Forex Special Forex can be fun, Forex can earn you money, Forex can buy you the freedom you were looking for, and Forex can be a great career. But, and there is always a ‘but’ in these things. Forex can wipe you off in no time, seriously.
I saw people getting wiped out in minutes after months of profitable trading and I saw people getting wiped out in their learning curve. Forex can be dangerous. Did you ever hear that less then 5% of traders manage to make consistent profits and hey am sure less then that manage to 'withdraw' the profits and live with that money. So do you want to be part of the winners?
There is no holy grail about this but there is a solid basis which you should follow in a rigid manner. Yes you have to be strict with yourself. I shall discuss in a future post the attitudes and strictness required but today let’s focus on being the winner. So, what is the main starting point you might ask me rightfully, planning, yes planning is the key to your trading success.
Most traders do not plan their trading method and trading day, so how can you get to your destination without knowing where you are going? Trading without a proper trading plan is doing this, going on the road and not having a destination.
Their is a saying; "if you fail to plan, you plan to fail", this is so true, actually we can use this saying for everything in our life but for becoming a successful and profitable trader planning is a must even before you start.
What does planning entail? Do the ground research of what pairs you will trade, what is their history, get to understand the patterns, which most forex pairs have, in specific time frames, learn what type of trader you are, what makes you nervous and what makes you comfortable. Plan your trade setups; back test your setups in order to write them down in your trading plan. Make sure to jot down strict rules of entry and stricter rules of exit. Their is no gut feeling in forex, that’s called gambling, forex is about learning a system and following it just like a normal brick and mortar business. An entrepreneur does not create a business but a system to make money otherwise he is the business and without him there is no money! So look for the system that can earn you money.
Ultimately forex trading is true to be fun and an enjoyable job, you get into a constant learning curve which helps you develop your trading style. Let me close with a simple thing here, hey join the winning traders, and plan well your trades before you hit the button!
Look out for future posts as will discuss what a trading plan should contain and how to follow it!