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Should You Tell Anyone You Are a Trader?
Everyone knows that trading in the financial markets is often accompanied by significant emotional and psychological stress. Moreover, the recipe to success here depends mostly on the right mindset and ability to cope with own emotions.
In addition to the internal struggle, a trader and their results might also be influenced by external factors, such as other peoples’ opinions, their faith, and support or, on the contrary, disapproval, and skepticism about the chosen occupation.
So, in this article, we want to talk about those external factors, as the issue is quite relevant for many traders.
We all experience ups and downs, and from time to time, we want to share our emotions, joys, and worries with someone else.
But should we do this when it comes to trading?
How will it affect your trading or your relationships with the person you’ve told about your occupation?
Or maybe it’s better when only fewer people know about your trading activity?
Should you tell the others you’re a trader?
If you’re serious about trading and plan to make it your main occupation, you should be prepared for peoples’ skepticism about your choice.
Before you tell your friends and family about your trading activity, we suggest you consider the aspects that might cause mistrust and disagreement among them.
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Your occupation is often condemned
First of all, skepticism about the Forex market and trading is associated with the stereotype ingrained in our society. Many people and those who are a long way from stock trading and economics consider Forex as a kind of casino or lottery.
People perceive the foreign exchange market and trading in general as a sort of fraud. They believe that naive and unsuspecting dreamers (like us) are robbed blind by big bankers and investment magnates.
Thus, when you tell about your occupation, people will merely think that you’re simpleton who was fooled by the myth of “quick and big money.”
Additionally, it’s often believed that only extraordinary geniuses, like professors of mathematics from Harvard University and the like, can make money in the financial markets. Naturally, you are not one of them, so it makes you even more foolish.
How should you respond to condemnation?
Your occupation will most likely be condemned by those who know nothing about economics and have never worked in the financial markets.
This is a group of people who don’t know how to achieve their potential, so they tend to destroy other peoples’ potential without even knowing it. They don’t believe it’s possible to achieve success on their own, they see the catch everywhere and will be envious of your every success.
To avoid negative vibes (influence) from such people, you should narrow the circle of those who are aware of your activities.
Only those people who will support you and accept any of your initiatives for sure should know what your undertakings are.
Trust on your part is also very important. You’ll never feel the line between deliberate decisions and excitement by yourself. So there has to be a person who you would listen to when they say “enough is enough.”
The long way to become a trader
When you choose Forex as your future occupation, you have to accept the fact that the process of education, practice, and becoming a trader will take a very long time.
You cannot become a professional and start receiving regular income in Forex in a few weeks.
As a rule, the first results are visible only after a few years of practice. Moreover, it may take more than five years of hard and thoughtful work to become a successful trader.
During this time, you will want to give it all up and do something else more than once. The sense of despair and apathy born from continuous losses will always haunt you.
At some point, you may even lose faith in the fact that you can make some money in the Forex market.
And now imagine how your unsuccessful attempts to make money with such difficulties will look like to those who know about your trading.
They will gladly lower your self-esteem by saying something like: “I told you it was a scam” or “Give up this lost cause and find a normal job, like everyone else”.
You’ll find it psychologically hard and awkward talking to your friends and family since they’ll be a bit right at the time. You’ll try avoiding conversations like this with the closest people, as doubts will arise in your mind more often.
Think of trading as a hobby
In order not to burden yourself with extra pressure at the initial stages, try not to tell almost anyone about your Forex experience until you feel ready to seriously engage in trading.
You better not tell your friends and relatives about your occupation until you begin to receive some income from trading.
If your close relatives, parents, or spouses start to ask about your new activity, which takes an increasing amount of your time, let them know it’s just a hobby.
You should perceive it as a hobby too and act accordingly. To quit your job and declare that you are a trader now is not the best idea.
Someone likes watching TV series or play video games in their spare time, and you’re interested in studying the currency markets and trying to make some money. Everything is simple and easy to explain.
Thus, you can avoid unpleasant questions or attempts to talk you out of further trading, if the people have an improper stereotype about it.
What happens when you start making money?
What happens if you eventually learn to receive a regular income?
You will feel an enormous desire to share your success with the entire world, especially when you receive your first earnings.
Does it make sense to score off those who didn’t believe in you? We don’t think so. The trader has to be better than that and avoid all these emotional games.
When you start to receive a regular income, you’ll come across opinions and responses that differ from the ones described above.
Some of your acquaintances will keep condemning you. They will say that you’re going to be robbed anyway, that you cannot do money out of the air, and mere mortals cannot succeed this way.
The others will praise you. However, subconsciously they might feel envious or just will not believe that you are telling the truth.
The opinions may vary a lot. Usually, it’s hard for people to accept the fact that someone can rapidly go really high from the same level as them.
Focusing on your victories and achievements, you might break the relationships with the people close to you, especially with those who advised you against it and didn’t believe in your success.
You shouldn’t also “seek revenge” for the skepticism because today you have earned, and tomorrow you can lose. Losses are normal for such an activity as trading, but it might be hard for you to explain the others the temporary failures or that drawdowns can happen from time-to-time.
“Any luck in the market?”
When you achieve good results, your success will be a subject for discussion. Prepare some answers to the now frequently asked questions.
