In a recent interview with our analyst Snr. markets on axis economic source, Ltd., I asked a simple question. What made a successful trader in the Forex market? Told me that this could be summarized in three basic rules:
Rule # 1 makes a trading plan
Rule # 2 implementation of the plan
Rule # 3 to change the draft Middle
Our analyst markets Snr. MBA in international finance, is a member of The Professional risk managers International Association (PRMIA) has traded and analyzed financial markets for over 15 years.
Went to say that you are always able to hear the "experts" talk about the trillion dollars traded in the Forex market. What they don't tell you is that 90% of traders all loose their money. It is a zero sum game. For every winner, there are a lot more people losing their money and the market is unforgiving. Told me that from experience, the main reason that most traders loose their chapters is uncertainty about what they do. So, you are going to be better organized and better prepared than the other guy. Not your diligence and put together a marketing strategy that comfortable and set it in stone. You should approach your trading as a business, not a hobby.
As soon as your trading plan is established, it is vital that you know your system like the back of your hand. You can obtain this discipline by trading demo. Demo trade your system until it becomes second nature, so that you can do in your sleep. Then do it again and again. Additional experience and knowledge will give you the confidence to trade your system run by the numbers, regardless of what makes your purchase. Is not such a hurry to lose your money. Then, when you pull the trigger, let's trade either hit your stop loss, target, or break even point. From our experience, this allows overall commercial model your House breath, as the saying goes. The percentages involved with the strategy you need time to pan and is a long haul should worry about anyway.
Above all, Do not over leveraged. Use proper money management is at the very least, if not more important than your trading system. Never risk more than 3% of your account on each trade. In this way you can loose 6 out of 10 jobs and still make money. Remember, this is a game of numbers. Thus, if trading an account $ 10,000 and we are sure that with your system you can loosely 60% of the time and is still in profit. It is not uncommon to encounter a four transactions defeats. Experienced operators have similar or even more losing streaks. Why is successful is because they use low leverage.
Our "managed account" generally only risk 2% profit per trade and deal with only 3% if we're nice profit for the month. Please note that this gets exponentially more difficult to recuperate your account as losses mount and increasing leverage when you're negative is the fast track to great losses which are fatal. This is where your trade discipline comes in the game that has been forged by sufficient demo trading. Strict adherence to prudent risk management will keep you in the game.
Our analyst markets Snr. could not overstress that you need to have realistic expectations about your trading. Think of it as the difference between venture capital and gambling money. I am not going to go a Vegas casino and if you can view your negotiated in any way as your gambling, the chances are great that you too will bring home broke.
Which brings us to the issue of the use of robots. We do not work. If they did, no one is trading live and all lived large. Remember, it is a zero sum game, so why would anyone sell you their money making machine for $ 100 when they could use to get rich?
Finally, our analyst markets Snr. believes that unless your using a commercial strategy news-press, specifically designed for trade during economic news, it is wise to stay off the market during these times. Have experience of that negotiation on days with major economic news holds greater risk than benefit.
Good trading!
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