Here are 7 keys to successful Forex day trading
Here are 7 keys to successful Forex day trading
Forex day trading is sure to be driven by some fear and greed; If a trader’s account is less than $100, he probably doesn’t want to lose, just because he knows he will suffer emotionally.
So here are the seven keys to successful Forex day trading:
The successful trader remains neutral
The meaning of being neutral means that the individual is emotionally disengaged from his or her daily Forex trading decisions. The day trader who has suffered emotionally after losing $100, when he gains $100, will be overjoyed. It is definitely not trading neutral.
If an individual is up to $1,000, they may want to earn more, even though they must reap their winnings. Or he may end up taking his profit earlier because he is afraid that it will happen and the position of the deal will turn against him.
A professional trader does not let the daily Forex fluctuations in his accounts bother him. The results of one trading week don’t matter much to him, not even the monthly trading results. It is just a very small moment of his time in his career, so daily Forex fluctuations do not matter.
The ups and downs that occur in emotion are very normal for a novice trader. If it has such a big influence on one’s trading decisions, the advice is to return to Forex trading in a demo account in order to gain the trading confidence one needs to not allow price fluctuations to affect him too much.
Staying neutral means seeing the price movements of the trade as they are, not how the trader wants them to be. He may know which situation the trades are going against him, and start looking for other new reasons why it is still a good trade and he should keep it.
This is really very dangerous because it can lead the trader to break his stops and lose a lot of money. Its entry and exit criteria must be clear and well known before any trade is made.
The trader must not be afraid of trading
Fear affects the trader’s decisions as it is difficult to enter into deals. He often finds himself letting a good opportunity pass, or he is waiting for additional confirmation that the currency is going his way, causing him to enter Forex trades late and end up with a loss; Because the trader often enters at the end of the movie.
The fear of losing makes it difficult for a trader to bear losses. His extreme fear will lead him to never incur losses and will cause a significant trade drop, or will cause him to incur losses shortly before he reaches his actual stop price.
A successful Forex day trader uses his capital to take risks
If an individual is daily Forex trading with all his money without having another source of income, he will be afraid to take any impartial decision. There is a wise saying that fearful money never makes money. We haven’t seen traders yet who was able to just live from a trading account without having any additional source of income.
For a successful trader to focus on Forex trading strategies that suit him well
A trader tries to implement many Forex trading strategies simultaneously. He thinks he has to make money trading every day. A successful trader is one who has only a few Forex day trading strategies that have brought him great success, and sometimes only one Forex trading strategy. The goal is for the trader to find a strategy that they feel comfortable with and master. This, of course, will not come and happen overnight.
The successful trader is patient
This patience is in the process of learning Forex day trading. He should take his time to trade on the demo account for some time. He will make trading mistakes and it will take him a lot of time to get used to making his own trading decisions.
If a trader absolutely wants to trade Forex daily directly and instantly, he must do so with a very small amount of money. He can make a lot of trading mistakes if one is trading a small amount of money.
If he uses his buying power even though he has one stop in a trade, it can kill him. We have yet to see Forex traders that haven’t stopped them at least once.
A successful trader is a great money manager
Good and successful day traders will not risk more than 2% of their trading capital in a single Forex trade. This means that if a trader has to stop, it will not increase the amount of money an individual is willing to lose than 2% of their own capital. Where 2% is the maximum amount. The trader should try to risk less than that. The reason why this is so important is that even if a trader is right 99% of his time, he can still lose 10 times in a row. Occasionally this happens. Only if the trader is risking a little bit of his money will he be able to survive this losing pullback.
A successful trader trades with confidence
Forex day trading with confidence is very much the single most important key to successful Forex day trading. The most successful trader is the one who uses only some basic Forex strategies. What made him so successful is his confidence in his Forex trading strategy, his ability to stay neutral and execute his trades as he sees fit.