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.
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Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
![EUR/USD stays in positive territory above 1.0850 after US data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-euro-and-dollar-banknotes-17371247_XtraSmall.jpg)
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
![GBP/USD stabilizes above 1.2850 as risk mood improves](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/strong-pound-weak-dollar-17536259_XtraSmall.jpg)
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
![Gold rebounds above $2,380 as US yields stretch lower](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-gm187363896-28836378_XtraSmall.jpg)
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
![Avalanche price sets for a rally following retest of key support level](https://editorial.fxstreet.com/images/Avalanche/Avalanche_XtraSmall.jpg)
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
![The election, Trump's Dollar policy, and the future of the Yen](https://editorial.fxstreet.com/images/Macroeconomics/Events/US%20Elections/Donald_Trump_closeup_XtraSmall.jpg)
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.
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