In September of 2010, the Bank of International Settlements announced that daily FX volume reached $4 trillion, a gain of 20% from 2007. One of the main reasons for this explosive growth is the number of retail traders who have entered into the market. In the first lesson, we discussed some of the reasons why new traders come to FX from the stock market and futures markets, but this growth also means that these new traders like what they see in FX and are staying.
One of the reasons these new traders like trading FX is the amount of support they find for those who want to learn more about trading. A key to success in any field is knowledge and education is the best way to gain knowledge in a relatively short period of time. ForexNews understands this and has positioned itself as a leader in providing resources from a number of different sources within the industry to help increase the knowledge of those who are interested in trading FX, and also to those who are already trading FX and wish to improve their overall trading results.
Trading is a very competitive field. However, the potential rewards are real for those who are willing to learn how others have succeeded. Here are some of the key points presented in this course to help you succeed:
Trade in the direction of the trend.
The FX markets are known for their long trending moves, so we need to take advantage of that instead of working against it. Trading with the trend also allows the trader the opportunity to look for more in potential profit than is risked on the trade.
Tighten up your Money Management approach.
The use of an acceptable risk:reward ratio puts the trader in a position to absorb the inevitable losing trades and still remain profitable. Also, never risking too much on a trade allows the trader to remain trading even after a series of losses.
Be detached on the outcome of any one trade.
You can’t be a winning trader until you first learn how to lose gracefully. It is part of the game. You don’t have to like losing, but you have to accept the fact that losing trades are part of a winning strategy.
Remain consistent in your approach and your results should be consistent.
Once you are comfortable with your approach to trading, be consistent in your trading decisions. You cannot be consistently profitable if you are not being consistent in your approach.
Never stop learning more about trading.
Trading is a competitive game. Good traders are always learning and getting better. If you intend on trading for a long time, then make it a priority to learn as much as you can. The competition becomes more knowledgeable every day, those who wish to be successful should make it a point to do the same.
In closing, we would like to leave you with a Benjamin Franklin quote:
“An investment in knowledge always pays the best interest.”
This is as true in the financial markets as it is in any other field. Good luck with your trading and let us know how we can help!
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