Regardless of whether one is new to this venture or is at least a few years old, everyone is likely to have one common aspiration- How to become the number one Forex Trader? In answer to this question, experts point out 3 pivotal rules to achieve this realistic dream.
Rule 1 - Gaining Insights on ‘THE MARKET’
Forex is a decentralised market and there are plenty of aspects which govern how the market behaves over a particular period of time. Factors such as Gross Domestic Product, Consumer Price Index and Unemployment rates all play a significant role in influencing currency values and the likely trend which exists of is going to continue over a span.
Simply speaking, a new trader has to gain knowledge on all market jargons and build a really strong base (some mentioned above). Furthermore one also needs to understand the both technical as well as fundamental market analysis and ways to use them conjointly for better market evaluation.
The good news for traders is that there are plenty of study manuals and PDFs which new traders can use to gain knowledge. Experts always state that before diving into the market, one needs to learn about the market. So taking their viewpoints, this is the number one Forex Trader rule for newbies to follow.
Rule 2 - Building a Strategy and Sticking To It:
The number one mistake forex traders make is constantly changing their strategies way too often. They make use of complicated technical tools and make their charts too difficult to interpret anything.
Rather what traders should do is follow a strategy which is simple to understanding and easy to apply while trading. Price Action is one such trading strategy which has given success to numerous traders and rates as one of the easiest trading modes around.
This is just a suggestion as there are other methods too which one can use. The point which is crucial here is not about choosing the strategy but to stick to the strategy which one chooses at first. Every strategy will have its fair share of losses. That is the volatile nature of the market and a part and parcel of trading.
So rather than flying off the handle and changing strategy whenever one loses money, one should stick to it and work to better with a strategy tester. Profits come with discipline, perseverance and doing the same thing over a lengthy period of time! This is rule number 2 for becoming a top trader.
Rule 3- Following Daily Charts but Not Overtrading:
Someone ranking as Forex Trader one or someone ranking as number 10 in the world, one common thing which everyone needs to do is following charts regularly. This helps them give insights into the currency situation and also figure out the best times to trade.
However, a crucial thing here is that one should not think of overtrading as that increases the chances of losses more. One should keep their goals realistic and aim for small profits at first. Developing a winning habit is more crucial. Once a trader does that then profits will surely come to them in the near future.
These are the crucial tips which those wanting to become the number one Forex Trader need to abide by. Cater to it properly and trade FX the right way.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.