In the world of Forex, there are a few things that every successful trader can without a doubt agree upon, and one of those things is that you need a trading plan to succeed in Forex trading. When you first start trying to make money in financial markets, you probably aren’t trading with any sort of trading plan or strategy, for that matter. If you’re lucky, you’ll lose enough money early on before you realize that you need a plan when you come to play this game. So what exactly goes into a trading plan?
Forex trading can be very stressful if you allow it to. In my experience, certain things are definitely going to contribute to Forex being a stressful venture. If you just note these and try to manage them, Forex can be a good challenge and test your limits without breaking you down and forcing you to reconsider your existence.
Revenge trading occurs when a trader enters a new position right after a loss in an attempt to make money back immediately.
Anger, greed, and the fear of being wrong cause a trader to act irrationally following a loss.
Trading the Forex markets is simple, but it is not easy. As much as it is a skill like anything else in life, it is obtainable with enough effort, time, and patience put into it. It is essential for Forex traders and any trader or investor to recognize their inherent skills and work on the skills that don’t come naturally to them.
1. Knowledge is Power.
2. Save up Capital.
3. Set aside time.
4. Start Small.
5. Be Realistic About Profits.
There are many skills required to be a trader, and to be honest, the mastery of these skills sets the phenomenal traders from the average traders in the world. Whether the best traders are trading for institutions or themselves – that doesn’t matter.
I almost blew a $50,000 trading account myself.
Now you’re probably thinking, “Man, there is so much I could have done with that money,” and this true! You probably could have bought yourself a nice car and put a down payment on a home; I know you could buy a home in South Africa. This $50,000 trading account was essential; I needed to build this account…
Like always, I want to debunk any myths you might believe about profitable Forex trading. I will start by saying No! A holy grail does not exist the way most people think. There is no strategy that doesn’t take a loss or have a losing streak every now and then. There is, however, a strategy that you have to FIND (If you haven’t bought a course and you don’t have a mentor) that makes money in the markets.
You need an edge to be a profitable trader, which is why most of us began our trading careers searching for the best possible strategy. Surprisingly, this is the wrong approach.
Two traders can get the same strategy. One can make a killing while the other loses everything.
Have you ever been in a situation where it feels like everything around you is crumbling, and you have no control over how many things around you crumble, what crushes, or when these things crumble?