If your friends know that you’re trading, you shouldn’t praise your achievements too much. First, you’ll feel awkward being asked about your success at a hard time. Second, you shouldn’t evoke envy or dislike in others.
Bring the conversation about trading to general phrases only and avoid specific numbers. The best solution is to use short phrases like “Everything’s fine” when talking about your results. Thus you make it clear that you don’t really want to talk about these things.
Successful financial players prefer to hide their real earnings, as well as great victories or defeats.
Victories lead to envy, and defeats might cause some gloating even of the closest people. Our emotions are usually uncontrolled, so it doesn’t mean that someone wishes you harm. But there is egocentrism in all of us and it often takes over.
Money likes silence!
That means you shouldn’t declare all your plans or achievements to everybody. But you can and should share your worries. This has somewhat of a calming effect and helps to release inner psychological tension.
If you don’t have a personal psychologist to discuss all the occupation-related aspects, you can share them with someone really close to you. But you must be sure that this person is the one who can help you and won’t advise you against any action.
As for everyone else, at the beginning tell them that trading is just your hobby. And when it’ll turn into a real business, reduce your communication on this topic to a few short phrases: “Things are going ok, well, steady, etc.”
9 Things You Didn’t Know About Successful Forex Traders in 2020
What is it about successful Forex traders that sets them apart from the rest?
A well-known figure in the Forex world is that 90% of Forex retail traders do not succeed. Some publications quote failure rates as high as 95%.
Regardless of the actual number, having interacted with thousands of traders over the years, I can tell you that those figures aren’t far off.
So what is it that sets the 5-10% apart?
We’ve all heard the typical reasons such as experience, discipline, and strategy. While those may be factors, there are other less obvious differences.
The bottom line is this…
Successful Forex traders think differently from the rest. They aren’t concerned with needing a high win rate or trying to trade every day regardless of market conditions.
In this post, I’m going to share with you nine of the top qualities that the best Forex traders in the world possess. What follows is a combination of lessons I’ve learned since I began trading in 2002.
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So without further ado, let’s begin!
What Does It Mean to Be Successful?
Before we get into the nine attributes, I want to clarify how we will define success in this article.
Any story about a successful Forex trader must include consistent profits. I think we can all agree that most traders use profits to benchmark the success of another.
However, success in any endeavor is about more than just money. It’s also about the joy and passion it adds to your life.
This is one thing I can’t teach. I can offer help in drawing key levels, determining trend strength and price action signals. However, I cannot teach passion.
You either love trading or you don’t. There is no in between. So the question is if you don’t have a passion for trading, can you really be successful?
Think about that for a moment. If you don’t absolutely love what you’re doing every day, can any amount of money make you content?
I would argue that it can’t.
So as you’re reading today’s post, remember that it isn’t just about the money. If your only reason for trading is making money, then you may want to have another look at your chosen career.
It’s your passion for trading, not money, that will push you through the tough times. Without passion and a love for trading, no amount of money can make you a successful Forex trader.
So Who Are the World’s Best Forex Traders?
Stanley Druckenmiller has long considered George Soros his mentor.
In fact, the two worked together at the Quantum Fund for more than a decade.
He was even there during Soros’ famous Black Wednesday trade in which they “broke the Bank of England” when they shorted the British pound in 1992.
The duo reputedly made more than $1 billion in profits from the single trade.
Stanley Druckenmiller left the Quantum Fund to start his own fund, Duquesne Capital.
Duquesne Capital Management is famous for posting an average annual return of 30 percent without a losing year.
However, Stanley decided to close the fund on August 18, 2020.
He indicated that the “very large sums” of money were making it difficult to make big profits for investors.
He’s known for turning $12,000 of inheritance money into $250,000 while still in college.
He did this by investing the risk capital in his free time.
However, nobody is perfect, and Bill is no exception.
Shortly after turning $12,000 into $250,000, he made one bad investment decision that nearly cost him the entire account. He was back to square one.
But instead of throwing in the towel, he used that loss to fuel his passion for learning.
Lipschutz joined Salomon Brothers in 1984 as part of the newly formed Foreign Exchange Department.
One year later he was making $300 million per year for the firm.
Here are four key tenets from Bill Lipschutz himself:
- Time is a risk factor. A three to one reward to risk ratio is acceptable for trades of 48 hours or less, but longer duration trades require a five to one ratio.
- The game is the “thing”. According to Bill, a truly successful trader has got to be involved and into the trading; the money is the side issue.
- Know pain, but don’t fear it. You have to feel the pain of a bad trade, or a wrong trade. If you don’t and are numb to it, then it’s over.
- Insane focus is a must! Bill Lipschutz once said “when they call you crazy, you know you are on the right track. He was referring to the work ethic and insane focus required to succeed as a Forex trader.
Now that we’ve covered some of the world’s best Forex traders, let’s discuss the nine attributes they share.
1. They Don’t ‘Lose’
Before the emails start pouring in, let me explain…
No Forex trader is without losses. But there’s a distinct difference between how the beginning trader loses and how the best Forex traders lose.
What’s the difference?
Most starting out in the Forex market view a loss as a bad thing. It’s a way of signaling that they did something wrong.
