1. It must be Your Strategy!
Don't fall for the hype that some junk robot will give you success or a guru or mentor there are plenty sold online with huge profits in simulation but they don't work - no one gives you something for nothing and forex trading is no different.
Even if you have got the forex education from someone else, you must understand it and have confidence in it so you can follow it with discipline - discipline is the key, you must be able to ride out losing periods and wait until you hit a home run.
If you don't have confidence you will never be able to do this make sure you have it.
2. You Must Understand Your Edge
Your trading edge is the reason you will win when 95% of other traders lose and you must have confidence and understand what it is and it must be based on sound logic.
Many people think they have an FX strategy based on sound logic and do the following and lose.
- They try and predict market prices
- They follow bogus scientific theories
- They trade news stories
- They day trade and try and scalp
- They follow experts
All the above will see you lose if you don't know why, continue your forex trading education until you do.
Your trading edge is something that is personal to you and can be based on a simple forex trading strategy you can execute with discipline - that's enough, remember simple systems executed with rigorous discipline work!
3. Play Defence First
When you are trading on leverage you need to trade great defence first and always protect what you have this means rigorous money management rules and money management is much more than placing a stop!
If you don't keep your losses small you will get wiped out - sounds obvious?
Well most traders don't heed it and use leverage of 200 or 300:1 on a few hundred bucks, 10 or 20 is enough.
Forex trading can make you a lot of money but if you expect not to have to work your in for a rude awakening.
Do your homework, get confident and make sure you have the discipline to stick with your FX trading strategy and follow it through drawdown periods, to long term success and the rewards if you can do this are huge.