(by Sacha Tarkovsky)
If you are new to forex trading you know that 90% of traders lose their money quickly, so you need some tips on how to join the 10% that make big consistent profits.
Here are 10 essential tips to increase your chances of making big profits from forex trading.
1. You need to rely on yourself
Many novice traders think they can buy success.
If you think you can buy success from someone else for $100 or so, you are mistaken.
Think about it – If you could a lot more traders would win than do!
Rely on yourself, do your own research and homework and come up with a system that you are confident you can make money with.
2. Avoid day trading
Day trading is popular, but the fact is it doesn’t make money, as it’s based upon flawed logic.
You cannot predict volatility in short time periods so don’t try.
Do it and you will lose.
If you don’t believe me then ask any day trader for a track record of real profits and you won’t get one.
3. Get a method your confident in
This means a simple method and for novice traders one which is based upon technical analysis.
A simple method will be easy to understand and more importantly, it’s a fact that simple methods work better than more complicated methods.
Why?
Quite simply, their less likely to break in the face of brutal market conditions.
Just a few indicators you understand and are confident in. are all you need
If you want a methodology to base your method on:
Base it on “breakouts”, most of the world’s top systems are based upon this methodology and you should consider it.
4. Discipline
If you have a method you must execute the signals with discipline.
As you will have devised the method yourself and it will be simple to understand, you will be able to acquire discipline.
Keep in mind, if you can’t execute a method with discipline you don’t have a method at all!
If you are using a technical method don’t be tempted to listen to the news.
Why?
Because you will hear lots of convincing stories that are probably wrong.
Remember, that experts in the media tell good stories but their more often than not wrong.
It’s a fact that:
Important market tops form on very bullish news and market bottoms form on bearish news – SO ignore it!
5. Money management
This is a major problem for most novice traders.
You need to protect what you have and run longer term trends.
You must take a risk!
Don’t be tempted to place your stops to close and MOVE them to quickly - you will be stopped out continually.
Most novice traders try to restrict risk, but actually end up creating it by ensuring they will be stopped out.
6. Have realistic aims
Most traders think trading is easy but of course it isn’t.
If you consider that the top traders in the world make 50 – 100% per annum then you will see that getting rich over night is not an option.
You need to set realistic objectives and be patient.
7. Work smart not hard
You don’t need to work all hours of the day, or acquire vast amounts of knowledge.
Once you have a method you are happy with, your trading should take less than an hour a day.
There is no reward for how much effort you put in.
You only get rewarded for getting market direction right.
8. Forex trading looks easy
But, if it was easy, 90% of people would not lose there money quickly.
Be humble and accept that the market is all powerful and you need to work smart to make money.
9. Patience
Many novice traders think that they need to trade all the time in case they miss a move, but this is a recipe for loses.
You need to be patient and wait for the right opportunities to come along.
10. Perseverance
If you are in a losing run (and don’t worry this will happen) you need to persevere and maintain your discipline.
Wait for the losing run to end and keep your emotions in check.
TO be successful at forex trading you need to work smart and acquire the right knowledge and then apply it with discipline.
If you can do the above forex trading can build you serious wealth over the longer term
Good luck!
FREE ESSENTIAL TRADER PDF'S AND MUCH MORE
On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html
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