Most people think that Forex trading is easy and allows you to make money fast in a short period of time. This is one of the reasons why only 5% of traders are successful and most of the 95% fail in the Forex market. Also, many people lack the thinking needed to successfully trade Forex. Here are 4 factors that most people lack:
1. Discipline is a very important factor. This will determine whether you will be able to maintain a successful Forex trade in the long run. As a disciplined trader, you should follow the rules of the Forex trading system and not break them. But on the other hand, you do not respond to signals that appear in the trading system blindly, you also need to understand the situation in the Forex market. For example, you don’t want to go long on GBP / USD if there are weak economic concerns about the UK market.
2. Psychology of trade – Failure to control the greed factor can lead to a decline in your trading career. Always be happy with the target profit you have planned and forget about the losses you have suffered as a result of unsuccessful Forex trading, there will always be more trading opportunities. Another bad habit of trading psychology is the fear of losing a trade, which means people can cut losses sooner or later. Leave it all to the profit target and stop loss that you have set, which means you are consistent in everything you trade.
3. Money Management – Forex trading is also about how well you manage your money. Do not trade all your capital, but only the amount you can afford to lose. Plan how much you are willing to risk for the deal. I would recommend trading 1% to 5% of your trading capital per trade. This ensures that you will have enough money to trade Forex if you lose them.
4. Consistency – If you can be consistent in the above 3 factors, then you should make a profit in Forex Trading, and consistently. A forex trader can make a huge amount of profit in a short period of time, but if he / she lacks consistency, I can guarantee that the trader will not become a successful trader in the long run.
I understand that as a novice trader, you may find it difficult to follow the above 4 points. I also went through it. That is why Forex is not as easy as you might think. But by learning to follow these rules and following my Forex trading guide, which teaches systemic Forex trading, I can be sure that through hard work and determination you can also become one of the successful traders.