Many new people are taking interest in Forex trade as it has a lot of scope for growth. To start Forex trade is easy but staying in it with consistent profits is tough. Because of this, many beginner traders are forced to quit Forex trade. Though if you have the right knowledge, it is also possible to earn huge profits. In this post, we shall guide you about 5 tips that are very basic but are the pillars of successful Forex trading

1. Figure Out A Way To Cut Down The Losses

If you see the science of Forex trading the key to success is not earning more profits but eliminating your losses. Your main aim should be to restrict draw downs and avoid to lose the trades. If you are not able to do this, then your entire trading account can be blown away. To do this, the best way is to plan your trades. Many seasoned traders also have few strategies that suit there trading style, and they mostly trade based on these strategies. A beginner trader can always use the stop-loss order to avoid impulsive decision making. If you want to follow a certain position which leads you to a profitable position, trailing is a good thing to do. If you see the science of Forex trading the key to success is not earning more profits but eliminating your losses. Your main aim should be to restrict draw downs and avoid to lose the trades. If you are not able to do this, then your entire trading account can be blown away. To do this, the best way is to plan your trades. Many seasoned traders also have few strategies that suit there trading style, and they mostly trade based on these strategies.

It will also safeguard you from unexpected reversals. A beginner trader should also concentrate on reviving the positions. This will minimise the risk of losing capital to almost minimum. 

2. Check Your Limit Before Opening A Position

As a trader, you know the importance of setting a stop on every trade. To set the maximum loss is also equally important. This lets you efficiently manage your trading capital. You have to remember a very simple rule which is to trade only with the money which is affordable to lose. As a precaution, you should also have reserved cash. When you are analysing the requirement of cash and the position size, you should see to it that you do not mix your trading funds with other funds. A good trader will always keep a limit to suffer a loss too.

Successful traders make sure that they never exceed this limit.

If your losses have been more and are nearing the loss limit set by you, the wise thing is to take a break from trading. You should see what is going wrong, come up with a solution to avoid further loss and then think of trading again.

As a trader, you know the importance of setting a stop on every trade. To set the maximum loss is also equally important. This lets you efficiently manage your trading capital. You have to remember a very simple rule which is to trade only with the money which is affordable to lose. As a precaution, you should also have reserved cash. When you are analysing the requirement of cash and the position size, you should see to it that you do not mix your trading funds with other funds. A good trader will always keep a limit to suffer a loss too. Before trading again, do not forget to have a look at your most recent trades, and compare them with the trading strategy that you are planning to use.

3. Use A Strategy Of Which You Are Fully Aware

Before using a strategy, get to know everything about it. Also, use only those strategies that will be appropriate for your trading style. If you do not know the basics of a technique, then you will not know how to make the right decisions.A good trader will always be aware of the loopholes of the strategy that they are using. Using complicated techniques will never help you if you are not acquainted with them thoroughly.

Since every strategy has some kind of risks, a trader should use only those techniques that are suiting their financial position. While gaining experience in Forex trading, you will also have to gain several techniques that can help you come out of different situations of the Forex market.

4. Be A Patient Trader

Being patient while trading is the key, and being patient is most important when you are opening a trade. Analyse a trade with your calm mind and a lot of patience. Another important thing to do is to evaluate in advance all the potential trades.

5. Stick To Your Plan Till The End

The key to success in Forex trading is there is a balance in hard work, good judgement, and patience. The beginner traders who have to quit Forex trading in their initial career itself is because they do not give to learn from a loss.

When you suffer a loss, it is important to study the mistakes, come up with a new plan to rectify the past mistakes and stick to this plan until the end.

You can improve your skills by joining a reputed Forex trading course. Make sure you chose a course that has been designed by a person who is also a successful Forex trader and the students of this person are also showing uniform improvement and growth. Hafizzat Rusli is one such mentor. To know about his trading course click the link here https://www.hafizzatrusli.com/trading-courses/




Published by HafizzatRusli

Hafizzat Rusli, founder and owner of Hafizzat Rusli Bhd is a successful trader and businessman. Underneath the charming demeanour and mischievous smile, lies the dynamic mind of a trading maestro who made his first million at the age of 19. As the son of a construction business man, Hafizzat grew up in the carefree lifestyle of Penang town. As a child, Hafizzat wanted to be “everything from an astronaut to a race car driver … anything exciting and adventurous, but never a trader”. His foray into the stock market at age 17 was accidental. After being less than impressed with the corporate world and the lack of returns of traditional investment options, Hafizzat stumbled into the profitable, yet volatile business of commodity trading and has not looked back. By the age of 26, he has garnered a significant amount of experience in the trading industry – almost a decade of it.

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