The best trading system plus tips equals huge profits

Trading Forex is an exciting way to make a lot of money, however, as with all trading opportunities, only a few people succeed. There are many good trading systems offered online today, so why don’t they all make a lot of money? The answer is simple, there is more to trading than using the best trading system.

I have researched the different behavior of those who have maintained a successful trading career and those who have similar trading systems but have not been able to maintain a trading business and have written the tips and strategies that will help you take your trading to the next. level.

This information is not just for beginners, but is important for everyone who trades Forex. I agree that you need the best forex system, unfortunately that is not enough, you should also follow these tips:

Trading tip 1: Money management.

Before anyone starts trading, it is important to understand how the laws of probability work. If you know your system will give you a 60/40 win ratio in the long run (and this is a winning system), your wins could be mixed with your losses, however it could happen that your first 4 out of 10 trades lose, this could compound your first 40 out of 100 losing trades.

How many traders would still have capital and be prepared to win the next 6 or 60 trades? This explains the need to limit your trade to 1% of your equity, this will give you 100 trades before you lose your equity.

Many traders after a losing trade think that doubling up on the next trade is the easiest way to get back on track. This is NOT the answer. Let me explain Lost Principal Recovery. To give an example, if you start with $10,000.00 and lose 20%, you have lost $2000.00, leaving a balance of $8,000.00. At a quick glance, it’s easy to think that you need to get 20% of your equity back and you’ll be even. However, this is not the case. You actually need to earn 25% of your remaining equity ($8000) to be even. As the % loss against original principal increases, the % required to raise also increases. With a loss of 50% of the original principal, $10,000, your remaining principal is $5,000.00 and you need 100% of that remaining principal to get back to $10,000. ($5,000 + $5,000 = $10,000).

Remember that if you have more than one trade open at the same time, even though each may only represent 1% of your capital, your actual risk is 3% (1% + 1% + 1% = 3%). Having a risk management plan will keep you trading and you will be able to rack up some great profits.

Trading advice 2. Psychology and mental skills of trading.

All traders have access to similar information, but only 10-20% are successful and able to make sustained profits. Even knowing that the advice above is not enough, it is up to you, the trader. All winning merchants have the following attributes. Discipline, Patience and Trust. You must have the Discipline to plan your trade ahead of time both where you enter the trade and where you exit it, stay with your system and don’t break the rules of your trade and don’t get emotionally involved with the market and what’s going on .

Trust plays an important role in successful trading. You have to believe in yourself and your ability to analyze the market; otherwise it is too difficult to make the right choice.

It is very tempting to rush into trading, be patient, wait for the system to tell you when to trade and don’t try to make the signals fit your system. Remember that the market is open 6 days a week, 24 hours a day and the time to trade will come. Short-term traders can be very tempted to trade against short trends out of frustration, unfortunately the results are often poor. Trading should be seen as a business with a plan, a goal, and strategies. Use the best system (see below) and remember these tips.

I hope this information helps you become a successful trader.