How to succeed in the Forex market? Exclusive Forexone blog article about 20 tips for a beginning trader to achieve success and make money on currency exchange.
Caused losses for a very large number of inexperienced and undisciplined traders over the past few years. That's why you want to understand how to succeed in the Forex market so you don't become one of the 95% of losers who lose their own money.
Risky and dangerous trading includes trading gold (XAU). ? This is a question many new traders ask, but gold is a complex instrument to trade. We do not recommend that you trade gold on the foreign exchange market if you have little trading experience. Now let's move on to the most important tips for a novice trader.
We will look at trading tips on how to succeed in Forex that will help you avoid trading disasters and maximize your level of potential in the forex trading market:
You should see not the reason for the defeat, but the opportunity to make money. The opportunity to become a financially independent person. Everyone has defeats, but this is a reason to learn useful lessons from them and improve your strategy. If you were wrong in the past, you always have the opportunity to correct yourself and this will not only strengthen you mentally, but will also bring you money if you analyzed your loss correctly. Remember: your mistakes are your potential victories!
Few people have not thought about how good it would be to earn a lot, combining it with the opportunity to travel. Such an established pattern of behavior of a successful person, unfortunately, is practically unattainable for ordinary citizens of the CIS countries and the Russian Federation, who for the most part are tied to their main job and are not paid enough big salary in order to rest more than once a year, and even then... To fix this, many today are trying to achieve success in Forex market, which precisely offers to achieve the standard of living desired by many.
We will tell you how to achieve your goal and what you should pay attention to along the way to it in the article below.
Schematically, the algorithm of actions for everyone who has decided to open the exotic profession of a currency trader consists of the following steps.
Having completed these three points, the trader moves from the category of beginner to the category of experienced speculators, where he will have to continue improving his skills, searching for new trading methods, and so on. At this stage, it is already important to learn not to lose money, gradually increasing your experience and deposit, which over time will allow you to obtain the status of a professional trader.
Today there are a huge number of trading systems on the Internet and many of them, it must be admitted, are quite accurate. You shouldn’t think that since they are distributed for free, you can’t make money on them, but it’s better to spend the nth amount of money to buy some kind of Grail. In fact, to make money, a trading system that will give at least 60% accurate signals is enough, especially if it is entered with a classic risk/reward ratio of at least 1:2.
Considering that the initial probability of one or another development of events on Forex is 50/50, then any normal trading vehicle is enough to make money. However, there is one caveat. Often, profits are prevented from accumulating by the trader himself, who interferes with the TS operation algorithm or does not fully comply with it.
In addition to understanding the general algorithm of actions, discipline is extremely important. A good trader is a disciplined trader who does not give in to the temptation to enter a trade when the entry conditions are almost met, does not get greedy by overextending a position, and does not give in to fear when the price pulls back against him.
It is extremely important to 100% comply with the rules of the chosen trading system, since only in this way can you effectively work on mistakes, make the right conclusions and improve your trading every day.
Many people think that personal qualities and a good strategy are enough. In fact, yes, but with one caveat - if the trader understands and correctly uses risk management. Before achieving success in the Forex market, you must learn how to correctly assess risks and calculate money management so that your deposit can withstand a series of unsuccessful transactions without any special consequences. That is, the recovery factor should be high enough, making it easy to catch up.
Without the ability to calculate the correct volume for entry, taking into account the size of the stop, the size of the deposit and other variables, a trader will never achieve success, therefore, when testing a strategy, one should always pay great attention to the choice of the working volume and not allow it to be rashly increased, especially after losses, when the psyche is unstable and you can easily succumb to tilt.
Having studied the above, it should be clear that achieving success does not require any fancy actions, since the path to development in the Forex market is simple and clear. But at the same time, few can conquer the market and achieve their goal. First of all, this happens due to the fact that a trader is not an easy job, but also a lifestyle, a way of thinking and acting.
Any industry that generates profit gives rise to its own myths. Trading is no exception. The greater the possible profit, the more speculation and fiction it gives rise to. Many people believe in them without even trying to understand their validity. By doing so, they deprive themselves of the opportunity to succeed in trading. We debunk trading myths for your success!
The first myth is that you need a lot of money to trade on the stock exchange.
Do you seriously think that being big will ensure success? A huge number of examples of traders who lost their large deposit in 15 minutes. But history also knows many examples of successful traders who started their journey with 100 dollars in their pocket. Do you think that William O'Neal, Larry Williams, Warren Buffett and George Soros were stopped by the lack of money in their pockets? Of course not. Quite the contrary. Lack of money develops self-discipline, control and “upgrading” your skills like no other. All their potential was aimed at finding better earning opportunities.
