How I Day Trade Forex Successfully
When I first wrote the title to this article it took me a few days to actually think about the content that I was going to put into it. You see trading forex, and especially being a short term day trader in the forex market is tough! While I could have just filled this with simple tips and tricks found within most similarly titled articles, I really wanted to make this of value and make it personal to what has really guided me to becoming a profitable day trader. I emplore you to read it, meditate on it, and apply it to your personal trading. We will not discuss specific strategies in this article, rather the gems most others don’t talk about. With that being said, let’s get right into the 3 most important points to becoming a successful forex day trader.
Above all else you have to be determined. Very simply put you will not just learn a forex trading strategy and then in a short amount of time become a successful day trader. This is without a doubt the toughest market to trade because it is so intercorrelated, additionally it also presents the possibility for the greatest gains in my opinion. Every single pair effects the other, and therefore there will always be external forces you do not see pulling on the currency pair that you are trading. Having said that, you have to know and believe with everything, that it is possible to become profitable in this market! If you question that possibility at all you will never make it. Preserve the determination of your dream, never let it go, and never settle for anything less than becoming a successful forex day trader! I cannot stress this point enough because you will initially fail when setting out to learn the forex market but remember this, it’s not how many times you fall it’s how many time you get up that will determine your success! Determination, hands down, is the untimate factor between those that will succeed in this market from the 95% of retail fx traders that fail.
The second most valuable tip I can convey to you is to become focused in your trading. There are so many trading methods, techniques, and forex trading strategies out there that it is very easy to get caught up in the mentality of trying to master them all. Become the best you can possibly be at one trading strategy and stick to it until you master it, do not deviate! Yes this means that you will miss some large moves and some good trades because you are only focused on one trading style but there is nothing you can do about that. Especially when learning to trade the forex market only focus on one style, after you master that, then and only then move on to another method. You don’t have to catch every single move in this market you only need to make 20 pips a day with a 20 pip stop to make 2% per day. Compound 2% per trading day with whatever account size you currently have and see the potential of slow and steady. You will be shocked at where your account will be with a year of 2% per day.
The final point that I feel has been of most valuable to me and my success as a full time forex day trader has been my patience. Forex trading is boring and that is the way it should be! If your constantly in a trade then your over trading and not looking for the best, and only the best trade setups. Every single time I begin to become inpatient I begin to decrease my profits and even lose money. By developing a strong sense of the exact trade setup you are looking for, and only jumping in the market when you see that exact setup you will slowly force yourself to become a patient, and soon after profitable trader. This is something that will take time but there is one thing that can help you in this goal, and that is keeping a trading log of every trade. Keep track of every single trade, why you entered, how you were feeling when you took the trade, the time, the currency, the entry price, and everything else important to that trade. By doing this you will be able to look back at the positive and negative trades alike and see your faults, and thus be able to correct them. Additionally you will see that the trades you lost on were more than likely because you didn’t wait for the perfect setup according to your forex strategy and thus it will help you to wait for only the best setups before taking a trade.
In this article we did not cover a specific trading strategy, how to trade, or exactly what to do. Rather I went over what most forex educators do not cover. The points within this forex trading article are key factors to your success or failure, but yet are some of the most overlooked tips of how you can become a successful forex trader. I recommend you read this twice and apply all three points to yourself and see where there is room for improvement.