How to Be a Profitable Forex Trader

Tips and Tricks for Becoming Successful in Trading

I have been trading a live Forex account for roughly one year now. I'm feeling lucky, because I might be one of the few that saw the light at the end of the tunnel in just one year. Maybe you've been trading for four or five years, but something is missing. You've probably lost a lot of money trying. Your friends were all telling you that this is gambling and you should stop right away. You didn't listen and now you're sad after losing so much money in the process. I've been there and I'd like to share a few thoughts with those of you still struggling.

A. What kills most newbies?

You will find out in time that the bigest obstacle in trading is not your technical approach, your brains or the news. It's you! You are your own enemy. Take my word of advice and:

1. develop a trading plan - You need to come up with a set of rules, write them on paper and stick to them. If you're not organised, you will never make it. You can't win if you trade chaotically, using your gut feeling. You need to play it smart. Treat it like a business, not like a casino game. Your plan has to tell you the maximum number of trades per day, how to adjust your stop loss / take profit orders, when to enter or exit, what currencies and timeframe to trade etc. It needs to be specific. You need to trade as mechanical as you can, because that's the best way to fight yourself (and you are your worst enemy), your deadly emotions. Fight fear and greed by creating rules that force you not to overtrade, overleverage, be afraid of taking an opportunity or closing a trade too early. These emotional mistakes can explain 90% of your failure so far. Learn from your mistakes and start fighting yourself. Discipline is key.