Let me start by saying something you may already know. Trading is not easy. It was never meant to be an easy job. Otherwise, we would all be billionaires, and there'd be no excitement from becoming one. I'm often asked, what do I have to do to get rich quickly?
The question you should be asking is, what kind of goals you have to set to become profitable. Having unrealistic goals will lead to overtrading, overleveraging, and, possibly, chasing the market.
If you are being unrealistic, you will end up behaving subjectively, and you might make some irrational decisions. What is likely to happen is you starting to place trade after trade with no good results. To be profitable in 2018, you need to set up goals. When setting up your goals, you have to answer some hard questions and be honest to yourself. Can you make it?
Swimming with Sharks
Imagine the Forex market as an unstoppable shark, and yourself, as a fish. Don't fight the shark; many before you have already tried and failed. Instead of chasing the bigger fish, learn from the mistakes of others.
This will have a very negative impact on both your Forex trading account balance and your psychology. Very soon, you'd exit the market never to be seen trading again. But if you approach the market objectively, you will understand that you are often not in control of bigger developments. Try to follow the trend. Remember, trend is your friend.
Be Focused on Pips
Do you want to profit or to make pips? If you had a $100k account, making $1k per week could be a realistic goal. However, If you had a $10k account, making $1k per week could be a bit harder. It might be doable, but you will be exposing yourself to unnecessary risks. Do you really need that? I don't think so.
You should trade professionally. Minimise your risks and focus on pips.
Trading with Real Money
Practise on a Demo account first. Put the same amount of money you would deposit on the real account. Treat your demo account as if it was a live one. Once you are profitable for at least three months in a row, you might consider going live.
You'll definitely need support from your close family and friends.
Trading might be your new favourite thing to do, and you have to be sure that they've got your back. Approach your career professionally and have savings if you want to trade full-time.
If you're not trading full-time, Forex trading can be a good source of:
- additional income; and
- you might treat is as a part-time job.
Pick a Proven Forex Trading Method
Try to find a Forex system that works. Remember, your goal is to trade live with real money. If there are any issues with your trading method, you have to fix it right away. For full-time trading, you might want to invest in a system that has a proven track record of at least a year. Alternatively, you should watch my Price Action Trading School and learn the crucial things that will help you in trading decisions.
You have to be able to prove yourself that your trading is profitable in the long run. Things will probably get boring once in a while, but boredom is sometimes good. After all, you're here to make money, not experiment.
Keep it simple. Complicated does not equal good. You don't need strategies that are too complicated. You need strategies that are S.M.A.R.T.:
- Sound – define your goal and why it is important to you;
- Measurable – track your trading record to know how far you've gotten;
- Achievable – every win will motivate you to keep going;
- Realistic – starting with small, realistic goals will help build your confidence;
- Time-tested – everything needs time, so be patient.
As a trader, you have to accept the fact that you will have losing trades, losing days, and even losing weeks and months. Losing streaks will happen, especially during high-risk days, such as bid rate announcements, central bank chiefs' conferences, etc.
A proper goal might be to prepare yourself for those bad trades in advance. You can't control the market. Instead of focussing solely on earning a specific amount of money, you need to pay attention to what you can control. Remember that the goal-setting process plays a huge role in setting up your ideal future.
By knowing precisely what you want to achieve, you will be able to have the knowledge and power to concentrate your efforts on the real thing. You should be able to quickly spot the distractions that keep you from meeting your goals. When you set realistic trading goals, you make your path to success more visible.
Why do you trade? Is it for additional income or fun? Maybe, it's because you want some thrill? Have in mind, the Forex market is not a place for gamblers. If you want to rattle your nerves and feel excitement, I would advise against Forex trading.
This is a profession, and you should treat it as such.
When all the questions above have been answered, you need to answer the final question: are you going to trade alone or in a team in 2018? While having a partner may seem like a good way to improve your chances, it is a double-edged sword. Every trader has their own logic and approach.
From my personal experience, it is definitely harder to trade with somebody else, especially if you plan to trade on your own account. It is a bit easier when you are trading with a member of your family. Still, you have to be careful when handling funds in a team.
When you're trading alone, at least you know that every win or loss is on you.
Cheers and safe trading,