It is on Forex that you can quickly make money! There is trading activity on the Forex currency exchange, the volumes of which are incredible. For a day, the turnover of funds reaches tens of billions of US dollars. This figure is 50 times higher than competitors. In recent years, Forex has become very popular.
At the moment, trading on Forex is a type of activity that brings traders a good profit. The main reason for the popularity of the forex exchange is the ability to play with little capital. With only $ 2, you can start trading!
To successfully earn forex trading, you need to be able to plan and analyze the market correctly. To put it simply, you must be a professional. Otherwise, instead of making a profit, you can lose all the money. A professional Forex trader in most cases trades with gain, but it is worth noting that this is very complicated and specific work, requiring special preparation and a lot of time. You can take courses, but nothing can replace the trading experience. Also useful are entrepreneurial skills.
Forex exchange provides financial growth, freedom of activity, and complete independence.
We add that there are special forex cents that will help to master the market. Dealing cents offer everything you need for a novice stock market player. These centers provide all the necessary programs for successful trading via the Internet, with which you can carry out transactions without getting out of bed.
Also, these cents can accept bets, and pay money to players who made the correct bets on the transition of the exchange rate. Dealing centers are not able to offer brokerage services, as well as buy or sell currency.
Take two traders and give them the same starting capital, the same trading platform, the same market, and the same trading system with exact entry and exit rules. A month later, you will see that one trader earned 20% and the other lost 40%. It sometimes seems unbelievable how two people can have the same opportunities in life and, nevertheless, achieve different results. We are firmly convinced that success is connected with ourselves; each of us is fully responsible for our results in the market.
Below are 10 aspects that, in our opinion, represent the basis of a professional approach to trade.
Understanding Trade
Trading is a game of probabilities. Imagine that we are tossing a coin. In the case of the “eagle”, I win one dollar; in the case of the “tails,” you earn one dollar. The results of the tosses will be distributed approximately in half, so none of us will win or lose. However, if you have a non-standard coin, giving 49 “heads” and 51 “heads” for every 100 throws, you will have an advantage and win money from me. Ultimately, all you have to do is sit and play consistently.
All that any trading system gives us is a particular market advantage. Favorable bias. Something more likely to happen than not. Regardless of the trading system that you use breakout models, following the trend, Fibonacci retracement levels, moving averages, channels, oscillators, Bollinger Bands, swing trading, opening gaps, etc. You rely on a positive bias. Essentially, the trading system says, “when“ x “occurs, it usually follows” y. “Sometimes, this does not happen, but in most cases, it will.
And all that your trading system does is it helps you identify transactions with high probability. Some trading systems are better than others. But do not strive to find the perfect system of the elusive Holy Grail. Find a trading system that you like, with which you feel comfortable, that you understand, and trade on it. Be consistent.
A calm, disciplined trader will take the central system and will make money on it, while a nervous, spontaneous trader will take the brilliant system and be at a loss. All traders have “good” and “bad” days. Some days you will get a small profit. On other days you will have low losses. And once or twice a month you can make a big profit. This is how most traders make money. This is not a guaranteed salary when working from 9.00 to 17.00.
The problem is that you never know when your best deals will occur. Just when you decide to skip a promising deal, it may be the best deal for an extended period.
You should see the big picture. Understand that the current deal is just one of many. Based on this, the current agreement hardly matters. It is like a piece of plankton in a vast ocean. Remember, all trading comes down to a game of probabilities.
Plan Your Transactions and Trade According to Your Plan
Your job as a trader should be to follow a trading plan. Who will write this trading plan for you? You.
Pay attention to the word “write.” This plan should be precisely written and be on your desk in front of you. Your trading system will give you the rules to follow. All you do is transform them into your trading plans. A trading plan must have three parts terms, entry, and exit. A trading plan covers every trading opportunity. You know what to look for in the market, when to close a deal and when to close a position. Keep it simple and follow it religiously.
