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Your success as a forex trader will require you to apply techniques that most traders do not. Using a few forex trading secrets will take you far.
Over 90% of forex traders make losses and walk away disappointed. Only about 10% make a profit, with some traders bagging incredible sums. It’s hard to ignore the fact that the successful traders are doing something different.
The 10% succeed because they use forex trading secrets that others do not. They continue to make smarter and profitable trades.
Although general factors like good strategy, focus and vast experience put them at the top, there is more to their success than that.
The Forex Trading Secrets
1. Mindset Shift
While most traders will be devastated by a loss, the successful ones view the loss as feedback on what to improve. They don’t just give up and walk away. No matter how long you have been trading for, nobody wants to lose money.
Instead of losing sleep over your loss, use this experience to grow and learn. After all, Warren Buffett has said that “experience is the ultimate key to being a successful investor.” Forex trading can be unpredictable. You may take all the right actions and still once in a while the market will fail you.
2. Avoid Greed
Of all the secrets, this one is the most important. Greed is the biggest cause of failure in this business. One of the reasons traders become greedy is their immediate need for money.
Do not get into forex trading to pay your bills tomorrow. Do not use money meant for your household to trade. Invest money that you are willing to lose. When you are in a desperate situation it causes pressure, fear and then greed.
Another way too curb greed is by taking reasonable profits. If you realize that you have made a small profit on your trade for example 2 times your risk, do not leave your trade open to make a bigger profit. The market could easily work against you at that point.
3. Consistent Strategy
Be consistent with one method. Believe in it even when you fail. Do not keep trying different methods looking for the perfect one.Once you’ve developed your forex trading strategy, as long as it is simple and has been tried and tested, stick it out. You’re better off using one strategy than being confused with four different strategies.
4. Pay Yourself
Instead of re-investing all your profits, pay yourself. This is one of the forex trading secrets that most business people ignore. You got into this business to make money and have a different lifestyle. There is no point in piling up money on your account. Buy yourself something nice to keep you motivated to work even harder.
5. Read the Chart Only
The price chart shows you everything you need to know about the market. Invest time learning how to read it to guide your decisions. Economists and the news may come up with all sorts of predictions and opinions. These will only derail you. Make trading moves according to what you see on the chart only.
Apply these forex trading secrets with discipline and consistency and you will become a better trader. Following them may improve your chances of being among the 10% successful traders in the world.
