Tricks To Become A Successful Forex Trader
The best traders hone their skills through practice and discipline. They perform self-analysis to see what drives their trades and learn how to keep fear and greed out of the equation. In this blog, we will look at 8 steps a new trader can use to perfect their work to become a successful forex trader. For the experts out there, you might find some tips that help you make smarter, more profitable trades too.
8 Tricks To Become Successful Forex Trader
1. Define Your Goals and Choose a Trading Style
It is important to have clear goals in mind, then ensure your trading method is capable of achieving these goals. Every trading style has a different risk profile, which requires a positive attitude and approach to trade successfully.
Click on below video: How to Trade a Small Account
2. Choose a Broker Who Offers You Best Trading Platform
Choosing a reputable broker is of paramount importance and spending time on investigating the different brokers will be very helpful.
Your first thing is to research with the aim of identifying whether a broker maintains an exceptional reputation and whether they can meet your needs. You must have to know every broker about their status and policies and how he/she goes about making a market.
3. Choose a Strategy and Be Consistent in Its Use
Before you enter any market as a trader, you must have some good ideas of how you will make decisions to execute your trades. You must know that what information you will need to make the proper decision on entering or exiting a trade. Some traders choose to look at the underlying basis of the economy as well as a chart to determine the best time to execute the trade. Others traders use only technical analysis. Whichever strategy you like to choose, be consistent and be sure your trading strategy is adaptive. Your system should keep up with the changing dynamics of a market.
4. Choose Your Entry and Exit Timeframe
When looking at the chart in different timeframes, many traders get confused by conflicting information. What shows up as a buying opportunity on a weekly chart could, in case, show up as a sell signal on an intraday chart. Therefore, if you are using your trading area from a weekly chart and using a daily chart to time entry, be sure to synchronize them both. In other words, we can say, if the weekly chart is giving you a buy signal, wait till the daily chart also confirms a buy signal.
Click on below video: Use Multiple Time Frame Analysis to Find Better Entry and Exit Points
5. Calculate Your Expectation
The expectation is the way you use to determine how reliable your system is. You should go back in time and measure all your trades that were winners versus losers, then see how profitable your winning trades were versus how much your losing trades lost.
Click on below video: How to Open a Forex Trade and Calculate Position Size
6. Learn from Your Small Losses
By focusing on your trades and accepting small losses rather than continually counting your assets, you will be much more successful. For example: If you have $10,000 in your trading account, never let any trade lose more than 2% of the account value. If your stops are further away than 2% of your account, trade shorter your timeframes.
Click on below video: How to Turn around Your Trading Losses
7. Build a Positive Feedback Loop
A positive feedback loop is created as an outcome of a well-executed trade in accordance with a plan. When you plan a trade and execute it well, you form positive feedback. If you take a small loss only to do so by a planned trade, then you will be building a positive feedback loop.
8. Keep Record
A record is a great learning tool. Take a Print out of chart and list all the reasons for the trade. Mark the chart with your entry and your exit points. Make any appropriate comments on the chart, including emotional reasons for taking action. Did you panic? Were you too greedy? Were you completely anxiety? It is when you can objectify your trades that will help to improve mental control and discipline to execute according to your system instead of your emotions or habits.
Click on below video: How to Keep a Trading Journal
The steps above will lead you to a structured approach to trading and should help you become a more polite trader. Trading is the only way to become increasingly proficient is through consistent and disciplined practice. Simply follow this 8 Tricks to become a successful forex trader that help you make more profitable trades too.