He has a monthly readership of , traders and has taught over 20, students. Instead, they treat it like a trip to the casino, and many of them end up behaving like drunk gambling addicts instead of calm and calculating traders. If you want to succeed as a Forex trader, you have to think of it as a serious business, because it is. There are costs to being a Forex trader, just like any other business. Your goal as a trader is to try and bring in more money through revenue winning trades than you have going out through your costs.
If you can do this, you will make a profit. Just as you have costs in any other business, you have costs as a Forex trader. Your costs as a trader are the losing trades you have, the commissions and spreads you pay, computer and other office equipment, etc. No matter how hard you try to avoid losing trades, you are always going to have them, and they are the biggest cost that you have as a Forex trader.
The reality of being a trader is that you will always have losing trades, no matter how hard you try to avoid them, you will have them. These are going to be the primary costs of running your Forex trading business, now there might be others, but these are the biggest ones for most traders. Your goal is to make sure that you make enough money from your winning trades revenue to cover all your costs and then some, so that you make a profit.
Now, there is quite a bit that goes into become a consistently profitable Forex trader. But, I am going to give you a general outline of what I feel is the most important piece of the puzzle of making your Forex trading business profitable. So, there are basically two ways to accomplish this:. What we are essentially talking about here is risk reward. If we aim for a risk reward ratio of 1: But, they understand that by making sure their winners outpace their losers by a substantial margin, they can reduce the burden of having to win a high percentage of the time.
What that means is that you can be wrong more than you are right and still make money in the markets. In other businesses you find a market, you learn a skill or develop a product, and then develop that skill or product until it is better than other people in the same business or niche.
Trading is the same — it is a business — and if you want to be one of the financially secure you will have to work at it, in the exact same manner as an astute business person. In conventional business you have to be patient, focused, disciplined, very committed, hard working, forceful, and in complete control of yourself and in control of your plans.
You can never be reliant on tips or one lucky trade to secure your future, nor can you build a trading business using a mechanical autopilot kind of system. You have to continuously work at it until you have developed a trading strategy, and even when you have developed that strategy, it will require ongoing effort and monitoring.
When you have a set of trading rules that suit you and you are happy with what you have, you need only improve your skills to implement them, this will take much of the stress and anxiety out of trading and it will become enjoyable.
If you want to learn more about an effective trading strategy that you can build a trading plan around for your Forex trading business, checkout my price action Forex trading course. Rule 2 is the Golden Rule for success and I learned it from Nial. I know many good traders kill their trades before achieving 2R and sabotaging the profits.
Nowadays, I aim for 3R in all the trades. You are very right that once you find something that seems to be working you should stick with it. Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.
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Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you.
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How to make your Forex trading business profitable Now, there is quite a bit that goes into become a consistently profitable Forex trader. So, there are basically two ways to accomplish this: How trading differs from other businesses In other businesses you find a market, you learn a skill or develop a product, and then develop that skill or product until it is better than other people in the same business or niche. Checkout Nial's Professional Forex Course here.
Thanks for the info, is very insteresting Reply. Bharat November 4, at 7: Robin sarkar October 29, at Thank you Guru for teaching the important secrets to us. Leave a Comment Cancel reply Your email address will not be published. Recent Popular Comments Nial Fuller. Price Action Trading Patterns: Nial your the best Thank you, Nial and team Always valuable, helps me keep on track I can already imagine myself like a forex traider This is a very good article Great lesson Nial It's always good to go back to A great reminder to check on theMore...