And doing something wrong is bad. At least that’s what we’ve come to believe over the course of our lives.
However, the successful trader doesn’t view a loss as a “bad” thing.
It’s also not something the market did to you. The Forex market doesn’t know where you entered or where your stop-loss order is located.
Unlike you, the market is always neutral. So when you lose, it’s a matter of reflecting on what you could have done better.
Don’t get me wrong, nobody likes to see a trade go against them. I don’t care if you’ve been trading for one month or ten years, it’s always more enjoyable to make money than to lose it.
That being said, just because a trade doesn’t go your way doesn’t mean you should take it personally. Thinking this way will only dig you a deeper hole.
The successful Forex trader has the mindset that a loss is simply feedback.
It’s the market’s way of disproving a trade setup. That’s the only thing the Forex market has the ability to do because it doesn’t know anything about you or where you entered the market, nor does it care.
Losses can be a powerful way to learn. Just remember that even a trade that ends up as a loss can be the right decision.
How is that possible, you ask?
If you’ve defined your edge, and the setup met all of your criteria to enter the market, then you did all you can do. The rest is up to the market, and some days the market just doesn’t play along.
Next time you have a loss, take it as constructive feedback. Analyze the situation to see how you can improve the next time. Keep in mind, though, that even an A+ setup doesn’t always work out.
I’ve had many trade setups that didn’t work out that I would gladly take every single week.
That’s because I know that my edge will win over time and put money in my account. In fact, a good exercise after a losing trade is to ask yourself, “would I take this same setup again next week if it presented itself?”
You should always be able to answer this question with a resounding “yes”.
If you answer with a “no”, you need to take a step back, determine where things went wrong and correct it for the next trade.
Start seeing trading losses as business investments rather than upsetting events. Each loss is an investment in your trading business and ultimately your trading education.
The money you put at risk on any given trade, whether it’s $5 or $500, is an investment with the best Forex coach in the world—the market. Keep an open mind and it’ll show you everything you need to know.
2. They Use Price Action
Every successful Forex trader I’ve met uses price action in some way, shape or form.
This doesn’t mean they’re using price action in the same way I use it, but they are using some form of price action as part of their trading strategy.
Whether a trader is using raw price action or simply using it to identify key levels in the market, price action plays a major role in any strategy.
That’s because it serves as a representation of the psychology within a market. It gives us some insight into the minds of other traders.
Having some idea of where buy and sell orders are located in the market is critical to becoming the best Forex trader you can be. It can strengthen any trading strategy by providing areas to watch for potential entries as well as profit targets.
Trading Forex without using some form of price action is like trying to drive a car with one eye closed. It can be done, but I wouldn’t recommend it.
So even if you are developing a strategy based on indicators, it would behoove you to learn about price action. If nothing else, it will provide a solid foundation from which you can design and develop other strategies.
3. They Have a Defined Trading Edge
I see a lot of talk on the internet about the need for a trader to develop an edge and define it. And, if I’m honest, most of what I’ve read out there is pretty alarming.
It’s little wonder why so many traders struggle to understand what an edge is and how they can develop one of their own.
So what exactly is a trading edge and why is it important?
An edge is everything about the way you trade that can help put the odds in your favor.
It’s a combination of the time frame you trade, the price action strategies you use, the key levels you’ve identified, your risk to reward ratio, and other factors. It even includes your pre- and post-trading routine.
How do you handle losses? What do you do when you win? These are all things that make up your trading edge.
Think about it like this…
What allowed Brazil to win so many World Cups in soccer (football to most of the world)?
Was it the passing? Maybe the shooting?
It was everything. Brazil had the “total package”, as they say. It was their passing, shooting, dribbling, movement of the ball, set plays and everything in between that gave them an edge over other teams.
Your trading is no different.
Although there are dozens of factors that make up your edge, you don’t have to master all of them at once. Nor do you have to master all of them to start putting the odds in your favor.
It’s better to master one set of factors and then slowly expand to others to further define your edge. Not only is this a natural progression, it’s the preferred way to learn.
Have you heard the saying, “jack of all trades, master of none”?
If you try to master too many of these factors at once, you’re setting yourself up to become good (not great) at a lot of things. That isn’t what we want.
Instead, master one thing at a time. For example, become an expert at identifying key levels. Then expand your skill set by learning how to determine trend strength. After that, set your focus on learning about pin bars.
Those three things are all you need to witness a rise in your profit curve. Continue to expand your skill set in this manner and soon you will have a trading edge of your own.
The key is to only tackle one or two factors (at most) at a time. Using a slow and steady approach will get you on the road to becoming a successful Forex trader in no time.
4. Successful Forex Traders Don’t Try Too Hard
But trying hard is what it takes, right?
This might apply to other ventures in life, but Forex is the exception. Successful Forex traders know that trying too hard is a sign that something isn’t right.
This is different from studying hard. As a new trader to Forex, studying the market is highly recommended.
For instance, you can’t spend too much time learning the ins and outs of the various currency pairs, or how to draw key levels. The harder you try to learn those particular topics, the better.
However, trying to make a trading strategy work will only lead to destructive behavior, such as emotional trading. Similarly, trying too hard to find trading opportunities is a good way to lose money on subpar setups.
