I figure every trader's dream is to become one of the best traders in the world. But how can you do that? Make a lot of money? That is too broad. You have to be specific. Find out the qualities that all the best forex traders have and then pursuit it. Let me show you.
This is the first step to every journey. Before going somewhere, you have to set out your destination and your means of transportation. When it comes to forex trading, it is very important for you to know what your goals are. You just want to make money in a short amount of time? You want to build a career in the long run? If you know what you want from the beginning, it will be easier for you to decide what’s next, which is your trading strategy.
Each trading strategy requires different qualities from traders, like how much time do you have for forex trading daily? Can you take risk? How much risk can you take? How much is your initial fund? Do you have discipline? Are you stressed easily?
Make sure that you understand yourself well enough so that the trading strategy you choose will benefit you the most. If you choose wrong, you will only waste your time and money. All the best forex traders know what they want from the beginning and plan out a forex strategy that works best for them. To know what strategy suits you, check out my article about the best forex trading strategies.
A great and trusted forex broker always plays a vital role in the success of the richest forex traders. Why so? Because forex trading is a cycle of analysis. You analyse the market, predict the trends, ride those trends, then analyse again, change your tactics, then over and over again. You can see that no strategy can work forever.
So, what aspect won’t change through time? That’s the forex brokers, or to be more specific, the best forex brokers. Only the biggest and most reliable brokers can overcome the tests of time. Hundreds of thousands traders conduct their business there, so you can rest assure that you won’t get scammed when trading with those forex brokers.
The best forex traders always have a set of standards for their brokers. They evaluate the brokers based of those standards. After many years of trading and following them, I have combined those standards to give you this summary:
|Trustworthy||Trading costs||Trading conditions||Customer services|
|Historical activities||Commission||Quotes||Local offices|
|Trading volume||Slippages||Trading platforms||Availability|
To know which brokers meet all of the standards above, check out my list of the best forex brokers.
I remember one of the most successful forex traders once told me this advice. Don’t put too much money in this market at the beginning, because it is very easy for beginners to lose everything. You should with a modest fund and then enlarge it by time. Remember, use your winning money to expand your business. Don’t deposit more. There’s a difference.
Also, start with one currency pair only. The forex market is very complicated and risky. Don’t make it too hard for yourself from the start. I think it is a good idea to limit your trading to one currency pair that you’re familiar with. Your national currency is a great idea, too. If you don’t like that, then choose to the most liquid and most traded pairs. All the best traders in the world start there and they only start trading more pairs when they are more experienced.
It is very easy for forex traders to go with their instincts instead of their initial plans. Do not listen to your heart. Forex trading is the place for your brain. Keep your head cold and follow risk management. It’s best for you to restrain your emotions. Don’t get cocky when you win. Don’t be so sad and lose hope when you lose some money. Remember your goals and strategies. Keep yourself together and follow them. It is also a great idea to record what you did. So that when the market is closed on the weekend, you can evaluate your trades and yourself based on what you recorded.
Also, study the charts and news of the past week to see how they affect your trades and you can give some prediction in the next few days. Lastly, don’t give up. Forex is hard. You can lose persistently. But loss can be a great chance for you to understand what you did wrong and how you can improve. This is a long term game. Check out my list of the best forex traders to learn more.