The Authority’ on Price Action Trading. In 2016, Nial won the Business forex trade Dollar Trader Competition. There are costs to being a Forex trader, just like any other business.
If you can do this, you will make a profit. Just as you have costs in any other business, you have costs as a Forex trader. Your costs as a trader are the losing trades you have, the commissions and spreads you pay, computer and other office equipment, etc. No matter how hard you try to avoid losing trades, you are always going to have them, and they are the biggest cost that you have as a Forex trader. The reality of being a trader is that you will always have losing trades, no matter how hard you try to avoid them, you will have them. So, that’s your number 1 cost of doing business in the Forex market. These are going to be the primary costs of running your Forex trading business, now there might be others, but these are the biggest ones for most traders.
As I mentioned above, you’ll have to make sure your winning trades are more than offsetting all your trading costs if you want to be a profitable trader. Aim to have winning trades that are significantly larger than your losing trades. Most traders with a little live account trading experience would agree that it’s a lot easier to use option number 2. What we are essentially talking about here is risk reward. One thing that’s especially important to remember is that you don’t have to be right to make money trading. What that means is that you can be wrong more than you are right and still make money in the markets.
In other businesses you find a market, you learn a skill or develop a product, and then develop that skill or product until it is better than other people in the same business or niche. To be successful in your forex trading business you can’t be forceful or control the market, all you can do is identify what is happening and determine if your trading edge is present or not. You can never be reliant on tips or one lucky trade to secure your future, nor can you build a trading business using a mechanical autopilot kind of system. You have to continuously work at it until you have developed a trading strategy, and even when you have developed that strategy, it will require ongoing effort and monitoring. Once you have a forex strategy that works for you don’t keep messing around with it, try to remain very consistent and subject yourself to the trading opportunities it identifies. Forex trading business that will help secure your financial future or simply make your trading much more enjoyable and relaxing.
2 is the Golden Rule for success and I learned it from Nial. I know many good traders kill their trades before achieving 2R and sabotaging the profits. Nowadays, I aim for 3R in all the trades. Thank you Guru for teaching the important secrets to us. You are very right that once you find something that seems to be working you should stick with it. Never be satisfied, but don’t continue trying new methods when you have already found success. Your email address will not be published.
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High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. The first step to getting started treating your Forex trading like a business is creating the optimal work environment.
Yes, you can work from anywhere when trading, but this doesn’t mean you should trade from your lazy-boy chair while eating potato chips and watching your favorite TV show. Just as with any other business, you need to separate your trading business from your personal life as much as possible. What do you need to get started? You can trade from only a laptop, but if you choose to do this I suggest getting a dedicated laptop that you use only for trading. Laptops are relatively cheap now and there’s no harm in investing in a good machine so that you can keep all your trading activities separate from your kids’ computer games or whatever else you have clogging up your computer now. All you need is the free MT4 charting package provided by most reputable brokers and a good working computer.
After you get your trading room all setup and sorted out, you need to figure out what strategy you are going use to trade the markets. You then need to learn everything about your chosen trading strategy so that you truly become a master of it. You should have no doubt what you are looking for every time you step into your trading room or open up your charting platform. After you master your trading strategy it’s time to develop your Forex trading business plan. I am not going to go into too much more detail about this topic, but you can check out my article on forex trading plans for more. I really want to stress that it’s important to take time for market analysis and separate yourself from your life’s daily distractions.
This might mean you have to lock yourself in your trading room with your favorite music on to mute whatever is going on around you. Now, AFTER your dedicated daily market analysis time, you can place your trades if there are any setups that meet the pre-defined conditions in your Forex business trading plan. Keep in mind, placing a trade is a BUSINESS transaction, not a random gamble at the casino. Just as you do not want to be emotional when participating in a business meeting or discussing a business deal, you do not want to be emotional when analyzing or trading the market.
Essentially, emotion is the number 1 enemy of forex trading success, and the more impulsive and emotional you are the worse you are going to do in the markets. Remember, you are running a trading business here, so you’ve taken risk to make a reward, just like any other business. There is no reason to mess around with your trades all day or over-analyze the market. BEFORE you risk your money, not WHILE your money is on the line. Of course, you can’t take any money out of your Forex trading business if you are not making any money.