Key Steps to Forex Trading Success

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The following are my thoughts on what I believe are the overall key steps to Forex trading success:

  • Realistic expectations:
    • There is no quick and easy ‘Golden Button’ to trading riches.
    • Set realistic time-scales to achieve consistent profitability.
    • Temper your expected earning potential in the first few years.
    • Set realistic targets.
  • Determination, Patience & Discipline:
    • Determination to succeed and not giving up at the first, second or third hurdle.
      • Stick-ability.
    • Learn to ability to be Patient and wait for high probability trades to come to you rather than try and force the market when it is not yet ready.
    • Develop the Discipline to adhere to your Trading Plan to the letter.
  • Invest In A good Trading Education:
    • Cheapest is not necessarily and most often is not the best.
    • A good trading education will save you losing money in the markets.
    • The right trading educator/coach/mentor – who is trustworthy and has a consistent track record.
    • A comprehensive course covering sufficient strategies, how to analyse the markets, understand economic fundamentals, risk and money management, trading psychology, and the development of a Trading Plan and much more!
    • A comprehensive Seminar/Workshop with follow up support.
    • A Trading Personal Mentorship Programme (PMP).
  • A Trading Plan:
    • Covering: Why? What? When? How?
    • Improve & refine it, it should be a living document.
  • Back Test your chosen strategies:
    • Build up some stats on your chosen strategy’s potential profitability.
    • Could use this excellent Back Testing Software.
  • Evidence of sustained profitability in a Demo Account:
    • At least 6 months to a year.
  • Capitalisation, Risk & Money Management:
    • A sufficiently Capitalised live trading account – under-capitalisation is a ‘crime’.
    • Money and Risk Management.
    • Use Fractional Money Management.
    • Only 1% Risk for any one trade.
    • Always use a stop loss.
    • If in doubt stay out of the market!
  • Compounding:
    • Compound your profits in the early years to build your trading capital up to a sufficient level to then be able to withdraw periodic and regular % profits whilst still continuing to build your trading capital.
  • Accountability Partner:
    • Find yourself an Accountability Partner who will see your trading records regularly:
      • Friend, fellow trader, partner and/or mentor.
    • Total honesty helps maintain trading discipline.
  • Journal & Record Keeping:
    • Post trade analysis will highlight areas requiring attention and will improve your performance.
  • Ongoing Mentorship:
    • Whilst this may seem potentially expensive it will be money well spent.
    • There are many facets to being a top trader and like anything in life it takes time, guidance and support to achieve such success.
  • Treat Trading as a Business:
    • Run your trading endeavours as a business
    • Keep a record of all expenses/outlays and of course profits
  • Get the Balance Right:
    • Trading can be addictive so pace yourself, maintain your relationships and have fun along the way.
    • The markets will always be there tomorrow.
  • Take Care of Yourself:
    • It helps your trading if you are mentally alert and physically fit.
    • Take regular breaks during the day.
    • Stay hydrated and eat properly.
    • Don’t just sit watching your screen all day, everyday!
    • Make sure your seat is at the right height and you maintain a good posture
  • Don’t Give Up Your Day Job!! until:
    • You have a proven and consistent track record of profitable Live Trading

Whilst the above may seem a rather daunting list it can be tackled in bite size chunks over time, as learning to trade is more of a marathon than a sprint.  If you want to be a professional at anything then that normally takes several years of hard work, so why should trading be any different.  The end result will be well worth it though.  However, by taking up a trading Personal Mentorship Programme, you can fast track your way through the Jungle of the Financial markets and speed up your learning process and the time it takes to become a successful trader.

If we can help you in achieving any of the above then don’t hesitate to contact us by email at martin[at]forextradinglondon.com.  We are normal, friendly and approachable people and have helped many traders become consistently profitable.