8 Steps and Tips To Become A Successful Trader
Step 1: Get yourself a Forex e course or training guide
Begin with a training tutorial first so that you can understand the basics of trading as well as how the forex market works.
Step 2: Open a FREE PRACTICE DEMO account with a broker.
This is a practice account with which you can place paper trades and test your strategies before implementing them on a live account.
Step 3: Get a Forex plan
After you have gone through the training course, you will probably know how a Forex system works and how to come up with a plan. This plan you should continue trading with it on your practice account. Practice it on the demo, Practice practice makes better.
Step 4: Demo practice for about a month until you get used to your system.
If you have not mastered your plan on practice practicing then you can open a live account and begin trading the real market. Keep practicing until you have mastered your plan.
Step 5: Implement money management an Forex psychology
This is an important step & make sure you read Forex psychology tips and money management rules and implement these proper money management rules.
Step 6: Open a LIVE account
You should already be quite consistent in your practice when you reach this step. Move on to a standard account and open a well capitalized capital to increase your chances of profitability.
Step 7: Increase your Profits
Increase your lot size slowly as your skills improve. You might want to increase it when you've 30% returns on investment in your trading account. Refer to the money management rules and learn how you can keep increasing your lot size.
Step 8: At this point in time you are a successful trader if you are making consistent profits every month.
You do not have to be an institutional trader to be successful. And then you can start planning and considering to be a full time Forex trader from here onwards.
The above steps might sound easy but they are not easy at all. So you really have to focus on the learning, discipline, psychology, and money management sectors before you can be successful.
5 Steps to Starting
Previously online currency exchange used to only be available to big corporations and the very rich individuals. It is in the online forex market that investors & other participants buy and sell currencies over an interbank network. The goal being to make money from the currency movements.
The currency exchange rate floated in the online forex keeps shifting every now and then. Prices of currencies keep rising and falling. It is a complicated way of placing trades for beginners, but for those who have learned and have experience in Forex, it is a great way to earn money.
You might want to begin forex trading because you also want to earn profits from these movements while you do other regular things you do. You might be envious of your rich friends who are making money even though they don't seem to work for it. Understand that you can also start to take advantage of this opportunity, but you've to follow these simple & very important steps to pave your way to success.
1. Research about Forex.
Find tutorials & web sites to learn how the forex market works. Do some research & exploration - get tips from those who have had their success. Learn from their experiences and adopt their Forex strategies.
2. Start with a Demo Account.
Starting with a demo account will help you to learn the working of the currency exchange market without risking any money. With a demo you will be able to plan and test your strategies for free.
3. Plan your strategy.
Just like a soldier, you cannot fight a war without a weapon. Your weapon in trading is your plan that you're going to make. Creating a plan that will ensure you start to make a profit using your strategy.
4. Follow your plan.
Do not go against your strategy. You have already picked the tools in your plan. Stick to your plan and do not deviate from this plan as it will not work to your favor if you don't follow it. Be patient and follow your plan.
5. Keep doing what works.
If you're satisfied with how your trading develops and begin making a profit, then you should keep things the way they are without changing anything. You may be tempted to try another strategy but if the one you've is giving you profit keep it & follow it. Don't forget to keep a journal to track your progress.
Top 5 Strategies
The 5 strategies which are key to your successful & can turn your trading around within no time, & if you really want to be successful you need to begin implementing them.
If you have spent a long time learning, then you might know some of these tips, these three tips if you stick to them can improve your results but most beginners will lack the discipline to follow them.
These are the rules that you must master - the rules below when combined with a good Forex system will yield good results.
Money Management - Money management is about controlling your risk, so that after several transactions you are making profits because you have applied the correct money management rules.
Good Risk-Reward Ratio - a good risk reward is about 3:1 or 2:1, if it isn't, then the rules of statistics will put you at low odds of ever making money, stack the odds in your favor for every dollar you risk make sure you've the potential of making 3 times so that you your net is a profit and not a loss.
Capital - Begin with enough capital, if you are going to be standard lots make sure you have at-least 50,000 dollars to start with, but don’t begin with 5K dollars and open 1 contract the math will not add to your favor.
Discipline - Have the discipline to wait for your system to generate the signals, don’t open a position because you see that the currency is going up or down wait for a signal from your system. Even if it is tough to wait around for a good set up, but not having the discipline to wait for a signal will eventually make you not profitable, so learn to sit and wait for signals from your system
Strategy Planning - You must plan your strategy in advance, this the time when the most objective analysis is done. What most investors get wrong is the fact that even though they planned their strategy when in the market they don’t follow this. This one tip alone can improve your Profits.
