Automation is in the world of Currency Forex Online Trading truly the lazy man’s way of trading the forex. And it’s a smart way of doing it. Are you wondering why that is the case? Simply because it deletes the strongest enemy to overcome in the process, which is by the way: You!
But be careful, after 6 years of FX Online Trading, I’ve probably been through all the pitfalls that this industry has to offer, which was sometimes a very hard lesson to learn. However, what if you’d rather not undergo all of this personally? What is it that makes the big difference between the five percent of people (or fewer) who make great profits and the ninety-five percent who just can’t seem to make a go of it no matter how many times they try?
To make a long story short, there are some key factors which are absolutely crucial to your success if you want to survive in the sea of sharks (Brokers, Institutional Traders, Banks, Advertisers and most important: You. Here they are:
What you should know to become one of the best Currency Forex Online Trading Experts
The 8 rules on how to become an effective Currency Forex Online Trading Professional
1. If you cannot afford to lose the money you spend on the trade, then don’t do it. When you are in a trade, you don’t want to be on pins and needles in front of your computer. Hence don’t do it!
2. At any time, you should not invest more than 3% of the remaining balance of your trading account. Your stop loss order needs to handle this condition at all times.
3. Begin with a sample/demo account for a minimum of 30days when you are a new to forex or try something new out. Most Automated FX Trading Software Systems require a minimum of 3-6 month testing time to get familiar with the software and the trading “habits” of it.
4. After a minimum of one month of profitable trading one should switch to real or live trading. It should be at least 20 trades, the more, the better. Remember, these are minimum requirements.
5. After finding a profitable FX Trading Software, always take portions of the newly earned capital out of the account and let the rest accumulate. It is recommended that you take 50% of each months earnings.
6. Maintain a record of your trades. Make sure to track your trades by using a spreadsheet or other software. A log file will be given to you by the MT4 broker in most cases.
7. Analyze the trades of the system. Understanding how to use your automated fx trading software is essential to your success. Systems weaknesses and strengths become more obvious as you notice similiarities in the trading. This is also a key aspect for manual trading by the way.
8. Follow the first 7 rules. Take my word for it, this is the most difficult aspect. I have seen too many traders losing all their money only because they were not able to follow these simple basic rules.
That’s all there is for the basics to get started. If you manage to follow these rules, you will do far better than most other traders struggling in the currency market. Get your homework done, stick to the basics and you are on your way to the top 5% who are making serious money with fx online trading.
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