How to Become a Forex Trader

[ditpip]

OK, some very valid pointers.
At the end of the day. you do need the foundation of a solid system that will provide you with opportunities that will work if followed exactly.
Then apply your MM corresponding to your base deposit.
Anyone have this type of proven system that works for them - come on and share!

 

[FxPipser]

• Develop a trading plan and always adhere to it.
• Only trade when you feel it's the right moment.
• Set stop-losses for every trade. ...
• Keep your emotions separate from trading.
• Don't risk more than 5% of your margin per single trade.
• Never trade to compensate for your losses.

hi ! can you explain what you mean here:

• Don't risk more than 5% of your margin per single trade.

and does it depends from leverage? bigger leverage = less margin !

and here :

• Never trade to compensate for your losses.

But what if quality of signal all time give you SL that less in pips as TP ? No martin-gaile even with SL ? So making profit is totally impossible in that way... if make double Lot Martingaile - next time TP 2 times need shorter

 

[Chart_Hopper]

Being patient is the big one for me. I think few are patient enough in the markets and also in the process of developing a strategy.

 

[andrewborund597]

Find an edge to your trading strategy before trading live.

 

[rickhobbsonce]

Becoming a forex trader is not a day's work. You need to be consistent to see the results. Start with covering basic concepts and applying them in a demo account. Learn, implement, and analyse your trades. Do this consistently. You will be ready to trade live after a few months

 

[alexwinkler]

Consistency is key. Trading is like becoming an athlete. You got to go in for the long haul and make sure you're whole lifestyle is healthy and gives you mental clarity.

 

[ackleselden]

A person should become a money manager before becoming a trader.

 

[alexwinkler]

A person should become a money manager before becoming a trader.

How come?

 

[LongVision]

First thing there is no shortcut. We need to develop discipline and patience to follow our trading plan , It take time.

Now about strategy and MM

Basic strategy-
Finding an edge is not easy but try to keep it simple and minimum rules.
To develop a strategy you first try to understand market behavior,filter the noise and identify when market trend or mean revert.
Here is my observation about currency market after backtesting on currency data since-2010.
Mostly rule based trading works for short term holding period only.

1.During forex news relese day avoid mean-reverting strategy and during news try to develop trend following stratergy.
2.USD & JPY pairs are most trending pair historically for short term.
3.Cross are mean reverting pair historically for short term.

Risk & MM-
1.only one entry at a time for any stratergy and fixed stoploss(no mental stop please, keep a SL always on system)
2.Dont do GRID/Martingale
3.Try to keep monthly risk max 5% of capital for long term survival. Remember trading is long term and boring game. Don't trade for excitement.

As a new trader aim should be limited risk and limited profit only.

 

[lucreceross]

To become a successful trader, you need to be consistent and keep realistic expectations from the market. It’s not a shortcut to opening a money,

 

[AriaS]

There are only 4 steps that you will need:
1. Learn the basics from Babypips school.
2. Find successful traders on Myfxbook (live accounts at good brokers)
3. Analyze what they do and how they do it
4. Don't ever listen to anyone besides successful traders with proven track record

 

[Gracy2]

One can become a forex trader by following these steps:

1. Practice Trading- Set up a demo account that lets you practice forex trading with virtual money. You can place real-time trades and see potential outcomes without losing money or assets.
2. Set realistic goals- Goal setting can be an essential part of forex trading because results and income often vary from time to time.
3. Use quality trading platforms- Quality trading platforms can give forex traders reliable market and a collection of helpful tools
   

   ​

 

[PhoneticNachos]

Don't pay for anything. Learn the free program from babypips.

Scammers are a big problem too, one of the worst is ICT, and all the brainwashed cult sheeple who try to convince bigger fools through their rebranding nonsense called laughably "SMC/ smart money concepts".

Only invest money you can afford to lose.

At least 95% of traders fail long term in forex.

Less than 1% are profitable past a four year consecutive point or longer.

As someone in that 1% threshold, now going on almost nine years, every single other trader I have known has failed/quit/dropped out of forex.

 

[AriaS]

Don't pay for anything. Learn the free program from babypips.

Scammers are a big problem too, one of the worst is ICT, and all the brainwashed cult sheeple who try to convince bigger fools through their rebranding nonsense called laughably "SMC/ smart money concepts".

Only invest money you can afford to lose.

At least 95% of traders fail long term in forex.

Less than 1% are profitable past a four year consecutive point or longer.

As someone in that 1% threshold, now going on almost nine years, every single other trader I have known has failed/quit/dropped out of forex.

I agree basically. Except that the 95% number is a popular myth. What we actually know is how many traders lose vs those who don't lose (break even or profit). Every regulated broker is made by the law to publish this data.

 

[CavaliereVerde]

Less than 1% are profitable past a four year consecutive point or longer.

The point is that it is much, very much less than 1%, I think it is even lower than 0.01%.
Look to the stats of t2w:
More than 200k users, how many of them are living from trading?

 

[CavaliereVerde]

Every regulated broker is made by the law to publish this data.

That number is close to 70% but it is calculated on 1 year lookback.
If you backtest on 5 years you know that 1 year is not significant.
I guess the failure rate on 5 years is higher than 99%.

 

[AriaS]

That number is close to 70% but it is calculated on 1 year lookback.
If you backtest on 5 years you know that 1 year is not significant.
I guess the failure rate on 5 years is higher than 99%.

But I usually see almost the same numbers year after year

 

[1nvest]

The point is that it is much, very much less than 1%, I think it is even lower than 0.01%.
Look to the stats of t2w:
More than 200k users, how many of them are living from trading?

Really CavaliereVerde!
Thats a bit like saying that a forum that says "swim to get fit" and where none of the members are fit, even remotely suggests that by definition nobody is fit?! Surely the whole point of the forum and the clue is in the title, is to get there..the journey of reaching its destination?
Its not called "won by trading" for a reason

 

[PhoneticNachos]

I agree basically. Except that the 95% number is a popular myth. What we actually know is how many traders lose vs those who don't lose (break even or profit). Every regulated broker is made by the law to publish this data.

SSRN has empirical research on the topic. I think I made a post about it on forexfactory.

 

[AriaS]

SSRN has empirical research on the topic. I think I made a post about it on forexfactory.

Could you find the link for us? I've only found this one .