If You don’t Spend a Lot, You Won’t Lose a Lot
One of the biggest mistakes a trader can make is to invest too much money in a deal. The more money you use, the more emotions affect you. Ultimately, you can burn out. The stress following a significant loss can be irreversible. Most novice traders put too much in the hope of quick enrichment.
Experienced traders know that with intraday trading, where trades can be realized very quickly, several significant losses can be fatal. Good intraday traders risk only a tiny fraction of their trading capital in any single transaction. If you are short of money, then consider using a trading system that involves close stop orders. Another option would be to trade on shorter periods where losses can be minimized.
Presumptuousness is another reason for excessive risk (In the example with a coin, if 10 “eagles” have fallen in a row, many will have a strong desire to put everything on the line in the next marriage). The problem here is this:
- a) There are no 100% probabilities in the market;
- b) There will always be many of the same arrogant traders who will quickly jump out of the market if something goes wrong.
Take the risk of a small fraction of your capital in each transaction. You will be calmer and be able to complete the deal correctly.
Do Not Think about Money; Think about Points
Based on a reduction in your exposure to risk, we move on to your relationship with money. Whether we like it or not, money is highly valued in modern society. Therefore, we pay great attention to them. What will you feel when you see hundreds of dollars (maybe thousands, depending on the size of your account) flying into the pipe before your eyes?
The problem is that spending is part of the business. You have to lose something to win something. As we said, the Holy Grail does not exist. If you cannot change your attitude towards money, then do not think about them. Focus instead of numbers feels in terms of percentages of a trading account. Think about the average risk to reward ratio. Think of potential profit points versus maximum risk points. Focus on getting the right numbers, and the money will take care of itself.
Set Up the Subconscious
Perhaps you subconsciously want to lose? Suicidal behavior can easily manifest itself in markets, especially among intraday traders. When the price fluctuates before your eyes, it can capture you. It may seem to you that it is playing with you. That is why you should be very careful to avoid emotional trading.
Do not get passionate about selling. Remember that the current deal is just one of a long series of agreements. You want to trade the market for a long time. Remember this and do not get too attached to any particular transaction. You should see yourself as a professional trader. At the beginning of each trading day, before trading begins, devote a few minutes to yourself. Close your eyes and visualize the market, see the chart on your screen, see how the price moves up and down, and how you make a deal.
Please note that you are feeling relaxed. You are focused but calm. Unemotional. Watch the price move after you make a deal. How close it came to your stop order. Mentally place many trades. Bring them to an end. You got a losing deal. Pay attention, and you see the big picture; you are impassive, absolutely calm. You make another deal and again a small loss. You are cool. Then a winning trade and you are relaxed again is part of the job.
It takes practice. And you should do this regularly to get the most out of it. Try this every morning, and every time you start to feel stressed or lose your concentration. The advantage of this technique is that it is available to anyone at any time. Also, it gives excellent results.
Be Your Boss
You are the one responsible for your trading. You alone are responsible for your success or failure. Neither the market, nor the broker, nor the government or the Federal Reserve, but you. This is a real responsibility. Become your mentor. See how you behave during the trading session. Be especially careful to see your feelings.
Focus on the emotions that give you useful information about your work. Remember that having a “winning day” or a “losing day” is not essential here how you do your job. If you are annoyed about a market, a broker, or someone else, then you are overwhelmed with negative emotions. Negative emotions are early signals that you need to cool down and relax. Return to your normal state. Perform the visualization exercise again.
Remind yourself that all this is only interest, this is just another deal, another day. If you make a mistake during your trading, and whoever does not make them, do not beat yourself on the head. Learn from this, make mental notes for yourself, then to take this into account. Thank the market for the lesson and move on. Be supportive to yourself! It is essential to avoid twisting the emotional spiral, which will seriously damage your score and your confidence.
