Successful Forex Traders - Tips on How to Become One

10 Aug 2018 20:48

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Successful forex traders are hard to find. Sure, there are a lot of people who pretend to be profitable traders, but they are usually the ones trying to sell you something. It is hard to quantify, but estimates say that 95% of the beginning traders fail to make more money than they lose.

So what can you do to make sure that you are one of the successful forex traders? Here are some tips.

First of all, learn from other successful traders. The internet is a marvelous tool, but if you start listening to anyone that has an opinion about trading, you will be confused and end up following pitiful advice. You must find someone that actually makes money and follow their lead.

Where can you find successful traders? On forums (look for people that have been posting for years), on blogs (there are plenty of free, professional blogs out there), and even by taking classes. I think one reason why so many people fail is because they aren't willing to learn. They'll listen to the latest forex "guru", take his advice as gold, and then proceed to make mistake after mistake. Choosing who you take your advice from is critical to your success. Take a little extra time and research to find someone who truly knows that they are talking about.

Would you head out on the highway without ever taking driving lessons? Would you cook a meal for guests without first learning some basic cooking techniques? You certainly wouldn't, and yet people will risk hundreds and thousands of dollars without learning how to trade first.

Secondly, to be a successful forex trader, you must set realistic expectations. You can earn money in the forex almost quicker than doing anything else in the world. But you must understand that the foreign exchange is not a gold mine. It has amazing earning potential that must be respected. If you take on this investment vehicle haphazardly, you WILL lose money. Guaranteed. Taking it seriously, and you are far ahead of most of the other forex traders.

So as a beginner you should be never risk more than 2% of your trading account on any trade. This means that if you have $1,000 in your account, you should never lose more than $20 on any trade. Does that sound small to you? Only risking $20 out of $1,000? As a beginning trader, your main goal is to survive and learn the basics. If you don't learn to survive, you can never make money.

Most traders will look at their $1,000 and assume that they could easily risk $200 per trade. Surely マンションポスティング would have a winning trade before they lost 5 trades in a row, right? This mentality will absolutely get you killed. Even professional traders don't risk more than 5% of their accounts on a trade, so why do you think you should?

Over-leveraging (which is risking too much of your account) is the #1 killer of beginning forex traders. You must avoid this at all costs. Trade small and survive. While losing your money in the currency markets can happen very quickly, becoming a profitable forex trader is a process. Find as many successful forex traders as you can and learn as much about them as you can. By modelling their trading strategies, you'll increase the chances of making money in the forex.

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