Sunil's Receipe

Sunil's recipe for success.


1.) Decide on the kind of trading that you want to do. Intra day trading, swing trading or long term position trading.


2.) Work out a trading plan....very important. The plan has to incorporate the 3M's of mind, money & method. How much are you going to risk for a trade, when will you enter based on your technical triggers, when should you get out, where should your stops be, what will you do if price goes against you, where would you want to take partial profits.....all of these have to pre-decided before you enter a trade. If you don't have a plan, then you will only follow price in a knee-jerk reaction, which is where most traders lose out.


3.) Keep a fixed target per month. That I am going to increase my account by 5 to 10% a month, or I plan to make 30 pips on every trade etc. Keep it realistic enough to happen.


4.) Accept that you will have losing trades. The market is too big and too unpredictable. Finally trading is a business of probabilities, and your trading plan has to give to the extra edge. Even the professionals consider that getting 5 winning trades out 10 trades taken, is a very good win-loss ratio.


5.) Keep a Risk-to-Reward ratio of at least 1:2. This means that for every risk (stop level) of say 50 points, your profits should be at least 100 points. Hence one winning trade should take care of 2 losing trades, which is what will make your equity grow.


6.) Concentrate more on losses. Always consider the worst case scenarios. And if you accept that losses are inevitable, you have an edge. As they say "Take care of your losses and the profits will come


7.) Remember, making money in forex is not difficult. It's making money consistently which is difficult. And here your personal discipline & patience come into play. You must have the confidence in your system/plan, and you must continue following it, even after a string of losses. It's only when you stick to one plan that you tend to make it perfect.


8.) Under-capitalization in trading is a crime. Start your account with a reasonable amount of money, which would enable you to risk only 2% of your account at any given time, and yet give you enough profits to grow the account.


9.) If you don't have a plan, it simply means that you are gambling & not treating it as a business. Then you should take yourchances in a casino… at least you will have a good time while losing money -:)


10.) If you have a plan & you stick to it, that fact alone puts you in the top 20% of traders.


Finally, it's never easy...especially when your money is on the line. It puts the emotions of fear & greed in the forefront, but it can be done.
Many have done it & so can you.

 

 
 
 
 

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