Each day millions of people trade in foreign exchange market. Among this great number of traders there are found ones with high income and those who haven’t yet found the key of trading.
If we draw a back glance at the history of Forex trading we’ll see that becoming a successful trader and making much money online is not something celestial. In our reality there are such persons that due to their incredible success have become vivid examples of how it’s possible to become a millionaire during 24 hours.
Such a famous trader is George Soros who is known as “the man who broke the Bank of England”. He risked $10 billion on a single currency speculation when shorted the British pound. He turned out to be right and amazingly in a single day the trade brought a profit of $1 billion and finally it was reported that his profit on the transaction almost reached $2 billion. According to Soros “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”
Richard Dennis is another trading legend. Thank to him the potential of foreign exchange market became obvious. Dennis’s firm belief is that “traders are made and not born”.
What becomes obvious here is that it’s possible to achieve the highest goals in trading. And the question that is bound to arise here is “How is it possible?”
Firstly, trading should be passed in a relaxed and confident manner. You should develop the ability of quickly scanning the markets and consequently making a confident decision to trade or not to trade.
Secondly, it’s necessary to pay attention on each detail in trade. At first sight it will seem difficult to imagine this; nevertheless the best way of achieving it is the following: it’s quite simple; you break your trading strategy down into smaller pieces. This is actually the “key” to mastering anything in life, if you break things down into smaller pieces, you will have chance to focus more on each piece, rather than try to do too much at one time.
Thirdly, before sitting in front of the charts you should already know what to do. You first decide on what your entry trigger is and then decide how to trade it. There exist quite different combinations of price action setups and all of these setups that you’ve mastered will begin to “paint a picture” of the market for you and you will begin to have clarity and confidence whenever you look at a market’s price movements.
Thus, in order to be one of the most successful currency traders you should be disciplined, and develop an analytical approach to trading. You should stay calm, have a profound knowledge of Forex market, be aware of market changes and be familiar with the techniques and strategies of well known and successful traders.
Guest Post by Anahit Stepanyan of www.ifcmarkets.com