As a brand new forex trader it can be a little bit intimidating to remember the most important points of what it takes to become a successful trader. There is a sea of information and misinformation on the internet that causes “analysis paralysis” in many newbie forex traders. So, refer back to this checklist often as you learn to trade forex in order to refresh your memory to some of the more important aspects of forex trading.
• Never trade with money you can’t afford to lose.
This seems obvious, but many beginning and experienced traders alike are trading with money they shouldn’t be trading with, right now. There are all sorts of psychological reasons why traders do this, but what really matters is that you simply cannot operate from the correct psychological mindset if you are at all “attached” to any one trade emotionally, and if you are trading with money that will be painful for you to lose, you are most certainly going to end up trading emotionally.
• Learn to trade logical and commonsense trading strategies.
Many traders get all wrapped up trying to trade complicated methods that require them to paste a million different indicators all over their charts or execute some rigid rule-based trading system. The trading strategy that you ultimate use does NOT need to be complicated to understand or to implement. You can actually learn very simple yet effective trading strategies when you learn forex with Nial Fuller.
• Model yourself after a pro trader.
What is the most time-tested and “sure” way to become successful in ANY field? Model yourself after someone who has already achieved the level of success that you desire. This method has been proven to work by every single person who faithfully executes it. When you want something bad enough it has to become your all-consuming desire, and when you make something your all-consuming desire the best way to make this desire a reality is to learn from someone who has already done it!
• Don’t over-trade or over-leverage.
The two-headed devil of emotional trading is over-trading and over-leveraging. These two things are what cause more traders trouble than anything else. Over-trading induces more emotional trading, and it is actually the result of the trader becoming emotional, but it is a self-perpetuating problem because the more you over-trade, the more you are likely to continue doing it until you reach a level of financial devastation that you cannot tolerate.
Over-leveraging one’s trading account is another huge problem among forex traders. This tends to happen when traders think they “know” something about the market “for sure”, this causes them to ratchet up their risk level to a point that sets them up for huge failure if the trade goes against them. Even if the trade works out when the trader is over-leveraged and they end up making a lot of money really fast, they have just reinforced a negative trading habit that will now surely come back to bite them even harder in the future. Keep all of the above points in mind every day that you plan on having interaction with the forex market.
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