How To Be Successful With Forex

How To Be Successful With Forex

How To Be Successful With Forex

Forex trading has become increasingly popular over the last 10 years, especially with what I like to call bedroom traders. The number of people that trade from the comfort of their own homes (bedroom traders) has doubled which has also had an effect on the market, seeing a massive increase of the amount of money traded on forex on a daily basis. The fact is only about 5% of these people are successful with forex.

To be successful with forex does not mean to have the occasional win, it means to win consistently over long periods of time and come out with profit month after month. So the burning question in the 95% of people that do not achieve this is how to be successful with forex? There are certain attributes that make up a successful forex trader it is these attributes that I would like to look at in this article.

To be successful with forex you need to be extremely disciplined, not only with your strategy but with your money management. You will never see a professional risk it all on one single trade this would be gambling. If you have a system that consistently shows an 80% success rate then you need a money management scheme that fits in with this; for example out of 100 trades you will win 80 but you could still lose 20 trades on the run and your money management must be able to accommodate this.

You will find with a lot of beginners that they start to trade with 1 a pip see a very small profit of 5 and close the position. This might happen to them 5 or six times on the run so they then start to trade at 2 a pip, law of averages says they will lose a trade eventually the thing is when they do they will probably lose a lot more in 1 trade than they have made over the past 6 trades, hence an un successful system.

You need to ask yourself is it easier to do one successful 10 pip trade at 10 a pip or ten 10 pip trades at 1 a pip. One of the most successful forex trading systems I have ever used is to target 10 pips at 10 a pip then take 80% of the profits. Leave 20% running with huge targets but move your stop loss up to the entry point that way you have a trade running risk free at 2 a pip if it reverses and knocks you out then you have still made 80 for the day, brilliant.

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