15 Aug

The 3 Keys to Successful Forex Trading

The first key aspect is one we have mentioned already, it is additionally the one factor of trading that seems to get the most attention – The Trading Strategy. fusionex

1. The Trading Technique

Your Trading Technique is simply how you operate, what must happen in order so that you can pull the trade trigger? Most trading strategies are based after indicators such as RSI, Moving Average or a blend of a few different indicators, personally I like not to trade centered after indicators. Being able to simply read the Price Action from the chart will provide you with a much more robust bottom part in deciding your deals. 

Whatever your choice, using a good trading strategy is vital when trying to become a profitable Forex speculator. The question is what do I mean by ‘good’? What constitutes a ‘good’ trading strategy? The majority of traders define a ‘good’ trading strategy as the one which has a high rate of success. The real truth is you need to ask, how has this ‘success rate’ been proven? Over how many deals was it determined, 12 trades? 100 trades? And what about asking the question were all positions taken following the exact steps of the trading strategy?

It is not as simple as finding a trading strategy that claims to have a 70% success rate and then just running with it, chances are if you’ve experienced the trading game for quite a while you will know that it is never that straightforward.

Intended for e. g.

A Trading Strategy claims to have a success rate of 70 percent

However when you trade it, your success rate is merely forty percent

How come this?

Of course it could be that perhaps Trading Strategy A has no 70% success rate to get started with, but let’s say with this example that is will. So, what else may be the problem? The answer is you lack the other two important elements of a successful Forex Investor, let’s have a look at the second one.

installment payments on your Trading Psychology

Now there is one key aspect that influences every one trade you take… you. Your Trading Psychology very often is the big difference between an effective trade and an unsuccessful one. You can be the most powerful minded human being on the planet, however you are still human and as a person you have emotions.

Trading is a very highly charged emotional game, specially when you are trading large amounts of money, the natural way your thoughts can eclipse and influence your thinking/behavior as a trader. Occasionally you will subconsciously take a trade based after your emotions, if you are ‘Revenge Trading’ or perhaps being clear greedy, it is down to how strong your Trading Psychology.

You could have the best Trading Strategy on the world, but if you have a weak Trading Mindsets it counts for practically nothing. Let’s look into some of the ways in which your thoughts may influence your trading decisions.

Leave a Reply

Your email address will not be published. Required fields are marked *