Discover how I was able to crack the code of making money in Forex trading. If you have tried Forex trading you will agree that making money in Forex trading every single day may take lights out of you.
These are the reasons:
1. Some people were taught on how to trade in forex market by opening demo account of $50,000 and those people later opened live account of $200 or $500. They taught them how to set 50 pips take profit and 500 pips stop loss. The truth is that you will always win your trade because there is no way market will move 500 pips without hitting your 50 pips profit. But if you apply the same method on your $200 live account, you will blame yourself. Please stop Trial and Error methods.
2. They taught some people how to participate in forex trading without how to set stop loss and take profit. I met a man at cyber caf? in 2005. They taught this man how to participate in forex market without teaching him how to set take profit or stop loss. This man would just place a trade and be watching until the market moved in his favors and closed it, he was successful because he was trading on demo account of $10,000. The man opened account of $250 and started trading using the same method, once the market move against his order by 20 pips, he would close it. He trade for two days and lost $230. Don?t ever place a trade without take profit or stop loss. There was time in 2005, I went to cyber caf? to trade one Canadian news. Immediately I placed the trade NEPA took off the light and all effort to ON the generating set failed. Because once I placed the order I would immediately modify to set take profit and stop loss. But on that day I failed. So I closed the market at 170 pips loss.
3. You must be disciplined. Forex is not a day to day activities. Always follow your method of trading.
4. You must learn how to control your emotion, once your method tells you to buy or sell, follow it and leave everything to God. Don?t be afraid of loss once you place your trade,this is part of the game. We are dealing with richest people in the World and some of them put Billions in that market compare to your $200 or $500. The so-called Guru also experienced the same.
5. Money management: Don?t risk 100 pips because of 10 pips or increased your lot size because you lost your first trade and you want to cover it.
6. Stick to your method, identify any method that works for you. When I first started, I so much believe in support and resistance method because it works for me perfectly. How it works, visit this website:(www. forexrazor. com) & click on tools to have access to pivot point calculator click on any currency pairs you wish to trade it will automatically calculate your Pivot point, Support and Resistance. I normally used this method on 4 hourly chart . You buy if the price is below pivot point and sell if it is above. To set stop loss or take profit: assuming you want to place a buy order, add resistance 1 & 2 together and divide it by 2 and set it as your take profit and add 5 pips to support 3 as your stop loss and vice-versa. Am not saying you should follow this method. I bought a material wrote by Dean Sanders and applied what I learnt from the book, but I must confess to you, I lost my first & second trade. I applied it again because I love the material due to the money management aspect & freedom of it and won 17 trades.
7. If you are planning to join the race, don?t ever attend Saturday or Sunday seminal on forex trading and tell your teacher to teach you with demo account of $200 or $500 maximum.
8. Always upgrade your knowledge on forex trading & have a Mentor.
9. Be focused. Put everything you?ve got into what you do every day.
10. Believe in yourself. If you don?t, no one else will.
11. Be tenacious.
12. Trust your instincts.
13. Maintain your momentum & keep everyone moving forward.
14. See yourself as victorious & leading a winning team.
15. Be passionate about what you do.
16. Live on the edge. Do not become complacent.
17. Leadership is not a group effort. If you?re in charge, then be in charge.
18. Never give up!
To your success.