The Six Steps:
1. Attitude
Firstly, it’s a well-known fact that the traders who make the money, approach FOREX trading with the attitude they will do what it takes to succeed. This means they don’t listen to guru’s or read tip sheets - they do it for themselves.
Too many novice traders think they can follow someone else and be successful - but the only person who can give you success is you!
2. Method
If you are going to trade FOREX, you need a method - and this does not involve day trading - it involves long term trend following. The big currency trends last for months or years - and your aim is to lock into these currency trends, and make big profits.
The best way to catch these long-term trends is to use a breakout method - this is a PROVEN way to make money, and breakout methods form the basis of many top-trading systems.
Good software is available form such vendors as Omni trader, Trade station, and Supercharts – any of these programs will allow you to test a method, and then when you’re confident, trade it.
3. Discipline
By developing a method you are confident in, means that you will be apply to apply it to the markets - and stick with it, even through loosing periods.
Most traders who follow gurus and tip sheets can’t do this – and as they haven’t developed a method themselves, they soon throw in the towel and discipline goes out the window.
4. Knowledge
You can learn a breakout method very quickly - but you still need to overcome the psychological pitfalls of trading. Read some books that focus on this area - some of the best include:
· Jack Schwager’s Market Wizards and New Market Wizards
· Edwin Le Feurve’s Remisenences of a Stock Operator
Also, any books by: Jake Bernstein and Larry Williams.
These books are motivational, and will keep you focused on the your task.
Trading is all abou
t applying a trading system with discipline - and these books will help you achieve this.
5. Taking a Risk
When learning FOREX trading, most traders try and restrict risk above all else. However, they do it to such a degree, that they end up taking losses as they get stopped out the market. In many instances, the direction they chose was right – but they just didn’t give the trade enough room on the downside.
If you want to make big money by FOREX trading, keep in mind that with risk goes reward.
Taking calculated risks is quite different from being rash - you simply need to wait for the right opportunity, and have the courage of your conviction.
6. Trade in Isolation
Trade in isolation to stay focused - keep in mind that if you are subject to the opinions and views of others, which may differ from your own - it will put you off.
The fact that you may be doing trades no one else may agree with, is good - Why? Simply, because 90% of traders lose - so the mass opinion is not the one to follow.
Source-investor.thecheers.org
1. Attitude
Firstly, it’s a well-known fact that the traders who make the money, approach FOREX trading with the attitude they will do what it takes to succeed. This means they don’t listen to guru’s or read tip sheets - they do it for themselves.
Too many novice traders think they can follow someone else and be successful - but the only person who can give you success is you!
2. Method
If you are going to trade FOREX, you need a method - and this does not involve day trading - it involves long term trend following. The big currency trends last for months or years - and your aim is to lock into these currency trends, and make big profits.
The best way to catch these long-term trends is to use a breakout method - this is a PROVEN way to make money, and breakout methods form the basis of many top-trading systems.
Good software is available form such vendors as Omni trader, Trade station, and Supercharts – any of these programs will allow you to test a method, and then when you’re confident, trade it.
3. Discipline
By developing a method you are confident in, means that you will be apply to apply it to the markets - and stick with it, even through loosing periods.
Most traders who follow gurus and tip sheets can’t do this – and as they haven’t developed a method themselves, they soon throw in the towel and discipline goes out the window.
4. Knowledge
You can learn a breakout method very quickly - but you still need to overcome the psychological pitfalls of trading. Read some books that focus on this area - some of the best include:
· Jack Schwager’s Market Wizards and New Market Wizards
· Edwin Le Feurve’s Remisenences of a Stock Operator
Also, any books by: Jake Bernstein and Larry Williams.
These books are motivational, and will keep you focused on the your task.
Trading is all abou
t applying a trading system with discipline - and these books will help you achieve this.5. Taking a Risk
When learning FOREX trading, most traders try and restrict risk above all else. However, they do it to such a degree, that they end up taking losses as they get stopped out the market. In many instances, the direction they chose was right – but they just didn’t give the trade enough room on the downside.
If you want to make big money by FOREX trading, keep in mind that with risk goes reward.
Taking calculated risks is quite different from being rash - you simply need to wait for the right opportunity, and have the courage of your conviction.
6. Trade in Isolation
Trade in isolation to stay focused - keep in mind that if you are subject to the opinions and views of others, which may differ from your own - it will put you off.
The fact that you may be doing trades no one else may agree with, is good - Why? Simply, because 90% of traders lose - so the mass opinion is not the one to follow.
Source-investor.thecheers.org
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