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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