Forex trading is one of the most stressful and complicated jobs available. And your biggest mistake? You’re not treating it like a job. It takes a lot of work and planning. These are the 4 most important things you need.
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You will hear about having a strategy everywhere. Flipping a coin is a strategy but is it a good one? We’ll walk you through creating a strategy that works.
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1. Good tools.
Like any craft, forex trading has its set of tools. You need to learn what those are, how to use them, where to find them (ahem on our site), and then apply them to your strategy.
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2. A community.
No one in forex talks about the realities of mental health and learning from the best. Trading is treated as a “lone-wolf” occupation. That’s great if you’re 15 and awkward. But, if you want to make money, you need to be able to talk to like-minded people. Bounce ideas, hear someone else’s experience and perspective, and even talk about your bad day. Having a good community means you’ll have a good mindset and your strategy can start to form.
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3. Realism is key.
Money has no emotion, your stop-loss doesn’t hate you, and it’s not a luck game. Simple as that. If you want to be a trader and not a gambler you need to set some realistic goals for yourself. These goals will keep you grounded as you trade in the next weeks, months, and years. “Get rich” isn’t a goal. “Make 30 pips a week” is both realistic and reachable. This allows you to have a loss or two or three and not fall apart.
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4. Stick to the plan.
Stick to your plan BEFORE you open a position. This is easier said than done. I’ve seen traders enter the position, change their mind, exit, and enter in the opposite direction. Then, change their mind again. Worse still, they open a position, and everything is going great. They get greedy, and in a moment it’s all gone. Again, don’t gamble, work. 10 pips stop loss – set it automatically to trigger. 20 pips win and get out. Or set trailing stops (more on that later). Whatever you choose to do, DO NOT CHANGE YOUR MIND MID POSITION!!!!!
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