The size of a person can be called an amateur or a pro in forex trading not seen from the main income sourced from forex trading.
More than that, the pro or not of a trader is about how he treats his trading activities; serious or just fooling around, or even worse; he thought he was serious, but he didn’t know what serious trading really was.
Here are things that are not understood and not even done by many beginner forex traders that you may need to know to not be included in them.
1. Develop a strategy and trading plan, and really run it
The most important stage in preparing and ensuring that you will be involved in the forex market for a long period of time is to develop a forex strategy and trading plan , and ensure that you really do it.
When you believe that you have learned enough and done a variety of research, already understood the level of risk, already tested through a demo account and managed to reap the benefits consistently in (for example) three consecutive months, then that’s when you are ready to build a strategy and trading plan.
Whatever your trading style, the most important thing for you is that the forex strategy used can generate profits consistently with meaning; the profits consistently can exceed the losses suffered.
Don’t forget, run your trading plan properly, don’t break it even once.
2. Treat a demo account like a real account
Forex is increasingly popular and more people want to become successful forex traders, but few people want to practice seriously through a demo account. But to be a successful trader, you need to practice to be able to generate consistent profits .
The means to practice making profits consistently is a demo account , where you can apply everything you learn, execute strategies and trading plans that you have prepared.
It is very important to really apply your strategy and trading plan even if it is only in a demo account, because that will form habits and in turn will shape your character as a disciplined trader.
If you have been able to make profitable transactions on a demo account for at least a month (of course with the correct trading plan), you should not delay too long to immediately make a live trading with a real account .
It is recommended not to delay more than a month to immediately make transactions in a real account.
3. The key to becoming a successful forex trader
When you are ready to switch from demo to real account, always remember the next steps below:
- Always adhere to your strategy and trading plan.
- Always limit risk with stop-loss (SL). If not, you will almost certainly fail.
- Limit risk per transaction to a maximum of 10% of equity.
- Always objective. Don’t involve emotions when trading.
- Don’t try to “revenge”, that is, you want to repay the damage suffered as soon as possible before.
- Perform transactions only if there is confirmation of your strategy.
- Don’t be afraid to lose! All reliable world-class traders have lost and they still survive
This is the path you can take if you really want to become a successful forex trader. Of course there will be ups and downs in your trading journey, but giving up is not an option.
If you can make a bad experience as a lesson, then later on you will be able to find out what you cannot do as a trader.