If you want a successful FOREX trading strategy, you should incorporate the following tips into your existing strategy – you should then become a profitable currency trader. The aim is not to just to make money, but to make big profits consistently.
Six Essential FOREX Trading Strategy Tips:
1. Get a Method you have Confidence in
You need to have total confidence in your method - so you can follow it with discipline.
Pick a simple, technical method - simple methods work best, as they’re more robust in the face of brutal market conditions - complicated methods tend to break.
Just use a few rules and parameters, and they should work across all markets – a technical trading system should work on ANY market that trends.
2. You need to have the Mindset to Take Risks!
You will read a lot about money management - but keep in mind risk = reward.
If you don’t take reasonable risks, you won’t make big profits.
2% is a commonly touted figure to risk per trade - but if you’re trading $10,000 that’s just $200.
Risk more if you’re confident - 10% is fine - you just need to be selective with your trades. You can have the best FOREX trading strategy, but you need to take calculated risks to make big gains.
3. Don’t Trade Frequently
The good trades only come around a few times a year, so focus on them.
Many traders think there are good opportunities everyday - there aren’t.
There’s no correlation between how often you trade, and how much money you will make - if you want to make big profits, you need patience.
4. Only Focus on the Long Term Trends
Forget day trading, and focus on the longer-term trends only - how can you make big profits in a day? - You can’t. Don’t forget you have to cover your losing days as well.
Always remember - brokers interested in making the maximum amount of commission, perpetrate the make money by day trading myth.
Currency trends last for months or years - focus on them, and milk them for all they’re worth.
5. Trade in Isolation
Don’t discuss your trading with anyone - the only way you’ll make big money is by doing it by yourself.
Have confidence in your ability and don’t let anyone put you off - this is an essential character trait of all great traders.
6. Work Hard not Smart
Many losing traders think the more effort they make with their FOREX trading strategy, the greater their trading skills will become – this is not true! You can learn a method in a short period of time, and if you have a simple robust method, you can do your analysis in about 30 minutes a day - and that’s it!
A Strategy for Big Gains
So there you have it - a FOREX strategy designed to make you big profits.
Many of the above tips are not conventional wisdom - but keep in mind that 90% of traders don’t make big gains – and they follow the herd.
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