There are basically two types of people in the foreign exchange market, the first is the trader, and the second are the brokers who facilitate trading. The brokers basically act as a mediator who bridges the gap between the market and the traders. If you want to be a successful forex trader, you need to know and maintain some basic principles of the market.
If you want to know what is required for you to become a trader, then you should read this article to know how to become a successful forex trader.
Set your goal:
This is the very first step that you should take. Set your goal and choose your trading style accordingly. Your trading style should be absolutely compatible with your goal. Before setting a goal and choosing a trading style, make sure that your personality is matching perfectly with them.
Selection of a broker:
Once you have set your goal, the next vital thing is to choose a perfect broker for you. Talk to your broker personally analyse yourself if you are comfortable with the broker or not. Ask him/her what trading platform s/he is offering, and check if it is perfectly suitable with your trading style or not. Selecting a reliable broker is highly important in the process of forex trading.
Make a plan:
Once you have found a reliable broker, it’s the time to choose and develop your strategy. Without a strong strategy, you cannot take decisions or execute a successful trade. During the trade, follow your strategy strictly and be consistent on the application of the strategy. For a successful trade, you can use both fundamental and technical analysis.
Give 90% of your time for research and analysis and invest the remaining 10% of the time to execute the trade. Extensive research minimises the risk of loss. In order to be upgraded with time and find the right entry and exit point, follow the daily chart as well as the weekly chart.
Learn to calculate from the expectancy:
To be a successful trader, you should know how to calculate from the expectancy. By knowing this you will understand how authentic your system is. After calculating your last ten trades check your chart and find out the indication sign of entry and exit. After completing the calculation note down if you have gained profit or faced loss.
Learn from your small losses:
At first trade with a small amount of money. In case you lose it, you should take it as a lesson. Learn from your small losses and focus on your trade to make big profits.
Apart from the above six steps, you need to maintain a printed record of all your trades so that you can avoid the mistakes and repeat the successful strategy to get another success. This is the failsafe recipe for successful forex trading.