Honestly and after a too-long journey in forex trading I have discovered some important success factors to succeed in this fluctuating market:
1- Never ever trade without clear, definite stop loss not exceeding 20-30 pip
2- Don’t risk more than 5 % of all capital you have
3- Don’t use leverage more than 1:500 in best-case scenarios.
4- Use the excel sheet to monitor your progression
5- Make a fixed daily target 20 -30 Pips only, once you achieved, then leave the market and enjoy your life.
6- When the price goes up in an extreme way, don’t sell, just wait for indicators to give an oversaturation on 4hr time frame only then go deeper in lower time frames here am using a 5 min chart then take the trade.
7- Both 4 hour and 5 min time frames are the best real figures you can rely on.
8- Don’t watch the screen once you got a trade, otherwise your emotion will destroy the deal.
9- Remember to fail to plan is a plan to fail
10- Dot compares your entry-level with others as they have their own thinking.
11- Reduce your risk at news time
Best of luck
I came here with some proof that I have finally discovered the secret of forex !!
The key factor that transformed my trading was to reduce my position opened when my strategy was not performing well.
I do have a trading system that considers three key time frame (Hourly, Daily and Weekly) accross the 28 currency pairs.
If I opened a buy position on EURUSD based on any of my trade setups and it is still in negative position and my total position opened is still in negative no matter how little, I will not open another position in any currency pair that will either buy EUR or sell USD.
This singular rule transformed my trading, which basically means when my trading setups is doing badly I trade less when it doing better I trade more. They key is too reduce the drawdown experienced.
Sure, money management is the master key here, let me add something here, is to think like money makers not like the herd to be far away from their traps
I know it won’t be easy to accept and please take no offence, but you will need to work more on your rules
Every time I hear that someone had finally discovered the secret of Forex, I am trying to warn that person to be careful. That trading is not that easy, and there is no such thing as the secret of forex. But my experience suggests that people listen only after it gets ugly. Hopefully, this time is different.