Jack Schwager, the author of the Market Wizards series, said it best when he wrote, “good trading should be effortless”.
I’m a big fan of this book series. In fact, I wrote a post that features several of his books.
When I first started trading Forex, I remember spending countless hours studying setups over the weekend. I would often come back to my trading desk multiple times on Saturdays and Sundays.
Then on Monday, more often than not I would end up taking a completely different trade setup only to watch the original trade idea move in the intended direction without me.
Does that sound familiar?
It happened because I was trying too hard. As soon as I stopped over-analyzing trade setups and trying to make them work, my profit curve started to rise.
Now I spend maybe 20 to 30 minutes per day looking at my charts—the exception being the charts I post on this website, of course.
As counterintuitive as it may seem, learning to not try so hard was one of the things that completely changed my trading career for the better.
Successful Forex traders have taken note of this, which is why they let the market do the heavy lifting for them.
5. They Think in Terms of Risk
It’s often the smallest things in life that generate the greatest improvements.
The concept of thinking in terms of money risked, as it applies to Forex trading, is no exception. It’s an extremely simple concept that can have a huge impact on your journey to becoming a top Forex trader.
I’ve never met a successful Forex trader who doesn’t calculate their risk before putting on a position.
You may think that’s an obvious statement, but a surprising number of traders don’t think about how much money is at risk before opening a trade.
This is because they’re using an arbitrary percentage to calculate risk, such as one or two percent of their trading account balance.
Think about your last trade for a moment. Did you define the exact dollar amount at risk before putting on the trade? Or were you more focused on the number of pips and the percentage of your account at risk?
The convenience of Forex position size calculators has made it so that we never have to consider the dollar amount being risked. This convenience has caused a huge oversight.
Don’t get me wrong, I use the position size calculator at the link above before each and every trade.
However, I’m just as interested in the dollar amount at risk as the percentage of my account balance.
Aren’t those the same?
Obviously, 2% of $5,000 is $100. In that respect, the 2% and the $100 are essentially the same things.
However, in terms of the way our mind perceives these two figures, they’re at opposite ends of the spectrum.
I wrote an article a while back called, Pips and Percentages Will Only Get You So Far. In it, I talk about the need to think in terms of money risked vs. pips or percentages.
This is because pips and percentages carry no emotional value. So when you define your risk on a trade as a percentage only, it triggers the logical side of your brain and leaves the emotional side searching for more.
When you calculate your risk as a percentage only, you’re defining your risk but you aren’t accepting it.
As soon as you convert that percentage to a dollar amount, your mind is able to visualize what $100 looks like. This enables you to determine if you’re prepared to lose that $100. In other words, is the trade setup in question good enough for your $100?
It’s much easier to risk 2% without fully accepting the potential loss because it doesn’t carry the emotional value that money does.
The best Forex traders know this. That’s why they always define their risk in terms of a percentage and a dollar amount.
6. They Don’t Need the Money
There aren’t many guarantees in the Forex market. But one guarantee I can make is that there’s no successful Forex trader who is trading today for money he needs tomorrow.
In other words, trading Forex to gain a certain amount of money within a specific time period.
I’m not saying that you can’t generate the majority of your income from trading Forex and do it full time. Such a statement would contradict my own experience.
What I am saying is that no successful Forex trader needs a win today to pay the electric bill tomorrow.
No trader can sustain that kind of pressure and become consistently profitable. That type of environment will only foster destructive emotions such as fear and greed.
This topic takes us back to the notion that the best Forex traders don’t try too hard.
If you need the money from trading to pay bills, odds are that you’ll feel pressured to win. If you’re feeling pressured to win you’ll most certainly be trying too hard instead of allowing the market to do the heavy lifting.
The bottom line is this…
You should only trade with money you’re prepared to lose. Don’t trade with the money you need to pay rent or provide for you or your family.
Similarly, don’t allow the money to be your sole reason for trading. The desire for money is probably what attracted you to trading in the first place, but don’t let it be your only desire.
Embrace the challenge and focus on the journey to becoming a successful Forex trader and the money will follow.
Let money be the byproduct of good trading.
7. Successful Forex Traders Know When to Walk Away
Of course, I’m referring to taking a brief hiatus, not walking away for good.
All successful Forex traders know when to walk away and take a break. Those who are truly passionate about trading Forex know how hard it can be sometimes to walk away from the market. Still, it’s necessary in order to become a successful trader.
Walking away can be especially difficult following a trade. This is because our emotions are running high and often get the best of us. But that’s exactly what makes walking away at this time so beneficial.
After a profitable trade
After a win, we’re feeling good about ourselves and our trading strategy. It feels like things are finally starting to click.
Walking away at this time can be tough. The natural tendency after a winning trade is to continue trading.
However, that’s precisely why you should walk away.
Taking a break after a win will allow your emotions to settle. After the win, you’re feeling excited and proud of yourself, and you have every right to be.
But as you may well know, pride and excitement can get you in a heap of trouble, and fast.
So the next time you have a winning trade, pat yourself on the back and then walk away. By the time you come back to your trading desk, your emotions will be under control and you’ll be ready to approach the market with a neutral mindset.
After a losing trade
What do you do immediately following a loss?
