Experience they say is the best teacher. It is an established fact that one of the best ways to succeed at anything in this world is to learn from people who have made it. So it is with forex trading. Even though the forex market offers the opportunity to make millions, it is not that easy. It takes painstaking efforts and endurance to make it. There are many problems that traders face that discourage them from traders. Both old and new traders alike. Among them are the inability to let go of losses. Some traders get cheated by their brokers. These brokers use the non business-like approach on the market. Some traders start trading with the wrong mentality. These are the major problems that forex traders face yet among all these, there are still some traders who are filthy rich today as a result of forex trading. So the questions on our minds is how did they make it. What trading styles did they use? Which brokers did the use. This and many more are the questions that plague the mind of an amateur trader. Stress no more. Below are some tips from some of the worlds leading professional traders. These are the millionaire traders. Let’s see what they have to say about forex trading.
1. Trade with a strategy
The risk comes from not knowing what the hell you are doing. -Warren Buffet.
There is no better way of putting this statement than in the words of Warren Buffet.Many traders think that forex trading is a gamble. It can be if you let it. But the truly successful traders like Warren don’t gamble on the forex market. Their decision-making process is backed by a trading strategy which is born out of the careful analysis of the market. The strategy needs to be tested over time and If it doesn’t work change it. If it works, stick with it.
2. Think for yourself
This is how to be rich. Be fearful when others are greedy and be greedy when others are fearful. – Warren Buffet.
Wise words have never been spoken. Many times traders prefer to trade based on the opinions of the others. This is a very bad idea. No one can know what will happen next on the market. Every opinion out there is nothing but an educated guess. So you need to help yourself. Moreover, it is your money that is being used to trade. If you run at a loss, it will be on you. And every time you run at a lose based on someone else’s idea, it will be two losses in one. Firstly you lost your money and secondly, you did not get any learning experience as to what works and what doesn’t. This is because the idea is not yours to begin with so you do not know how the strategy came about. Forex is a learning trade business. Educate yourself to make your own decisions. In order to Study forex lessons, you need to be committed to the learning process and you will be alright.
3. Recognise real trends
Do you want to be a good trader, then you need to be able to recognize real trends and turns, and not waste your time or energy on regrets and wishful thinking -Alexander Elder
It is of absolute importance that you are able to recognize trends that hold promise. That means you need to use both technical and fundamental method of analysis to study the currencies. With this knowledge at your disposal, you can readily recognize the trends that have the most potential. It is not always an easy thing to let go of regrets especially when you lose your hard earned money. But you need to let it go because, the mental strain it will have on you will affect your future trades. Remember our brains are the most tools when it comes to trading. So relieve yourself of wishful thinking and regrets. Have a clear mind and be ready for the next trade.
4. Remember trading is not easy
In the immortal words of Jesse Livermore himself, “the game taught me the game. And it didn’t spare the rod while teaching”. It will be a great advantage to recognize from the very beginning that trading on the forex market is not as easy as it seems. There are good and bad days. You need to learn to accept that. That is why you have to trade smart. Trading smart means doing the following.
Set a goal and have a plan to execute it. Trade only with money you can afford to lose. Choose your broker carefully. Keep records of your progress. Control your emotions, start small and grow your account organically. Doing these will give you an edge and shield you from unnecessary loss.
After all that has been said and done, it is important to remember that, there is no magic wand that can offer you success in the forex market. It is al hard work. And hard work always pays off. Consider the words spoken by predecessors who have tried the market and have made it.