6 KEYS TO SUCCESS IN FOREX TRADING - Grand Forex Systems

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6 KEYS TO SUCCESS IN FOREX TRADING





The trader's success depends on himself: whether he is ready to become successful or not. It is always worth remembering that there is no quick way to achieve success in the world. There is no easy road to financial freedom. Everything a trader does requires physical and spiritual dedication, certain sacrifices and efforts on his part. Becoming a successful trader is not an easy task, but it is quite possible to achieve it. The path to success as a trader is profitable trading, and firm determination is the key.


There are some important points in the Forex market that every trader should know. Let's take a closer look at them.

 


Do not panic and open deals without preliminary calculations.



Basically, any trader's main goal is to increase the amount of his money and earn a profit on price movements. Such famous traders as George Soros, Goldman Sachs, J.P. Morgan and his associates are the ones who make the price move in the Forex market. Let's call them Market Makers (MM). 


The capital of MM is so large that it can make the Forex market move. It can even cause fluctuations in the economic stability of some countries if MM wishes. An ordinary trader looks like a small fish against a school of sharks against the background of MM.


Panic of traders in this situation can lead to the fact that their orders will be closed by Stop Loss or, much worse, by Stop Out.

When MM open short positions, the price begins to rise smoothly and gradually, and after a while, there is a sharp jump in price, which then begins to weaken slowly. 


When such a phenomenon occurs in the market, the price is said to have "run out". This means MM stops buying because they think the price is too high. This causes the price to move sideways and the market goes flat


From this moment, MM is waiting for important economic news, which will become a signal for the improvement of the Market Makers' positions (continue to open buy orders, start opening sell orders, or do nothing).


When the news comes out, the market will start to move quickly and chaotically. The price will change dramatically: it goes up and down. This phenomenon is called "shaking out", the actions of the MM cause it. 


Often, ordinary traders fall into the trap due to this situation and start mindlessly opening trades. They are afraid to miss "their train". Panic of traders in this situation can lead to the fact that their orders will be closed by Stop Loss or, much worse, by Stop Out.



In Forex, you can't know anything for sure


There are no technical analysis methods that can predict price movements with 100% accuracy. This is because the market moves thanks to human psychology. 


The desire to make a profit, fear of losing your funds, panic and other feelings and emotions affect the Forex market's movement. There is a saying: "You can see what is at a depth of the sea, but no one knows what is hidden in the depths of the human heart." The same goes for the Forex market.


Regardless, the Forex market has a "memory". The price movement is repeated from time to time, and this allows the trader to understand the market's behavior and create tools for trading analysis. 


Thus, such popular methods and technical analysis tools as Elliott wave analysis, Gartley patterns, candlestick analysis, and analysis by the WD Gann method, various forex advisors and indicators appeared.



It is worth having enough humility and considering your decisions.



As mentioned above, the Forex market is very unpredictable. This means that the trading process requires humility. The trader must respect the will of the market. He needs to have enough humility to overcome the situation when the market moves against his analysis and trading strategy.


A trader with his Forex trading strategy can be compared to a traveler who uses a GPS navigator to navigate the forest. At a certain moment, the GPS navigator may turn off and the traveler will start moving in the wrong direction. 


When he gets lost, he will try to remember the entire path he traveled, understand where he made a mistake (turned the wrong way) and decide to help him achieve his goal. 


The same thing happens when trading - if you have the humility to stop and reflect on your mistakes, you will certainly achieve your trading goals.



It is worth keeping calm and patient while trading.



Humility helps you stay calm in any situation. Professional traders always calmly wait for the moment when conditions in the Forex market match their trading strategy and they will have the opportunity to make a profit. 


Calmness is necessary for a trader from the moment a trade is opened until it is closed. However, it is even more important to keep it during the period while the trade is open when the trader needs to watch the price change, start moving in any direction and be patient not to close the order too early or too late.


Neil Fuller, a professional trader, believes that the most appropriate animal to describe as professional trading is an alligator. Crocodiles have existed on this planet for millions of years. Alligators don't waste their time on small prey. 


They conserve their energy for a large victim, remaining calm and waiting for a long time. But as soon as the victim is in the field of attack, the alligator does not hesitate for a second and grabs it. Of course, an alligator hunt doesn't always end well. 


But this animal has the patience to continue what he is doing and, in the end, achieve the desired goal.

Discipline helps a trader stay cool, opening and closing trades without hesitation and fear.



It is worth disciplining yourself and always sticking to your trading plan.



One of the ways to overcome uncertainty in the Forex market is self-discipline. When it is impossible to predict the market's movement, this is the only way for traders to protect their accounts. 


They create a trading plan that they follow regardless of the market situation.


Discipline helps a trader stay cool, opening and closing trades without hesitation and fear. He believes in the profitability of his trading strategy. And even when the market moves against it, the trader remains calm and respects the market's will. 


This situation does not surprise him, as he foresaw the worst scenario for the development of his trade.



It is always worth remembering that the Forex market is neutral.



The Forex market is neutral. Only traders give special meaning to each price movement. They interpret market conditions according to the experience and knowledge they have gained. However, in essence, the Forex market remains neutral!


For a beginner, Forex charts are nothing more than colored lines moving up and down. When a trader has some experience, these movements become signals of particular importance to his trading strategy. 


If a trader forgets about such signals' inaccuracy and becomes confident in their meaning, he can become a hostage to his confidence if the market starts moving in a direction that does not correspond to his plans.


But understanding and accepting the fact that Forex is neutral free the professional trader from the problems caused by his confidence. He will act per his strategy and plan while not forgetting the possibility of unwanted results from his trading.