9 Tutorials to Become a Successful Forex Trader
Forex trading is more of an art than science, this time I discuss powerful forex tutorials. Like art, there is talent involved, but to succeed is not just relying on talent. Forex traders best hone their skills through training and disciplinary attitudes. They do their own market analysis to determine the direction of market movements and learn how to maintain fear and self-greed. In the forex tutorial in this article, we will see Nine steps that beginners can use to improve their abilities. And for traders who are experts, you might find some useful and useful tips to help you become more expert.
Step 1 : Determine your goals and choose the style of trading that suits the purpose. Make sure the trading style you choose is in accordance with your personality.
Before you start any journey, it is very important that you have some ideas like where you are going and how you get to where you want to go. So it is very important that you think first about the clear goals to be achieved and the trading methods used to be able to achieve your goals. Each style of trading requires a different approach and each style has a different level of risk, so if you want to succeed, you need a different attitude and approach. For example, if you can’t sleep well if you have an open position, you should trade daily or just trade. On the other hand, if you have enough funds to hold price movements for several months, you might consider using the trader position method. But whatever style of trading you choose, make sure that it matches your personality and trading style. An inappropriate personality will only make you stress and lose money.
Step 2 : Choose a broker that makes you comfortable and also offers a trading platform that suits your trading style.
It is important to choose a broker that provides a trading platform that allows you to analyze the market as you want. Broker reputation is also important for you to consider. You must know the policies of each broker and his role in the market. For example, trading that is not through a stock exchange or spot is different from trading on the exchange floor. So in choosing an important broker read the broker’s documentation, know the policy and also make sure that the trading platform is in accordance with the way you do price analysis. For example, if you want analysis using Fibonacci numbers, make sure the trading platform can be used to draw Fibonacci lines. Brokers that are good but the platform is ugly or the platform is good but the broker is ugly, can be a problem. Make sure you get the best for both.
Step 3 : Choose a trading method and be consistent in its application.
Before you enter the market as a trader, you must have several plans about how you will make decisions in your transactions. You must know how you will enter or exit the market. Some traders choose to use fundamental analysis first and then use a chart to determine the right time to make a transaction. Some others only choose to use technical analysis. Remember, that fundamentals drive trends in the long run, while chart or technical patterns offer more opportunities in the short term. Whatever method you choose, remember to be consistent. And make sure your method is easy to adjust. Your system must be able to follow the dynamics of market changes.
Step 4 : Choose a longer time frame for a shorter direction and time frame analysis to enter and exit the market.
Many traders are confused when analyzing using a graph in a different time frame. What is displayed as a buy signal on the weekly chart, in fact appears as a sell signal on the daily chart. Therefore, if you take a trend direction from a weekly chart and use a daily chart to enter the market, make sure both are synchronized. In other words, if the weekly chart gives a buy signal, wait until the daily chart also confirms the buy signal.
Step 5 : Calculate your expectations .
Expectation is a formula used to determine how the system you are using is reliable or not. You check all the results of your transaction both profitable transactions (profit) and losses (losses), then you compare whether more profit or loss.
Look at your last 10 transactions. If you have not made a transaction, you can view it on a graph where your system detects that you must enter and exit the market. Note, the amount of all transactions that are profit and loss then you calculate the expectation. The following is the formula:
E = [1 + (W / L)] x P – 1
W = Average profit
L = Average loss
P = percentage ratio
If you make 10 transactions, six of them are profit and four loss transactions, the percentage of your profit ratio is 6/10 or 60%. If your six transactions make $ 2,400, the average profit will be $ 2,400 / 6 = $ 400. If the loss is $ 1,200, the average loss will be $ 1,200 / 4 = $ 300. Apply the results to the formula and you get; E = [1 + (400/300)] x 0.6-1 = 0.40 or 40%. A positive expectation of 40% means that your system will generate 40 cents per dollar in the long run.
Step 6 : Focus on trading and learning to love small losses
After you deposit the initial margin for your trading account, the most important thing to remember is that the money you deposit has a risk. Therefore, the money that becomes your capital should not be money for living expenses or money to pay bills etc. You should be able to assume that the capital is vacation money that you might spend. If you have this attitude psychologically it will prepare you to be able to accept a small loss, which is the key to managing your risk. By focusing on trading and accepting small losses, you will not continue to calculate your equity so that you will be far more successful.
Second, only use a maximum risk of 2% of your total funds in each transaction. In other words, if you have $ 10,000 in a trading account, your maximum loss is $ 200 only. If you use a shorter time frame or reduce the rate, the 2% risk will be even further.
Step 7 : Build positive feedback .
A positive feedback is made from the results of transactions that are in accordance with your trading plan. If you have a trading plan and run it well, it will form a positive feedback pattern. Success will give birth to success, which in turn will bring confidence – especially if the transaction is profit. Even when you lose even if you do according to the trading plan, it will also build positive feedback.
Step 8 : Analyze at the end of the week .
It is a good thing if you want to prepare everything first. On weekends, when the market closes, you can study weekly charts to find patterns or news that affect your transactions. This is a reflection of the results of your transactions in a week, and this will help you build strategies for the coming week. When not under market pressure, maybe you will be able to put together the best plan for your transaction.
If the market does not reach the point where your open position, you can learn to be patient to wait for the opportunity to come longer. If it turns out you missed the opportunity to take a position, remember that there will always be other opportunities. If you have patience and discipline, you will be able to become a good trader.
Step 9 : Make notes .
Making transaction records is a good learning tool as a forex trader. Among them are printing graphics and fundamental data that are the basis for your decision to make a transaction. Mark charts when you enter and exit points. Make relevant information in the table. This record file will be useful at a later time. Also pay attention to the emotional reasons that you experience when dealing. Are you panicking at that time? Are you too greedy? Are you too worried? Record all your emotions at that time. When you successfully control your mental and disciplined attitude in dealing with the trading system that you use, you will be a successful forex trader.
CONCLUSION ABOUT THIS FOREX TUTORIAL
The steps of the forex tutorial above will help you make structured transactions and become a finer trader. Trading is art and the only way to become proficient is through consistent and disciplined training. Remember the phrase: the harder you practice, you will get luck.