Here I will give you 10 simple tips that are necessary to enjoy long-term trading success and if you understand and follow them, you can join the elite 5% of traders who make huge profits trading Forex.
I have put the number of tips in no particular order of importance – you must follow them.
1. Don’t use FX robots
When 95% of all traders lose, don’t expect a cheap robot to make you effortlessly rich, these systems cost very little because they don’t make any money.
2. Work smart, not hard
I always read that it takes years to learn to trade and you need to learn continuously, this is rubbish. Forex trading is easy to learn because simple systems work best and you can learn all the basics of success in just a few weeks. You don’t get paid to work harder at forex trading, you get paid to be right, so you don’t need to put in extra work for no reason.
3. Understand volatility and drawdown
I see numerous traders who think they can day trade and scalp with 10-20 pip stops but soon lose their money. This is because they don’t understand volatility and its impact, and if you want to win, you have to understand everything.
4. Use low leverage
Brokers will give you 200:1 leverage, but use this amount and you will lose. For a novice trader, 10:1 is the maximum he should use and don’t worry, you can make triple digit profits and still have tight risk control.
5. Discipline Discipline Discipline
In Forex trading, the best traders in the world make money about 50% of the time, but make big profits by having the discipline to keep losses small and make profits.
Most novice traders think they are going to win most of the time, so they take losses and this leads them out of business. They refuse to admit their part is wrong if you want to win at Forex trading forget about being right all the time and focus on cutting losses and making profits.
Last words
I hope you have enjoyed the above tips and if you understand them you will see why you can make huge profits trading Forex.