mohamed_nour433
New Member
What exactly separates successful forex traders from the rest of the group? For all forex traders, climbing the top of the ladder and joining the elite group of successful traders is a key ambition. But it is a well-known fact that very few manage to achieve those high ambitions.
The forex market is a frontier where a trader with little to no capital stands a chance to make it big, owing to the many inherent advantages in the market. However, successful trading is a combination of several factors- elements that successful traders capitalize on to make the most out of every trading day.
Let's discuss the top tactics that will make all the difference in your trading journey as a beginner or as a professional that wants to take your trading to the next level.
1. Effective execution of trading strategy
The forex market isn't the place for random strategies. Instead, successful traders spend their time honing their trading strategy as their profitability highly depends on how the strategy is maintained and executed.
Keep Reading
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Understanding Liquidity and Market Liquidity
When formulating and executing your strategy, you should take note of these three elements in addition to other factors:
Risk control
This seems obvious, but several traders do not account for the money at risk in their strategy. At most, stop-loss orders will be placed close to the entry point of their trade without highlighting other risk factors that could potentially affect their trade. This is not to say using stop-loss orders is unnecessary, but rather to highlight that risk control goes beyond that.
The first is to understand forex risk and what risk management entails and continuously build on this knowledge as an active trader. A strong foundation will influence how you use tools like stop-loss orders, leverage, and take profit orders to manage risks and improve profit potential.
This is important because it is still possible to experience massive losses when using risk control tools if you don’t know what to do with them.
Perhaps the most important risk control rule is to never trade with money you can't afford to risk. The forex market is volatile and unpredictable, and risking more than you can take puts you in an extremely vulnerable position.
Although it is not possible to have profitable trades all the time, it is necessary for forex traders to actively implement changes no matter how little to their strategies. Over time, this will result in a more balanced strategy that pushes you along the line of success.
Using price action
Price action gives key insight into the psychology of other forex traders, and it plays a major role in any winning strategy. One advantage of price action is that it lets you know where buy and sell orders are located, which helps in making trading decisions.
When trading with price action, it is better to wait to see how the market acts so that you can react appropriately. If you attempt to predict where the market might go before any signs appear, you could lose the trading opportunities at your disposal.
In addition, it is advisable not to rely on price action alone when trading because no method is fully reliable. Instead, it should be used to strengthen your strategy and increase your chance of making accurate trades.
Choosing the appropriate timeframe
Time frame analysis is a skill successful forex traders use to develop strategies that take advantage of market movements. But before you choose a timeframe, you need to decide on your trading style.
For instance, scalpers work with very short timeframes (usually between 1-15 minutes), while swing traders work with longer timeframes (it could span days or weeks).
Traders are not restricted to one timeframe despite their trading style, and it is common to see successful traders using multiple timeframes. The major benefit of utilizing multiple timeframes is seeing the overall trend and identifying the most profitable entry points.
2. Using a funded forex account
A funded forex account allows serious traders to expand their trading ability and make profits without using their own capital. It provides them with great flexibility and makes it easier to execute larger successful trades. But what is a funded forex account?
This is a trading account handled by a qualified trader on behalf of a company. It is a program that helps trading companies source the best traders for a percentage of their profit or subscription fee.
In return, traders are armed with sufficient purchasing power and leverage to profitably engage in the forex market.
funding
The profit advantage it gives makes funded forex accounts a unique asset, but it is not available to just anyone. According to the experts at HowtoTrade.com, interested traders will have to pass an evaluation test to show that they are profitable and reach a predetermined profit level within a certain period.
After the challenge has been completed successfully, the trader will be given an account. However, it is possible for the company to conduct another test just to have an extra layer of protection.
From there, the trader and company will split the profits depending on the agreements made.
As with any business, it is crucial to exercise due diligence when selecting a trading company. You want to make sure that the company is trustworthy, has sufficient tools for trading, and its structure fits your financial goals.
The forex market is a frontier where a trader with little to no capital stands a chance to make it big, owing to the many inherent advantages in the market. However, successful trading is a combination of several factors- elements that successful traders capitalize on to make the most out of every trading day.
Let's discuss the top tactics that will make all the difference in your trading journey as a beginner or as a professional that wants to take your trading to the next level.
1. Effective execution of trading strategy
The forex market isn't the place for random strategies. Instead, successful traders spend their time honing their trading strategy as their profitability highly depends on how the strategy is maintained and executed.
Keep Reading
PayRetailers Appoints Philippe Laranjeiro as New Chief Commercial Officer
Understanding Liquidity and Market Liquidity
When formulating and executing your strategy, you should take note of these three elements in addition to other factors:
Risk control
This seems obvious, but several traders do not account for the money at risk in their strategy. At most, stop-loss orders will be placed close to the entry point of their trade without highlighting other risk factors that could potentially affect their trade. This is not to say using stop-loss orders is unnecessary, but rather to highlight that risk control goes beyond that.
The first is to understand forex risk and what risk management entails and continuously build on this knowledge as an active trader. A strong foundation will influence how you use tools like stop-loss orders, leverage, and take profit orders to manage risks and improve profit potential.
This is important because it is still possible to experience massive losses when using risk control tools if you don’t know what to do with them.
Perhaps the most important risk control rule is to never trade with money you can't afford to risk. The forex market is volatile and unpredictable, and risking more than you can take puts you in an extremely vulnerable position.
Although it is not possible to have profitable trades all the time, it is necessary for forex traders to actively implement changes no matter how little to their strategies. Over time, this will result in a more balanced strategy that pushes you along the line of success.
Using price action
Price action gives key insight into the psychology of other forex traders, and it plays a major role in any winning strategy. One advantage of price action is that it lets you know where buy and sell orders are located, which helps in making trading decisions.
When trading with price action, it is better to wait to see how the market acts so that you can react appropriately. If you attempt to predict where the market might go before any signs appear, you could lose the trading opportunities at your disposal.
In addition, it is advisable not to rely on price action alone when trading because no method is fully reliable. Instead, it should be used to strengthen your strategy and increase your chance of making accurate trades.
Choosing the appropriate timeframe
Time frame analysis is a skill successful forex traders use to develop strategies that take advantage of market movements. But before you choose a timeframe, you need to decide on your trading style.
For instance, scalpers work with very short timeframes (usually between 1-15 minutes), while swing traders work with longer timeframes (it could span days or weeks).
Traders are not restricted to one timeframe despite their trading style, and it is common to see successful traders using multiple timeframes. The major benefit of utilizing multiple timeframes is seeing the overall trend and identifying the most profitable entry points.
2. Using a funded forex account
A funded forex account allows serious traders to expand their trading ability and make profits without using their own capital. It provides them with great flexibility and makes it easier to execute larger successful trades. But what is a funded forex account?
This is a trading account handled by a qualified trader on behalf of a company. It is a program that helps trading companies source the best traders for a percentage of their profit or subscription fee.
In return, traders are armed with sufficient purchasing power and leverage to profitably engage in the forex market.
funding
The profit advantage it gives makes funded forex accounts a unique asset, but it is not available to just anyone. According to the experts at HowtoTrade.com, interested traders will have to pass an evaluation test to show that they are profitable and reach a predetermined profit level within a certain period.
After the challenge has been completed successfully, the trader will be given an account. However, it is possible for the company to conduct another test just to have an extra layer of protection.
From there, the trader and company will split the profits depending on the agreements made.
As with any business, it is crucial to exercise due diligence when selecting a trading company. You want to make sure that the company is trustworthy, has sufficient tools for trading, and its structure fits your financial goals.