I can’t speak for you, but I know what I used to do. I would immediately start going through all my charts looking for a new setup with the intent of recovering what I just lost.
Whatever you do, don’t do this. It’s just your ego drawing you into one of the most common and costly traps in the Forex market.
If you’re doing this, it means your emotions are getting the best of you.
Instead of seeing a loss as a reason to hop back in the market, take it as a signal to look at what you could have done differently. Remember, it’s just feedback.
One reason the failure rate is so high in the Forex market is that traders haven’t learned to lose.
Your emotions will always try to outweigh your logic after a loss; it’s human nature. The key to becoming successful isn’t about eliminating emotions after a loss, it’s about channeling them in a way that will make you a better trader.
Top Forex traders know this and have learned how to control these emotions. The very first step in controlling your emotions involves walking away for a bit.
One thing I’ve found helpful after a trade is to close my trading platform until the day closes at 5 pm New York time.
Not all brokers offer New York close charts, but you can go here to get access to the same style charts I use.
This is when I do the bulk of my analysis anyway since I trade the daily time frame, so it makes sense to take a breather until then.
It’s a simple, yet incredibly helpful, way of controlling your emotions.
8. They Don’t Focus on Wins and Losses
You can’t visit a Forex site these days without seeing an advertisement for some strategy that promises a 98% win rate.
Why is that? Is it because a high win rate is needed to become a successful Forex trader?
They do it because it sells. People love to win, there’s no denying it. If you’ve ever played sports or watched your favorite sports team on television, I’m sure you can relate.
Those behind the so-called strategy that produces an advertised 98% win rate know this and exploit it to make money.
Nobody is going to be enticed to spend money when they see a headline that promises a 50% win rate.
But what if it’s a strategy with a proper risk to reward ratio that aims for $300 for every $100 risked?
At a 50% win rate, that’s a 20% gain on a $5,000 account over the course of 10 trades.
Successful Forex traders know this. They have realized long ago that it’s not about winning a high percentage of the time.
It’s about maximizing the amount of money made on wins and minimizing the amount of money lost on losers.
As George Soros once said…
“It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong”.
9. They Never Gave Up
Although this one is last on the list, it’s by far the most important to your success as a trader.
I’ve found over the years that many people, including Forex traders, lose sight of this very simple fact. The only way you can fail at becoming a successful Forex trader is if you give up.
This sounds obvious, but it amazes me how often I see perseverance and grit left off the list of reasons why a certain trader became successful.
You can’t fail if you don’t quit.
That brings us back to the first section of this post where I mentioned passion. You can’t expect to achieve Forex success if you give up, and you can’t expect to persevere if you don’t have a passion for trading.
You must have a burning desire to want to succeed as a trader. Not because you want more money, but because you love trading.
Of all the ways to make money in this world, trading is arguably the worst choice.
That may surprise you coming from me, but of all the things I’ve accomplished in my life, none have come close to being as difficult and unforgiving as becoming a successful trader.
I don’t say this to discourage you, but rather to prepare you for what’s ahead.
In all honesty, although trading has been the most challenging endeavor I’ve ever undertaken, it’s also been the most rewarding
Whether you’ve been trading Forex for a month or five years, I hope the nine attributes of successful traders you just read will help you in your journey.
The most important takeaway from today’s post is that there is no secret to successful Forex trading. Sure, there are various tips that can help you, but those who have achieved consistent profits are not untouchable.
In other words, there’s nothing they do that you cannot eventually replicate.
However, if you intend to climb the ranks and join the top 5% of successful traders, you should be prepared to put in the work and devote the time necessary to succeed.
Embrace the journey, because there is no finish line. Even those who have achieved consistent profits have more to learn. Anything less wouldn’t be worthwhile.
I think the better question is: can you become consistently profitable trading Forex? The answer is a resounding, yes! The key is to focus on the process and forget about trying to strike it rich. Focus on the process, stay disciplined, and the profits will follow.
That depends on how you define “successful”. For instance, is a billionaire who works 16 hour days and is generally unhappy more successful than someone who makes six figures a year but only works 6 hours a day and loves what they do? The second individual is more successful in my opinion.
In my experience, having the patience to wait for the “A+” setups and do nothing else in the meantime is the number one trait of successful traders.
Did any of the traits above come as a surprise to you? Can you think of an attribute of successful Forex traders I left out?
Leave your answer, question or comment below. I’d love to hear from you!
Leave a Comment:
Dear Justine thanks a lot for such an eye opener!!
Your analysis and advises are gems of knowledge and wisdom.
You’re welcome. Let me know if you have any questions.
Thanks for your inspiration
Thank you very much Justin this is great staff picked up a lot in the easiest way possible thanks to this article.
You’re very welcome.
Dr Bennett Sir
I call you Dr because whenever I read your article something get cured and I become more healthier trader.
Always when I read your article I get excited and it doesn’t matter how many times I go through it every time its like its my first time reading it. I might sound like I’m exaggerating to those who hasn’t followed you long enough. Your teaching are life changing and bank account changing. I love you man. God bless you.
Wow, thanks for the kind words. Glad to know posts like this keep you inspired. And from my perspective, comments like yours keep me going as running a website this large is no easy task.
