All Traders start their career from the same point - Zero . All of them have similar difficulties , obstacles and challenges but every single Trader take different distance . I want to share not only with novice Traders my thoughts about success in Forex .........
Many people decide trading because they are attracted by an advertisement , news or rumor for big easy money , taken from the Financial Market . But sooner or later a lot of them loose their money because they rely on fortune, good luck, prayers and wishes . Only a few of them succeed - those ones who trade not only for pleasure , excitement and thrill but in a professional manner , like businessman .
- TRADING IS A BUSINESS
Trading like a businessman - what does it mean ?
To be successful , every business must rely on four pivot points . They are :
- Profound Knowledge about the subject of business ;
- Steady Business Plan ;
- Initial Capital ;
- Psychological Resistance and Stability , persistence in implementation the Business Plan .
- PROFOUND KNOWLEDGE
Basic education will take some years . If it is too much for a novice Trader he may switch to another place of performance . But if he is determined to become a good Trader - there is a lot of work to do : to become familiar with Financial Market , the Trading Instruments , Fundamental and Technical Analysis , Graphics and Time Frames , different Indicators and so on . The main idea is to find out its own Trading Style , to practice and master it .
In fact the educations is an endless process .
- TRADING PLAN
The Trading Plan is the foundation on which rests our
finances during the trading , when they are exposed to risk and the Trader not only needs a plan , but this plan must be robust , reliable .
It must :
- protect the account of meltdown ;
- generate a profit ;
Anyway , when trading the Trader is risking a certain portion of its capital , opens , manages and closes its position by some criteria , but this should be done not chaotic , as hunches , feelings or emotions , but systematically , by following certain rules so if the results are good - these rules continue to be followed , if not - to analyze and assess what , how and how much to be changed . Business plan should be as complex as Trader decides , if needed Plan can be changed , but Trader NEVER should change its determination to follow its plan by disciplined , strict , unquestioning manner .
- INITIAL CAPITAL
It is in close connection with Trading Plan , especially with Risk control and Money Management , but it also depend on how much money the Trader wish and can earn . Never risk more money than you can allow to lose .
- PSYCHOLOGICAL RESISTANCE and STABILITY
This is the persistence in implementation the Business Plan .
To separate from the crowd 90 % of which are in long run losers , to get ahead and stand out in front of them you must have an advantage . This advantage you must know what it is, to develop it and to trade only when it is currently available . If you do not know what is your own advantage , you do not have it . Advantage is not big money , some secret information , expert advice , etc . Advantages are your personal qualities , knowledge , skills and experience . On them have to concentrate your efforts . The main challenge is full control on your own emotions of greed , fear , revenge , disappointment , anger, sadness and not to let them control your decisions and actions .
- Trade smart ; participate in the Financial Market mostly with MIND and not mostly with money.