Rule 1, use your strategy
The term “OWN” should be crystal clear to you. By using other people’s trading strategies, you might be able to make consistent money but you will always have to worry about your future. If the market change, the strategy will no longer work. Most importantly, you will not be able to fine-tune your strategy based on the change in this market. In other words, you will be dependent on the professional traders. But if you trade this market with your “OWN” strategy, you won’t have to deal with such issues. Regardless of the market change, you develop your trading strategy according to your needs.
Rule 2, consider this as your business
Trading should be considered as your business. If you intend to make some profit, you have to think about the future. Making some quick bucks by placing some random trades doesn’t mean you are successful. To create your success formula, you must have a vision. Remember, the Forex market is the best place where earning potential has no limit. Based on your plan, you will get a return from this market. If you rely on short term plans, trading is not the right profession. Focus on your day job and you will be able to lead your life.
Rule 3, the safety of your investment
You must protect your capital at any cost. If you rely on long term goals, you must think about the safety of your investment. The rookie traders get lost by losing a few trades. They lose hope and start risking their accounts to recover the loss. Unlike them, the pro traders know the perfect way to recover the loss. So, equip your trading plan with a strong recovery strategy. A recovery factor will make you a confident trader and allow you to place the perfect trades in any market.
Rule 4, stay tuned
Your formulae should understand the power of information. Without keeping yourself updated, it’s very hard to make the right decision in the Forex market. Most of the time, traders rely on technical data. Technical data will solve a certain portion of the puzzle. But to get into the core of this game, you have to focus on fundamental data. By utilizing the technical and fundamental data, you can develop a perfect trading strategy that will eventually make you the best trader. But never get biased with the concept of best. Try to be better as it gives more opportunities to develop your skills.
Rule 5, trade to lose money
The ultimate success formula depends on your losing ability. As a trader, you should never place the trade with positive expectations. If you do so, it would the toughest task to embrace the losing orders. Since losing money is very common for the Forex traders, you must get yourself ready to accept losing trades. But these losses should be within your risk tolerance level. For that, you have to rely on a strict money management policy.
Rule 6, Ride the trend
To make some serious cash, you must ride the trend. Using traditional strategy or risk-reward ratio is more like doing a day jobs. Your trading formula must have a different approach and only then you will find joy in this profession. Work and bring variations to your system to become a better trader.