This article looks at the different goals to set when working towards becoming a full-time forex trader.
Trading the forex market on a full-time basis is the ultimate goal of almost all foreign exchange traders. Sadly, the majority of these traders will remain part-time players trading during lunch breaks and after-hours. In order to reach this dream you must have secondary goals in place regarding your mindset and approach to forex trading.
1. Get a foreign currency exchange education
In order to be an effective trader you must have an understanding of the foreign exchange market and forex trading. There are numerous forex training courses available online that allow you to work around any current time commitments and at your own pace. It is also recommended that you build on present knowledge and practical experiences as there are always new things to learn. The more you know about the foreign exchange market, the greater your chances of succeeding on it.
2. Have a strong forex trading plan
All effective traders have a forex trading plan. This not only assists in reducing trading risks, but also supports your mastering of a forex trading strategy. The trading plan is basically a guide, developed as a constant reminder of the type of trader you are. It is vital that you stick to the plan once you have created it or risk damaging losses. Many traders who diverge from their trading plans have faced account depletion due to emotional trading.
3. Master a forex trading strategy
In order to experience profitable trades, you are required to master a forex trading strategy. By understanding one strategy completely the chances of losing money are greatly reduced. However, truly successful trading on the forex market is not possible with the use of only one forex strategy. As the market is volatile and different conditions call for different strategies, it is required that you master various strategies. This process will not only help in reaping profits, but also in the creation of a unique trading style.
The first step to mastering strategies is deciding on the strategy you wish to master. You must decide as to whether you are more comfortable trading with or against the crowd. By making this decision you will be directed to certain strategies within the different categories. It should be noted that one must master a single strategy at a time.
4. Be realistic when trading
It is important to have a realistic view of the forex market and your role as a forex trader. While you may wish to achieve the largest profit or trade with the most complicated strategy, it may not be possible and you may experience damaging losses if you do. Accept your limitations, but take advantage of the trading opportunities you have available. Set realistic and attainable trading targets because unrealistic ones will only lead to anxiety and depression.
5. Keep a forex trading journal
It is highly recommended that you maintain a forex trading journal. This journal keeps a detailed record of all trades including the dates, times, amounts, currencies, results and reasons for the transactions. The journal is beneficial because it allows one to monitor their progress as a trader.
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