Useful Advices For a Forex Trader
If you are one of those who are at constant loss for trading in online stock-exchange than you should listen to few advices given by a seasoned trader who's been in the business for half a century. In case you are one of those who tested numerous software and indicators and still fail - you should not skip this read either.
You use wrong trade techniques
Most of the people start to trade with arduously earned money. They have full-time jobs and little of time. Once they have encountered side-effects of losing money that was supposed to pay for bills, rent or mortgage, they turn to so called professional advisors.
Vast majority of these so-called advisors suggest a trade style such as day-trading or scalping method, for these methods do not require plenty of time. The truth is the other way around - these methods do require time - and plenty of it. If you are keen on spending 3 hours daily in highly stressful environment then go ahead and see for yourself how it looks like to trade as a scalper or day trader.
The solution is position trading or swing trading. This way you can spend a whole week peacefully observing and analyzing stock-exchange market (no more than 1 hour at work or home). Once you lock-on a good opportunity you can open position at 7 days and take a bigger piece of the cake. Since both position trading and swing trading take larger number of pips, comparing to the trade techniques, you will be investing less with equal or even higher chances of hitting profit than with day-trading or scalping method.
Another mistake, that 90% of Forex novices make, is testing every single strategy they find on Internet or in the books. They switch them day after day to finally end up completely confused and with significantly smaller budget than when they first started.
Strategies and Forex indicators are your stock-exchange market engine. Tune it, adjust it the best you can by using the best parts of each strategy and make your own. It seems too complicated for you? There is a way out. Pick one strategy and trade by its rules for three months, test it and try to fill up the gaps it leaves behind. The worst thing you can do is to stick to one strategy for 7 days and then change it for another, potentially more profitable one. This is wrong - each and every strategy is profitable in the hands of a professional. Make your strategy profitable by improving its basic rules according to your own experience and analyses.
Boost your discipline
We are all aware of a soldier's discipline. Use it as a pattern for your professional behavior in stock-exchange market. If you lack of discipline of a soldier you are on a good way to lose money. Once you opt for one trade style - stick to it and don't try to master any other before you have mastered the first technique. Respect and apply the rules of your strategy.
Protect your capital
It is really important to use correct money management. There are tens of different simple money management patterns and all you have to do is to apply one. Vast majority of beginners do not use any type of money management during their first year and they lose large amounts of cash. Good money management can make you a decent income even with only 30% positive trades.
You have to be aware of the fact that Forex is the same as any other business. It takes time, dedication and attention to detail to become successful. You have to learn and be ready for upcoming challenges. What sets this occupation apart is incredible income as the best possible reward for all of your efforts.
The fact is - 95% of people lose money trading Forex. Sit back for a moment and ask yourself isn't it like this with any other occupation too? Only the handful of individuals is truly successful and those are highly dedicated and hardworking folks.