Let’s create a plan to become the successful forex trader. The main thing why you lose money is that you make a lot of decisions without any common sense. I think if people want to start an online or offline business they have some plan, not necessarily written, maybe only in the mind. If you have opened a trading account, don’t think that you have a trading scheme. And now let’s try to create some rules, adopt them and become profitable.
I think today there is so many information on the internet that you don’t need to buy any books. Just read web pages, watch YouTube, webinars and use social networks.
Have you started trading forex demo account? Do you make money on a demo account? Have you made enough trades, to keep your trading credible?
Create your trading rules. Let’s say you have some knowledge, more than basics, have some skills and experience. If you trade on a demo, you can create some rules to help your trading. Only system and rules can help you become a profitable forex trader. By pressing buy or sell, you have to know why you agreed to take part in this deal. Just put your comments on the chart. From my past, I remember opening some trades and after entering the market not knowing why I have done this. When you have an active trade, you try to see some reasons why it should be a good deal. All these things must be done before you enter a trade. You can write some rules in the Word ant before entering a trade check it if it doesn’t have any contradictions, only checks.
4. Risk rules
I have written lots of why it is so important to know what percentage of your funds forex trader risks per trade. You have to follow forex risk management.
5. Exit rules
It is not enough to have rules to enter into a trade. The important thing is to know when you exit from the market by taking profit or stopping your losses.
6. Testing strategy – forex demo account
7. Psychological stability
I can say that psychology is as important as trading rules. From my experience, I can assure you that if you trade many pairs at the same time, especially if these pairs correlate, if you have same currencies in the same direction (long or short), if your trades have too many hazards – you don‘t feel comfortable. You will be spending a lot of time watching your positions, every pip against you will be stressful. So choose your trading system that is not stressful and too hard for you nerves. For example, maybe the best choice at the beginning could be to have only one trade at the same time with most comfortable risk level.
8. Emotional rules
Very similar to psychological stability. At this point, I want to take your attention to some things regarding your emotions. Imagine you have a trade and as usual, it goes against you, that’s normal. If you set your goals, be patient and ready to wait. I know this feeling very well then trades goes against you and you want to close it, but I have learned that I need to wait for my goals, even if I get a stop loss, take your time. One more thing is that people imagine that if they have entered a trade it has to earn money immediately, remember that the market is moving like a wave, it can’t go up or down all time after you opened a position, doesn’t matter in which time frame you trade.