- 10 Golden Rules of Successful Forex Trading
- What’s the difference between winners and losers?
- How to become a winner?
- Change your thinking patterns and set your goals
- A trader’s portrait
- Relying on intuition
10 Golden Rules of Successful Forex Trading
Today more and more people wonder: what is the recipe of successful trading? What is the secret of wealthy people – Forex millionaires?
How can one achieve the best results in trading in the financial markets?
Surely, as in any other matter, there is no simple answer to these questions. However, there are common basics which, as practice shows, are the keystone to the success you are seeking.
Hercules.Finance presents for your attention 10 golden rules of successful trading.
We’ve analyzed the strategies of successful traders – today’s contemporaries – and tried to structure the results of the analysis using simple and easy to understand rules.
We sincerely wish every trader success and believe that these simple but effective principles of trading will help you to achieve your desired results.
Forex Trading – 10 Golden Rules
- 1. Be prepared to accept losses.
- You have to understand that anybody can lose money in the financial markets. Of course, your profit has to exceed your losses. You have to do your best to achieve this balance.
- 2. Trade following a definite plan or strategy.
- Before trading you have to decide the amount of money you wish to trade and what profit you are hoping to achieve? Having achieved the result you want, withdraw your profit immediately. Remember that you will never achieve success if you don’t set certain profit targets. “To make as much money as possible or as luck would have it” is a sure way to lose your original investment.
- 3. Don’t allow greed to overcome you.
- When trading is successful, novice traders often forget about their set targets and erroneously hope that successful trading will go on. We should note that the market and trends can be extremely changeable which is why, after achieving your target results you should immediately withdraw your profit and not harbor any regrets about what ‘might have been’.
- 4. Always close loss-making orders.
- If you see that an open order is undoubtedly loss-making, don’t stay in the market hoping that the trend will change, and the market will turn in your favour. If you suffer losses, close the order immediately and leave the market.
- 5. Cold math and nothing else.
- Learn how to control your emotions. The main reason of the loss-making deals is traders’ excessive emotionality and their unwillingness to follow the opinion of the experienced market players. The world of Forex requires forgetting your emotions: stick to your strategy and for sure don’t forget about stop loss orders.
- 6. Trends are the most important thing.
- Your profit will continuously grow if you follow trends.
- 7. A correct entry point is the basis of success.
- Don’t enter the Forex market just because of a sharp rise or decrease of prices. Always analyze beforehand how you will trade. You need to have a clear understanding of an entry point, profit fixing levels etc.
- 8. Trade without losses.
- Manage to keep the profit you made. Withdraw the profit and close the orders in time without excessive sentiment.
- 9. Knowledge is light.
- Seek to deepen your knowledge: learn analytical reviews, read about world news and analyze graphs. You will never reach the Forex Olympus if you are not in the habit of learning about the intricacies of financial basics.
- 10. Be positive and confident of your luck.
- If you believe that you can achieve the best results, if you have a strong desire to win and you maintain a positive attitude, then you have the tools required for success. Obviously, when you lose, it can be difficult to pull yourself together and start afresh, but just believe that a great many people have overcome these difficulties only to become stronger, wiser and more successful.
As a rule, those who fail blame everything but themselves (but in 99 per cent of all cases the trader is the reason for the loss).
However, those persistent and determined enough to succeed, in the end, achieve the best results.
No one nor anything should make you abandon your goals.
Some circumstances may hinder you for a while, but whether to stop or whether to continue depends solely on you.
Hercules.Finance always meets the needs of its clients and is happy to provide help if they are in difficulty: if you doubt what or which way to trade, or how to make the first steps in the financial markets or how to enhance your results – trust the professionals.
A strong team of analysts, risk managers and customer service staff are always ready to consult with you and offer you the best solutions to your questions.
However, you should remember that the final decision is always yours, and this is good for you: the earlier you start to take responsibility for your decisions, the faster you will achieve success.
