What does it take to become a successful forex trader? This has been one of the many questions that I have received this past few weeks.
Learn the Secret of Forex Trading, Click here to download a free e-book now
From my experience, it takes just 3 things to become a successful Forex trader, but before I get to that, if you are struggling in the Forex Market, take a break and look closely at your trading history and compare them with the three things I am going to mention in this article
Table of Contents
3 things you need to become a successful Forex trader
There are majorly three types of Forex traders: The successful ones, the average ones and the victims. The successful ones are those who are constantly cashing out from the market; while the average ones are those who are neither here nor there but their gain to loss percentage is great. Then the victim are the donors, those who are constantly donating their equity to the market daily.
I have been privilege to talk to many “victims” and one thing that is common with them is the constant thirst for forex signals group; they are constantly in search for forex signal and strategy group to join. These group of traders cannot stick to one strategy for a week, they like testing every strategy they come across and are quick to panic once their trade start running in red. If you are in this group, then this article was written just for you.
Let look at those three things:
1. Psychology
Trading is a bit about psychology. If you don’t understand how the market works, the market will play on your emotions and dribbles you until you lose focus. Sometimes when you open your chart, you will see the price dancing around a support zone, maybe based on the market structure and price action you decided to place a buy on the support zone and immediately after you place the trade, the setup that was looking like an uptrend suddenly started dancing sideways, then boom there is a false breakout to the downside, your equity is trap and you decide to close in red; immediately you close, the market resume the upward movement with full speed and you wish you never close.
This scenario is what “The market victims” face every single day; so that even when there are in a signal group and a signal is drop, while many people in the group are making gain from the signal, they are making loses.
To become successful in trading, you need to learn how to control your emotion. Work on your psychology, have a stop loss and a take profit in mind before placing any trade and be sure to breakeven when you see that the market structure has been violated. If you don’t work on your psychology, you will not enjoy the market
2. Strategy
If you are a Forex trader and you don’t have s strategy that has a daily trading target; things to consider before taking a trade; things to consider before closing a trade in red; timeframe of trading, etc, then you have not started, you will continue to be a victim and continue your money donation journey to the broker.
Take a pen, sit down and research for a trading strategy first, share your strategy with an experience forex trader for assessment; work on the feedback from the experience trader and you will see a change in your trading journey.
I am trading 24 hours a day, seven days a week with one of the best broker in the World, click here to create a free account
3. Risk Management
One of the things that has help me in my trading journey is the ability to manage risk effectively. Risk management include knowing when to trade; the lot size to use and when to exit the market. Recently, I have enjoy trading against spike on the Crash and Boom Market, because I manage my risk effectively, I know when to jump in and take 5 pips buy on crash and when to sell crash for long and I also know when to jump in and sell boom for 5 pips and buy boom for long.
Risk Management is very critical in Forex Trading.
If you need further clarification or you have any questions, kindly drop a comment below this post and I will respond to them as soon as i can
Disclaimer
Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.