How to become a successful forex trader
When you first start finding out about forex trading, you will hear a lot about how to not risk everything and rely on the forex mechanical trading system. This sounds great right? But you would be wrong! The truth is that 95% of trades are not risk free!
Yes, there are pros and cons to each approach. But the vast majority of trades are not worth risking your own capital.
The only way to succeed is to rely on others and learn to trust them more than yourself.
Forex Trading What Is It
At the least, you can learn to not rely on them so much that they are no longer useful in the future. Another common reason many people lose their capital is due to insufficient trading capital. This is where a trading capital requirement arises.
It used to be that you needed a minimum capital of 10% of your capital to be successful. But with the advent of online trading, this has changed and the requirement to increase to 20% has occurred. Now it is simply a requirement that you have a minimum capital of 25% to be successful. This greatly increases the risk when trading online and increases the risk when trading stocks online.
A further risk factor is the high level of complexity in the trading system.
This factor should not be underestimated. A simple computer program can be hacked and can easily be programmed to make trades for you if you do not follow the system correctly. A good example of this can be seen in the “how” of trading.
Many ways to trade including how the MACD works, the variance between a stock’s price and its underlying shares, and the spread between these two prices.
All of these factors can be programmed to make trading decisions for you depending on which set of rules you choose to apply. Once you have chosen your trading strategy and have implemented it, you will see a “smart” contract scanner which will scan through the various contracts and scan you for suitable trades.
This is a great way to get “edge” in your trade if it goes against you.
You will need to ensure you understand and abide by the terms and conditions of your edge contract before you even think about applying the trade against you. For example, if an edge contract states that if a specific trade turns against you, you will pay a certain premium to the platform if the trade is turned in correctly. If the market turns against you, you will not receive any premium from the platform. If, however, the market turns in the opposite direction (up), you will receive a very large premium from the platform.
Edge agents are available through some brokers for a small monthly deposit. You are able to withdraw your initial deposit at any time and cancel your edge contract immediately.
Having said that, edge contracts are not able to guarantee you success in your trade against you. They are only able to manage your edge position against you. To prove yourself right with your edge contract, you must perform experiments with the smart contract scanner to see how it performs. Most edge contracts are very simple to program and test.
You just need to know how to read and write contract language, calculate the spread between you and your edge contract, and execute the trade.