There are 3 component important must have if you want to succeed in forex trading; 1. Mindset 2. Strategy 3. Money Management 1. Mindset A key of success in trading is discipline. So with your minds. You must have a discipline mindset. Your mind must be clear focus on what you set up before trading. ü What is your profit target per trade? 10 pips, 20 pips per trade or signal to signal profit. ü What is your daily profit target? $100, $200, $1000 or $$$$ per day. ü Where is your stoploss? Mind stop loss or digit stop loss. ü What is your time frame? 5 min, 15 min, 30 min, 1 hr or what minute? ü How much time you want to spent on trading? 2hr, 4hr or 10hr a day? ü What strategy you choose? What is your enter and exit strategy. What indicators are best to you. You must know how to control your emotions: fear and greed. Fear and greed will kill your discipline. You must be calm before, now and after trading. Do not overtrade. Accept on what you archive (profit or loss) on that day. Also avoid to become a butterfly traders. Mostly pro traders doing before and after trading are meditate their trade inside their minds. They always spend 20 min to 30 min meditate before trading. That’s why they always cool and calm during trading. They always visualize their success and control their breathing. 2. Strategy Always trade on what your eye’s see and not on what your mind’s think. There are many subject must do before you take action in your trading. A.Time Frame All time frame can make money and it’s also can kill your business. The most important purpose is used for making a right decision on enter and exit, take profit and stoploss your trading. Table below is easy guide to you.
B. Trading Time The best time to trading are when two sessions of trading time are overlapped especially C. Research Before trade a real trading please take at least 30 minutes to make a research on fundamental analysis and technical analysis. Focus on what currencies you want to trade. Fundamental Analysis Check News announcements on Forex Factory Read forex analysis commentary at Daily.com, Action Forex.com and myfxsifu. Technical Analysis Trend – Uptrend, Downtrend or Sideways Support and resistance Buy Zone and Sell Zone Fibonacci Elliot Waves Pattern of the Charts Note: Always trade 15 min to 30 min with demo account before you trade with real account.
D. Indicators There are many indicators in the market. All can make money. Its depend on you how to used it. The most important, its gives a signals which as a guide to you make a decision on; Ø When to enter and exit the trade. Ø How much to take profits. Ø Where to put Stoploss Please click FX Strategy Guide for more details. E. Forex Knowledge Please read all this links; My Trading Plan 3. Money Management Money management is a critical point that shows difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% odd, only 5 traders will be profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don’t understand how important it is. It’s important to understand the concept of money management and understand the difference between it and trading decisions. Money management represents the amount of money you are going to put on one trade and the risk your going to accept for this trade. There are different money management strategies. They all aim at preserving of your balance from high risk exposure. First of all, you should understand the following term Core EQUITY. Core Equity = Starting balance – Amount in open positions. If you have a balance of $10,000 and enter a trade with 1 lot ($1000) then your core equity is $9000. If you enter another 1 lot ($1000) trade, your core equity will be $8000. It’s important to understand what’s meant by core equity since your money management will depend on this equity.
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