The standard course of a beginner forex trader for profits

In forex trading, the statistic that often comes out is that 90% of speculators (individuals) are not winners. These traders remain in the same phase and do not evolve, are not informed or do not accept to take the paths that lead to success, or the path of formation. Other traders, those who give themselves the means to be successful and who consider forex trading as a real business, will learn how to do this business correctly. Gradually, traders who decide to learn the basics of forex trading will be able to move from losses, to break even, before reaching a slight profit and over time will develop their method so as to benefit greatly from the financial markets. Here is how we summarize below, the standard evolution of a trader who wants to make profits and who will do everything to achieve his final goals.

To neglect

When a trader is new to forex trading, he tends to start getting distracted. Not paying too much attention to stoploss for example or the percentage of risk not to trade is very common among beginners and this is what usually explains why they lose money when they start. Some traders tend to set a stoploss but manually cancel it when the price approaches, so this lowers the risk-reward ratio and makes it mediocre, so many trades result in excessive financial losses which wipe out some profits generated. As a result of this type of behavior, it is not uncommon for a beginner to proceed with a trading account burnout.

Awareness and error correction

We can say that it is the second phase of the evolution of a trader. After losing money, he is aware of the trading mistakes he made and how to avoid them, especially after he has optimized his trading plan and his trading strategy. When the trader becomes aware and begins to perceive how profitable in this speculative activity on the financial markets that he is trading, then he generally makes a lot of profitable trades but also a lot of small losses or break-even positions. Its forex trading earnings curve is slightly positive and is starting to rise.

The strategic trader with a mind of steel

The trader realized that achieving success in forex trading means minimizing losses. He understands that even for the best trader in the world, losses are inevitable and it is hardly possible to get 100% winning trades. While minimizing his losses, the trader maximizes his profits and thus uses the risk-reward ratio like a pro. He knows how to make his profits run and quickly cut positions that do not evolve to his advantage. In this phase of his development, the trader develops the psychology and mentality of a winning trader, knows the financial markets perfectly and has full confidence in his methodology. The trader is experienced enough to follow the rules that make up his trading plan to the letter and also knows how to stay out of the market when conditions don’t lend themselves to his plan of action.

Trading is a real struggle where only sharks survive and you can learn how to become a shark. We cannot improvise and hope in forex trading because by doing so we will never make money in the markets in a sustainable way. You need to know how to train in trading, develop an intelligent and serious methodology and then hire it. This is how we will be able to grow our investment in a forex broker over time and that we will end up not being able to generate additional income thanks to it and, in the best case, live on forex trading.

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