Being a successful trader needs a lot of efforts, but all of the steps can be drawn into two main determinations: manage the risks and be better than yesterday.
When we were at school, we received and got the same materials and even learned various subjects at the same time with other friends. But why do the capability of each person is different? There are persons who got first, second, third, or even last rank. The reason why someone can't comprehend the materials is not because of the materials. It is actually in how each persons mindset toward the subjects they are given. Mindset is the thing that distinguish someone successful with another less-successful person.
We have learned the strategy, system, and indicators in forex trading, but maybe we haven't changed our mindset toward trading. This is the important one, because no matter how much materials we got, it won't change the result if we don't change our way of thinking too.
Just try to pause your trading for a while, and ask yourself some basic questions. How wise I am in facing the market? Don't stick on analyzing indicators and fundamentals only.
Manage Your Risks
Risk exists in each and everything we do. It is such a faithful fellow that wherever we are, we can't elude it. The stronger we try to dodge it, the closer it comes to us. Including in business activity, the risk will be there and can't be eliminated, no matter how big or small is the business and what kind of business we run. Therefore, it has to be faced and managed properly.
A forex trader once said Don't count how many percent you will receive in profits, but ask yourself how many percent of losses you could bear.
That question becomes really important in dealing with our emotions while trading forex. By answering that question, we will know how to measure trading risks and manage them so that we could gain profits and evade losses.
Be Better Than Yesterday
Everybody wants to succeed in their business, including in forex trading. What kind of success is it? Almost all of you might answer that success in forex trading is when someone is able to gain lots of profit from his trading. It's very reasonable because the purpose of doing business is indeed to get a profit.
However, the fact is, there is a survey that said, from millions of traders around the world, only 10% of traders succeed in getting lots of money in their accounts. 10% are able to reach their dreams and the rest 90% is unknown.
Various kinds of theories and strategies were continuously learned to reach all the things we want. But in reality, none of them could accurately predict the price movement. It is because prices are driven by millions of market players.
The only thing you could do is continuously learning from your experiences. Don't easily get mad and go on a rampage, keep your poise. Patience is a necessity in this business, as is accuracy in placing buy and sell positions and money management.
3 Comments
Jul 5 2014
For me, never open positions without using a stop loss. Whether it's playing short term or scalping even long-term. The market volatility can be very high and sometimes it can scorch your profit.
Sep 17 2014
Regular practice will help solve this problem. And of course, it is better to start your step on a Cent or Demo account without losing anything. Cent accounts are probably better for the bounce because it's real money, which makes people worry about the results. Good luck!
Sep 29 2014
You got the point mate! That really reminds me of the days when I started to learn forex trading. I used to do the exercise using a demo account for about a year more before I decide to trade using a real account. But, after all, I haven't regretted it at all...Now, I have a solid trading system.