The second myth is that economic or technical education is required for trading.
Many of the famous traders did not have an economic or technical education. Some of them were farmers, journalists, doctors, philosophers, others had no higher education. Yes, it can help you in some way, but its presence is not a “vaccination” for success and “insurance” against. Only personal qualities, constant polishing of skills, non-stop practice and psychological attitude!
The third myth is that trading is a synonym for gambling, “roulette”. Today you win, and tomorrow you lose to zero.
Ask yourself honestly – could successful traders stay at the financial top for decades relying solely on luck? Hard to believe, right?! Behind each of their financial victories is perseverance and effective trading technology. What is more important to you - constantly receiving a stable income or instant success with a guaranteed loss in the form of a bonus?
The fourth myth is that in trading the risk of losing everything is too great.
Life in general is a risky thing, dangers await you at every step. But this will not stop you from living. You can’t know everything, and you won’t always be able to “spread a straw” for yourself. included as a bonus. Just accept it. Your task is to reduce the size of this bonus to a minimum. It’s very easy to do this – you calculate it for every trade and maintain a profit to risk balance of 3 to 1. Traders increase their profits not because they have too much money, but because they consider their risks well and always keep them in mind.
The fifth myth is the most powerful! Trading gurus know the secret of 100% success (a sort of Holy Grail) and hide it carefully.
If you want to “quickly cut the cabbage” in trading, then this is “your” statement. There is no Grail! Moreover, successful traders are open and willing to share their secrets of success so that you achieve more!
It's all in your head. More than 90% of traders lose everything due to psychological problems, the inability to clearly follow simple rules, and the inability to control their emotions.
A large deposit, knowledge of trading technology, strategy and technical analysis do not help here. Everything is much deeper. Do you want to be in those 10% of exceptional traders?
Then put your brain into “combat mode” by watching
Greetings, dear blog readers! Everyone knows perfectly well that achieving success in the forex market is far from easy. I think that you have more than once wondered why other people are doing great, they earn good money and live for their own pleasure.
Naturally, you can always find an excuse for yourself: blaming someone for all mortal sins, blaming everything on bad genetics, shouting that you have no opportunities and no strength, but all these are just excuses in order to avoid active actions that will allow you to break out into the people .
However, I believe that it is only about you, and not about someone or something. Understand that achieving success in the forex market is an extremely difficult task, which only really strong and strong-willed people can do.
Of course, I don’t want to talk about pathologically lazy people; nothing good ever awaits such people! To really achieve something, you need to work and constantly improve! Today we will talk about how to generally achieve success in the forex market and come close to it.
There is a certain paradox: there are people who spend days on end at the terminal, they greedily absorb information, look for something new, but they do not have any positive results.
I want to say that this is quite a common phenomenon in the market, which can last for years. But it happens quite the opposite: a person devotes literally a couple of hours a day to trading, and profits seem to fall from the sky.
To be honest, from the very beginning I adhered to the first type of development. I could sit near the terminal for days, I constantly read various books and watched video lessons.
During all this time I spent a huge amount of effort, nerves and money. Apart from trading, I didn’t notice anything at all, in principle, and couldn’t notice anything.
Perhaps this is due to my overwhelming desire to truly secure an independent future for myself. Now my opinion has changed somewhat, I stopped chasing money, I focused on gaining invaluable experience.
I strive to allocate my resources, invest my time and money as efficiently as possible. At the moment, I am striving to realize myself in several areas that are seriously different from each other.
To be honest, at first it was very difficult to switch our attention, but it is this approach that gives us the opportunity to spend our time with the necessary efficiency.
I am more than sure that if I had immediately started acting in this way, success in the market would have come to me much earlier.
The unbridled desire for development in various areas turns your success into a system. I am more than sure that even if you have a main goal, accompanying development in other areas will motivate you and accelerate the result. At worst, working in only one area is incredibly boring!
Plan your day wisely! If you have many areas of activity, you constantly have to transfer your attention from one thing to another, then you cannot do without competent planning.
If you do all this without a competent plan, then by the end of the day you will exhaust yourself, I bet that you will not last long at this rhythm.
You will always lack the desire to create; of course, you will never have Have a good mood. A competent plan will always put everything in its place, you will always know in advance what to do, and there will be no panic.
A competent plan will help you focus on the tasks at hand; you will not simply think about what to do.
You have a clear plan - you strictly follow it, competently completing your tasks. It seems to me that when a person has a really wide field of activity and a lot to do, he will in any case come to the point that he will need to clearly plan his actions, without this there is no way.
Yes, you won’t be able to devote a whole day to trading, but you can devote a few hours. But you will spend these few hours on the market with such efficiency that you never dreamed of!
