The truth sometimes hurt us. But consistent right actions and a strong believe in yourself will make you a successful forex trader. Below are the 12 tips :
1. Learn The Basics
Before you jump in the ocean 1st learn to swim. You can read books, attend seminars or best of all go into the trading zone live with your personal mentor.
2. You Will Not Get Rich Quick
A professional athlete take years of training to be competent. Your daily experience through the years will make you a better trader.
3. Expert Trainer
A man in a suit with thundering and convincing voice in a seminar claimed to be a full time trader that turns $1000 into $1million within a few months. The truth is he makes much more quick and big money by teaching history charts to the newbies. Do your math. Trust me, most don't have an actual account statements to prove. Furthermore, advance technology, photoshop is ready to do the editing trick. Stop chasing experts for Holy Grail.
4. Do Your Own Analysis
A trader needs to pick a method and learn to analyse the market. Being able to do your own analysis will bring you closer to being a pro trader.
5. The Demo Account Myth
What's the difference between driving a real car and playing PlayStation 3 driving game? It's the same as Demo Account and Live Account. Demo account is best to learn the basic and test out the trading method. Believe me, if you demo for more than a year you sure pick up poor habits or over confidence in a wrong way.
6. Kill Losing Streaks Early
If you lose 3 trades in a row STEP AWAY from your charts. Take a few days off trading and come back with a clear head. Losing streaks are very dangerous and falling into one can lead to very big losses.
7. 10% Traders Are Winners
The majority of new traders fail. If I follow the majority I become part of the majority. If I am part of the majority I am likely to fail with them. Remember my previous post? http://tinyurl.com/85sxcj
8. Winning Method
If your method have a 60% of winning just stick to it. Constant changing can lead to confusion. Not method works 100% all the time. The problem with most newbies are they will give up on a method after its first bad week.
9. Trade Only One Pair
Every currency behaves differently during the day and towards news. The power of focus gives an edge in mastering fast. Only after mastering it than explore into a new currency pair.
10. Time frame
Always go up to a higher time frame to see the trend before trading. Many newbies just dive into the ocean without standing on higher ground to see if they are following the current (trend) or against it. For example,
-If you trade 5mins chart look at 1hour chart.
-If you trade 1 hour chart look at 4hour chart.
11. Clean Charts
Experience traders know that less indicators, which happens to be lagging, is best. Just draw trend lines, support and resistant line and use not more than 2 indicators.
12. Trading Journal
Write down your daily trading experience with charts intact. You can learned faster with feedback.
Cheers!
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment