Mental skills, logics and analytical abilities

Forex: The recipe of success

Everyone, who wishes to achieve a lot in his life, clearly understands, that it is impossible to make your dreams alive without constant improving your skills and widening your outlook. You must always discover something new and be prepared to fast and unpredictable changes. Due to that it is usually said:

"A man, who doesn't risk, doesn't drink champagne".


Today there are so many possibilities of becoming a success, that it's unwise not to use even one of them. Let's take Forex market as an example. That's the real place, where you have a great chance of earning with the use of your mental skills, logics and analytical abilities.


At the same time you should know, that Forex is not a simple game like virtual one called "Monopoly". That's very serious thing and it isn't right place for playing games. The main thing, which success on Forex depends on, is the trader himself. Yes, you are the main part of your trading.

Remember, that you can't achieve any good result if you treat this process not serious. Before beginning the work in the market, you are to ask yourself what do you want to achieve and whether you are ready to risk. There are a lot of people, who are trading on the currency market quite successfully. For some of them Forex trading is the only thing the do for living.

When you are ready with your decision, it's the right time for going to the send step - careful and diligent study. You have to get to know as much as possible. Read books on the topic of Forex (there are o lot of ones nowadays), study the market analysis, analyze the situation on your own and of course, feel free to aks for an advice from more experienced and professional traders.

Be sure, they'll help you. There are a lot of different forums, where you can talk to skilled Forex traders and get answers to all your questions. You can also use Forex Signals. That will help you in working out your own trading system in the future. But notice, that you shouldn't stop your study after achieving some success. Only constant improving your knowledge will keep you up to the mark.

Another important thing to think about before starting is money. Forex is a method of earning money with the use of money. It's some kind of investment. So, with an account of $100 you won't get profits of $1000 in a week.

And finally I'd like to say, that the success on Forex completely depends on the trader's desire to win and his ability to make changes in strategy according to the situation. So, be diligent, efficient and flexible in your trading in order to have big profits.

Forex Trading

Structured Freedom For Success In Forex Trading
It's kind of strange in a world with no rule (like forex trading) that it's so important to have a specific set of rules that you follow religiously. I mean let's be honest, trading really doesn't have any rules. You can get in whenever you want. You can get out whenever you want. You can add and subtract to your existing position, and you can obviously decide simply not to trade.

The only thing that could prevent you from participating is the lack of required money to trade. Other than that, you get to decide what you want to do and when you want to do it. If you decide to trade without any rules, I promise you will not be successful. Freedom is good but you need to have what I call a "structured Freedom." Basically, that means you should be able to trade when you want to, but the trades you do need to fall under your set rules.

Rules will help you be more consistent with your trading. They'll help you avoid mental mistakes that can drain your account. About once every six months I write a new set of trading rules for myself. These rules help me to be structured with my trading. And you know, it's the strangest thing, when I have a bad day, it's because I didn't follow one or more of my rules. And of course, the opposite is usually true.

If I've had a good day trading, it is because I did follow my rules. No matter what type of trading you are doing (swing trading, day trading, long-term trading), you'll need to come up with your own set of rules to keep your trading structured. The problem is most people don't want to make up their own rules, because if they if they did they would have to take responsibility for their results. And as we all know, most people don't want to take responsibility for their action.

But as we all know, the only way to be successful in trading is to take 100% responsibility and act in our own best interest.

Examples of my trading rules are as follow;
(1 ).Always use a stop order.
(2.) After 3 losing trades in one day, stop trading.
(3.) If I get 25pips + profits in a trade, I will move my stop to break-even.
(4.) Only use a signal to get into the market. Don't just take a shot.
(5.) Do not trade on holiday type volume. Too slow bad opportunities. Go outside, watch a movie, whatever.
(6.) Always act with your best interest in mind.
(7.) Relax with your trades. If it's not fun and enjoyable, it's not worth doing.
(8.) You don't have to trade everyday.

Those are some of my rules that I use each and everyday, and it's almost automatic. After a bad day trading, I will look at my rules and see that I did not follow them like I should have. And again, the opposite is true. After a good day, I'll look at them and see that I followed them very well. Avoid at all costs getting caught in the trap.

Doing a trade because you are afraid of missing out on a big move is not acting in your best interest. I've got news for you, there are big moves almost everyday.. The more you follow your rules, the more you'll trust yourself and the better your results will be.

Remember, only you are responsible for your trading results, good or bad. Having a set of rules will help you get more good than bad.

By: Timothy Kolawle