5 simple steps to turn into an elite Forex trader

5 simple steps to turn into an elite Forex trader

These 5 simple steps will help turn you into a confident, disciplined Forex trader. By using the steps listed below may be in the top 10% of all Forex traders. That would be a few that actually make money.

There are two things you notice about these steps.

They are obvious.

They are simple.

All aspects of forex trading, should they fall into two categories. In fact, one of the biggest mistakes I see Forex traders trying to learn and use too.

But that's for another discussion. Back to the 5 simple steps.

Step 1 - Take You Ready To Trade

In my experience with hundreds of traders have been amazed by how few of them know how to get their game faces on.

They forget trading is working. The biggest one in the world, but work nonetheless. It is difficult for them to be self motivated. Like most of the world need someone over their shoulder telling them what to do.

So, find something in or around you that can be used to prepare for trade.

Take a shower

Drink coffee

Stretch

Read a book

Do Yoga

Something to clear your mind

Once your mind is clear, move on to Step 2.

Step 2 - Look over your last several trades

Your success trading, as Forex itself, there will be dynamic and patterns. As you gain experience you learn to see your patterns. You can catch making the same mistakes time and time again.

As I would later learn, should be keeping a diary of all trades. I do not think the records that come with your trading software. Your newspaper should be specific as it can be.

Why enter a trade? Why exit the trade? I was near the support? I was close to the resistance?

Just to mention a few of the questions that your paper should answer for each trade. Sign repeat any mistakes you have made over the last few trades.

Once you recognize any trading trends are moving towards Step 3.

Step 3 - fundamental and technical analysis

Fundamental analysis refers to something else, then the price action. In our case it means the news.

Technical analysis refers to something that is related to price action. Price himself, formulas, patterns, etc. ...

There is reason to mention those who in one step. I would not waste a whole step of fundamental analysis. It did not take 3 minutes. I look to see what piece (s) to news published today in order to determine what kind of instability can be expected in the next session.

This helps me in determining where support and resistance levels I expect to come into play.

As far as technical analysis goes. I do not care what tools, indicators, charts viewing. However, be consistent. Do not use MACD and CCI, one night, and other RSI and Stochastics. Do not change the length of your moving averages, or to switch from simple to weighted to exponential.

The fact is, find what makes the most sense for you. I think it's great to understand the meaning of these indicators, but no need to parse through.

I would like to add one thought ... Fibonacci lines used here.

Once you complete your analysis, and fundamental and technical, to move step 4.

Step 4 - Money Management (Determine your trade size)

You have a very well-defined money management system. For example, never risk more than 4% / 5% / 10% of your account on one trade. Increase your trade size of a mini for every $ 400 / $ 800 / $ 1200 for profit.

It has always surprised me how some traders accidentally make these decisions. They changed their approach day after day. This is a sure path to failure.

Determine what makes most sense for you and stick with it.

Again, I would like to add one thought here. You need not live trading account until you consistently make money in the demo account. At least 2 weeks straight of profit, and not because you made $ 10,000, until one day a waste of money, in 9 of 10 days.
So, assuming you live in the trade account, adjust your position size to meet your predetermined formula.

Once you determine your trade size, move to Step 5

Step 5 - Make a trade!

You've done all your homework. You have used all your skills and knowledge. The only thing left is to make the trade.

By now, you know exactly what you expect to happen with the currency pair is seen. You just have to stay patient while your opportunity for that.

However, when it does, pounce on it like a lion on its prey. Do not hesitate when you see exactly what you expected to see.

Be sure, of course, to stop or with your order entry or immediately afterwards. Also, if you have one, do not forget to set your profit target.

Once you enter or exit your trade, start writing. Record your trade journal, with all the reasons for entry and exit. Be as specific as possible. You'll be surprised how much useful information will be collected over time.

Using these 5 steps you should be able to make drastic strides in your forex trading. If, however, you're not satisfied with any part of your trading it is imperative that you plan on trading Forex.



Previous Article
- Advantages over stocks and commodities and 7 Reasons to Trade Forex