subject: 5 New Forex Traders Essentials for Successful Trading [print this page] Author: Denis Marsili Author: Denis Marsili
Many people see trading Forex online as a way to make money without having much idea of what the market it's like. For a beginner currency trading is a whole new crazy world... trading has huge potential and certainly does make some people rich, but you need to know what you're doing.
Like all investors, you want to get profits, so let's learn 5 essentials that you must have if you want to become a successful Forex trader. Good Training: We all have to learn, especially when starting out something like a new business. Try to find good training and learn the basics of trading, including analyzing the market, risk management and psychological aspects. There is no need to spend lots on training.
While there certainly are seminars that can cost thousands of dollars, you can learn fast and cheap from online trading courses that will explain how the market works and how to operate a profitable trading system. Nowadays you have from free training material to e-books, video tutorials, you name it. You can even gain experience with no risk by using a practice account, available for free from most brokers.
Control Stress: It is important to remain calm under stress. Don't let fears or panic control your Forex trading. If you find it difficult to deal with the pressure, the ideal thing to do would be to take a break from the screen.
Stop Loss: In currency trading there's no security and plenty of risk. Knowing how to cut your losses at the right moment is essential. Never hang on to a losing trade beyond a certain point which should be calculated before the trade is opened. It is a delicate matter finding the balance between having a stop loss that is triggered by small fluctuations, and holding onto your trades for so long that you make a huge loss. Make sure you get this right before you begin trading a new system for real.
Have a realistic approach: Though everybody is searching for the perfect system, there's no such thing. Systems don't work independently of our trading practices. If you have a sound plan, especially regarding risk management, stop losses and profit targets, you can make money with any profitable system.
Forget what you may see in ads about doubling your money every month. A profit goal of between 5 and 10% per month is an excellent return on any investment, and will keep you out of the most risky situations.
Keep Records: Keep records of all of your trades. Yes it sure is a tedious task, but if your trading records can allow you to take back control whenever things seem to be going wrong. Having results to analyze gives you a huge advantage in currency exchange trading. If you try to develop these 5 trading essentials you'll be on your way to achieving your financial goals. Successful Forex trading can only grow out of a strong desire to learn and master the skills of trading and from how you approach your trading in general.About the Author:
