Here I am going to give you 10 simple tips which are needed to enjoy long term trading success and if you understand them and follow them, you can join the elite 5% of traders who make big gains trading Forex.
I have put the number of tips in no particular order of importance – you need to follow them.
1. Don’t Use FX Robots
When 95% of all traders lose don’t expect a cheap robot to make you wealthy with no effort, these systems cost so little because they don’t make money.
2. Work Smart Not Hard
I always read it takes years to learn to trade and you continually need to learn – this is rubbish. Forex trading is simple to learn because simple systems work best and you can learn all the basics of success in a few weeks. You don’t get paid for working harder in FX trading, you get paid for being right so no need to do extra work for no reason.
3. Understand Volatility and Drawdown
I see numerous traders who think they can day trade and scalp with 10 to 20 pip stops but they soon lose their money. This because they have no understanding of volatility and it impact and if you want to win, you need to understand all about it.
4. Use Low Leverage
Brokers will give you 200:1 leverage but use this amount and you will lose. For a novice trader 10:1 is the maximum you should use and don’t worry you can make triple digit gains on it and still have tight risk control.
5. Discipline Discipline Discipline
In Forex trading, the best traders in the world make money around 50% of the time but the makes huge gains by having the discipline to keep losses small and run profits.
Most novice traders think they are going to win the majority of the time so they run losses and this leads to a wipe out. They refuse to admit their wrong bit if you want to win at Forex trading, forget about being right all the time and focus, cutting losses and running profits.
I hope you enjoyed the above tips and if you understand them, you will see why you can big gains trading Forex.
Source by Kelly Price