Forex Trading Profitable

Forex Trading Profitable! Nobody is in it to lose money. So, in order to accomplish this seemingly easy goal, the Forex trader must have two things. A Forex plan and a Forex strategy. They are not the same. Although every Forex trader should, and all successful long term traders do, have both, it’s important to know the difference. A Forex plan should include a strategy, but a strategy has nothing to do with your plan. There are other word games that could be played here, but it’s time to move on.

The Forex plan

The Forex plan is what you’re going to do today. Not what you’re going to buy and sell and where you’re going to buy and sell it. It’s more of a behavioral tactic. Have on paper what hours you are going to trade. Note in your plan what Forex pair(s) you’re going to trade. Areas of discipline that are going to be required for the individual should be noted. In other words, some traders are too shy and would like to take a bolder approach; and vice versa. Get it down. Remind yourself to stick to your charts and not let emotions be a hindrance, or worse, a liability. Jot down what is going to make your Forex trading profitable for the day (realism is a key here, keeping in mind that some days are going to be off).

Keep a journal! Include not only the wonderful things you did on any particular day, but also (and more importantly) the areas that you believe need improvement. What made your Forex trading profitable for the day? This is going to serve as your daily checklist and will consistently improve your trading. If you focus on all these things, you’ll become more methodical and less reactionary. There’s no one more self-destructing than a knee-jerk Forex trader. Well, maybe a bad stuntman…but you get the point.

The Forex strategy

Then there is the Forex strategy. Strategies involve things like Elliott Wave Principles; Fibonachi Tools; Bollinger Bands; and other things that would make good names for rock groups. To develop a strategy for yourself, you need to take the time to study the various tools that are out there. The reason these strategies work is because so many people use them. If a lot of people are doing the same thing and getting desired results, who are you to argue? You don’t want to reinvent the wheel, you want to make your Forex trading profitable.

Other parts of strategies involve simple observations. For instance, if you take a look at historical charts of any Forex pair, you’ll notice that when a market breaks after hitting its top it can break hard and fast. However, when the market reverses after hitting a low it rarely goes straight up. It rises in more of a wavy fashion.

Any time you change a strategy, give it a test run in a demo account for a while. You want to keep your Forex trading profitable and the use of a demo account can help with that. A strategy and a plan. Two separate entities of equal value. They take time, thought, and practice. When your trading account increases, you’ll know why you did it.

Forex Trading Profitable