Forex or Commodity online trading is a gift for anyone. Online trading allows you to work from virtually from anywhere in the world. Usually this factor make people lazy and they dont utilize this gift and ends up in loss.
This article will teach you how to become a successful trader in forex or commodity market and what path or hacks you should apply in your life to become a successful trader. Below are some of my recommendations, Lets dive in.
Usually newbies attracts by watching some online videos or blog. They attract when a person shows how much profit he is making by just sitting at home and typing on computer. They just get attracted and open a trading account and starts karate with market. They dont even understand the basic and join the party without any training or practice. Make sure you trade in demo account first to get an idea how market works and trade in demo for at least a month.
Even to my signals subscribers, I recommend them to learn. Technical analysis is not only tool to learn trading. Even if you higher guy like me to give you trading signals, You should learn and read about fundamentals and other aspects of trading. Online trading is too big to just copy paste some signals. You will learn a lot even if you have hired a guy to give you signals or handle your a/c.
Reading is one of the best habit you could obtain from anyone. There are thousands of books you could read to help you in trading. Good financial books train your mind and you take better decision in live markets. This is tried and tested formula you should read more often. I personally read at least 4-5 hours a week. Here are my favorite books for newbies to start with.
1- As a man thinketh and The path of prosperity by James Allen
2- The richest man in babylon by Clason George
3- Rich dad poor dad by Robert T Kiyosaki
If you already read all books and wants more suggestion then post in comment section, I will recommend more books to read. Here are some hacks to keep you alive in market.
Hack 1: Do not go live before demo
I understand the urge to make quick money. But I strongly advised against going live before you are comfortable in demo trading. You should subscribe any signals service and trade in demo account with those signals. This will give you double benefit.
1- You will be checking your signal provider accuracy and this will give you an idea if you could continue subscribing his service in future and risk your hard earned money in trading on his signals.
2- You will come to know how market works and how to put stop loss and target profit in system. ( Read why you should use stop loss in every trade )
Hack 2: Do not trust blindly
When you trade in market you tend to follow someone or subscribe some signal service. Usually they show you how easy to trade in forex market and they are just money printing machine. They might even guarantee you that their signals or strategies are fool proof and you will earn money. They will charge you money for that and ultimately you gonna loose money in this. My advice:
1- Stay away from those schemes which guarantee you about profit. There is no guarantee in market. If they give you guarantee that their signals will give profit 100% i suggest you to run away as fast as possible.
2- Use your mind before getting trapped in such schemes. No one can give you guarantee. Check their past performance closely. They should have losses too in some weeks or months. That is first sign of genuine. If they have loses in some months but overall its profit then you should give it a try.
Hack 3: How to become a successful trader in market
Best hack is to avoid nonsense and train yourself to handle the pressure this market gives. Here are some thumb rules i advise to my clients.
1- Before target profit, Set stop loss in system and do not change it unless your signal provider advised you to do.
2- Maintain military level discipline. Do not indulge in any loose trade.
3- Once you book loss, Forget it. Do not carry your loss with you.
4- Let the trade come to you, Do not trade to kick your adrenaline.
5- Make sure you dont risk more than 2-3% per trade.
6- Do not trade on major events such as Fed policy or any such big announcements.
7- Be realistic, Treat trading like a business. It wont make you rich overnight.
These are some of my trading recommendations and hacks. It will surely help you to come a successful trader. But make sure you dont rush. Just like every other business it would take you years of practice and refinement to become a a successful trader.
Let me know your thoughts in comment section.