Thanks sir Justine bennett
You’re welcome, Sumantra.
how can i become a successful trader as a beginner? that wants to impact knowledge on other people.
Being a beginner at anything means you have a steep learning curve ahead of you. Trading is certainly no exception. As I mentioned in the post, don’t focus on making money or being successful right out of the gate.
Instead, hone in on one thing at a time. Become a master at identifying key levels. Then study pin bars until you know them inside and out. Keep building on each aspect of good trading and you’ll eventually be a well-rounded trader. Trying to learn too much at one time is a recipe for disaster.
I just want to say a big thank you to you Justin. I have been following you for some months now yet I am deeply burried among the 95% unsuccessful fx traders but you know what, you exposed me in this post. I am making amends and soon will share my story. God bless bro.
Always happy to help. I look forward to hearing your story.
Justin, my Mentor you’re a cut above the rest. You making an impact in the way I trade. Keep the good work.
That’s great to hear, Collin. Let me know if you have questions.
Thanks for the valuable summary. The only good thing I dare to say great of the 9 is never give up. Getting the other 8 slowly but surely. Now, the more I trade the more I like myself because I am honest to face myself.
Hey Justin, can you recommend trading books to read! Also, thanks for the Market Wizard recommendation!
You can consider reading ” trading in the zone”
Thanks a lot justin for your insight and posts . I have been noticing more on candles , patterns, forms and some situations ever since your free “pin bar ” lesson. I can say it 70% accurate. if only i am not trying so hard to get in all the Hi and Lo ^^,) I’m in between no.6 and 7
is there any other best wayout when made a bad call besides Hedging?
Someone said that when in doubt first step of survival is don’t panic just find the exit sign ^^,)
Paper trading, utilizing very small lots, a big desire to learn from your mistakes and sticking to the same strategy and improving on its execution and management skills are key ingredients of success
Coach what about the desire for more informative material not just irrelevant information that is up on google and other sites in the internet?
I’m new to your site and fairly new to trading (about a year). I learned trading Forex at Online Trading Academy. Do you have any opinion about them and their method? I just want to know if I’m on the right path. I’m not looking to expose them, just confirmation on the path ahead. Thank you!
Thank you Justin. You are an amazing forex educator
Thank you Mr Bennett, I always love your posts and set up because no matter how experience you are, you will surely lean and gained from the post.
I’ve had my losses in the past because I started trading live without learning the ins and outs of FX trading fully dependent on what my broker wants me to do…but I never gave up. It was only recently that I’ve done my reading on fundamentals, risk management and technical analysis of some indicators…with more practice using a demo account and gradually to a live account with a small investment on it…monitoring my progress using my profits over my losses as my indicator of success…and following through all your emails and setups. Thanks Justin for sharing your thoughts and daily setups….
Thank you Justin, I read the article and I see many things reflected from the experience I have had in these three years operating, I follow it a year ago and my way of thinking and operating has taken a total turn and most importantly productive. Thank you illustrious for your valuable advice and teachings.
Translated by Google
Very good write-ups. I am glad I had overcome some of the attributes that you mentioned. My perseverance, passion and determination have assisted me a lot. The process and procedures to trade correctly have somehow made me a better trader. No longer I feel pain, frustration and revenge when I lose in a trade. I had already learned what you given, that is, structured your thoughts of dollar value one can forgo as a loss thus there is no pain but seen as an expense into the business. Thank you for sharing such a wonder article.
I have been reading your posts for sometime now, learned a lot to be able to decide whether I would start my trading career now that I am retired from work. Thanks for the insights and looking forward to more understanding of trading the forex market!
Very informative and helpful guide that any one venturing into trading must know beforehand. Thank you Justin.
I have been following you for quite sometime. Since March 2020 I have engaged in going through all the free post and weekly setups. The information you put out is authentic and very helpful always gain so much in every post. On the other hand getting ready to join the community which I am happy to know I will be able beginning of October 2020 to complete the journey.
Thank you so much Justin. Your articles really rekindles hope in us. All that is left for me is the discipline to practice these great tips from your blog. God bless you real good
Good, this is an encouraging wake up message, well educative, now I have hope of becoming a successful Forex trader.
What left is to work towards it which I will try my best.
Thank you for the good job.
thanks very much. of all articles i have ever read from you this one has indeed left me speechless
Thanks a lot for your advice, I wish I know one of your trading strategy, God bless you.
Words are not enough to express how I feel reading your post, I’m really grateful
if someone can hardly maintain discipline plus others,can be sure successful.i am trying to be gain goal,thanks sir
thank you so much for this wonderful piece of writing, i have learned so much from it. The fifth one came as surprise to me, i too used to think of risk in terms of percentage not the dollars, i will be sure to subscribe to this new mindset. My favorite trait is the eighth one i am very positive that my trading will improve.
Much love from Windhoek-Namibia
Sometime, l marvel at your wealth of experience. I really enjoy reading your writeups.
I am still in forex trading because of my passion. I pray l get the required skill sets to start profiting.
Simplicity is the key to success in Forex trading but the quantum of information available to traders confuses them. I think this is deliberate. It is my wish you continue to make understanding forex simple to most of us determined to take it as a profession.
