Most successful forex trading strategy : If you are a newcomer in Forex Trading, then it is possible for you to sink into the ocean of information that internet offers you about Forex Trading. To make it easy, you should consult with an experienced professional person who may give you the proper guidance to become a successful Forex Trader. At first, you should be slow to learn the whole matter, never try to grasp all things at a moment.
One of my well-wishers gives me some sufficient information about Trading. After getting that information You will become a big gainer. So, here I am trying to give those 10 important Forex Trading tips for you to become a successful trader. Before you start trading, you should learn these tips.
Most Successful Forex Trading Strategy
- Learn The Basics First:
There are so many beginners who are trying to dive into the forex trading market without any basic knowledge on the subject. They have no real background. So, before you jump into forex trading market, you have to build a solid trading foundation. In this respect, you need to take time to learn how forex trading market or any other market works in which you want to work. You should have a solid understanding of all the trading strategies. If you want to gain this knowledge, you can get this knowledge from my free beginner’s forex trading introduction course.
- Don’t Get Overwhelmed: (Most successful forex trading strategy)
All beginners of the trading market are always got overwhelmed with the information they get from the internet or any other sources. Do not frustrate, it happens with all of us at the beginning. You should try to avoid this. To avoid this you can take the advice of a mentor who will share his/her success in the career. In this respect, you may forget all your learnings and plunge into my advice which will give you a scope to become a successful trader. You have to start over with my teaching with a fresh mind and focus on the subject that you want to do.
- Don’t Trade A Lot: (Most successful forex trading strategy)
Before you start as a beginner of forex trading, you should remember one proverb that “slow but steady wins the race”. It is a universal truth in all the aspects of trading. Trading with high frequency opens up an emotional world where you may do various types of trading mistakes. These mistakes not only destroy your high esteem but also destroy your trading account.
As I am an experienced trader, I have seen many beginners of forex trading did these mistakes and they do not realize it in the first step. To earn a huge amount of money, many beginners of forex trading trade a lot. This will not work properly. To understand the whole matter clearly, you may follow this article “high frequency vs low-frequency trading.
- Focus On The Daily Chart: (Most successful forex trading strategy)
Before you do anything else, you need to learn how to trade and interpret the price action on the daily chart time frame. If you want to learn more about the topic, you may follow my various articles about the topic. So, I am not going to discuss about the matter anymore. If you wish to learn about the matter you may follow my following articles:
* Daily chart time frame; the ‘Holy Grail’.
* How trading daily chart will improve your trading results.
* The best time frames to trade.
- Do Not Put Stop Losses Too Close: (Most successful forex trading strategy)
This is one of the biggest mistakes that the beginners for forex trading almost do. Most of the traders lost a huge amount of money to figure it out.
- Remember that you have to place your stop losses at a safe distance away from your entry price.
- You will get stopped out for a loss if you place stop losses too close.
- You have to wait for the chance when the market really had a chance to move in your favour.
In other words, I can say that your trade Idea may be right but as you placed your stop losses too close, you got stopped out before the fruitful results. In this respect, you may follow some relevant articles which will help you to understand the matter.
- Don’t Just Jump In With No Education: (Most successful forex trading strategy)
I am always surprised to see that many people risk their money in trading without having any knowledge about the topic. They have rather no proper education or training on trading. After losing a huge amount of money they decide to get some knowledge or education. This is not a correct approach at all. If you do not go any flight school and want to fly an airplane, it would be a stupid activity. It may snatch away your lives also. Many traders do the exact work with their trading accounts. I think you don’t want to be one of them. Be the boss of your own. Do not waste your hard earned money.
- Focus On The Price Action: (Most successful forex trading strategy)
Now what I am going to say, I think, you would not believe it. Rather I can say, it is hard to think about it. Do you know people once traded without computers? Though it is hard to believe, but it is 100% true. There is nothing else. I think you are quite curious to know, how did they do that? They did it with price action, not with RSI, Stochastic or MACD or some automated trading software. The price movements were posted on the big boards and people used to read it and interpret it. In this way, they were interpreting price action or price changes. This is a very natural process and it was first introduced in 1700’s.
It is a very easy process. Do not complicate it. There is no need to think about the matter again and again. Just take it easy and use extreme discipline and logical thinking along with patience. Do not think over complicated indicators or news events. I my trading business, I never do that. Rather I advise you also not to do that because it is nothing but wastage of time, mental energy and of course your money.
- Be Realistic: (Most successful forex trading strategy)
You have to realize that the most hardest and important thing in forex trading is to be realistic. But it is hard to listen that almost we all are not realistic. We always run behind more and more earning. If anyone tells you to give you some dollars, then you must run behind him/her. But almost in all cases, it proves that they are scammers. We cannot resist ourselves from the invitation of a lot of earning. If you want to be successful in life, you have to avoid all kinds of mental traps. There is no alternative way to get rid of this. To get the success, you should have to be realistic. If your eyes are shinning with a dollar sign, then you are going to take a risk too much and over trade your account and lose money instead of earning a lot of money. So, I advise you to be realistic to become a successful Forex trader or any trader.
- Don’t Freak Out When A Trade Moves Against You:
This is one of the most important things in trading. Especially beginners overreact when they see any sign of a trade moving against them. As forex trading is a live trading, it is much more of a problem than demo trading. It happens due to the differences in emotions between them.
A trade moving against you is normal. There is no abnormality in it. In my own case, I have had trades move to within 5 pips of my stop loss and go on to be huge winners after that. I would have not only lost money but I would have lost a lot of profit too if I had freaked out and closed them out before they strike my stop loss. This is the main reason for not stopping your business at the adverse situation.
The way of it is not very difficult, rather it is easy enough: at first set up your stop loss in a logical manner. Later manage your position size so that your dollar risk is under control and let the trade carry on without any resistance. Doing nothing with your live trade is the best move, only set the meaning and forget about it. You should not micromanage your trades.
- Learn One Trading Strategy, Stick With It:
One of the biggest mistakes that I see among the beginner traders make, again and again, is changing trading methods too often. In this respect, you should remember that if you are using a logical and common sense trading method like my price action method, you won’t fail. Only you need to learn the method properly and be the master of it before you do anything else. Beginners always jump from one trading method to another only to find some “Holy Grail” method trading strategy, you are only going through false hope and in some cases, you may lose money.
You do not need to switch methods just because you had a few losing trades. You have to lagging behind it. In any trades, losing is evitable, so do not worry about losing. It is normal in almost every cases. You have to keep your patience in time of adverse situation. There is only one need to keep yourself cool and discipline to excel at trading.
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Note: Be aware, in India, Foreign Exchange or Forex trading is not allowed(You can trade Forex in India only USDINR, GBPINR, JPYINR and EURINR with Indian Exchanges (NSE, BSE, MCX-SX) ).