Successful Forex Trading Is Not Up To Chance
Forex trading is a business that is not different than any other business out there. In order to be a successful Forex trader, the first and foremost important thing that is necessary, is being extremely clear about what it is that you want to get out of your Forex trading business.
That makes total sense; can anyone be a successful businessman with an attitude that is not focused on one's long term goals? Is it possible to succeed in any business without being focused on what one wants to achieve?
In Forex, just like in any other business, people do not fail because of what they know, but because of their inability to execute the things that need to be done. People's character flaws surface very rapidly in a fast moving market like the Forex market. It is one's own attitude and character that stands in the way of being a successful Forex trader.
According to statistics, all successful businesses have predefined and specific goals that must be achieved in order for the business to accomplish 'success'. That's logical because one popular definition of success is: "The accomplishment of an aim or purpose." In other words, it is simply not possible to attain success without first defining what success is!
Is it any different with Forex trading?
So, the first step in becoming a successful Forex trader is defining your goals.
1) What do you want to achieve?
-Yearly
-Monthly
-Weekly
2) What resources do you intend to invest?
-How much will you deposit in you trading account?
-How much time?
3) What level of expertise do you want to reach?
4) Why do you trade?
5) What do you intend to do when you will reach your predefined 'success'?
These are only several questions that you must address if succeeding in currency trading is important to you. Without answering these questions it is simply not possible (by definition) to succeed!
By answering these questions one is also more realistic about what is reasonable to expect as actual trading is in progress. A successful Forex Trader is disciplined. He is focused on the long term results that he wants to realize, his goals, rather than the specific results that are accomplished over a short period of time.
Once you have your specific goals that once accomplished your Forex trading business will be considered successful written down, you are ready for the next step on your way to being a top Forex trader. The next step is writing a business plan; a road map that will define your way to your goals.
Your Forex business plan should be specific about the exact steps that must be taken in order for your goals to be attained; it is important that you clearly write it all down. Your Forex business plan should answer all questions that might occur while actual trading is in progress. It should leave nothing unanswered and I recommend the following to be included:
1) Your schedule;
-Will you work every day?
-How long will your work day be? What hours?
2) Your risk;
-How big is your trading account? Can you afford to lose it?
-How much will you risk per trade?
-Will you pause if you lose several trades in a row? How many? How long?
3) Your Forex trading system;
-What would constitute an entry?
-Is there a specific set up that you are looking for? Define it.
-Would you make re-entries? When? Under what circumstances?
4) Your take profit;
-When will you exit a position?
-Do you exit part of your position only?
5) Your exit;
-Do you place stop losses? Where?
-What is it based on?
It is critical that you thoroughly back tested your Forex trading plan before you start using it.
Now that you have your goals and business plan written out clearly, you are ready to go out and bring about what is rightfully yours. Your business does not depend on luck. It is no longer a hobby and guessing is not part of your work tools. You are focused on what is the purpose of your trading business and you know what it is that you're after and how to get it. Being so clear and focused will do wonders when it comes to being disciplined as well!
I am an active and profitable Forex trader. I am also a personal Forex coach. I have been trading the currency markets for over 6 years. The road to being 'successful' at what I do was not always an easy one but who said that obstacles are a 'bad' thing?
Today, I am doing what I always wanted to do and that is what counts. Besides trading for my-self, I also trade for others; however, what gives me the greatest satisfaction is coaching new traders and sometimes, traders with some experience that want to do better. Being a trading coach is a responsibility that I gladly accept, watching students 'get it' is both a pleasure and a challenge that I enjoy very much.
