not trade more than 20% of your accounts equity: Simple! If you have $1000 in your account for instance, do not trades with more than $200 or 0.2 mini lots.
2. Do not increase your lot size until you have withdrawn your initial capital and grown it back: Set a goal to first get back your initial investment and possibly make profits on it before increasing your lot size.
3. Avoid over – Trading: know when you have reached your goals both in terms of projected profit or loss and number of trades per day, week or monthly.
Friends, please be wise and always apply your heart to wisdom and the spirit of God will be your guide. This is to your trading success!