If you want to win with your FX trading strategy make sure it contains these key elements otherwise you will be doomed and join the 95% of losing traders.
1. It must be Your Strategy!
Don’t fall for the hype that some junk robot will give you success or a guru or mentor there are plenty sold online with huge profits in simulation but they don’t work – no one gives you something for nothing and forex trading is no different.
Even if you have got the forex education from someone else, you must understand it and have confidence in it so you can follow it with discipline – discipline is the key, you must be able to ride out losing periods and wait until you hit a home run.
If you don’t have confidence you will never be able to do this make sure you have it.
2. You Must Understand Your Edge
Your trading edge is the reason you will win when 95% of other traders lose and you must have confidence and understand what it is and it must be based on sound logic.
Many people think they have an FX strategy based on sound logic and do the following and lose.
- They try and predict market prices
- They follow bogus scientific theories
- They trade news stories
- They day trade and try and scalp
- They follow experts
All the above will see you lose if you don’t know why, continue your forex trading education until you do.
Your trading edge is something that is personal to you and can be based on a simple forex trading strategy you can execute with discipline – that’s enough, remember simple systems executed with rigorous discipline work!
3. Play Defence First
When you are trading on leverage you need to trade great defence first and always protect what you have this means rigorous money management rules and money management is much more than placing a stop!
If you don’t keep your losses small you will get wiped out – sounds obvious?
Well most traders don’t heed it and use leverage of 200 or 300:1 on a few hundred bucks, 10 or 20 is enough.
Forex trading can make you a lot of money but if you expect not to have to work your in for a rude awakening.
Do your homework, get confident and make sure you have the discipline to stick with your FX trading strategy and follow it through drawdown periods, to long term success and the rewards if you can do this are huge.
By: Kelly Price
Posts Tagged ‘Simulation’
Learn How to Day Trade – Fantasy Day Trading Simulation Based on Live Real-Time Market Data
January 21st, 2010
If you want to get on the fast track to financial freedom, then you should learn how to day trade. Professional day traders can make hundreds or thousands of dollars a day just by spending a couple of hours in front of the computer.
The truly savvy day trader is capable of making money in both a booming economy as well as during an economic recession. Yes, even during a recession it is possible to earn healthy profits. In fact, some of the best trades don’t necessarily come from investing in recession-proof stocks or finding the rare diamonds in a rough that show resilient signs of growth during economic downturns, but by executing what are known as put options against a stock that is declining in value. Yes, indeed there are millions of dollars worth of profit being made every day when stocks go down.
An investment in a training course where you learn how to day trade is worth every penny. The course literally pays for itself many times over, by virtue of the fact that you can take the knowledge that you have gained from the course and use it to start making money as a day trader.
Equally as important as getting a sound education in day trading is the need for hands-on experience with the practical ins-and-outs of the whole trading experience.
When it comes to financial education, there is no substitute for learning by putting real money on the line and learning how. To day trade in a simulated environment is a safe and secure way to get the educational, hands-on experience without having to risk any real money.
By: Paul Messner
