Everyone says that we must work for income. That is perfectly correct. What is wrong is the meaning of “work” for traders. Traders tend to think that work means taking trades. That is wrong, and that is what leads to overtrading. This guide should give you the top best tips to become a successful forex trader.
What is Work for a Successful Forex Trader?
We are working when we are waiting for the best trade.
We are working when we are following our trading rules and executing the trades.
We are working even when we are not taking trades. And if we do our work correctly, we will get paid.
It is important to understand the meaning of work for a successful forex trader. Once you have this concept engraved in your mind, you should do just fine.
How to Become a Successful Forex Trader
While we can probably think of countless things you have to do in order to become a successful forex trader, these top three tips will definitely serve as a great base to point you in the right direction:
Escape Plan
- Stop trading if the market is acting too unpredictably. While you may see this as an opportunity to make quick profits, it can sink you pretty quickly as well.
- Set your maximum loss or drawdown for your a/c. If the max loss hits, just get
out of your PC. Don’t keep holding your trade that is going in a loss in hopes that it will recover as this might cause you to get served a margin call.
Two Tricks to Avoid Overtrading
- The first is to set a limit to your trading – a target. You decide what you want to achieve – X pips a week. Just remember that it should not be more than 100 when starting out and probably even less. Now, as soon as you hit your target, that’s it. You stop trading for the week.
- And the next rule. If at the end of the week you’re negative, you can carry over the loss to add to next week’s target. But you can never carry it over more than one week. For example: if you suffered a loss of 300 points this week, carry this 300 points loss as your target for next week. This would make your next week’s target = your regular weekly target + 300 points target.
IMPORTANT NOTE: Don’t carry your 300 points loss of 1st week to your 3rd week if the 2nd week also ends in loss. Carry only the previous week’s losses as your target for next week.
By following the 2 rules you will take only the best trades in the market and it will become a good discipline for you. If you take more trades with small pips & reduce your target, you will get more pressure. Always perform market analysis before entering a trade. By practicing & following these rules strictly, you will become more focused on only doing what is required to hit that target. Now, your PRESSURE is OFF.
Control the Urge to Overtrade
The skill of placing a trade and walking away is often referred to as ‘set and forget’. And it’s beautiful if you can do it. You place your orders, your stops, and your risk/reward profit targets. Then walk away. Check back later and see how you did.
And if you’ve got the risk/reward and money management right – and you only take the best set-ups that meet your criteria, then you should come out on top. And remember, stop overtrading. Overtrading can kill your performance.
Become a Successful Forex Trader with Ease
Trading is simple, but not easy. This is entirely because following simple rules are not easy. If it were, everyone would be successful.
We want you to get consistently profitable in this forex business and survive for a long time.
Please don’t trade all the time, trade forex only at the best trade setup.
It is better to do nothing, instead of taking wrong trades.
We are here to help you for taking the trades using only the best trading strategies.
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