One of the biggest mistakes that many Forex traders make is that they don’t treat their Forex trading like it’s a business. Instead, they treat it like a gambling addict instead of calm and calculating traders. If you want to succeed as a Forex trader, you have to think of it as a serious business, because it is indeed a very serious business.
I have mentioned this in my past education articles as well that forex trading should be treated as a serious business. To be a successful Forex trader, it is important that you treat trading like a business. It is unlikely that you could put £50 into a business and turn it into £20,000 in a short frame of time. You need to apply this same theory to Forex trading. One of the biggest reasons traders lose money is having an expectation of turning a small amount into very huge profit in a very small phase of time.
There are costs to being a forex trader, just like any other business. Your goal as a trader is to try and bring in more money through revenue (all winning trades) than you have going out through your costs. If you can do this, you will make a profit. However, if you let your costs (all losing trades) get out of control, eventually you will lose money and your trading business will go under (and one day you will blow out your trading account)
Here is a review of the steps you should take to start your forex business:
- Make a business plan.
- Choose regulated and reliable broker.
- Practice on a demo account and find suitable and profitable strategies.
- Start trading with small amounts until you are consistently profitable with real money.
- Gradually increase your trading size and the time you spend with trading.
- Always evaluate your performance and try to improve your trading.
- Find a method that gives you an edge over the market.
Last, not least, get informed to stay ahead of the crowds: this one is very important because like any other business once you become profitable the education does not stop there. The markets are changing and evolving all the time and like all good businesses, you must move with the times. Continually seeking further education and market knowledge will help you stay ahead of any changes to the market.
As I mentioned above, you will have to make sure your winning trades are more than offsetting all your trading costs if you want to be a profitable trader. So, there are basically two ways to accomplish this:
1) Aim to have winning trades that are significantly larger than your losing trades.
or
2) Have a very high percentage of winning trades compared to losing trades
For making a good trading plan for business you will need the following –
- Discipline
- Fibonacci levels
- Supply and Demand Levels
- Chart Patterns
- Trending Lines
- Correct Money Management
Trading requires hard work: treat trading like a serious business and it will reward you accordingly.
All information on this website and hosted events are only for educational purposes and are not intended to provide financial advice. Any statements about profits or income, expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your own actions, trades, profit or loss, and agree to hold the Master Trading Strategies team and any authorized distributors of this information harmless in any and all ways. Past performance of a security, market, sector or any other financial product does not guarantee future results. All investments involve risks including losses that may exceed the principal invested. The use of this website constitutes acceptance of our user agreement.
Editors’ Picks
EUR/USD backslides on Thursday, tests new multi-month low
Further strength in the US Dollar kept the price action in the risk-associated assets depressed, sending EUR/USD back to the 1.0460 region for the first time since early October 2023 prior to key releases in the real economy.
GBP/USD dips to multi-month lows around 1.2570
Further losses now motivate GBP/USD to revisit the vicinty of the 1.2570 zone for the first time since early May, always on the back of the strong move higher in the Greenback.
USD/JPY slides to 154.00 as higher Japanese CPI fuels BoJ rate-hike bets
USD/JPY languishes near 154.00 following the release of a slightly higher-than-expected Japan CPI print, which keeps the door open for more rate hikes by the BoJ. That said, the risk-on mood, along with elevated US bond yields, could act as a headwind for the lower-yielding JPY and limit losses for the pair amid a bullish USD, bolstered by expectations for a less dovish Fed and concerns that Trump's policies could reignite inflation.
Editors’ Picks
AUD/USD traders seem non-committed around 0.6500 amid mixed cues
AUD/USD extends its consolidative price move just above 0.6500 on Friday. The RBA's hawkish and upbeat market mood supports the Aussie, though mixed Australian PMI prints fail to inspire bulls. Moreover, bets for a slower Fed rate-cut path continue to fuel the post-US election USD rally and cap the currency pair.
USD/JPY slides to 154.00 as higher Japanese CPI fuels BoJ rate-hike bets
USD/JPY languishes near 154.00 following the release of a slightly higher-than-expected Japan CPI print, which keeps the door open for more rate hikes by the BoJ. That said, the risk-on mood, along with elevated US bond yields, could act as a headwind for the lower-yielding JPY and limit losses for the pair amid a bullish USD, bolstered by expectations for a less dovish Fed and concerns that Trump's policies could reignite inflation.
Gold price advances to near two-week top on geopolitical risks
Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
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