6 KEY TO SUCCESS FOREX TRADING
The success of a trader depends on himself, whether he is ready to succeed or not. It must always be remembered that there is no instant technique to succeed in this world. There are no shortcuts to success. Everything requires struggle and sacrifice, one must really know what he is doing physically and mentally. Being a successful trader is not an easy business, but it is also very possible to achieve it. Making profits is a way to become a successful trader and strong determination is the key.
6 keys to successful forex trading
There are a number of urgent things on the Forex market that must be known by each trader. Let’s look in more detail.
1. Don’t panic and can’t open orders without calculation!
Basically, the main destination of each trader is to make dividends and increase wealth by utilizing price movements. Well-known trader George Soros, Goldman Sachs, JP Morgan and allies are the players behind the price movements in the forex market. We call them Market Makers (MM). MM has a large capital that can drive the Forex market, they can even shake the economic stability of a number of countries if they want to do it. A ketengan trader with limited capital skills is like a small fish against sharks.
Because the trader’s panic order can be blocked by stop loss or even worse with stop out.
When MM opens a short position, the price begins to move up fluently and gradually and after a number of moments the sharp upward movement is carried out then slowly begins to weaken. This process is known as “out of steam”. This means that MM stopped buying because they thought the price had been too high. This results in a sideway price movement and a flat (flat) market. Since that moment MM will look forward to urgent economic news that will become a momentum for them to correct their position (to continue to open new purchase orders, to open sell orders or do nothing).
When the news is launched, the market will begin to move quickly and irregularly, prices will rise and fall quickly. This is known as “shake out” caused by MM. Often, traders are trapped by this condition and begin to open transactions carelessly. He is a phobia “missed the train”. Because the trader’s panic order can be blocked by stop loss or even worse with stop out.
2. It is not possible to know everything with certainty about Forex
There is no way of financial analysis that can guess price movements with 100% accuracy. This happens because the Forex market is driven by human psychology. The desire to gain profit, a sense of phobia lost, panic and different feelings or emotions that provoke the movement of Forex market The proverb says: “The sea can be known, in whose heart do you know?”. The same thing with the Forex market, is that it is impossible to understand everything and this is the second key that we must remember.
However, Forex has memories. Repeated price movements from time to time and this helps traders to find out the Forex market and create a number of tools for trade analysis. Therefore the methods and equipment of popular technical analysis are like Elliott Wave analysis, Gartley pattern analysis, candlestick pattern analysis, WD Gann analysis, so many expert advisors and indicators are found.
3. Have a humility and think well before making a decision
As previously stated, the market movements are the most unexpected. This means that the trading process requires humility. A trader must glorify the “wishes” of the market. He must have humility to manage the situation when the market moves does not match the analysis and trading strategy.
Traders with strategies on the Forex market are like adventurers who live alone with GPS equipment in the forest. But at some point, the GPS is off and it is moving in the wrong direction. When an adventurer gets lost, he strives to look at the road, realizes his mistakes and creates decisions that help him reach his goals. The same thing when working on a trade if you have humility to stop while and thinking of all the mistakes that have been made you will reach your trading goals.
4. Be patient when trading
Humility helps to stay calm in all situations. Professional traders are those who have the patience to wait until the Forex market situation matches their trading strategies and they have the opportunity to create profits. Patience is needed when the order starts until it is closed. But the most important thing is in the middle of a transaction, when traders need to pay attention to price movements that can move in all directions and stay calm so as not to block orders too early or even late.
Nial Fuller, a professional trader, writes that the animal that is right to reflect itself as a professional trader is ALLIGATOR (BUAYA). Crocodiles survive in this world around millions of years. The Alligator does not drain their time for small prey. He saves energy for big prey, is patient and looks forward to long periods of time. But as soon as prey is within the scope of the lunge, the crocodile will not hesitate to grab it. Of course, the hunting of crocodiles does not often succeed. But this fauna has the patience to continue working on the task and finally reach the desired goal.
Discipline helps traders to remain cold and to open and block every order without hesitation and fear.
5. Discipline yourself and have a trading plan that is not violated
One technique for managing uncertainty in the Forex market is to discipline yourself. When it is not possible to guess the market movements professional traders protect their accounts with self-discipline. They created a commercial plan that they did not violate whatever the conditions on the market.
Discipline helps traders to remain cold and to open and block every order without hesitation and fear. He believes in the profitability of his trading strategy. And even when the market moves opposite, traders remain calm and glorify market will. This situation is not a surprise for traders because he has assumed for the worst scenario that can occur when trading.
6. Remember that the Forex market has a neutral nature
The Forex market is neutral. Only traders give special meaning to each price movement. They interpret the situation that occurs in the Forex market because of the experience and knowledge they have. But in practice the real Forex market is neutral!
For Forex chart beginners there are no more than colored blocks that move up and down. When a trader has begun to get a number of experiences, these movements become signals with special meanings that can be used in trading strategies. If the trader forgets about the uncertainty of the signal and becomes sure about it in other words he might be stuck with trust when the market moves against his plan.
But knowing and accepting the fact that the Forex market is neutral, pro traders will be free from the blockade of their self-confidence. He will act according to the strategy and plan, but he will remember about the unexpected results of trading.