Currency Trading – 5 Steps To Trading Success

Currency trading is all about trading the right way to achieve currency trading success. It’s a blend of various inputs that will make you successful. Get just one of them wrong and you will lose.

This article is for both novice traders who have never traded before and seasoned traders who want to achieve greater profits.

Here are the 5 steps that will help you achieve the profits you desire.

Get The Right Attitude

You need it from the start in it is that you work smart not hard, and really learn and apply the tools necessary for success.

This means you will not listen to the news consult or follow market Guru’s or chat with anyone about your trading.

You are going to take responsibility for your own currency trading plan and make it a success. No one else can help you, success comes from within.

Trade In Isolation

Once you have done your homework and learned the basics its time to isolate yourself

One of the most important tips to remember is stay away from the news. It looks compelling when you hear all those arguments in favour of a trade, but they won’t help you as the fundamentals cant help you trade!

As all known fundamentals are quickly reflected in the market price, it’s the future that counts in currency trading and more importantly how traders view them.

Get Your Method Ready

You need a simple technical method that does not predict market tops and bottoms but acts on the evidence of confirmation of trends in motion. If you study Dow Theory and a breakout method you have the basics of a method that will work.

Don’t make your trading method complicated just chart analysis and some filters for trades.

Filters that you will find useful are: MACD, Bollinger bands, Stochastics and moving averages and that’s it.

The simpler a method is in currency trading the more likely it is to be a success.

Fact: Most of the successful currency trading systems are simple not complicated.

Catching and riding the big trends

Forget day trading the odds are against you, it’s the big trends you are after that last for months or years. In currency trading never trade the short term noise of the market stick with the big trends that yield the big profits.

You need to have big profits to cover your inevitable losses. With a good long term trading strategy you can lose 70% of the time and still make a lot of money.

Add in the fact that you pay less commission and the odds of success are better and it’s the obvious right way to go in your currency trading.

Leave Your Ego Behind

Being clever does not mean you will succeed in currency trading.

The financial markets attract some of the brightest people in the world and this can be a hindrance not a help. These people often feel that being clever will help them and this leads to a number of problems like:

Trying to devise a system that’s to complicated.

Failing to take loses because they cant accept their wrong.

Chopping and changing their trading methods when in periods of drawdown.

The greatest traders in the world tend to be humble; as they accept the market is always right and only they can be wrong Finally, they also accept they have to lose to win.

Know your Trading edge

Do you know your trading edge? If you don’t, you don’t have one! An edge is a reason that you are going to be in the minority of winners.

There are many ways to win but the top traders tend to have the following traits.

They take control of their destiny, they trade in isolation, they have simple trading methods, they are humble, they have courage and finally, they have focus and discipline.

If you can acquire these traits in your currency trading they will lead you to currency trading success.

Source by Sacha Tarkovsky