Thank you for sharing with us what you know and are helping you to be successful.
hi , six years ago I took an interest in forex after a while I purchased a course for £5.000 and I was taught about every indicator ever invented also every winning system one could think of , but a haven’t won a thing in that time ,now at 85 I find you and you have shown me in just a few short days the best way to trade , if its any help to anyone starting out now in trading please remember this keep it simple and do not suffer like me with information overload , good trading ,and thank you Justin —-GEORGE
thanks a lot for your nice tips,, i really like it, keep going, i lost a lot of my money because i didn’t study Forex,, i only give some brokers to trade for me, but now am studying Forex charts and every things about Forex,, even the emotion things. and as you said “to use money that i will never need”, this will reduce the stress. thanks a gain and wish you a good luck
WHAT A GREAT PIECE OF DIRECTIVE. THANK YOU JUSTIN
Thanks a lot Bennet for the great eye opener.
Those could be the missing pieces to many traders.So candid.Thanks for the article.
You’re welcome, John.
From my experience as a forex trader , my most successful trades come from maximizing the opportunity of volatile news . I place stop orders on both sides of the market . Not always , but usually it results in a win . I check the charts and decide what is the stop entry order , what is take profit and what is stop loss with trailing stop .There is risk that entry will be delayed as well as stop loss because the market is moving so quickly . But just as the market may move past the stop loss , it sometimes moves past take profit .
Thanks for sharing.
the 9 attributes are true but what if ive been trading price action properly arcording to my knowledge and im still on a loosing streak
I can’t give you a specific answer without knowing more. But I’d say it means you need more practice. I will say that it’s usually the mental game that prevents most traders from becoming profitable.
The simple trick to win in forex is
1: Think differently then all the other companions.
2:Market is will never be in your favour, so think like the market it self, there is a point where ppl start buying, you’re supposed to start selling.
3: Learn about the trends of the market, always trade towards trend.
4: Think like a devil, like what will you do to trap the other person, this is the way the market works.
5: Learn to do averaging.
6: Take the loss if market is going against as you planned, having something in your account is better then having nothing.
7: Avoid hedging as much as possible, it will confuse you and you will lose alot.
8: Finally just think different then others, a normal person thinks that it is the last two years low i should buy from here take a long term profit, but these are the points where the markets drop. Its just a game they are playing with ur emotions and mind. Learn this game.
This is the very powerful inspiration thank you
I learned many things from these package thank you for sharing ❤
this article is so helpful, thank you so much
You’re welcome. Glad you found it helpful.
So simple and effective guide. Bit it needs a lot of practice to bring these attributes in your trading habit .
Wonderful article – really insightful. Totally agree that not focusing on winners or losses is key to success. Changed the game for me.
Thanks, Natalie. Glad you enjoyed it.
Brother justin thanku for valuable article looking forward to apply
You’re most welcome.
Scriptures from the bible of Forex my friend…thank you again Justin for your wisdom.
I don’t know what to say! I guess there’s a lot of things you must go through and attain in order for you to become successful in Forex trading. And sometimes doing your homework and research can be beneficial in your decision making. I’ve used FxLeaders for the last 2 months now and so far been doing well. I would like to share my experience and answers if you have questions.
Thank you for your words Justin, you inspire me. I’ve been trading the daily chart and my reward to risk ratio is 2:1 and sometimes break even. I need your help. I just joined your telegram page.
You’re welcome. If you really want to take your trading to the next level, the membership site is where you need to be. Everything else like Telegram will simply give you what’s on the free site.
Just Perfect, Thanks for this post
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How about fundamentals
Beautiful Article, Here is a Thank me later quality Setup channel @ Telegram, Please Join. ( @obflashcards )
Terima kasih Justin Bennett.
Sir whats ur Strategy winning Percentage? Per month
I wanto learn forex
Well, you’re in the right place.
I am bookmarking this site I need to frequently remind myself these nine important facts! Thank you very much, Justin! You are THE BEST! KEEP UP THE GOOD WORK!
Thanks For Sharing, learning so much from you.
Helpful article! Before starting currency trading. we have to study Economic information: Macro data like GDP trends, Money supply, inflation data, and interest rates. Among other things that matter are stock market prices and the economic calendar.
Hello there i want to know is it possible to make a consistent 5 to 6% a month of you total money every month with wins and losses in that month 60% to 72% a year?
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Top 10 Rules For Successful Trading
Anyone who wants to become a profitable stock trader need only spend a few minutes online to find such phrases as “plan your trade; trade your plan” and “keep your losses to a minimum.” For new traders, these tidbits can seem more like a distraction than actionable advice. If you’re new to trading, you probably just want to know how to hurry up and make money.
Each of the rules below is important, but when they work together the effects are strong. Keeping them in mind can greatly increase your odds of succeeding in the markets.
- Treat trading like a business, not a hobby or a job.
- Learn everything about the business.
- Set realistic expectations for your business.
Rule 1: Always Use a Trading Plan
A trading plan is a written set of rules that specifies a trader’s entry, exit and money management criteria for every purchase.
With today’s technology, it is easy to test a trading idea before risking real money. Known as backtesting, this practice allows you to apply your trading idea using historical data and determine if it is viable. Once a plan has been developed and backtesting shows good results, the plan can be used in real trading.
