It takes a long time to success in the forex market due to the gap of knowing some basics. We need to know what issues we need to focus on in order to be successful. We always think of a trading strategy, indicator or robot with which I can become a successful trader. In this way we keep changing different trading strategies, indicators or robots but can no longer succeed. At the end of the day we just see loss and loss. If you accept the point that I will show you, then you will see that you are slowly moving towards success
There are many things that go into becoming a successful Forex trader.
How to success in forex market?
I will give priority to only three important issues-
- Forex Psychology (50%)
- Forex Money Management (30%)
- Forex Trading Strategy (20%)
Looking at the above percentage, you can understand how much success depends on what percentage. Most traders in the world run after this Forex trading system – meaning 20%, which is why it takes a long time to succeed in the Forex market. Further details are discussed below-
Importance Of Forex Psychology:”Success in Forex Market”
Our success depends 50% on our psychology. So we need to give more importance to psychology to survive in Forex. Then our path to success will be clear. You just have to be more discriminating with the help you render toward other people. For example, you should always have a risk reward of more than 1: 3 for the trading strategy you are trading in. You have to trade regularly according to the checklist of your trading system, you have to trade according to money management, you cannot trade over, etc. The better you can apply these rules of trading in the market, the more you will see that you are doing much better in trading.
The bigger the traders in the world, the more they trade with higher risk rewards, the more they gain with much lower risk. This is the thing I started using in my trading and since then my profit in Forex has been increasing slowly. If out of 10 trades there is loss in 6 trades and there is profit in 4 trades then there is also profit and I would strictly follow the rest.
Importance Of Forex Money Management :
Money management plays an important role behind your success in the Forex market. Many traders have zeroed their accounts due to non-compliance with money management. If the trader trades with 1% risk per trade, his account will never be zero. But not being able to control the greed, everyone became frustrated by trading more lots and making the account zero. One of the most important rules in the Forex market is to trade according to money management but no one wants to obey it. If you can follow money management properly, you will not lose 100 trades even if you lose 100 trades in a row. I will discuss money management in detail later.
Money management plays a 30% role in becoming a successful trader in the Forex market, so there is no substitute for money management. You can make a lot of profit by trading big lots and sometimes trading some things but if you want to make a profit in the forex market for a long time, then you have to follow money management.
Importance Of Forex Trading Strategy:
20% of your success in Forex market depends on your trading strategy. We lose in the Forex market because we do not want to focus on the points 1 and 2 above. You need to select a trading strategy that goes with the trading strategy. Whichever trading strategy you choose, first look at whether the risk reward of that trading strategy is more than 1: 3. If not here’s a new product just for you! If you look at many trading strategies, you will find that you have got the trading strategy in your mind. If you trade demo with this trading strategy, you can make a good profit. If you understand the trading strategy well, then you can hold on to this trading strategy. You will see that this trading strategy will give you regular profit.
Many people make a lot of money with this trading strategy. I also trade with this trading strategy but that trading system does not go with him or he does not understand that trading system well. Which results in loss and loss.
If you understand these three things exactly and can use them in the market, then you will see that you are slowly becoming a professional trader and a successful trader in the Forex market.