For many Traders, the Idea of succeeding as a forex trader has been their heart desire. But the Fact still remains that many new traders thinks of forex as a simple business –which makes them jump in and after a while they jump out of it.
Have you ever thought of why a large percentage of newbie traders crash as they enter the forex market?
Do you know that large sums of them are not well informed about trading, which makes it hard for them to cut out from the cake of profit?
The internet today is covered so many sweet mouthed marketer, ready to convince you to buy their product. They get you convinced – you then go home with the idea that their stuff will make you rich over night.
You set what you want on their software and go to bed. Waking up the next morning you see your invested fund lost half way or even gone flat.
Don’t get me wrong, I’m not saying that there is no trusted trading software; all I’m trying to say is that they are rear and you need to be very careful before subscribing to any.
Most of us traders desire to become successful in this Trading forex, which is the more reason why you need handle it has a real business. Provided you are a trader, you are definitely a business man because you are aiming for profit and not the other way round.
Let’s get down to business, we shall be discussing about The 5 Best ways to make forex work for you.
# 1-Get the right Idea.
You know, one of the commonest reasons why new (sometimes old) traders fail in this business is because they have this wrong idea about forex.
Now, do you think that someone with such perception can succeed in it? Of course not.
Let’s take for instance, what are the chances of a boy to win a game he barely knows something about?
If he dare enter the game with the mental state of all games having the same rule, he might rarely find his feet.
Because, he knows nothing about the game rules.
Many fresh traders are yet to be soaked with the right idea about FX, which is why a lot of them make costly mistakes.
If you want the Fx-market to work for you, you must get the right idea about it and apply it duly. You stand a lot of chance to survive in this business environment by just having the right knowledge about it.
How do I get the right idea about Forex?
- You start with having at the back of your mind that- forex trading is not as simple as you use to hear. This will definitely wake you up to seek for more information about it.
- Reading the right books, like the ‘’Beginner guide to forex trading’’.
- Researching more about it-on the internet.
#2-Get fully prepared.
As a business man, do you think it is possible for a business to push through with adequate preparation?
Getting fully prepared is a very important step to take. In this line of business, research has made it clearer that a numerous number of failures in trading forex are as a result of lack of preparation.
It is very important that you key in to this tip. If you want forex to work for you, you have to be prepared for it, especially on your trading mindset and your emotions.
What do you think will happen to a TRADER who trades with no knowledge, no experience, and no idea of how to trade? Definitely his chances of making it are very thin.
Let’s consider the case study of two traders.
Trader C is an experienced trader while D is just new in the forex environment. D has the anxiousness of making it big overnight but C loves to play cool with his trading plan.
One faithful morning, they both set out for their businesses (Trading). Something alarming happened. It was observed that D account had gone flat while C was waxing stronger.
Trader C was prepared while trader D was not.
Unprepared traders are those people who trade Fx as a gambling and not real business.
‘’There are no secrets to success. It is the result of preparation, hard work, and learning from failure.’’-Colins Powel
#3-Work on your emotions
Your worst enemy in trading forex is your emotions. when you lack the will to put them under control, they easily get you wrecked.
It’s quite natural for your mind to be unrest whenever you trade, especially when you are new with the system.
This is why you have to work on your emotions, if you want forex to work for you. One characteristics of a successful trader is the ability of putting their emotions under control.
What do you think will happen to a trader who opens his PC to trade and suddenly got engulfed with the fear to trade?
Definitely such a person will not be thinking straight at that moment; If he dares proceeds without calmness, his chances of pulling profit is very thin.
Don’t trade with an unsettled mind. It his very dangerous and might lead to regret.
What are those emotions you need to work on?
A trader who has a trading plan that includes working on his emotions has higher will to make a living out of forex.
#4-Never underestimates the power of discipline.
If you want to become a successful trader, you have to be disciplined.
What is Discipline?
Discipline is simply an act of sticking to your trading plan.
Just like Jim Rohn said-‘’Discipline is the bridge between goals and accomplishment’’. If a trader finds it hard to stick to his Trading plan, he might not achieve his goal of trading.
You have to invest your time to devise a plan covering money management, and strategies to approach the market.
Getting this done is a powerful step to make forex work for you. It is very much advisable for you to stick to it.
The absence of hard work and discipline will make it difficult to reap profitably from the market.
#5- Say no to Over-trading.
One of the top reasons for trader’s failure is overtrading. Uninformed traders are prone to be affected because they are not aware of the harm it causes.
Such a mistake is capable of destroying what you have labored for over a long time.
It is quite advisable that you take a careful precaution about overtrading.
I’m so confused; I don’t know when I’m overtrading. Let’s clear the air about this issue. Overtrading simply mean when you hold a position for too long.
A trader enters a position after carrying out his own analysis. He found out that EUR/USD was going long with an original position of 1.2344.
He bought it. After some time it was observed that the currency pair was appreciating (going long) to the extent of covering over 200pips.
Because the trader was not aware of over-trading, he held on the position for long. Market generally known not to be stable reversed rapidly.
The whole profit he made for the day was lost. Still holding his position thinking that the market will reverse, his account went flat.
- He had no trading plan.
- He was trading based on his feeling
- He was not aware that the market can’t be controlled.
- He was greedy and wanted to take revenge.
You now see how destructive over-trading can be. Always trade responsibly.
In summary, we have discussed what you have to do to make forex work for you. You must also bear in mind that it is very important you: get the right idea, get prepared, work on your emotions, never look down on the power of discipline and finally avoid over trading.