Forex is the world’s biggest financial platform. Everyone here comes with dreams of success. But the bad news is the 90% of Forex traders fail to be successful. Some websites claims more than 95% of the traders are losers. So, it’s very obvious the successful traders have some unique qualities that unsuccessful traders do not have.
If we look closely, we may get that a successful trader has some common qualities. Such as they make their trading plan, use precautionary steps to manage the risks, follow their daily routine, and so on.
Before starting the detailed discussion, we want to let you know some essential points that we should always keep in our mind. –
- Know the Forex well before trading.
- Do not trade until your instinct show you a green signal.
- Do not be afraid of losses because loss is widespread in this market.
- Never try to trade to compensate for your losses.
- Do not be emotional while trading.
- Use the ‘stop-loss’ for each trade.
- Make a proper routine and plan for Forex.
- Never give up.
If you maintain the above points, your chances of failure are slim. Now let us go into a detailed discussion.
Tips to become successful in Forex:
- Developing plan-
Copying the successful traders’ plans will not bring us something good, but we can follow them, their traits, and trading strategies and then make our plan. To make plans, we need to do the following.
- Doing some homeworkbefore beginning the trade: We musttry to know what is happening in other FX markets. We should get ourselves prepared with our strategies.
- Gathering confidence:We should ask ourselves, are we confident? Are we ready to make a trade? If we are afraid to move on, we have to stop there, be relaxed, and take our time. Hurry usually returns nothing good.
- Setting goal before starting to trade: It is best to write down our weekly or monthly, even if possible yearly profit targets and define how much loss we can take weekly. Explore the free educational resources at Saxo and learn to set your goals in a structured way.
- Collecting essential details of previous trades: We need to collect necessary information of last FX trades, such as what our target was, what was the entry levels and exit levels, what was the time of taking action, etc. It is better to study them well and identify our previous mistakes. Then we should move on.
- Risk Management
The FX market is very much unpredictable. It can change its direction at any time. So, the most successful traders sometimes experience huge losses. None have control over this market, so we should always follow some techniques to manage the risk of loss to be successful. Such as-
- Increasin gour position slowly: Everyone should keep trading from a lower ‘position’ so that they can take the loss easy. Of course, increasing trading position will only be wise when the market moves in the trader’s favor. But before earning a certain number of profits, traders should not take a higher position even after having a friendly trading environment.
- Modify your plan according to new news or information. Any time, anything may happen that can change the market. You should always accept the change and make a new strategy if something happens like this. And to bring such change, you must have strong motivation to trade the Forex market.
- Take a lesson from previous trades. As a man, you can make mistakes. There is a wise saying like – ‘if you make a mistake once, that is a mistake. But if you make the same again, that is your choice.’So, note down your previous histories read them time and again, and learn from them.
- Keep your ego away. After winning some trade, if you think you know everything about FX, that will be the biggest mistake. Forex is a mysterious market. So keep your eyes and ears open. I am saying again; anytime anything may happen. So always grant yourself a learner.
If you follow the above techniques, you can be successful in the foreign exchange market. But there is no alternative to studying. So, learn about Forex as much as you can. It is the best tip for you.
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