Forex trading is accessible, exciting, and educational and provides traders with a lot of opportunities, despite all this many traders fail to learn how to become successful traders, and do not actually achieve good results in this market, a high percentage of forex traders lose money. Learning to trade forex and learning how to trade in general can be challenging, which is why we created this article for you.

The first thing you need to do when it comes to forex trading is to understand what you want to achieve, and how you define success. What do you want to achieve?

In deciding what you want to be realistic, set yourself a realistic and measurable goal. This could be something like: achieve an annual return on investment of 20%, earn $ 5,000 in profit, or get a total of 100 points a month or something. similar.

Whatever you decide your goal should be easy to measure, what’s also important is setting a goal that can be achieved over a long period of time – it is recommended to set an annual goal to achieve rather than a monthly goal.

Once you have defined your main business goal for the year, and it is time to start learning how to achieve it, the best approach is to identify the resources available to you.

This may include the size of the deposit, the amount of time you are willing to spend on trading, and the amount of available funds that you are willing to spend on matters related to trading (software etc.).

Once you have a clear vision here, it is time to put together a business plan. This business plan should include the currency pairs you plan to trade and the number of trades you will stick to.

This can be a little overwhelming for new traders, so the good news is that in this article we share our top 10 tips to help you become a successful trader.

10 Steps for Beginners to Become a Forex Trading Trader
1: Set expectations aside
Problems arise when new traders become obsessed with chasing profits, and this concern can lead to mistakes that cause losses.

So the first rule to becoming a trader is forgetting unrealistic goals and objectives. In general, most seasoned traders focus on one idea: “Earn the money you need and don’t stress about earning more.”

2: Define your trading risk profile
Before making any substantial commitments, get a good understanding of the fundamental aspects of the market, evaluate your equity, read testimonials from traders so you have realistic expectations of returns, and research the markets and currency pairs you are interested in.

But keep in mind the following:

Invest only what you can afford to lose without affecting your standard of living.

To diversify your investment, it is recommended that you do not invest more than 20% of your total mutual funds in any market.

What is your risk profile: Moderate? aggressive? discreet?

Prepare to lose. If you want to keep trying after a series of bad trades, the forex market is yours!

3: Choose a forex trading strategy
Once you have chosen to become a trader, the next step is to come up with a general strategy, there is no right or wrong way to trade, what really matters is deciding which strategy you will use in different situations.

Sometimes you will see that one trading strategy works well for a currency pair in a particular market, while another is more suitable for the same pair in a different market, or in other market conditions.

To become a successful forex trader, try to focus on aligning your online trading strategy with your risk profile.

4: Put your feelings aside
To become a successful trader, you must understand the mechanics of forex, have confidence in your analysis, and follow the rules and strategy that you set.

This is the ultimate key to reaping the benefits of forex, emotions can ruin a trader’s experience, so it is imperative to leave it aside and not engage her in trading.

One of the best ways to prepare yourself for trading emotions is to test your skills on a free demo account.

5: Set a Stop Loss and Take Profit order
Regardless of your trading strategy, you should always place a stop loss order, this type of order allows you to set the closing price for your trade.

Your position will close once it reaches this level, even when you are not there, in other words, setting a stop loss gives you peace of mind by not losing more than the limit you set.

Take profit is the most used command in the forex market, this order allows a trader to close a position automatically when prices reach a predetermined level.

6: Keeping up with the markets
How do you become a successful trader? Keeping up with market news is vital, many market moves are driven by news, central bank announcements, political events, or any anticipation of them. This is called fundamental trading.

Even if you are a technical trader, anyone who makes trades based on graphical analysis of a market instrument, you still need to pay close attention to the fundamentals, as such events are a major factor in market movements.

7: Avoid going overboard
Excessive selling is the result of seeing opportunities to make money in forex as there are no opportunities, some people who want to become traders look for opportunities to reach their goal, but on many occasions they may or may not realize that they are deluding themselves, and this wishful thinking puts their money at risk. .

There are two common types of Forex overtrading:

Trade a lot
The trade is very large.
Trading frequently, outside of speculative strategies, is a sure way to lose more money than you can achieve.

8: Accept that you lose in the end
Every trader wants to be successful, in fact “success” does not mean that you always win on every trade, but the average in all of your trades ends with a positive balance.

Forex trading
It is simply impossible to close every one of your trades with profits, some professional traders may be consistently profitable on a daily basis, but none of them can show me