04/03/2023
When you read a lot of the material about Forex trading writers almost consider profits as an after thought and stress the risk above all else. Well of course Forex trading is risky we know that already but with risk goes reward.
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Risk also equals opportunity.
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Your aim is to take calculated risks at the right time and profit from them.
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Anyone can learn trading and anyone can get rich but the facts state 95% of traders lose money quickly.
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In 1983 trading legend Richard Dennis set out to prove anyone could learn to trade and be successful even if they had no experience - in two weeks he taught a group of all ages, both sexes and of varying degrees of intelligence, to trade and then gave them accounts.
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The result?
They made Dennis $100 million and went on to become one of the most successful trader of all time.
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Here are some simple points to keep in mind when constructing any trading plan
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1. Get a simple robust Forex trading method you can have confidence in
Forget complicated methods, simple systems work best as there are few elements to break.
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2. Trade lightly
Focus on long term trends, the big ones that yield the big gains. These only come around a few times a month at best but profits have nothing to do with the amount of times you trade.
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3. Trade breakouts
Don't bother trying to "buy low or sell high" buy buy breakouts from new highs or lows its a fact that the majority of big trends start from market highs NOT market lows
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4. Hit Them Hard
If you see a big opportunity hit it hard and that means risking 10 - 20% of your equity. Forget about the myth that you should only risk 2%, if you have a £10,000 account that's just £200 and you won't make much on that. There is nothing wrong with taking calculated risks - if you want to get rich in Forex trading it's a must
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5. Don't bank early
Accept that you are going to have to take dips in open equity to catch a big.
