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 Successful Traders:
Foreign Exchange is the Largest Financial Market in the world with its own advantages which encourages traders to open an account and start trading as soon as they get the chance. Trading in FOREX like any other trading needs KNOWLEDGE and EXPERIENCE. With these two elements you can call yourself a successful trader who knows when to get in and out of trades and why; Experience is the Most important Element in Forex Market.
It is very important to believe that trading Forex is not a gamble!
Avoid the followings to stop your losses:
- Do not pay attention to others ideas and beliefs.
- Do not trust your friends and colleagues views.
- Do not disregard and ignore the trading rules and laws.
- Do not trade without a strategic base.
- Do not let greed control you.
- Do not follow other trader’s methods and strategies blindly.
- Do not base your trades on strategies that you change everyday, therefore only follow one strategy.
- Do not trade in groups.
- Use your complete potential during trading.
- While trading, do not let other thoughts enter your mind. Focus on your trade only.
- Do not consider trade as a hobby, take it seriously.
- Do not base your trades on your luck.
 3 steps to ensure your success:
1. Have your own strategy.
2. Learn how to manage your risk and your equity.
3. Be patient and don’t become emotional.
Evident facts of the market:
Knowledge gives the edge.
Knowledge = Income.
Lack of knowledge = Lack of Income.
- 90% of Novice Traders who fail to educate themselves end up paying the 10% who have put an effort into improving their education.
The psychology of successful trading:
Educate yourself on how the market works.
Have a well analyzed and well thought out Trade.
Quantify a potential loss. Do not risk everything on one trade and do not overtrade your account.
Create a trading plan and trade that plan.
Do not deviate from your plan without creating and having another clear trading plan.
Maintain your focus.
Do not marry a trade. Be quick to change directions if that is what the chart is saying.
When in doubt, stay out.
There are many trading systems. However, the most important trading system is you.
You must have a trading Mantra, an education on how the market works and a clear set of trading rules that you will obey.
Have strong self-confidence.
Be patience and independence.
Have a clear risk management strategy.
Unsuccessful Traders:
| The reality of FOREX trading is that only 10% succeed and 90% of Novice traders fail woefully! |
Most of the Novice traders believe that trading FOREX is a gamble!
Why do traders fail?
- They trade with the aim of getting lucky to make money.
- Their greed exceeds their need.
- They think trading is a game of chance and luck and do not get the proper education to succeed.
- They don't favor to invest enough time and amount for education and mentor-ship.
- They have Poor focus.
- They are more emotional than intellectual.
- After failing, they want to make up their loss; therefore they may further incur loss.
Evident facts of the market:
Knowledge gives the edge.
Knowledge = Income.
Lack of knowledge = Lack of Income.
90% of Novice Traders who fail to educate themselves end up paying the 10% who have put an effort into improving their education.
Beliefs and Thoughts of a trader while taking a loss:
‘ The market is rigged ’
‘ I can’t get a decent fill ’
‘ My broker is out to get me ’
‘ This game is impossible to win ’
‘ If I take a loss then I am a loser ’
‘ I never can have a winning trade ’
‘ I don’t have a clear strategy ’
‘ I don’t know what I’m doing ’
‘ These markets are impossible ’
‘ I’m a loser ’
‘ I’m too small and weak to win ’
‘What will others think of me, I told them that my strategy will work? ’
Sensory imagery a trader fells when taking a loss:
- Body feels heavy
- Shoulders drop
- Torso is hutched
- Facial muscles slacken
- Breathing is short
- Eyes are cast down
- Trader feels slow, weak and out of energy
Forex for Beginners:
Information for beginners and experienced traders.
Download Here (PDF)
1) What is forex?
2) Forex FAQ's
3) Forex trading examples
4) Forex market
5) Forex currencies
6) Forex history
a. Introduction
b. The Bretton Woods Accord
c. Pegged and semi pegged currencies
d. Free-floating currencies and fixed exchange rates
e. Timeline of foreign exchange
7) Forex psychology
8) Forex advantages
9) Forex participants
a. commercial banks
b. bulls
c. bears
d. foreign companies
e. central banks
f. stock exchanges
g. Forex broker firms
h. private persons
Download Here (PDF)
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