Forex is one of the largest market, but millions are unaware of its existence. Many prospective forex traders look forward to seasoned traders for advice and guidance in order to be successful in the lucrative forex trading field. Most of the figures suggest that majority (90-95%) get frustrated by the failures and give up trading altogether. One of the things forex newbies don't realize is that experience alone does not guarantee success. For people to be successful in forex trading they need to start challenging the normal teachings of forex which in fact are responsible for the so called 95% failure rate. With hundreds of thousands of traders and millions of trading methods and innumerable pundits, after the event, advise, the traders are bound to get confused. To make Forex trading a worthwhile experience i suggest the following basic principles:
1. Preserve your capital at all cost
2. Challenge the standards teachings of Forex e.g. stop loss, take profit, risk/ trade, avoid more than "x%" drawdown etc.
3. Don't let the pundits and news fool you
4. There is a better way of controlling risk - This i will explain later
5. Spend minimal time in front of a computer
6. Look out for long term trends
7. Draw Down is not a bad thing, but you should be in control of your trades during these periods
8. Have confidence to attain close to 100% success rate
9. Have a realistic expectation of rate of return.
How to practically apply these principles is the purpose of this thread. I will go into more detail and lay down rules for this thread in my second post
Thanks
1. Preserve your capital at all cost
2. Challenge the standards teachings of Forex e.g. stop loss, take profit, risk/ trade, avoid more than "x%" drawdown etc.
3. Don't let the pundits and news fool you
4. There is a better way of controlling risk - This i will explain later
5. Spend minimal time in front of a computer
6. Look out for long term trends
7. Draw Down is not a bad thing, but you should be in control of your trades during these periods
8. Have confidence to attain close to 100% success rate
9. Have a realistic expectation of rate of return.
How to practically apply these principles is the purpose of this thread. I will go into more detail and lay down rules for this thread in my second post
Thanks