To be a successful trader

[Edward Peterson]

To be a successful trader, it is important to comprehend the estimation of misfortunes, as without that we are not going to be make benefits either. Regardless of what happens we ought to dependably hope to gain from a trader, as it is not just the cash that is sure in a trade, yet additionally to have the capacity to learn and get a decent lesson is another crucial part. In this manner I want to trade just with XeroMarkets, as they give me their master analysis and up to date news. It also provides ulta low spreads as low as 0 pip.

 

[JamesAH]

Back testing is key in my opinion, so you know what lays ahead.

 

[Sherverty]

The best traders never trade on emotions, tips and whatever catches their attention, because they know it does not work in the long run. The best and consistently profitable traders have a winning trading plan, plan their trades and then trade their plan. So should you.

 

[Fahad MD]

to be a successful trader is a long term process , so first of all have to ensure patience which is very important in trading life.

 

[REREZON-FX]

Back testing is key in my opinion, so you know what lays ahead.

Back testing is the KEY.

The market like life would always repeat the past one way or another.

 

[REREZON-FX]

Successful traders are generally focused.

The new 98% winning system on the internet does not move them from the current system they are using because they know that most of these so-called winning systems are nothing more than trash.

 

[B3rz3rk3D]

I think knowing what kind of impact news is going to have on a pair is one important quality of a successful trader. So many times I have entered what would have been a technically successful trade only to be ruined by news

 

[REREZON-FX]

MYTHS ABOUT TRADING THAT PREVENTS YOU FROM BEING SUCCESSFUL.

Myth #1: You Need to Have the Most Profitable Trading System Available .

You could give 100 traders the exact same trading system, with very specific rules, let them trade it for 6 months, and every single one of them will have different results. This is because every trader will trade it differently and some traders simply won’t be able to follow the rules, usually due to conflicting personal beliefs.

So the key to choosing the “best” trading system is to find one that fits your unique personality. You will only succeed in trading when you find a trading method that matches you! Not the guy on YouTube, not your neighbor and not Warren Buffett. YOU!

The only way to do this is to learn different systems, figure out your Trading Personality, test those systems thoroughly, gain confidence in a system you like the best and custom tailor it to your beliefs…all before risking any real money.

Also remember that many traders do very well and manage millions of dollars, trading a system that is not the most profitable system in the world.

 

[REREZON-FX]

MYTHS ABOUT TRADING THAT PREVENTS YOU FROM BEING SUCCESSFUL.

Myth #2: You Need to Follow the Rules of a Trading System…Exactly

When you are first learning a trading system, you should follow the rules, as they are written. This is so that you have a good understanding of how the system works and what might need to be changed.

Hey, it might work for you just as it is.

However, most of the time, you are going to have to tweak a trading system to make it work for you.

Sticking to all of the rules religiously, when they don’t work well for you, is a recipe for disaster.

 

[REREZON-FX]

MYTHS ABOUT TRADING THAT PREVENTS YOU FROM BEING SUCCESSFUL.

Myth #3: Trading Psychology Doesn’t Matter You can usually spot a newbie trader from a mile away.

They are the ones who are looking for the best trading systems. More skilled traders are always looking for ways to improve their trading psychology.

If you don't believe me, listen to interviews with professional traders. They will almost always emphasize psychology over systems.

The truth is that, with the right psychology, you can probably trade several different systems very well. But without the right psychology, you won’t succeed with even the most robust trading system.

 

[REREZON-FX]

TIPS FOR A SUCCESSFUL TRADING ADVENTURE.

CHOOSE A PRIMARY TIMEFRAME

The primary timeframe you trade on is going to play a big role in determining if you are going to succeed in trading or not. People are generally predisposed to be better at trading one timeframe, at least in the beginning.

You could be good at multiple timeframes, but the key is to pick the ONE timeframe that you have the best chance of success with. Once you master it, then you can move on to others.

A couple of things to keep in mind:

• What is your daily schedule like? If you have a day job, you should consider swing trading or position trading. If you find out that you are best at day trading, then you can setup a schedule to trade for a certain amount of time, before or after work.

