Winning on the forex is not that complicated: the rules to follow are so simple that they sometimes seem simplistic and that many traders do not follow them. In addition, the psychological aspect (intuitions, compulsive trading, order placement without strategy, etc.) is certainly the point that forex traders should work but which is too often overlooked in favour of the technique.
Choose a trading strategy
Follow it. The problem of losing forex traders often comes from the fact that they do not have a strategy or that they do not follow to the letter the roadmap they have made for themselves. This can lead for example to shift stops, to place orders in the opposite direction to the trend on a whim, to place orders biased according to the mood of the moment, etc. Stick to the plan, no matter what. In case of spread betting this comes perfect now.
Have clear and realistic objectives
Why do you have a forex account? To improve your performance, to make a living from trading, to build up additional income? Your strategy and available capital must match your goals. It is perfectly unrealistic to want to live on trading with € 1,000, and yet some people try to achieve it before toasting their account in a few trades.
Choose a good broker
Your broker must be approved by the AMF. You can then compare the spreads to choose the one that is the most competitive. Do not rely too much on online comparators who are often biased. The platform must suit you, be easy to access and ergonomic: it is advisable to open several demo accounts before committing.
Agree not to win every time
It is possible to win on the forex by having less than 50% of winning trades. Only if when you open a position the expectation of gain is systematically higher than the potential loss. Be sure to open positions only when the gain / loss ratio is in your favour.
Focus on the method and not on the result
The most important thing is to follow the method and avoid trading with your emotions. Whatever the outcome of the trade, a successful trade is an order placed in accordance with your strategy and a bad trade (even if it ended in a gain) is that which was passed under an impulse. Satisfaction must come from compliance with the trading plan, not the result of an order.
Keep a trading log
Nothing like progressing than a trading journal in which you can note your past orders, the outcome of the trade, whether you have followed the strategy or not. The goal is above all to be able to analyse the losing trades in order to understand why they did not make any money. It is also a way to reaffirm your commitment to follow a particular strategy.
Don’t give in to the temptation of overtrading
Opening several positions at the same time is tempting: we think that it will be possible to earn more. The problem is that the currency pairs and the commodities are all more or less correlated, so there is a good bet that if you lose on one side, you will also lose on the other. Not keeping enough margin is the best way to melt down your capital in no time.