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five_steps_to_forex_success

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Forex tradinng articles how to trade in forex

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									Five Steps to Forex Success




If someone came up with a fool-proof formula for forex success, they would make a fortune. Unfortunately, this
is impossible. A forex strategy must evolve as the markets evolve. Success is possible, if you pay attention
to the basics. Even if you are a seasoned forex trader, taking time to review the basics every now and then is
a good idea.




Your first step in achieving success in forex is education. You must learn how to execute a trade, how to read
basic charts, and how to assess the impact of world news and events on the forex market. Babypips.com has an
excellent beginner's primer on forex. This should begin your education, but not be the only education you
receive. Visit forex forums and learn who the experts are, and pay attention to what they say. Forex experts
are not going to tell you what trades to make, but they will teach you things that will help you be
successful.




Open a demo account and practice trading before trading for real. Successful traders have several demo
accounts all the time, that are used to test and develop new strategies.




Develop a personal strategy. Do not copy another person's strategy- successful forex strategies are not
formulas to be copied. A trading plan that works for Joe may fail miserably when you attempt to use it. Use
your demo account to test your trading plan, and write down your results. Write down your trading rules, and
be adaptable without totally tossing out your plan.




It is okay to take a loss. In fact, taking a loss can lead to many wins. If your money is tied up in a losing
trade, it is not available to make a winning one. Include when to take a loss in your trading plan. A trading
plan that requires you to hold all losing trades until they become winners is a plan doomed to fail.




Shake off the losses. They hurt, but if you cannot move on, you will be stuck. Celebrate your wins! Big wins
and big losses both can cause you to lose your common sense and make poor trading decisions. If you experience
a big win or loss, take a break from trading for a specified period of time. This gives you the opportunity to
get your emotions under control. An emotional trader is a failed trader, regardless of the emotion.




Evaluate your trades regularly, both the wins and losses. See if you can figure out what your mistakes were so
you can correct them. Determine what choices you made that led to winning trades so you can repeat them. Every
six months, take a day to evaluate your trades for the previous six months. Looking at your strategies long
term can help you avoid tunnel vision.




Following these steps does not guarantee forex success, but doing these things will greatly improve your
chances of being a forex winner. As you learn and trade, you can come back to this information to improve your
game.

								
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