8 Steps and Tips To Become A Successful Trader
Step 1: Get yourself a Forex e course or training guide
begin with a training course first so that you can understand the basics of trading as well as how the Foreign exchange 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 real account.
Step 3: Get a Forex plan
After you have gone through the 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 demo account. practice it on the demo, Practice practice makes perfect.
Step 4: Demo practice for about a month until you get used to your system.
If you have not mastered your plan on demo practicing then you can open a live account and start 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 and 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 demo 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 may want to increase it when you have 30% returns on investment in your 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 FX trader from here onwards.
The above steps may 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 foreign exchange market that investors and 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 foreign exchange 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 may want to start currency trading because you also want to earn profits from these movements while you do other regular things you do. You may be envious of your rich friends who are making money even though they do not seem to work for it. Understand that you can also start to take advantage of this opportunity, but you have to follow these simple and very important steps to pave your way to success.
1. Research about Forex.
Find tutorial guides and websites to learn how the foreign exchange market works. Do some research and 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 can not fight a war without a weapon. Your weapon in trading is your plan that you are 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 are satisfied with how your trading develops and start 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 have is giving you profit keep it and follow it. Don't forget to keep a journal to track your progress.
Top 5 Strategies for Success
The 5 strategies that are key to your successful and can turn your trading around within no time, and if you really want to be successful you need to start 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 have the potential of making three times so that you your net is a profit and not a loss.
Capital – Start with enough capital, if you are going to be trading standard lots make sure you have at least 50,000 dollars to start with, but don’t start 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.