Some people really got rich by trading forex but they spent a lot of time and money to reach that level. Forex trading is a seductive but rocky path.
Can I get rich by trading Forex? Yes, you can. Honestly, it’s possible but you have to learn a lot. When you first start learning something, you acquire information. As you acquire more and more information, your mind will sift through it and will organize it, and will only leave the most important information that pertains to you. And that becomes your knowledge. Then as you start acting on your knowledge, and start gaining experience on a subject, that knowledge turns into wisdom.
I would like to emphasize this. In order to become successful, it isn’t that you need to only be knowledgeable, but you also need to be wise, and wisdom is only acquired through action and experience.
Listen to the wise people if you want to get rich by trading Forex
But there is also a second point in this story. You can’t become a successful trader, no matter how much information you were gathering, and no matter how many books you read from “knowledgeable” experts if you are not ready to carefully listen to what wise people have to tell to you.
So please, before you open up space in your mind to someone or something, make sure they are a wise person who is actually trading and making money in forex, instead of just giving you a bunch of useless theories. When you find such a person you will know that. You will feel like the guy who discovered the king’s tomb.
Oh, yes, you will have one of those moments where you are staring at one of those optical illusions, staring at it for hours until KABOOM! It hits you “it’s a f***ing ship out to sea!”
Until you get rich by trading Forex here are some tricks!
Choose a Broker With Appropriate Trading Platform
You must know each broker’s policies and how it goes about making a market. Spending time researching the differences between brokers will be very helpful but choosing a reputable broker is of paramount importance.
Define Your Goals, Methodology, and Style
It is vitally important, to have some idea of your goal and how you will get there. Hence, it is imperative to have clear goals in mind. After that ensure your trading method to be capable of achieving these goals. Each trading style has a different risk profile and each of them requires a certain attitude and approach to trade successfully. Whichever methodology you choose, be consistent, and be sure it is adaptive. Your system should follow the changing dynamics of a market.
Choose Entry and Exit Time Frame
Some traders are disoriented by conflicting information that happens when looking at charts in different time frames. If you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize those two. If the weekly chart is sending you a buy signal, just be patient and wait for the confirmation from your daily chart. It should also give you buy signal In Forex trading timing is everything.
Learn to Love Small Losses
Think of your trading money like holiday money. Have the same attitude toward trading, once the holiday is over, your money is spent. This will mentally prepare you to take small losses. This is key to managing your risk. You will be much more successful by accepting small losses rather than constantly checking your balance.
How to use Forex trading system
When knowing what to expect from your Forex trading system you must have the patience to wait for the price. It needs time to reach the levels that your system indicates for either the point of entry or exit. If your system point to entry at some level but the market never reaches it, then move on to the next opportunity. There will always be another trade. Sit on your hands until your system triggers an entry or exit point.
Forex can change your life
This is pretty much true but you must have realistic expectations. You can’t expect to invest $300 in your trading account and make $15,000 in each trade. That means being not – realistic. However, the Forex market sometimes can make a much bigger move than you expect. But it is not the rule, keep this in mind. It is better for you to be positively surprised than to lose everything. This is particularly true for Forex trading beginners.
Build Positive Feedback Loops
When you plan a trade with due diligence and execute it well, you create a positive feedback pattern. Success produces success, which grows confidence and you have a profitable trade. A positive feedback loop is formed as a result of a well-executed trade. But when you know that it comes in accordance with your trading plan the effect is more intense. Even if you get a small loss, you will be building a positive feedback loop. Think about the feedback loop as a tool and you’ll understand how important is to create this tool. That is the secret of how to get rich by trading Forex.
Test Your Skills
Open some free demo account and test. Submit trades in a virtual ambiance with virtual money before you start risking your own money. You should never ever trade a setup just because candles are moving. The aim is to be prepared and anticipate movements. You have to understand one rule: when a currency pair is moving fast, the reward to risk ratios are decreasing very fast. That means, there are more chances of the currency pair moving more pips before it makes a retracement. By jumping in a trade that is moving, the likelihood of a lower reward to risk ratio is high and the chances of a continued move without retracement are smaller.
The best trading occurs when traders have both the mindset and trading mentality of a hunter when approaching the Forex market. If you coolly view and analyze what the conditions of the market are and then comparing that setup to the desired market environment, you are on the right path. If the market is offering sufficient odds of success and reward to risk ratios, then the trade plan is executed without any emotional disturbances.
Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses.
What are your experiences? Share them with us or share this post with others.