9 Tips of the Successful Forex Trader

Post on: 11 Август, 2016 No Comment

9 Tips of the Successful Forex Trader

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Trading involves more art than science. Along with the artistic efforts, talent is also needed which will take you go further. Practice and discipline helps traders to sharpen their skills. They keep on analyzing themselves to notice what can help in enhancing their trades. They master themselves to avoid fear & avarice out of the equation. Following are the nine steps a beginner trader can follow to make his art perfect; & for the existing trader, they can use to improve their performance.

STEP 1: Choosing trading style by deciding the goals. Keep in mind to match your personality with the chosen trading style.

It is crucial to know your destiny and the way to be followed for reaching there. It is also necessary to make up your mind with a clear goal what to achieve. Be assured that your trading process is adept to accomplish your desired goals. Distant approaches are followed by every kind of trading. Remember that your personality fits your trading style. Mismatch of personality can make to suffer loss & making us stressed.

STEP 2: Electing the most suitable broker that provides trading platform suitable to your trading style.

Elect the broker that provides the platform for trading you require for doing analysis. Comparing among different brokers will be helpful & then choosing the most appropriate & reputable broker is crucial. Get & read information about the policies & documents of the broker. Ensure that the chosen broker will offer you the platform for analyzing you need to perform. Both the broker and platform provided by him is equally crucial.

STEP 3: Electing the procedure & be constant in its application.

As a beginner in trading field, its necessary to have the initial ideas to execute your trades. You must have initial information needed to make a suitable decision. With the help of some key elements of company & using chart, some peoples decides the appropriate time to start the trade. Other take help of technical analysis. The key elements results in long term whereas, chart may limit the opportunity to short term merely. Just remember, be constant with the procedure and ensure it is flexible. Flexibility is required as the market demands fluctuates.

STEP 4: Choose a longer time frame for direction analysis and a shorter time frame for entrance or existence.

Analyzing chart in distant time frame results in conflicting information. Maintain your time in sync. When the weekly chart as well as the daily chart confirms a buy signal, then only go for it.

STEP 5: Calculate your expectancy.

For determining the reliability of the system, Expectancy formula is used. From time section, measure the winner trades and the loser trades. And then evaluate the profitable winning trades versus your losing trades lost. The formula is stated as:

E= [1+ (W/L)] x P – 1


W = Average Winning Trade

L = Average Losing Trade

P = Percentage Win Ratio

STEP 6: Learn to love small losses and focus on your trades.

Have a good attitude toward your trades. Happily accept the small loss that helps you to take a lesson for your future from your mistakes. But focus on your trade.

Moreover, merely influence your trade to maximum risk (loss) of 2 percent.

STEP 7: Build positive feedback loops.

A good feedback loop is developed as a conclusion of a well performed trade according to your plan.  forms a positive feedback loop. Accepting a small loss in trade but still sticking to your proper execution of trade will create a positive feedback loop.

Step 8:  Perform weekend analysis.

On weekends, perform analysis to enhance your trade by researching weekly charts thoroughly.

Keep patience and follow discipline to become a good trader learning things from your experiences.

STEP 9: Keep a printed record.

Maintaining printed record for future reference is the best learning tool for trader. Maintain every detail of the trade.

The above mentioned nine steps can help you to follow a structured way to trading and becoming a classy trader. Trading needs consistency and disciplined practice.

Remember: “Practice makes a man perfect

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