And finally, always remember: don’t keep making the same mistake.
Think over the experience and activities of successful traders. Follow simple rules, especially if you are just at the beginning of the road, and you will surely achieve your desired results.
How to become a winner?
There is nothing unusual in searching for alternative ways to make money.
However, we have little idea of what makes people successful.
Yet there is no mystery: success is in a lifestyle.
You may not be born rich but quickly become so due to certain personality traits.
These traits need to be nourished and developed.
To see the world in a different light, you need to change the way you’re looking at it.
Probably some of you had a chance to read an excellent book “Rich Dad Poor Dad” by Robert Kiyosaki.
For those of you who haven’t, there you can find an interesting discussion of different thinking patterns and what comes out of them.
What’s the difference between winners and losers?
Alright, so what makes people successful and what makes them losers?
To find the answer, see the table below:
|Save time and money, invest the earnings||Spend everything to the last penny|
|Reserved in giving tips (less than 10% of the tab)||Leave generous tips (up to 20% of the tab)|
|Always demand discounts||Buy at the offered price|
|Prefer quality to price, their motto is: “We are not rich enough to buy cheap things”||Always pay twice as much due to their stinginess. They look for cheapness, not for quality|
|Never have money on hand, money is always at work||Always have some spare cash|
|Can’t afford spontaneous expensive purchases||Can spend all their money on a whim|
|Make money out of everything||Make money the only way they know|
|Make profitable investments||Make unprofitable investments|
|Control expenses||Never know where their money goes|
|Money is an opportunity||Money is the goal|
|Blame themselves||Blame others|
Change your thinking patterns and set your goals
Remember, no one is asking you to become someone you’re not.
Also, you should not concern yourself with successes of other people.
To avoid unnecessary expenses that may exhaust even the deepest pocket, follow these rules:
- Try to avoid the company of people that make you splurge out (in order feel accepted)
- Before buying anything, think: do you really need it? Common fact: small expenses are the main contributor to the middle class poverty.
- Set clear goals and try to reach them the best you can
We, at Hercules Finance cares about each and every client and strives to offer financial freedom to anyone seeking it.
We’ve developed a line of high-quality services designed specifically for your needs.
We provide opportunities to make money.
However to become really successful and rich, there are a few things that money can’t buy.
Only you can change your thinking patterns and set your goals.
It’s time to stop listening to the success stories of other people. Spring into action and make your dreams a reality.
Is Forex trading a profession or vocation?
Ask any Forex market participant if he thinks he is a trader?
You are unlikely to get a clear-cut answer. So, just who is a trader?
Is it somebody who lives for the sake of trading and for whom it is the main source of income or anyone who participates in trading?
Let us consider this question carefully.
Broadly speaking, there are two types of traders: professionals and amateurs.
Professionals and Amateurs of Forex trading
The first ones are those who have a corresponding education, as a rule, an economic one.
They work in different financial institutions: banks, think-tank centers, broker companies, etc.
Professionals generally work for themselves and their main source of income is the profit obtained as a result of successful trading activities.
The second group, the group of amateurs, is mixed: it includes all those who are not professionals but who are trying to become so.
Here you can find people of different professions and interests.
As a rule, trading is not their main source of income, but they are interested in trading and desire to succeed in it.
The core business of amateur traders is not related to finance, and trading in the Forex market is often little more than a hobby.
They enjoy the process of trading itself as a leisure activity and don’t have a target of attaining a specific profit.
For many traders, trading is a cherished way of increasing their savings fast.
This is the reason why so many novice traders come to this business.
Unfortunately, there are many traders who end up frustrated.
These people leave the market without achieving their desired results.
However, one should understand that it’s impossible to succeed in trading in the financial markets without the required skills and knowledge.
A trader’s portrait
As a rule, a trader is an all-round personality having broad-based knowledge.
This person can draw accurate conclusions even out of loss-making deals.
A true trader always controls his emotions and refines his trading abilities, he self-educates and analyzes strategies.