• You may think that you are better suited to one timeframe, when in reality, you should be trading another timeframe. This is usually related to a feeling that you need to take more trades. You can almost always find a way to get more trades on any timeframe, either by trading more pairs or learning more setups.

You may find that certain timeframes bring out the best or worst in your trading.

 

[REREZON-FX]

TIPS FOR A SUCCESSFUL TRADING ADVENTURE.

KNOWING YOUR IDENTITY AS A TRADER.

Are you more of a technical trader or a fundamental trader ?

If you are more of a technical trader, are you better at trading with the trend, against the trend or trading breakouts?

Like with trading timeframes, people generally lean towards technical or fundamental analysis. You can use both at the same time, but it is important to understand which one you are more comfortable with.

Even if you use a technical approach, you might use 90% technicals and 10% fundamentals. Don’t get too caught up in the exact mix.

Just understand which one you will rely on more.

 

[REREZON-FX]

TIPS FOR A SUCCESSFUL TRADING ADVENTURE.

HOW MUCH ARE YOU WILLING TO LOOSE ?

How much are you really comfortable risking on each trade? Your risk on each trade can make or break a trading system. You should consider this question carefully because a trading system might otherwise be a perfect fit for you, but if you are taught to risk 2%, and you are only comfortable risking 0.5% per trade, then you will probably freak out when you lose.

Ultimately, this stress will get to you and you will give up on what could otherwise be your ideal trading system. In reality, you might simply have to adjust how much you risk per trade, to be able to trade the system successfully. This may seem too simple, but it really works.

A word of warning here… Trading in a demo account might not give you a realistic feel for the amount of risk that is right for you. So if that is the case, before you put your entire trading account at risk, first try opening a very small account at a broker that allows you to trade nano lots.

This will allow you to test different risk levels and figure out which one you are most comfortable with. Obviously, it is up to you to decide how much is a “small amount” and if you should be risking real money at all. I would say that the minimum for this type of account is $100, but it’s your call. You can still risk 1% or less with a nano lot broker and a $100 account.

 

[Josep2]

Understand the rules of the market, the read charts, a quick eye to look for formations. The most important thing is to get rid of fear.

 

[REREZON-FX]

TIPS FOR A SUCCESSFUL TRADING ADVENTURE.

Backtesting , Forward Testing & Go Live.

This step usually works best with technical trading systems. However, if you can get historical fundamental data, you can possibly Backtest a fundamental trading system too.

Backtesting is the process of testing a trading system with historical data to see if the trading strategy would have made money in the past.

Although past performance does not guarantee future results, it is usually a very good indicator of if a trading system has an edge in the markets. Trading methods that do well over long periods of time and very different market conditions, have a great chance of continuing to work in the future.

After you find something that works in backtesting, it’s time to test it current market conditions…

Forward Testing Here’s where you really put the system to the test. Reminder: You should NOT be risking real money at this point. Sign up for a demo account and use that to test your system.

All reputable Forex brokers will have a demo account available. Even though the system looks good in Backtesting, there may be unforeseen issues that you did not account for. For example, maybe you are taking trades in Backtesting during the times when you would ordinarily be sleeping.

There are at least a dozen other such conditions that you may not have considered, so Forward Testing helps you flush out those issues. Test at least 100 trades before you even consider going live. If you have any doubts, go beyond 100, until you are confident in the trading system. Keep in mind that at this stage, you might discover that a trading strategy that you thought was perfect for you, is not a good fit.

The reason that we are going through this process is to figure out things like this, before you ever risk real money. Keep going through this process until you figure out something that works.

Go Live

After your trading system passes the Forward Testing stage, now it’s time to go live. I cannot tell you when is the right time for you to start trading real money. That is entirely up to you. However, I do have a quick tip that will save you a lot of heartache later. Start with a small amount of money.

If you have only been trading in demo, you probably still have to work out a few bugs, before you put all of your risk capital into your main trading account. Trading with real money is psychologically different from trading with play money.