1. Get a Simple Method You Understand
To make money at trading you need a method you understand and can have confidence in because if you do you will have the discipline to follow it.
Many traders blindly follow others and lose because they haven't the confidence when they hit a period of losses to stay with the system. If you don't have the discipline to follow your forex trading strategy, you don't have one! Many traders are lazy or greedy and don't understand that confidence comes from understanding and learning currency trading for themselves.
2. Be Patient
Many new traders want to trade all the time - they think the more they trade the greater their chances of currency trading success - their wrong. You don't get paid for effort, you get paid for being RIGHT and that's it.
I know traders who trade all the time and lose and others who trade a few times a year and several hundred percent!
3. Look For Breakouts
It's a fact that most big trends develop from new highs or lows. Most traders however can't buy these as they want to wait for a pullback to get in at a better price and miss the trade. You can make money simply by buying high odds breakouts and we have covered this in numerous other articles - check them out.
4. Have The Courage To Accept Big Gains
A paradox of forex traders is that most traders want big gains but can't accept them. Why?
Because they can't deal with volatility, they hit a big potential trend and get a profit, the bigger it gets the more excited they get but the problem is daily swings eat into their open equity and they snatch the profit.
If you are trading long term trends you can see on a forex chart that they last for months or even years and can yield huge profits - but they dip back every so often - if you don't accept this, you wont maximize your profits. You have to accept big short term swings against you, to pile up profits longer term.
5. Don't Diversify
If you are trading a small account and looking for high odds trades don't diversify.
Diversification just means you will dilute your profit potential. Instead risk as much as you can on a high odds trade and have the courage of your conviction. Forex trading success is all about taking calculated risks, with as much as you can afford at the right time.
If you like the buzz of trading or you are not prepared to learn the basics your going to lose but if you incorporate the above trading tips in your forex trading strategy you can make a lot of money and build serious wealth.
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