He always sticks to the rules which he sets for himself and is self-disciplined. Being a trader is a vocation for life.
What you should know about the world of traders
To novice traders, it seems that trading in the Forex market is a simple yet fascinating game.
This is a common misperception nowadays.
It is important to remember that the world of Forex doesn’t tolerate disorderliness, negligence and idleness.
A trader must be attentive to the utmost and adaptable to any changes.
He must be able to take into account any small details and nuances taking place in the world economy.
Not everybody has the sensibility required to deal in the market.
Trading in the Forex market, as many other fields, requires a lot of energy and practice.
Then, over time it will, hopefully bring to the trader the satisfaction and success he desires.
In the absence of these qualities, a trader may only occasionally return a profit and so most likely will not become a regular trader.
All professional traders are trying to overcome fear, greed and other temptations.
Most experienced traders recognize this truth.
It may seem hard to believe but the emotional aspect of trading is sometimes so pervasive that traders are liable to serious psychological and physical stresses that can result in them forfeiting both money and health.
In this case there are trading systems that can be helpful to traders.
What can help a trader?
A mechanical trading system can help you to keep in shape emotionally as it never hesitates at closing loss-making orders.
In many cases this approach allows the trader to carry on profitable trading without any unnecessary emotional distress.
The main task of the trader using mechanical trading systems is to keep the system working properly.
On our website, you can find a description of different strategies using this system.
This might be what you need.
Many traders and many minds in search of the best strategy…
Every market participant has his own vision of trading and ways to increase capital.
All traders can be conventionally divided into four groups using different methods of market analysis.
Adherents of fundamental analysis
Fundamental analysis is one of the most difficult kinds of analysis which, as a rule, is preferred by people who have an analytical mind.
To become successful, you need to analyze a large amount of information: the impact of world economic processes (news of global importance, various political coups, and civil disorders, etc.) on future price changes.
Traders closely monitor latest news releases and reports which detail any significant changes in world conditions.
Adherents of technical analysis
Traders who prefer technical analysis use different technical indicators such as wave and candlestick analysis, various patterns, methods of artificial intelligence, etc.
It is probably true that most traders prefer technical analysis, and this is not surprising because, due to the large amount of training guides available, it is not too difficult to master all these methods and to start successful trading.
There’s a belief that the market runs in repeated cycles, and as a consequence, price behavior can be predicted based on movements in the past.
Many online Forex brokers also offer its clients the most convenient and easy-to-use training guides to aid you in achieving a successful outcome to your trading.
Those using their own methods of analysis
Some people prefer to adopt their own methods based on a variate method or on the theory of probability.
These traders, as a rule, use one of Martingale systems (doubling the bets after loss in the hope that the market will bounce back, and there will be profit in any case).
Normaly, an online Forex broker offers the possibility of trading on the MT4 platforms.
Even if you want to add a function to the MT4 terminal, there is a possibility to do this with the MQL4 programming language and in such a way to enhance your trading results.
Relying on intuition
People who rely on their intuition do not use any special methods of analysis.
As a rule, these people are professional traders having solid experience in trading in the financial markets who can just look at graphs and understand a complex situation in the market and anticipate price behavior.
These people don’t have any transcendent capacities; this is the result of every day hard working.
For sure, they use some methods of analysis, but they do it automatically, or intuitively, proving they deserve their status as ‘professionals’.
One should remember that this division of traders into different groups is quite conventional and perhaps even subjective as many traders use several methods together.
Traders are in search of their own unique and individual way to success and many such traders utilise several trading systems simultaneously.
This enables them to cover losses from trading using one system on the account with the profit from another one.
In conclusion we would like to note that in order to become a trader you need just two things: a computer and desire to make money.
Hercules.Finance will open the door to the world of unlimited financial possibilities to all who want to master this unique business.
We believe in our clients’ success and do whatever is possible to unlock the internal potential of every trader to the utmost.