One of my resolution this year is to assist as many struggling Forex traders as I can to become successful in trading Boom and Crash, so if you want to learn how to become a successful boom and crash trader, then you can reach out to me via the comment section and I will pick two people every month and mentor them for free; all you need is to open a Synthetic Indices account, If you don’t have one, click here to open one now.
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To be clear, trading the financial market is risky, but what has kept me and others in the top 1% is our quest for knowledge, trading plan and risk management structure; I reviewed a trading history of one struggling Forex Trader from China few days ago and I discovered that he used more than 25 different trading strategy in 2024; using so many trading strategy is very risky; especially when you are trading with your real account, if you are testing the strategies on your demo then it is understandable, but not on your real.
In this article, I am going to share some tips that will help you become a successful Boom and Crash Trader in 2024.
Table of Contents
How to Become a Successful Boom and Crash Trader in 2024
1. Review your Trading History
One of the things I asked my mentees to do every month is to review their trading history at least at the end of every week. What this does is that it will give them an idea of their profit and lose percentage, equity growth, the asset they are good at and also help them plan better for the next week.
If you want to become a successful Boom and Crash Trader this year, you need to review your trading history; open a trading journal now if you don’t have one, write out how many trades you took in the different asset you are trading, for instance, if you are trading Boom 500, Crash 500 and Step Index; write Boom 500 – 20 trades (16 win, 4 loss), Crash 500 – 18 trades (16 win – 2 loss), Step Index – 10 trades (5 win, 5 loses). Then from the example above, look at the profit ratio for each of the asset; Try and review reasons why you win the ones you win and why you lose the other ones. Once you can establish this, it is very easy to plan for the next trading circle.
2. Knowledge is power
I am always of the opinion that all new traders should seek knowledge first before looking for money. If you are a struggling Forex trader, the only way you can become successful is to start doing things differently, trading is not gambling, so when you treat trading like gambling you will lose your money, but when you trade it like investment you will enjoy sustainable income.
Most of us who are successful in trading do lose trades, but the reason we lose is due to market structure violation, not because we took a wrong trade, that is while is good to review your trading and find out why you lose each trade, then work on improving your strategy, not jumping from one strategy to another.
Don’t get me wrong, changing strategy is good, but it’s wrong to experiment new strategy on your new account. If your current strategy is giving you issues, go to your demo account and test a new strategy, don’t be in a haste to return back to your real, study the strategy and adjust it to suit your trading plan before using it in your real account.
Trading is only profitable when you take it seriously and seek for knowledge from day one
3. Equity is important
It’s good to start small, but if you want to become a full time trader, equity is key. One of my mentee, open her account with just $10, and top up $10 weekly until she get to $1000, before she started trading. She waited till she get $1000 because of a clause in her trading plan. While, she was waiting, she was working on getting the knowledge and developing her strategy. What I normally tell my mentees to include in their trading plan is the equity they think will be comfortable for them to trade with and the lot size they wish to use with the capital.
Like my mentee that I just mentioned, her lot size is 0.20 and her daily target is $50, she stick to her trading plan and the success is massive. To become a successful boom and crash trader, you need a good equity, a good equity gives you the leverage to place trade with confidence and makes sustainable income from the market
4. Risk Management is key
My problem with most traders is that once they have a good capital they start using outrageous lot size, my equity is currently at $12625, my standard lot size is 0.50, I never used more than that and I meet my daily target of $100 with just two or three trades in a day. I am not those kind of traders that will tell you I make $2000 daily, I make between $100 -$250 daily and I am very satisfied.
Like I tell my mentee, risk management is key in trading, Forex is very risky, if you don’t know how to manage the risk, the market will swallow your capital. Two things that you have to eliminate early in your trading journey is greed and fear, work on this too, have a good risk management appetite and you will enjoy the market.
5. Stick to your trading plan
I don’t know how to say this, but it is important to have a trading plan, share it with your mentor or any experience forex trader to look through, then stick with your trading plan. I developed my trading plan about 10 years ago and I am still using that same trading plan till today, the only thing I do is to update it regularly based on new ideas, knowledge and market volatility. If you are trading without a plan, I am sorry you are not ready for the market.
On a final thought
If you want to become a successful Boom and Crash Trader in 2023, please get to work; review your past trading history, seek for knowledge, develop a plan, grow your equity, develop a good risk management strategy and enjoy the market.
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.