The Forex market exists in deed, and is a dynamic one; it is how you look at your money and the market that determines your chances of success in the trade. This means, in order to be successful trader, you will need to establish a relationship with your money, as well as with the market, and it is only possible when you know the game inside out. Trading is as much about who is clicking the links on the computer as the strategies shown on the computer screen itself. Success in a trading venture is hugely reliant upon one’s ability to focus effectively as well as using technology to make life easier.
Here are the 4 Golden Rules.
Golden Rule 1
Learn to trade with the trend. If you perceive trades as cyclical movements you will be able to notice that there is a trend swinging into action, regardless of how big or small it is. As the saying goes, “the trend is your friend”, and for those who are starting out as a trader, this can prove to be a great rule to follow. Your expertise will start to develop with time, and so will your tools and experience. This will provide you the platform to be able to explore this and change it.
Golden Rule 2
Manage a good reward to risk ratio. Those who are experienced in trading, have built up a good resource with by keeping notes and have been studying the market for some time can afford to be more relaxed about their reward to risk ratio but if you are going to risk your hard earned money make sure that the possible reward is worthwhile. Once you have decide on the ratio, stick to it religiously.
Golden Rule 3
Get a hobby. But don’t take trading as one. Don’t even take it as work. Trading is a way of living, and in many ways, it would be safe to say that trading is a vocation. The amount of determination and focus that trading will take from you is going to change you as a person in a positive way. And frankly, the focus is so intense at times that you will need a solid and enjoyable distraction even to take a break from it. At the same time as you start trading look around for a hobby that will get you away from the computer and gets your body moving.
Golden Rule 4
Reward yourself. In most areas of our lives we are solving problems, focusing on the issues and how to resolve them but once again trading is not like other areas of life and so we have to create a new strategy that will keep us up and focused. One of the best ways to do this is to focus on all successes. What does this do? Well it keeps your energy high and focused and it increases motivation to keep going when you don’t feel like it.