You will truly appreciate every minute and spend all this time usefully. Personally, I have been keeping my diary for some time now, where I write down important things that I would like to do, or have to do.
Of course, I don’t write down everything I do, but I always mark off the most important ones. In general, I clearly realized that if a huge number of new things are planned, then there is no way to do it without competent planning! The effectiveness and results of my actions appear only when I plan them!
I recently read a very interesting book on psychology. It says that a person needs to be instilled with a sense of success and desire for it from an early age.
From one point of view, you can deceive a child a little by giving him praise in every possible way when he even does something wrong.
For example, he does something poorly, but you constantly tell him that he is a real good guy. In theory, this fact will, over time, develop inner self-confidence in the child, and he will never give up, even in the most difficult situations.
From another point of view, you can tell the child everything directly, and at the same time competently help him solve all the problems.
For example, engage in his training, encourage him. This approach will give the child a clear understanding that we must be able to cope with any difficulties in life; nothing is given to us for nothing.
Achieving success in the forex market is extremely difficult! To do this, it is necessary to lead an active lifestyle not only within the market, but also in everyday life.
There are activities in our lives that will help us achieve success in the market. Let's consider:
Basically, how to succeed in the forex market is a comprehensive question. On the one hand, you must persevere within the market, but do not forget that you have an everyday life, which also takes up time.
Most beginners come to the Forex market, lured by colorful advertising. It offers to receive your first profit today, just open a trading account with the right broker (for example, Forex4you has proven itself well).
The thought of 100% profitability will make even experienced businessmen dizzy, but a novice trader is even easier to seduce. Unfortunately, reality rarely matches the promises of advertising. To become a successful trader, you need to show strength of character, make every effort and survive more than one defeat. Despite all the difficulties, newcomers continue to make their way into the world of financial independence with the help of the foreign exchange market. And everyone is tormented by the question of how to achieve success in Forex?
Trading is not an exact science. It cannot be learned by reading a couple of textbooks on technical analysis. There are a lot of publicly available trading systems on the Internet, but their effectiveness is questionable. Before opening the terminal, a novice trader must understand that only his own view of the market and price movements can lead him to success.
You can start studying with textbooks on technical and fundamental analysis, and then try out several popular strategies in practice. Experiments are carried out on demo accounts. You can move on to real trading only after receiving a consistent positive result on a demo account. Even if the trading system has started to make a profit, continue to polish it and look for your mistakes.
There are also many courses and trainings on the Internet, both paid and free, here are some of them:
The main reasons for large losses in trading lie in the inability to manage capital. Most often, traders suffer crushing losses in the following cases:
Losses are as integral a part of the trading process as profits. There is no ideal strategy where 100 out of 100 trades will bring profit. Losses must be approached from a philosophical point of view: accepted and limited. A successful trader carefully monitors each transaction, having previously determined for himself the maximum loss threshold for it and for the day as a whole. When this number is reached, trading must stop.
The market loves analysis. It is only at first glance that it seems that the movement of currencies is chaotic, and it is pointless to look for patterns. Each trading system has its own efficiency - the ratio between profitable and unprofitable transactions. If orders are more often closed with a positive result, and the stop loss is usually 2 times less than the take profit, this strategy is characterized as a system with a positive mathematical expectation.
If a trader clearly follows each signal and does not open on the basis of intuition in the wrong place, by the end of a certain period he calculates the planned profit. The resulting losses are generously compensated by transactions with profit. Often, adjustments are made to this process by people opening orders without any reason to do so. An undisciplined trader receives unplanned losses instead of potential profits.
A competent trader must be a good investor and manage his money skillfully. Unfortunately, nothing is permanent in the world. This also applies to brokers. Bankruptcies are not uncommon in this area. If a trader has concentrated all his capital in one company, one day he may lose it completely. Working with several brokers at the same time will help eliminate risks. If one of them goes bankrupt, the rest of the capital will not suffer, and the person will be able to continue trading in the financial markets.
Success on the Forex exchange is measured in the material wealth of the trader, the stability of cash flows from activities and protection from force majeure situations. The foreign exchange market is difficult to tame, but if you show persistence and determination, it is possible to overcome obstacles. Here's what you can do this week:
Put discipline and training at the forefront, develop the necessary psychological qualities, and success will not keep you waiting!
P.S. By the way, on the Forex4you website there is a section “For Beginners”, where all information is available in a compressed form. actual information. Therefore, if you want to save time, look there.
What do you think, what skills and personal qualities should a successful trader have in order to succeed in the Forex market? Share your opinion, and perhaps experience, in the comments to this article.
Good luck and see you in the next article.