Follow Terminology
Try this experiment: tell your friend to close his eyes and extend his arm to the side. Make him think the word “weak” and not push his hand. You will notice that his hand moved quickly down. Now repeat the experiment, only this time, let it focus on the word “strong.” This time, you will notice a considerable resistance in his hand, and you will have to make a significant effort to move your hand. Two simple words give two such different results.
If the words are so powerful, then think about what you do to yourself when you call yourself an “idiot” or “loser”! But the power of the word is more subtle. How, for example, to be with a “loss.” Think that this word causes in the subconscious mind a missed opportunity, bereavement, etc. No wonder traders find it challenging to take losses.
Let’s call it another “expense.” Now it sounds more like a business term. In the same way, as the parties to the balance sheet, revenues versus expenses, rather than gains and losses. You are more likely to become profitable when you understand this.
Watch your language when trading. Always use neutral terms, both about yourself and to the market.
Reasonable Trading Mode
For example, the best time for intraday trading in the stock market is usually two hours after the opening of trading. Some traders also like to trade the last half hour before closing. At this time, momentum is most significant when buying and selling pressures create better trends. Other markets also have the most effective time to trade. Trading only at certain times, you will be more concentrated and accordingly less likely to make mistakes. You also insure yourself against “suicide days” when you take consecutive losses, each time trying to recover from a previous injury.
Reading this in a relaxed atmosphere, you probably think that you will never fall into this trap. However, it is surprising how many traders fell into the avalanche of losses when trading in real-time. Therefore, your motto should be tomorrow will be a new day. Calm down, do not exceed a reasonable trading regime. As the saying goes, “better is less but better.”
Goals in Trade and Life
Do you know why you trade? Maybe it’s fun and pleasure, playing on the nerves and getting adrenaline? Perhaps you like the status of a trader? For some traders, trading is a kind of outlet. They hate the world around them their work, their boss, their spouse, in fact, their life. Trade becomes their virtual reality, into which they move away from their real life.
Trade should be the only thing a means of making a profit. If you trade for any other reason, then you are probably doomed to failure, because you will be driven by emotions instead of cold, mechanical calculation. Take a look at your motivations for trading. Can you find your hidden motivation? Maybe something is missing in your life that trade currently fills. Live a full life. Do not spend all day trading. Meet people. Find new interests. Keep your trading free from emotional chaos.
Trader’s Diary
Very often, intraday traders live from news to news. With such stress, it can be challenging to see the whole picture. But this must be done if you want to survive in the market and prosper. Perception of the current transaction as one of a series of operations will help maintain your discipline and reduce your emotions.
But there is a trading tool that will improve your efficiency more than anything else – this is a trader’s diary. There is no shadow in it of any association with the sentimental journals of young girls. Your trading diary can be a typewritten or plain text file stored on a computer. Another option might be a voice recorder.
You can combine both options. Whatever format you choose, what is worth saying or recording? Anything. Undoubtedly, you can record facts and figures, codes of trading instruments, time and date, position size, entry price, etc. But it’s even more important to record your thoughts. If you hesitated about entering the market, say so. If you are afraid when already in the market, write about it. When you exit a position, tell why. What did you feel before going out? What did you feel afterward?
It only takes a few seconds, but the information you get can be invaluable. At the end of each week when markets are closed, review all trades for the week. Surely, you will find specific patterns of your behavior. There is probably something that leads to negative results in the sequence. And once you have identified the problem, the solution usually becomes apparent.
Do this exercise every week or every month. Only you can do it for yourself. No one will take care of your affairs better than yourself. You do not need a perfect million-dollar trading system to be successful in this business. Take a look at yourself, and you will be amazed at the results.
About the Author
Melisa Marzett is all about writing articles, sketches, short stories, and other pieces of writing; all about ideas, trends, and tutorials. Currently writing for cv service, she keeps an ear to the ground. She likes being in the thick of events. She is into women`s and animal rights, an active member of the city movements, book clubs, a cinema-goer, an exhibition visitor, and a traveler.
