8 SECRETS OF 5% PROFITABLE TRADERS
There are very few profitable traders in the foreign exchange market. According to estimates, they are from 5 to 20%, but this is not a reason to give up. There are secrets of profitable trading, it’s hard to know only them.
Unofficial statistics are widely spread on the Forex market, according to which only 5% of traders achieve success in trading. How to enter into their number? Everything is very simple – you just need not do like 95% of traders do, but follow the rules followed by the profitable 5%.
What exactly should a trader do in order to consistently make a profit in the foreign exchange market?
1. LOOK FOR CONFIRMATION OF A TRADING SIGNAL
The more factors indicating the purchase or sale of an asset coincide, the more accurate and reliable the trading signal. These can be both fundamental factors, for example, the publication of data on the number of applications for unemployment benefits in the USA and the Nonfarm Payrolls employment report, or technical: confirmation of the trend indicator signal by the oscillator data.
Using only confirmed signals, you get an advantage over most traders who trade only on the news or on the arrow of the signal indicator.
2. LET’S PROFIT GROW
It often happens that a trader closes a deal without waiting for the price to reach the set take profit order. Especially this is the “sin” beginner and emotionally unstable traders.
As long as the price moves in their direction, they are doing well. As soon as the price starts to go against, and the amount in the “Profit” column does not begin to grow, but decrease, such traders immediately turn on the panic mode and close the deal to save profit.
This is a big mistake. A successful trader works exclusively within the framework of his trading strategy, and not on intuition – “I feel that it will unfold now and there will be a minus”.
Let your strategy work normally, and profits grow.
3. A CLEAR PLAN AND COLD CALCULATION
Probably, we have repeatedly said that emotions are one of the trader’s worst enemies. If you can’t cope with excitement, fear, greed, you will never succeed in trading.
For a stable profit, you need a competent, clearly calculated trading plan and strict adherence to it.
Only with a clear head, not succumbing to emotions, can one count on success.
4. DO NOT GET INVOLVED IN TECHNICAL INDICATORS
The more forex indicators are installed on the chart, the more accurate and more profitable the transaction will be. And if you put two, and preferably six, monitors, then, in general, each position will be profitable.
No matter how surprising it may look, but many traders think so. They tirelessly look for super indicators that show inputs much better than the standard ones, install so many filters on the chart that it becomes simply impossible to consider the price itself.
You should always remember that it is not the indicator that forms the price, but the price that forms the indicator.
Therefore, all searches for the Grail are doomed to failure. Successful professionals use several time-tested indicators, or even trade on clean charts, preferring medium-term and long-term. Amateurs seek happiness in scalping and pipsing, hung with the darkness of indicators.
5. NEVER GIVE UP
Success never comes just like that. In trading, as in any other business, to achieve the success you need to go a very, very difficult path. The Olympic champion is not the one who never knew the defeat, but the one who did not give up after the defeat, but trained further, stubbornly moving towards the goal.
The same is true in trading. Even the most successful trader has losing trades. But such a trader does not “take revenge on the market”, giving him the last money, does not delete the terminals, vowing to never deal with the foreign exchange market again. A trader focused on success always analyzes what has led to his loss. If it is a mistake, the trader will always find it and draw the appropriate conclusions so that it will never be repeated.
6. DO NOT DEVIATE FROM THE TRADING STRATEGY.
Professional traders trade only as part of their strategy, which has been tested for years, not a millimeter deviating from it. Each transaction you open must strictly comply with the rules of the chosen strategy.
For example, if you trade at the intersections of moving averages, then you have only two types of market entries – a fast MA crosses a slow one from bottom to top and top to bottom. And to open a deal is necessary only at their intersection. There should not be any “well, almost crossed” or “I feel they will soon cross”.
Only strict adherence to the rules of the trading strategy and no even small deviations from it.
7. TRADING IS WORK, NOT ENTERTAINMENT
You must have already met this statement in our articles, but it will be useful to repeat it again. Trading is a job. If you came to the foreign exchange market for quick money, you better go to a casino. The result will be the same – you will lose all the money, but a beautiful girl will serve you drinks in the casino.
For successful traders, trading is a business that should give all attention and make every possible effort for its development. What would your business be like if you treated it as entertainment or a source of emotions?
8. ALWAYS BE AWARE OF THE RISKS.
Whatever market you come to – currency, cryptocurrency, binary options – on it, along with potential profit, risks will always be present.
It will not be possible to completely avoid the risk, but your strategy should provide you with their maximum reduction. Strict observance of the rules of money management, which will save you not only money but also nerves, can help in this.
Making a stable profit is the dream of all traders. But not all traders are willing to pay a considerable price for success. There are a lot of climbers in the world, but they have conquered Everest – thousands of times less. And if you want to get into those same unconfirmed 5% of profitable traders, you should attach all possible and impossible efforts to this, and our articles will help you take the first step towards success.
And what reasons for success in trading do you know?