I had some serious issues with my computer this week after I downloaded some damn software that was not useful to me at all.It got me thinking of some of the things a forex trader needs to learn how to .This is just a list and hopefully we can add on it in time.
- Enter orders. - Yes seems easy until you make a 1million order with only 1k in your account then it goes 10 pips against you.
- Read Charts. - Most of us understand English but can we really understand what a bar chart, a kagi chart, renko chart is telling us?
- Use Technical Analysis.- This is a life long project but you had better understand the nitty gritty of your indicator and what it can or cannot do.
- Manage risk. - Please know how much to risk and when.Nothing is worse than a forex gambler.Learn different money management techniques and understand which one works for you. Without this, you shall make more money for your forex broker than yourself.
- Learn your trading system. - Learn how to make your own systems and how to test your system. Of course if you don’t know what your trading indicator is doing, there is no way you can make a system.
- Learn how to control your emotions.- This is the hardest part. If you cannot control your emotions ,you should not be trading. There is nothing wrong with being cold hearted once your trade is on. Don’t get too excited about the latest holy grail forex system. Don’t get too down when you have some serious draw down with your forex system and don’t get too excited with it either.
- Learn some computer stuff. - This week my computer was down. I didn’t go online. Nothing is worse than you taking a trade and your computer shuts off and you can’t get it on again. You are in the online business learn how to control your worst enemy…..your computer.
- Learn when to say no.- learn how to take your loses and know when not to marry your forex position. A stubborn trader is a broke trader. Don’t let your losses become too large and know when your indicator is failing. Nothing is worse than a stubborn trader with an ego.
- Learn how to make a trading plan. - Over time call it a business plan. But learn how to make a trading plan please. It looks easy but a trading plan can take a 30% winning forex trading strategy to a winning forex trading strategy.
- Know that you will probably never become George Soros. You can only make a profit. Of course another genius will be born but don’t think it’s going to be you….yet!
There should be no rush in learning how to trade the forex market. Instead of thinking about trading capital ,think about learning capital when you are less than 3 yrs old in the forex market. Don’t bother about making money in the beginning but assume you are a 5th grader who just enjoys trading. There is no 5th grader who gets a job as a chemist however how good they are in chemistry. On the same note, there is no new trader ( less than 5 yrs) who makes consistent profits. I know a few but yes they paid their dues first. So should you.
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