Successful Forex traders are hard to find. Sure, there are a lot of people who claim to be profitable traders, but mostly they try to sell you something. It is difficult to quantify, but estimates show that 95% of beginner traders cannot make more money than they lose.
So what can you do to make sure you are one of the successful Forex traders? Here are some tips.
First, learn from other successful traders. The internet is a great tool, but if you start listening to someone who has an opinion on trade, you will get confused and end up following some unfortunate advice. You need to find someone who makes real money and follows their lead.
Where can you find successful dealers? On forums (look for people who have been posting for years), on blogs (there are plenty of free professional blogs) and even while teaching. I think one of the reasons so many people fail is because they don’t want to learn. They listen to the last “guru” of forex, take their advice on gold and then make one mistake after another. It is important to choose who to turn to for advice. Take some time and do your research to find someone who really knows what you are talking about.
Would you take the freeway without taking a drive? Do you want to cook for guests without first learning some basic cooking techniques? Certainly that would not be the case, and yet people would risk hundreds and thousands of dollars without first learning how to act.
Secondly, to be a successful trader, you have to create realistic expectations. You can make money in the currency market almost faster than with anything else in the world. But you have to understand that currencies are not a gold mine. He has incredible earning potential that must be respected. If you choose this investment vehicle at random, you will lose money. Guaranteed If you take it seriously, you are ahead of most other currency traders.
Therefore, as a beginner, you should never risk more than 2% of your trading account on a trade. This means that if you have $ 1,000 in your account, you should never lose more than $ 20 in a trade. Does this seem small to you? Are you only risking $ 20 from $ 1,000? As a beginner operator, your main goal is to survive and learn the basics. If you do not learn to survive, you can never make money.
Most retailers see your $ 1,000 and assume that they can easily risk $ 200 a day. Trade. They would have a winning job before losing 5 jobs in a row, right? This mindset absolutely kills you. Even professional traders risk no more than 5% of their accounts on a trade, so why do you think you should?
Excessive leverage (you risk too much for your account) is the # 1 killer for forex trading work from home. You should avoid this at all costs. Small business and survival. While losing money in the currency markets can be very quick, it is about becoming a profitable currency trader. Find as many successful Forex traders as possible and learn as many as you can. By modeling your trading strategies, you increase your chances of making money in the foreign exchange market.
Looking for professional currency trading? Or are you already a Forex trader doing this regularly? Still, this article may interest you. Forex traders are another type of person. They use the markets every day to make a living. We look at the Forex trader.
Every professional Forex trader has the potential to make huge profits on your initial investment, or at worst any trader can suffer huge losses. It’s not a game of chance, trading is a skill of emotional control and good decision making. Traders understand the mechanics of the market and its behavior in response to economic trends.
Traders make good on taking advantage of the price differences between purchase and sale prices for currency pairs, and most importantly, they make money by following market trends. If you have studied Forex charts yourself, you can see how the price fluctuates – there are only three directions the price can go: increase, decrease or stay the same. The prices of the parts remain the same only if the value of the part does not flow and is set at a certain value. Traders make their money on the price difference, so the trader can either buy long-term or expect the currency to rise or sell lower if the currency declines and continues to make a profit.
The advanced currency trader is waiting for a new trade, or rather waiting for the right time to open a new trade, looking for the right indicators and signs to indicate access to the currency market. There are two things that Forex traders can do at home to see an input signal: see the charts or wait for the news. Traders are looking for the right trend signals to close a trade. And the most important rule for the trader is that “the trend is your friend”. Follow the trend and you won’t be hurt. Second, dealers also see the news. They need to know what economic data comes out on what days and what that data means for the future of the economy of the respective countries. If they do not follow these facts and economic data and indicators, they may find that some currencies are particularly unstable when they publish these announcements and see the market jump. Forex traders need to be ready for these financial announcements to ensure that they can anticipate increased market activity.
When Forex traders successfully enter into a trade, a trade that does well for them, the trader simply follows the trend of completion and implements a backward stop to block profits as the price continues to grow as the trader moves the trend. But if trading goes awry, forex traders must end trading gracefully. The trader must reduce his losses in order to succeed in currency trading.
I hope this has given you a glimpse of what a professional trader does for a living by simply taking advantage of the price difference. The technique is to properly enter a trade through trend analysis or an ad, then follow the lines “follow the trend” or “the trend is your friend” with “quickly reduce your losses”.
George Polizogopoulos is the Editor-in-Chief of MyShare Trading, a trader information center: forex, equities, derivatives, CFDs. MyShareTrading.com also offers free blogs for merchants who want to share their market experiences.
Card player or a forex trader
Without knowing it, you are probably a card player in the foreign exchange market. In fact, if you’re like most people who trade currencies, you’re probably more of a player than a trader. Foreign traders who do not systematically make money simply have the wrong mentality, unlike professional traders who have developed certain habits that allow them to regularly make money by speculating on financial markets.
There are two types of currency traders: those who play with their money as card players and professional traders who view currency trading as a business. To determine if you are a player, let’s talk about some of the most common features for players. This will help those who are more players than traders to recognize this factor first and gradually change their thinking.
Main features of gamer’s dealers
The players are addicted; they like to do the same thing over and over again to get a sense of euphoria. They see commerce as a hobby and not as a serious activity that requires a thoughtful and responsible approach. Unfortunately, this “hobby” often turns into a gambling addiction that can cost thousands of dollars. Players become addicted to “waiting” so they continue to lose and not change their habits. They waste a lot of money and even get loans to fund their habit. Players still believe their luck will end up smiling and they will continue to put more money on the table. Unfortunately, most individual investors in the foreign exchange market have a card player approach. People with a similar mindset become addicted traders and act as fans of card games and risk large sums of money, with risk-free and random risk management plans. These types of dealers are in the market for fun, even if they don’t win. They lose their reality by using very high leverage because their business approach is based solely on greed and hope.
In the mind of a professional forex trader, money management is the surest way to manage risk. By understanding and applying the risk-return ratio, operators can manage the risks associated with each operation. In short, professional traders do not like to enter and leave the market. Unlike players, they are not looking for euphoric feelings because they know exactly what they want to do in the market before trading. They do not rely on luck, but on the chances of success. Successful traders know their forex trading strategies, not just go into the market to offset a loss and trust their long-term strategies. Typically, traders who make money only trade in a few major currency pairs and in reliable market configurations. Patience, consistency, a practical method and precision are the tools and qualities of successful traders. Players, on the other hand, invest in arbitrary markets with very high leverage while taking advantage of the strong adrenaline rush.