That's not say that there aren't better strategies than others, because there are. However, mostly the fault of not being a consistently profitable trader lies within the trader themselves and not their system or strategy.
To be a successful Forex Trader it is prudent to have a strategy that identifies high probability, low risk opportunities, that if taken and THEN managed properly leads to a successful money making opportunity.
So prior planning prevents poor performance (The 5 Ps).
Plan the trade and trade the plan and within that one needs to incorportae the 3 Ms, Money, Method and Mind.
Money: Good Money & Risk Management;
Method: A proven (back tested strategy that consistently wins that is implemented based upon your trade plan and good money and risk management;
If you do these first then the Mind aspect tends to look after itself if you can Plan the Trade and be disciplined to Trade the Plan.
On top of that I always say that to be successful you also need to have:
- the Patience of a Saint (to wait for those low risk high probability setups);
- the Discipline of a Soldier (to plan the trade in its entirety (entry, stop, exits, position size, risk:reward, when is the trade no longer valid etc);
- and lastly sometimes due to circumstances outside your control (the market!) you may occasionally need Nerves of Steel, but even then you will have identified and set your risk before entering, so maybe no big deal.
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