Sometimes your trading plan won’t work. Bail out of it and start over.
The key here is to stick to the plan. Taking trades outside of the trading plan, even if they turn out to be winners, is considered poor strategy.
Jack Schwager: Investopedia Profile
Rule 2: Treat Trading Like a Business
To be successful, you must approach trading as a full- or part-time business, not as a hobby or a job.
If it’s approached as a hobby, there is no real commitment to learning. If it’s a job, it can be frustrating because there is no regular paycheck.
Trading is a business and incurs expenses, losses, taxes, uncertainty, stress, and risk. As a trader, you are essentially a small business owner and you must research and strategize to maximize your business’s potential.
Rule 3: Use Technology to Your Advantage
Trading is a competitive business. It’s safe to assume that the person sitting on the other side of a trade is taking full advantage of all of the available technology.
Charting platforms give traders an infinite variety of ways to view and analyze the markets. Backtesting an idea using historical data prevents costly missteps. Getting market updates via smartphone allows us to monitor trades anywhere. Technology that we take for granted, like a high-speed internet connection, can greatly increase trading performance.
Using technology to your advantage, and keeping current with new products, can be fun and rewarding in trading.
Rule 4: Protect Your Trading Capital
Saving enough money to fund a trading account takes a great deal of time and effort. It can be even more difficult if you have to do it twice.
It is important to note that protecting your trading capital is not synonymous with never experiencing a losing trade. All traders have losing trades. Protecting capital entails not taking unnecessary risks and doing everything you can to preserve your trading business.
Rule 5: Become a Student of the Markets
Think of it as continuing education. Traders need to remain focused on learning more each day. It is important to remember that understanding the markets, and all of their intricacies, is an ongoing, lifelong process.
Hard research allows traders to understand the facts, like what the different economic reports mean. Focus and observation allow traders to sharpen their instincts and learn the nuances.
World politics, news events, economic trends—even the weather—all have an impact on the markets. The market environment is dynamic. The more traders understand the past and current markets, the better prepared they are to face the future.
Rule 6: Risk Only What You Can Afford to Lose
Before you start using real cash, make sure that all of the money in that trading account is truly expendable. If it’s not, the trader should keep saving until it is.
Money in a trading account should not be allocated for the kids’ college tuition or paying the mortgage. Traders must never allow themselves to think they are simply borrowing money from these other important obligations.
Losing money is traumatic enough. It is even more so if it is capital that should have never been risked in the first place.
Rule 7: Develop a Methodology Based on Facts
Taking the time to develop a sound trading methodology is worth the effort. It may be tempting to believe in the “so easy it’s like printing money” trading scams that are prevalent on the internet. But facts, not emotions or hope, should be the inspiration behind developing a trading plan.
Traders who are not in a hurry to learn typically have an easier time sifting through all of the information available on the internet. Consider this: if you were to start a new career, more than likely you would need to study at a college or university for at least a year or two before you were qualified to even apply for a position in the new field. Learning how to trade demands at least the same amount of time and fact-driven research and study.
Rule 8: Always Use a Stop Loss
A stop loss is a predetermined amount of risk that a trader is willing to accept with each trade. The stop loss can be a dollar amount or percentage, but either way, it limits the trader’s exposure during a trade. Using a stop loss can take some of the stress out of trading since we know that we will only lose X amount on any given trade.
Not having a stop loss is bad practice, even if it leads to a winning trade. Exiting with a stop loss, and therefore having a losing trade, is still good trading if it falls within the trading plan’s rules.
The ideal is to exit all trades with a profit, but that is not realistic. Using a protective stop loss helps ensure that losses and risks are limited.
Rule 9: Know When to Stop Trading
There are two reasons to stop trading: an ineffective trading plan, and an ineffective trader.
An ineffective trading plan shows much greater losses than were anticipated in historical testing. That happens. Markets may have changed, or volatility may have lessened. For whatever reason, the trading plan simply is not performing as expected.
Stay unemotional and businesslike. It’s time to reevaluate the trading plan and make a few changes or to start over with a new trading plan.
An unsuccessful trading plan is a problem that needs to be solved. It is not necessarily the end of the trading business.
An ineffective trader is one who makes a trading plan but is unable to follow it. External stress, poor habits, and lack of physical activity can all contribute to this problem. A trader who is not in peak condition for trading should consider taking a break. After any difficulties and challenges have been dealt with, the trader can return to business.
Rule 10: Keep Trading in Perspective
Stay focused on the big picture when trading. A losing trade should not surprise us; It’s a part of trading. A winning trade is just one step along the path to a profitable business. It is the cumulative profits that make a difference.
Once a trader accepts wins and losses as part of the business, emotions will have less of an effect on trading performance. That is not to say that we cannot be excited about a particularly fruitful trade, but we must keep in mind that a losing trade is never far off.
Setting realistic goals is an essential part of keeping trading in perspective. Your business should earn a reasonable return in a reasonable amount of time. If you expect to be a multi-millionaire by Tuesday, you’re setting yourself up for failure.
Understanding the importance of each of these trading rules, and how they work together, can help a trader establish a viable trading business. Trading is hard work, and traders who have the discipline and patience to follow these rules can increase their odds of success in a very competitive arena.
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