The 4 Pillars of Forex Trading Success

pujiono

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Most people make trading more complicated than it needs to be. Whenever it is not easy to succeed in trading, it is very easy if you boil it for its main components. If you do this, there are really only four pieces of the 'puzzle' that you need to pay attention to. If you are spending time and energy focusing on something other than these four pieces, then you are just completing the trading process and moving forward on the road to success.

1. Trade Entry Strategy
Trading entry strategy is the most crucial part of the trade. This is the time when all of your trading capital is at risk. Many traders do not even know what their strategy is or they can not specify it easily, as they are trying to combine different messy methods together. This is wrong and perplexing and the first reason is that you are not making money in the market. So at first, you must have to learn a simple trade entry strategy that will allow you to find high probability entries into the market. whatever strategy you will learn, the most important thing is to commit to one strategy and master it to the point of having no issue about when you should enter the market and when you shouldn’t.

2. Discipline
Forex trading is an art that needs a certain level of discipline. Not only do you have to stick to a set of trading rules, but you also have to be able to keep your eye on the prize at all times. You will need to master discipline in order to stick to your entry strategy, money management strategy, and exit strategy. Patience and discipline are basically the same things in regards to trading; you have to be patient to wait for the best trades and you need the discipline to be patient.

There are some essential steps one has to take to become a disciplined forex trader.

1. Control Your Emotions
2. Acquire Good Trading Habits
3. Be Realistic
4. Keep a Trading Ledger
5. Keep To a Trading Timetable


3. Money Management
Forex money management is how you conduct your money when you trade. Money management refers to a set of rules that help you maximize your profits, minimize your losses and grow your trading account. While it’s pretty easy to understand the benefits of these techniques, it happens that beginners to Forex trading tend to neglect even basic money management rules and end up blowing their accounts.

The first step is to pre-define your risk per trade. You need to be fully confident in what you’re risking per trade. You have to simply not care about the money you’re risking on any one trade. This is crucial. You also need to be sure you have barely risk capital in your account so that you can let your trading strategy play out over a series of trades. Otherwise, you won’t give your trading strategy a real chance to work in your favor.


4. Trade Exit Strategy
Finally, as important as you need an entry strategy, you need an exit strategy also. I have found that very few traders have a trade exit strategy than have entry strategies. Ironically, having a predefined exit strategy or plan maybe even more important than an entry strategy. It is probably the most challenging and frustrating part of trading and an area that tends to be overlooked in much Forex education.


When traders do not have an exit strategy before entering a trade, they usually exit with very little profit, otherwise, they make no profit on a trade that at one point is 2 times their risk Was more. It is very easy to maintain discipline if you have a plan of how and when you will exit a trade, as opposed to just ‘winging it’ as most traders do.
 

Doctor911

Recruit
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I agree that many traders are searching for winning strategy and then reach into complicated calculations and analysis which at the end, does not work properly. It is always better to stick with good, simple strategies which are proven to bring green pips
 

pujiono

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I agree that many traders are searching for winning strategy and then reach into complicated calculations and analysis which at the end, does not work properly. It is always better to stick with good, simple strategies which are proven to bring green pips
Totally agreed. Moreover patience is the key to succeed in Forex in the long run. You make a hurry and you loss money.
 

Etedus12

Sergeant
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163
I think it was the strict statistics and trading journal that helped many traders to reach a new level and bring their trading to a state that is close to ideal. In fact, I have been keeping the journal since the first days when I started trading on a demo, it was important for me to understand what minimum and maximum returns I can come with a calm market without taking into account strong news. In due course I began to complicate system, added trading on fundamental analysis. But nevertheless I did not refuse it because only with the help of personal statistics I can estimate my work for a month and understand what helps me and what things I need to exclude completely from my strategy to stay with stable profit.
 

Olieng38

Corporal
Messages
110
Control of emotions is really an important trait because many people lose for this very reason. Of course it is very difficult to stay calm when you see that the market goes against you and your forecast collapses before your eyes. You can't always decide right away whether you should wait or close the position so as not to stay with zero capital. In any case, this is always due to the fact that you are nervous, worried and cannot always make the right decision in a difficult situation. That's why I sometimes take a break and give myself time to calm down and understand what went wrong and how I can avoid it in the future. For example, my friend relaxes with a demo account where he can trade as he likes, i.e. without a strategy. But he starts to work with real money absolutely calm and focused.
 

Shalirad

Private, 1st Class
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76
Money management is the most important thing each trader should learn before starting trading. The main goal of such management is prevent losses that may lead to trader's deposit blowing up. Really, even many successful traders don't care about clear money management and one day that will lead their trading to significant fail.
 

Thoris

Private, 1st Class
Messages
103
Profitability at Forex is due to a huge number of factors, it's true, I have not yet seen a single person who could earn a lot and constantly, without making any efforts. This is simply impossible. On the other hand, trading requires from you a stable emotional state, in which you can easily cope with failure and generally keep yourself under control if something goes wrong. Not the last important thing is discipline, when you work calmly and assemble, do not neglect interesting situations, trade a certain number of hours per day. This turns a job into a pleasure to work for results and a good income. This is very important if you want trading to really bring you money.
 

Spellkiller

Private
Messages
33
For me, emotions are a key factor in the market, which is why I do not even approach the computer, if I understand that I am annoyed today and unable to assess the situation objectively. Because only calmness in any situation is a guarantee that you will be able to find a way out and cope with any difficulties. I have read a lot about the psychology of traders and I know that it is emotions and excitement that can cause reckless actions and, accordingly, loss of capital. And this is what I want to avoid first of all. And every day I do my best not to make it happen.
 
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