Custom Search
|
|
3 Steps To Becoming A Forex Millionaire
1 – Mind set. This is not one that most people think of when they start trading but without the right mind set how will you get to where you want? Taking a leap into an unknown area is scary for anyone, if you have no successful traders surrounding you then the whole task can seem unachievable. We have heard how the sub conscious part of the mind associates pain and pleasure and as a result we take action to avoid pain and gain pleasure. We also know that we will take greater action to avoid pain than to obtain pleasure so we have to make our goals so attractive that we will be compelled to take action! So to begin with you need to decide how much do you want to be making from trading a month? Most people will say either “loads!” or “erm I don’t really know..” Set yourself a target, write down a figure. Then write down what you will do with that money, describe your new life EXACTLY as you want it to be, this is the association of pleasure and also write down what will happen if you do NOT achieve this target income, the associated pain with NOT achieving that targeted income will become the driving force pushing you towards the pleasure! Keep this list in front of you; imagine that life, until it becomes a reality. 2 – Risk management I hear this from lots of traders and I know it’s important but I didn’t realise until I saw myself how important! Especially early on it’s vital that we manage our risk from the out-set because losses early on can definitely put a person off trading for life! That’s not to say you won’t ever lose its just about making sure that by managing the risk the losses always are less than the gains. So let’s get it right from the start! Having a mathematical approach to this is vital as gut feelings can only lead to trouble! Calculating the reward: risk ratio is important as new starters and even experienced traders say that the reward: risk ratio for all trades should never be less than 3:1. Once you have worked out reward: risk ratio, then we need to work out how much we are going to place on a trade. Again using gut feelings or having once set amount for all trades risks wiping out your trading account so keeping trades to 1% of the trading account limits the amount that can be lost on any trade. 3 – Buy on the break Once you have picked a trade, worked out the reward: risk ratio, then you look to buy on the break. Most investors look to enter a trade that’s on the way up but they also risk getting caught by the trade retracing and consequently taking all their profits with it. Article Directory: http://www.articledashboard.com There are loads of books and manuals explaining how to trade and key things to look out for so it’s best to go with the most successful tried and tested methods. Automation is also necessary as it takes the emotion out of trading and that is important also, try comparing automated software on forexprofitcodes.com. I chose the Forex Profit Code out of the five recommended and the content is great, go to forexprofitcodes.com now and compare for yourself. |
|